So you've found your dream property on Spain's Atlantic coast. Maybe it's a charming stone house in Galicia with views over green hills, or a sleek apartment in San Sebastian steps from La Concha beach. You're ready to make an offer, but then reality hits: you need to figure out how to actually pay for this thing. Unless you're sitting on a pile of cash, that means getting a mortgage in Spain as a foreigner. And that's when the questions start flooding in.
Can non-residents even get mortgages in Spain? What's the process like? How much will the bank actually lend you? What interest rates should you expect? The good news is that getting a hipoteca as a foreigner is absolutely possible, and Spanish banks actively want your business. The process is more straightforward than you might think, though it does come with its own quirks and requirements that are different from what you're used to back home.
Let me walk you through everything you need to know about mortgages for foreigners buying property in Spain, especially here on the Atlantic coast where we work in Pais Vasco, Cantabria, Asturias, and Galicia. I'm going to answer all the questions people actually ask, not just give you generic information you could find anywhere.
Can Non-Residents Get a Hipoteca?
Yes, absolutely. Non-residents can definitely get mortgages in Spain, and it's more common than you might think. In 2023, over 67,000 properties in Spain were purchased by foreigners, and about 7 percent of all mortgages issued went to non-residents. Spanish banks have entire departments dedicated to working with international buyers because they understand this is a huge part of their business.
The key thing to understand is what makes you a non-resident for mortgage purposes. In Spain, you're considered a non-resident if you spend fewer than 183 days per year in the country. That's the magic number. It doesn't matter if you own property here or have other connections to Spain. If you're not physically present for at least half the year, you're a non-resident in the eyes of Spanish banks and tax authorities.
Now, being a non-resident does mean you'll face slightly different conditions than Spanish residents get. Banks see you as a higher risk because your income and assets are primarily outside Spain, and if something goes wrong, it's harder for them to pursue you legally. That's just the reality. But don't let that discourage you. Thousands of foreigners successfully get Spanish mortgages every year, and with the right preparation, the process can be quite smooth.
The big Spanish banks all have experience with foreign buyers. Santander, BBVA, CaixaBank, Bankinter, and Banco Sabadell all offer specific mortgage products for non-residents, often with English-speaking staff who understand the particular needs of international buyers. Some even have dedicated expat desks where they handle these applications all day long. These banks want your business, especially if you're buying in desirable areas like the Atlantic coast where property values are solid and the market is stable.
One thing that helps a lot is if you're from the EU or from a country with a stable economy. If you're British, German, French, Dutch, or from another EU country, banks generally view your application more favorably. Same goes if you're American, Canadian, Swiss, or from other economically stable nations. Banks are more cautious with applicants from countries with unstable currencies or complicated political situations, but even then, it's not impossible, just potentially more challenging.
The bottom line is this: if you have stable income, a good employment history, decent savings, and you're buying a property that the bank sees as good collateral, you can absolutely get a mortgage in Spain as a non-resident. Don't let anyone tell you it's too difficult or not worth trying.
What Docs?
Getting a mortgage in Spain requires more paperwork than you probably deal with back home, and everything needs to be organized and properly translated. Spanish banks are thorough, and they want to see clear documentation of your entire financial situation. Think of it as proving to them that you're a reliable borrower who will absolutely pay them back, even though you live in another country.
Here's what you'll need to gather. First, your NIE number. This is the Número de Identificación de Extranjero, which is basically your Spanish tax identification number. You absolutely cannot buy property or get a mortgage in Spain without it. The NIE is used for everything related to property transactions, taxes, and financial dealings in Spain. You can apply for it at a Spanish consulate in your home country, at a police station in Spain, or have a lawyer get it for you with a power of attorney. Getting your NIE should be one of the first things you do when you start seriously looking at Spanish property.
Next, you need proof of identity. Your passport, obviously. Some banks also want to see your national ID card if you have one, but passport is the essential document. Make sure it's valid and won't expire anytime soon.
