Mortgages in Spain for Foreign Buyers
Last updated: November 2026 Buying a holiday home in Spain? Foreign buyers may be able to finance part of the purchase with a Spanish mortgage. The amount available will depend on the bank’s assessment of your finances and the property. If you are considering a new-build or off-plan home, it also helps to understand how much you will need upfront and when payments are due. Here is what to consider before choosing a property. How Much Can Foreign Buyers Borrow in Spain? Spanish banks use the loan-to-value ratio (LTV) to express how much they are willing to lend against a property’s value. For non-residents, financing is typically around 60–70% of the property’s value. The final amount depends on the lender, your income, existing financial commitments and the bank’s valuation. For example, if you buy an apartment for €300,000 excluding VAT and the bank finances 70% of its value, you could borrow €210,000. You would need to cover the remaining €90,000 from your own funds or another source of financing. How Much Money Do You Need to Buy a New-Build Property? The deposit is only part of your budget. When buying a newly built home directly from a developer, you generally pay 10% VAT (IVA), as well as stamp duty (AJD), which varies by region. Legal fees and other purchase-related expenses should also be considered. These typically amount to around 2–2.5% of the purchase price. At Zentima, we help buyers understand the full cost before they commit. We prepare a breakdown of the associated costs and, together with our mortgage partner, estimate how much of the purchase you would need to finance from your own funds. What Mortgage Interest Rates Are Available in Spain? Spanish banks offer fixed-rate, variable-rate and mixed-rate mortgages. For non-resident buyers, indicative interest rates generally range from around 2.4% to 3.75% per year. The rate offered depends on the bank, loan conditions, your income, the amount borrowed and the repayment period. When comparing offers, look beyond the headline rate and check the overall cost, fees and any conditions attached to the loan. How Does Your Age Affect the Mortgage Term? Banks set their own lending criteria, but many require the mortgage to be fully repaid by the time the borrower reaches 70–75 years of age. If you apply later in life, the bank may offer a shorter repayment term, which could mean higher monthly payments. Buying as an Individual or Through a Company Financing a property as an individual differs from buying through a company. Banks assess each application according to the relevant circumstances. Applying as an Individual The bank will look at your income and its stability, existing loans, regular expenses and ability to repay. Employees will generally need proof of income, employment documents and bank statements. If you are self-employed or run a business, the bank may ask for previous tax returns, financial statements and bank records. Requirements vary by bank and income source. Applying Through a Company Company financing may also be possible. The bank will assess the company’s financial health, business performance and ability to repay. It may request financial statements, tax returns and supporting documents, and depending on the loan structure, a personal guarantee from the owner. Can You Use an Existing Property to Finance a Purchase in Spain? A Spanish mortgage is not the only option. If you own a property in your home country, you may be able to use it as security for a loan and put the funds toward a purchase in Spain. Depending on the country and lender, this may be a non-purpose mortgage or a similar property-backed loan. Unlike a standard purchase mortgage, the funds are not necessarily tied to a specific property. Compare the interest rate, maximum loan amount, term and fees, and consider the risk of using your existing property as collateral. Check with your bank that the loan can be used to buy abroad. How Does Financing Work for Off-Plan Property in Spain? When buying before construction is complete, pay close attention to the developer’s payment schedule. Buyers are often required to make an initial down payment of around 30% of the purchase price, plus VAT. This usually needs to come from your own funds, even if you plan to finance the remaining balance with a mortgage. Further installments are paid during construction according to the agreed schedule. Before reserving a property, check each amount and due date, and make sure the schedule fits the mortgage approval process and timing of the loan disbursement. Questions to Ask Before Choosing a Property How much can you borrow? Ask what a bank may offer based on your income, financial commitments and the property. How much will you need to contribute? Work out your share of the purchase price, taxes, fees and associated costs. What mortgage terms are available? Compare interest rates, repayment periods and other lending conditions. Which documents will you need? Check the bank’s requirements and how long approval is likely to take. Are there other financing options? If you own a home, ask whether it could be used as security for a loan to buy in Spain. Plan Your Financing Before You Reserve Exploring your financing options early can help you focus on properties that fit your budget. For an off-plan home, make sure you can cover the payments due during construction as well as the final balance. Zentima can help you understand the purchase costs and discuss your options with our mortgage partner.