For many international investors, financing a property in Spain through a mortgage is an effective way to boost returns, protect liquidity, and build a scalable buy-to-let portfolio. But the mortgage process for non-residents is not the same as it is for local buyers.
If you’re considering investing in Spanish property and plan to use financing, this guide will walk you through everything you need to know—from eligibility and bank requirements to interest rates, down payments, and the best strategies for maximizing approval and minimizing costs.
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1. Can Foreigners Get a Mortgage in Spain?
Yes. Spain allows non-residents and foreign nationals to obtain mortgages from Spanish banks to purchase property in the country. However, the terms and conditions are generally more conservative than those offered to residents.
There are two broad borrower categories:
- Non-residents: individuals who live outside of Spain for more than 183 days per year
- Residents: foreigners who reside in Spain and file tax returns locally
As a non-resident, you’ll typically need to provide more documentation, offer a higher down payment, and accept slightly higher interest rates—but mortgage approval is entirely feasible with the right preparation.
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2. Typical Mortgage Terms for Non-Residents
While terms vary by bank, here’s what most foreign investors can expect:
| Mortgage Factor | Typical Range for Non-Residents |
|---|---|
| Loan-to-Value (LTV) | 60% – 70% of property value |
| Down Payment | 30% – 40% of property price (plus taxes) |
| Interest Rate (2024–2025) | 3.5% – 5.5% (fixed or variable) |
| Loan Term | Up to 20–25 years (sometimes 30 years) |
| Currency | Euro (€) |
| Repayment Type | Amortizing (interest + principal monthly) |
Note: Mortgages are typically based on the lower of the purchase price or bank valuation.
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3. What Documents Do You Need?
To apply for a mortgage in Spain as a non-resident, you’ll need to provide:
- Valid passport or national ID
- Foreigner Identification Number (NIE)
- Proof of income (last 3–6 months of payslips or invoices)
- Recent tax returns (typically last 2 years)
- Bank statements (last 6–12 months)
- Employment contract or business documentation (if self-employed)
- Credit report from your home country (in some cases)
- Pre-purchase agreement or reservation contract for the property
All documentation should be translated into Spanish (certified) if not in English or Spanish.
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4. Can You Get a Mortgage Without Living in Spain?
Yes. Many foreign investors obtain financing without residing in Spain, especially when working with banks that specialize in non-resident mortgages.
Most of the process can be handled remotely through:
- Power of attorney (POA) for legal representation
- Digital communication with your mortgage broker or bank
- Pre-approval before visiting Spain for property visits or notary signature
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5. Which Banks Offer Mortgages to Foreign Investors?
Several Spanish banks actively lend to non-residents. The most investor-friendly options include:
- Banco Sabadell: Strong focus on international clients, English-speaking support
- CaixaBank: Offers fixed and variable mortgage options for non-residents
- Banco Santander: Competitive rates and global reach
- Bankinter: Offers tailored solutions to EU and non-EU residents
- UCI (Unión de Créditos Inmobiliarios): Specializes in expat financing
- Banca March, BBVA, and EVO Banco: May offer tailored solutions depending on your profile
Many investors also use mortgage brokers who specialize in foreign investor financing. These brokers help compare offers, collect documentation, and negotiate better terms.
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6. Fixed vs. Variable Interest Rates: What Should You Choose?
In 2025, fixed-rate mortgages are more common among foreign investors due to recent rate volatility and the desire for predictable monthly payments.
- Fixed Rate: You pay the same interest rate for the duration of the loan. Ideal for long-term planning and stable cash flow.
- Variable Rate: Usually tied to the Euribor. Starts lower but may rise over time.
💡 Tip: Most non-resident investors opt for fixed-rate mortgages to avoid currency and interest rate risk.
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7. Taxes and Fees to Consider When Getting a Mortgage
Beyond your down payment, be sure to budget for the following transaction costs:
- Property Transfer Tax (ITP): 6–10% depending on the region
- Notary Fees: €600 – €1,000
- Land Registry Fees: ~0.5% of property value
- Bank Opening Fees: 0.5% – 1% of loan amount (may vary)
- Legal Fees (optional but recommended): €1,000 – €2,000
- Mortgage Arrangement Fee: Often included in bank fees or broker charges
On average, expect total costs of 10% – 13% of the purchase price in taxes and fees, in addition to your down payment.
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8. Tips for Getting Approved
To improve your chances of securing a mortgage as a foreign investor:
- Maintain a low debt-to-income ratio (<35%)
- Keep credit usage and financial accounts transparent
- Provide all documentation clearly and professionally
- Avoid over-leveraging (i.e. don’t push for 70% LTV unless justified)
- Work with an independent mortgage broker familiar with your nationality and profile
- Have a clear rental strategy and property valuation prepared
Banks prefer clients who demonstrate income stability and long-term capacity to repay.
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9. Should You Use a Spanish Company (SL) to Finance?
If you plan to purchase multiple properties or scale a portfolio, consider buying through a Spanish company (Sociedad Limitada, or SL). Benefits may include:
- Tax deductions on expenses
- Clear separation of personal and investment assets
- More favorable treatment of certain costs and ownership transitions
However, financing as an SL can be more complex and may limit bank options. Discuss this with a tax advisor before committing.
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✅ Need Help Structuring Your Investment with Financing?
In our Investment Strategy Session, we help foreign investors:
- Evaluate the best way to finance their Spanish property
- Compare banks, rates, and terms for non-resident profiles
- Understand all tax and legal implications of using debt
- Decide between personal and corporate ownership
- Create a financing roadmap tailored to your property strategy
💶 Price: €500
📅 Duration: 60 minutes
🎯 Outcome: Clarity, expert guidance, and a plan to finance your Spanish investment with confidence
👉 Book your Investment Strategy Session here
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Conclusion
Securing a mortgage in Spain as a foreign investor is entirely possible—and in many cases, a smart way to scale your buy-to-let investments. While the process is more documentation-intensive than in your home country, the availability of competitive rates, dedicated international banking teams, and legal support makes Spain one of the most accessible European markets for real estate financing.
With the right preparation, financing your property in Spain can be a powerful step toward building a profitable and sustainable investment portfolio.