RealEstateAbroad Logo
RealEstateAbroad
Property Financing

Property Financing in Spain

for International Investors

Complete guide to mortgages and financing options for property investments in Spain.

65-75%
Average LTV for Non-Residents
2.5-4.5%
Typical Interest Rates
4-8 weeks
Processing Time
78%
Success Rate
Spain Property Financing

Financing Overview for Spain

Spain offers relatively accessible financing options for foreign buyers. Non-resident buyers can typically secure mortgages for 60-70% of the property value, while residents may qualify for up to 80%. Spanish banks offer both fixed and variable rate mortgages, with terms up to 30 years. Interest rates are competitive within the Eurozone.

Mortgage Market Trends in Spain

Loading market data...

Mortgage Volume

€45.2 billion (2023)

Avg. Interest Rate

2.8% (fixed rate, 2023)

Foreign Buyers

12.5% of all mortgages

Spanish mortgage market has seen steady growth since 2015, with increasing competition among lenders leading to more favorable terms for foreign buyers. Fixed-rate mortgages have become increasingly popular as borrowers seek to lock in historically low interest rates.

Local Mortgages in Spain

Spanish banks offer mortgages to foreign buyers, though the process and requirements differ from those for residents. Most banks will lend up to 60-70% of the property value to non-residents.

Advantages

  • ✓Competitive interest rates within the Eurozone
  • ✓Long-term fixed rate options available
  • ✓No currency exchange risk if your income is in Euros
  • ✓Potential tax advantages as mortgage interest may be tax-deductible

Considerations

  • ✗Lower loan-to-value ratio for non-residents (typically 60-70% vs. 80% for residents)
  • ✗Additional documentation requirements for foreign buyers
  • ✗Currency exchange risk if your income is not in Euros
  • ✗Property must be valued by a Spanish bank-approved valuer

Requirements for Foreign Buyers

  • 1
    Valid passport and NIE (Foreigner's Identification Number)
  • 2
    Proof of income (typically last 3-6 months of pay slips or tax returns)
  • 3
    Bank statements for the last 3-6 months
  • 4
    Details of existing debts and financial commitments
  • 5
    Property details and valuation report

Calculate Your Mortgage

Use our interactive mortgage calculator to estimate your monthly payments for a property in Spain.

Mortgage Calculator

€300,000
€90,000

Mortgage Summary

Loan Amount:€210,000
Monthly Payment:€0
Total Payment:€0
Total Interest:€0
Loan Breakdown
Principal (Infinity%)Interest (NaN%)

Financing Tip

Your down payment of 20% or more typically qualifies you for the best available rates.

Developer Financing in Spain

Many Spanish developers offer payment plans, especially for new-build properties. These typically involve paying a reservation fee, followed by staged payments during construction, with a final payment on completion.

Typical Payment Structure

  • 1
    Reservation fee: €5,000-€10,000
  • 2
    Deposit: 10-30% within 30 days
  • 3
    Stage payments: Various percentages during construction phases
  • 4
    Final payment: 60-70% on completion (often through a mortgage)

Advantages

  • ✓Less stringent approval process than traditional mortgages
  • ✓Allows time to arrange full financing while securing the property
  • ✓Can be combined with a mortgage for the final payment
  • ✓Often no credit checks required for initial payments

Considerations

  • ✗Usually only available for new developments
  • ✗Less flexibility in payment terms
  • ✗May have higher effective interest rates if financing charges are built in
  • ✗Risk of developer financial issues during construction

Golden Visa Program

Spain's Golden Visa program offers residency to non-EU investors who make a significant investment in Spanish real estate (minimum €500,000). While this isn't a financing option per se, it's an important consideration for investors looking at Spain.

Requirements

  • 1
    Minimum investment of €500,000 in real estate
  • 2
    Clean criminal record
  • 3
    Health insurance coverage in Spain
  • 4
    Sufficient financial means to support yourself

Benefits

  • ✓
    Residency permit for investor and immediate family members
  • ✓
    Freedom to travel within the Schengen Area
  • ✓
    No minimum stay requirement to maintain the visa
  • ✓
    Path to permanent residency and citizenship

Popular Lenders in Spain

Banco Santander

Banco Santander

One of Spain's largest banks with specific mortgage products for foreign buyers.

Interest Rates:From 2.5% fixed, Euribor + 1.5% variable
Max LTV:70% for non-residents
Fees:1-1.5% arrangement fee
BBVA

BBVA

Offers competitive mortgage rates and English-speaking services in tourist areas.

Interest Rates:From 2.3% fixed, Euribor + 1.4% variable
Max LTV:70% for non-residents
Fees:1% arrangement fee
CaixaBank

CaixaBank

Has specialized services for foreign residents and property buyers.

Interest Rates:From 2.4% fixed, Euribor + 1.6% variable
Max LTV:70% for non-residents
Fees:1.5% arrangement fee
Sabadell

Sabadell

Popular with foreign buyers, especially in coastal areas.

Interest Rates:From 2.6% fixed, Euribor + 1.7% variable
Max LTV:70% for non-residents
Fees:1-2% arrangement fee

Financing Consultation

Get personalized mortgage advice for Spain

Our mortgage specialists can help you navigate financing options in Spain and connect you with trusted local lenders.

Related Tools

Download Resources

Mortgage Guide

PDF, 3.5MB

Foreign Buyer Checklist

PDF, 1.2MB

Interest Rate Comparison

PDF, 0.8MB

Browse Properties