Proof of income is huge. Banks want to see that you have stable, reliable income that will continue into the future. If you're employed, that means your employment contract and your last three to six months of pay slips. If you're self-employed, it means your tax returns for the last two to three years, along with business accounts showing your income. If you're retired, you'll need proof of your pension income. Some banks want to see bank statements showing that these salary deposits actually happen regularly.
Tax returns are important too. Most banks want to see your last one or two years of tax returns from your home country. This helps them verify your income and see that you're a responsible person who files taxes properly. If your tax documents aren't in Spanish or English, you'll need to get them translated by an official sworn translator.
Bank statements for the last six to twelve months are standard. Banks want to see your actual banking activity, not just what you say you earn. They're looking at your spending patterns, whether you maintain a healthy balance, if you overdraw your account, how much you have in savings. These statements need to show that you can comfortably afford the mortgage payments on top of your regular expenses.
Credit report from your home country is increasingly common, especially if you're from the UK, US, or another country with established credit reporting systems. Spanish banks can't access your foreign credit history directly, so you need to provide it. Get a report from Experian, Equifax, TransUnion, or whatever the main credit reporting agencies are in your country. If you have excellent credit, this works in your favor. If your credit is less than perfect, be prepared to explain any issues.
Proof of address, both in your home country and in Spain if you already have a Spanish address. Utility bills, rental contracts, whatever shows where you actually live.
Details about the property you're buying. The preliminary purchase agreement if you've already signed one, the property listing, information about the seller. The bank will order their own valuation, but they want to see the basic details upfront.
A declaration of your assets and liabilities. This is basically a complete financial picture: what you own (other properties, investments, savings, vehicles) and what you owe (existing mortgages, loans, credit card debt). Spanish banks want to see your total financial situation to assess whether you're a good risk.
If you're buying with a partner or spouse, both of you need to provide all of these documents. Spanish banks evaluate you jointly if you're applying together.
All documents not in Spanish need to be officially translated by a sworn translator, and some documents might need an apostille, which is an international certification that makes foreign documents valid in Spain. Your lawyer or mortgage broker can guide you on which specific documents need apostilles.
I know this sounds like a mountain of paperwork, and honestly, it is. But here's the thing: if you get organized early and have everything ready when you apply, the process moves much faster. Banks that receive complete, well-organized applications are much more likely to approve them quickly than applications where they're constantly chasing the borrower for additional documents.
How Much Deposit?
This is one of the biggest differences between mortgages for residents and non-residents in Spain. As a non-resident, you should plan on putting down at least 30 percent of the property price, and often banks prefer 40 percent. That's just for the property itself. You also need additional cash for all the purchase costs, which we'll talk about in a minute.
Spanish banks typically offer non-residents a loan-to-value ratio of 60 to 70 percent. That means they'll lend you 60 to 70 percent of the property's appraised value, and you need to cover the rest. Note that it's the appraised value, not necessarily the purchase price. Banks will commission their own valuation of the property, and they base the loan amount on that valuation. Sometimes the valuation comes in lower than the purchase price, which means you need even more cash.
So if you're buying a property for 300,000 euros and the bank approves a 70 percent LTV mortgage, they'll lend you 210,000 euros and you need to come up with 90,000 euros as your deposit. But that's not all. On top of the deposit, you need money for all the purchase taxes and fees.
In our regions on the Atlantic coast, when you buy an existing property, you pay transfer tax that ranges from about 8 to 11 percent depending on the autonomous community and the property value. If you're buying new construction, you pay 10 percent VAT plus stamp duty of around 1.5 percent. Then there are notary fees, land registry fees, legal fees if you hire a lawyer, and potentially mortgage arrangement fees from the bank.
All told, you should budget an extra 10 to 13 percent of the purchase price for these additional costs. So on that 300,000 euro property, you're looking at another 30,000 to 40,000 euros in taxes and fees on top of your 90,000 euro deposit. That's 120,000 to 130,000 euros total cash needed to close the deal.
This surprises a lot of foreign buyers who are used to systems where you can get a mortgage with just 10 or 20 percent down and the closing costs are relatively minimal. Spain is different. You need substantial cash on hand to buy property here, even with a mortgage.
