Spanish Mortgages for Foreigners: The 2026 Basics

Spanish banks do lend to foreigners, including people who don't live in Spain. The terms are usually more conservative than for residents, and the process is tightly regulated by the 2019 mortgage law (Ley 5/2019). This guide explains what to expect: how much deposit you'll need, which documents to gather, how to choose between fixed and variable rates, and why currency risk matters if you earn in pounds, kronor or another currency.

> This is general information, and bank criteria change frequently. Before you sign anything, speak to an independent mortgage adviser, a lawyer (abogado) or a tax adviser (asesor fiscal).

Resident or non-resident?

Lenders care mainly about where you live and pay tax, not your passport.

• Non-residents (you live and work abroad and buy a holiday home): banks typically lend around 60–70 % of the property value. The rest, plus purchase costs, comes from your own funds.
• Residents with Spanish income: usually up to around 80 %, occasionally more.

The percentage is normally applied to the lower of the purchase price and the bank's valuation (tasación). If the valuation comes in below the price, you'll need a bigger deposit.

As a non-resident, plan to have roughly 40–45 % of the price in cash: a 30–40 % deposit plus around 10–14 % for taxes and fees (see our guide to property buying costs in Spain).

Other typical parameters (indicative, they vary by bank):

• terms for non-residents often up to 20–25 years, sometimes longer for residents;
• maximum age at the end of the loan usually around 70–75;
• total debt repayments ideally no more than about 30–40 % of net monthly income.

Documents you'll need

Every bank has its own list, but an employed non-resident can expect to provide:

1. passport and NIE number (see our guide to the NIE number);
2. tax returns for the last one or two years (in the UK, for example, SA302s or P60s);
3. recent payslips and an employment contract or letter;
4. if self-employed: company accounts and proof of tax paid;
5. bank statements for roughly the last six months;
6. a credit report from your home country and details of existing loans;
7. property documents: reservation or arras contract, nota simple.

Many banks ask for Spanish translations, sometimes official ones. You'll also need a Spanish bank account, as the loan and repayments run in euros.

The valuation (tasación)

Before approval, the property is valued by an independent firm approved by the Banco de España. You pay for it — usually around €300–600. The law allows you to provide your own valid valuation from an approved firm, and the bank cannot reject it simply because it didn't commission it.

Fixed, variable or mixed?

• Fixed rate (tipo fijo) — the same rate for the whole term, which can be 20 or 30 years. Predictable, though often a little dearer at the start.
• Variable rate (tipo variable) — Euribor (usually the 12-month rate) plus the bank's margin (diferencial), typically reviewed every 6 or 12 months. Euribor can move significantly, so check its current level and recent history.
• Mixed rate (tipo mixto) — fixed for the first few years, then Euribor plus margin.

There's no single right answer. Ask yourself: could I comfortably pay if the instalment rose by 20–30 %? If not, lean towards fixed or mixed.

What the mortgage costs you

Since 2019 the lender pays the notary for the mortgage deed, registration of the mortgage, the gestoría and the stamp duty on the loan. You typically pay:

• the tasación;
• any arrangement fee (comisión de apertura) — some banks charge none;
• insurance (see below);
• a broker's fee, if you use one;
• translations and any extra copies of deeds you request.

The law also caps early repayment fees: on variable loans they are small and apply only in the early years; on fixed loans they can reach around 2 % of the amount repaid. Check this in the offer.

Insurance and "bundled" products

Buildings insurance (seguro de daños) is compulsory. But the bank cannot force you to buy it from them — you can present an equivalent policy from another insurer.

Banks often offer a lower margin (bonificación) if you take life insurance, pay your salary into the account, use their card or buy their home insurance. Making a loan conditional on such products is generally prohibited, but these discounts are allowed. Do the maths: an expensive policy can cancel out a cheaper rate. The bank must show you the offer with and without the extras.

FEIN, FiAE and the notary visit

Ley 5/2019 created a process designed to protect borrowers:

1. FEIN (Ficha Europea de Información Normalizada) — the binding offer with costs, rate and sample repayments.
2. FiAE (Ficha de Advertencias Estandarizadas) — a warning sheet highlighting key clauses, such as variable-rate terms.
3. The bank must give you these at least 10 calendar days before signing.
4. During that period you attend a free, in-person meeting with the notary, who explains the terms, checks you understand them and records this in an acta de transparencia.

Without this step the mortgage cannot be signed. If you don't speak Spanish, bring an interpreter — CasaAqui helps with translation and arranging appointments.

Should you use a broker?

A mortgage broker (intermediario de crédito inmobiliario) must be registered with the Banco de España or a regional register and disclose their fee. A good broker knows which banks are currently lending to non-residents, compares several offers and saves you time, especially if you're not in Spain. Ask upfront about the fee, the scope of the service and how many lenders they work with.

Currency risk: earning in one currency, paying in euros

If your income is in pounds, Swiss francs, Swedish or Norwegian kronor, your Spanish mortgage is still in euros. If your currency weakens against the euro, your repayments rise in real terms — even if Euribor stays put.

Ways to manage it:

• stress-test the instalment at an exchange rate 10–20 % worse than today;
• borrow less and put down a larger deposit;
• keep a euro buffer covering several months of repayments;
• if you plan to let the property, don't assume rental income will cover the mortgage — occupancy is seasonal (see our guide to holiday lets on the Costa Blanca);
• compare alternatives, such as raising finance in your home country and buying in Spain in cash. Each option has different costs and risks.

Five-point summary

1. Non-residents: typically 60–70 % financing — have around 40–45 % of the price in cash.
2. Documents: NIE, tax returns, income proof, bank statements, credit report — translated.
3. Pick a rate type you could live with in a bad scenario.
4. FEIN, 10 days and the notary visit are your protection, not red tape.
5. Factor in currency risk.

For the full process, read our step-by-step guide to buying property in Spain.

Buying with a mortgage? We can help — CasaAqui Costa

At https://casaaqui.eu you'll find more than 1,600 homes on the Costa Blanca and in the Murcia region. We'll help you budget with a mortgage, sort out your NIE and bank account, translate documents and get through the notary visit. Message us on WhatsApp: +34 652 899 274.