Spanish banks actively lend to foreign buyers, and rates are competitive by European standards. But the criteria differ from home, and buyers who prepare their file before offering negotiate from a far stronger position.
How much will a bank lend?
- Non-residents: typically up to 60–70% of the bank valuation or purchase price (whichever is lower).
- Spanish tax residents: up to 80%.
- Terms usually run to age 70–75 at maturity, with 20–25 year terms common.
The key affordability rule: all of your debt payments worldwide — including the new Spanish mortgage — should not exceed roughly 30–35% of your net monthly income.
The documents banks ask for
- Passport and NIE
- Last 3–6 months of payslips and bank statements
- Most recent tax return(s) from your home country
- A credit report from your home country
- For business owners: company accounts for the last two years
Documents usually need official translation; a good broker or your lawyer handles this.
Fixed, variable or mixed?
Most foreign buyers choose fixed rates for certainty across a 20–25 year term. Variable loans track Euribor plus a margin, and mixed products fix the first 5–10 years. Since the 2019 mortgage law, the bank pays the mortgage stamp duty and most setup costs — your main costs are the valuation (€300–€600) and any arrangement fee.
Get approved before you offer
A pre-approval letter costs nothing, takes one to two weeks, and transforms your negotiating position — sellers treat a pre-approved buyer almost like a cash buyer. It also stops you falling in love with homes a bank will not support.
Want introductions to non-resident mortgage specialists? Get in touch — we will connect you with brokers who work in your language and know these banks well.
