Buying a property in Spain is a major milestone—but before you fall in love with the perfect villa or apartment, it's essential to understand how financing works. The good news? Spanish banks actively lend to foreign buyers, offering competitive products with straightforward requirements.
Mortgage Options in Spain
Spain offers a wide range of mortgage products for both residents and non-residents. The main differences relate to interest rates, loan-to-value limits, and documentation requirements.
Types of Mortgages Available
Mortgage Eligibility Requirements
Foreign buyers can access Spanish mortgages, but banks assess financial stability carefully. The application process typically takes 3-4 weeks, and approval is based on your overall financial picture.
Lenders typically allow a maximum 35-40% debt-to-income ratio including your new Spanish mortgage. This means your total monthly debt payments (including the new mortgage) should not exceed 35-40% of your monthly income.
Mortgage-Related Costs
Beyond the loan itself, applying for a Spanish mortgage involves several additional expenses. These vary by bank but are fairly standard across the market.
Total Buying Costs
Beyond the mortgage, buyers should budget 10-14% extra for taxes, fees, and transaction costs. The exact amount depends on whether you're buying a resale property or new build, and which region you're purchasing in. For a complete breakdown of all taxes, fees, and costs—including ITP, VAT, notary fees, and annual ownership costs—see our dedicated guide.
Currency Exchange Considerations
For buyers purchasing with non-euro currencies (GBP, USD, NOK, SEK, etc.), exchange rates can significantly affect the final purchase cost. A 5% rate movement on a €300,000 property means €15,000 difference.
Many investors use currency forward contracts to lock rates and protect themselves from fluctuations, often saving thousands during the buying process. Consider opening an account with a currency specialist early in your search.
Mortgage vs. Cash: Which Is Right for You?
Both approaches have advantages. The right choice depends on your financial situation, investment goals, and personal preferences.
Many buyers use a hybrid approach: a smaller mortgage than they could qualify for, preserving some capital while still benefiting from leverage. This provides flexibility without over-extending.
Planning Your Budget
To buy comfortably in Spain as a non-resident, plan for these key amounts:
Creating a clear budget early ensures a stress-free buying experience and prevents surprises at completion. Use our calculators to model different scenarios and find the right balance for your situation.
Ready to Start?
With competitive mortgage options, clear processes, and strong legal protections, Spain remains one of Europe's most attractive property markets for foreign buyers. Understanding your financing options is the first step to a successful purchase.