Can you get a mortgage with less than 30 percent down? Sometimes, if your financial profile is absolutely stellar. If you have very high income, significant assets, excellent credit, and the property is in a prime location that the bank sees as low risk, you might be able to get 70 percent financing. But that's the exception, not the rule. Most non-residents should plan for 30 to 40 percent down.
Some banks offer slightly better terms to EU citizens than to non-EU buyers. If you're from within the European Union, you might find it a bit easier to get 70 percent financing because the bank can more easily pursue claims within the EU if something goes wrong. But even then, 30 percent down is common.
One more thing about the deposit: the money needs to be in your Spanish bank account before the purchase completes. Banks want to see that the funds are there and ready. They also want to know where that money came from. Spanish anti-money laundering laws are strict, and banks need to verify the source of your deposit. If it's from selling another property, they want to see the sale documents. If it's savings, they want to see the bank statements showing you accumulated it over time. If it's a gift from family, you need documentation of that. Just be prepared to explain and document where your deposit came from.
What Rates for Foreigners?
Interest rates for non-residents are higher than the rates Spanish residents can get, but they're still quite competitive compared to many other countries, especially if you're coming from the UK or US where rates have been pretty brutal recently.
As of 2025, non-residents should expect mortgage rates somewhere in the range of 2.5 to 5 percent, depending on several factors. That's a wide range because there's no single standard rate. Every bank prices mortgages individually based on your specific situation and their assessment of the risk.
The rate you get depends on several things. Your loan-to-value ratio makes a huge difference. If you're putting down 40 percent and only borrowing 60 percent of the property value, you'll get a much better rate than if you're borrowing 70 percent with just a 30 percent deposit. The bank's risk is lower when you have more skin in the game.
Your financial profile matters enormously. If you have high stable income, significant savings, excellent credit, and a low debt-to-income ratio, banks will offer you their best rates. If your finances are shakier, expect higher rates or potentially not getting approved at all.
The type of property affects the rate too. Banks prefer lending on standard residential properties in good locations. If you're buying something unusual or in a remote area, they might charge a premium. Properties in established areas with strong markets, like the cities and coastal areas of the Atlantic coast, generally get better rates than rural properties in the middle of nowhere.
Your nationality and country of residence can influence rates slightly. EU citizens often get marginally better rates than non-EU buyers because the legal framework for cross-border enforcement is clearer within the EU.
The loan term also plays into the rate. Shorter terms generally mean lower interest rates because the bank gets its money back faster. Non-residents are often limited to 20 to 25 year terms anyway, which is shorter than the 30 to 40 year terms residents might get.
Whether you're willing to make the mortgage your main banking relationship with that institution makes a difference. If you agree to move your payroll to that Spanish bank, set up direct debits, buy insurance products from them like life insurance and home insurance, and generally become a full banking customer, they'll knock points off your rate. Some banks offer significantly better rates if you bundle products with them.
Right now, in 2025, the average mortgage rate in Spain is around 2.9 to 3 percent overall. For non-residents, you're looking more at the 3.5 to 4.5 percent range for good applicants, potentially higher if your situation is less ideal. That said, some non-residents with excellent financial profiles and large deposits have gotten rates in the low 3 percent range or even below 3 percent in some cases.
Compare that to the UK where fixed rate mortgages have been running 5 to 7 percent recently, or the US where rates have been sitting around 7 percent, and Spain starts looking pretty attractive. The rates here are genuinely competitive, especially considering you're getting them as a foreign buyer.
One thing to watch out for is setup fees and other charges. Some banks advertise low headline rates but then charge significant arrangement fees, valuation fees, and other costs that effectively increase your total borrowing cost. Always look at the TAEG, which is the annual equivalent rate that includes all fees and gives you the true cost of the mortgage. A mortgage with a 3 percent interest rate but 2 percent in fees might actually be more expensive than a mortgage at 3.5 percent with no fees.
Fixed or Variable?
This is one of the most important decisions you'll make when getting a Spanish mortgage, and the right answer depends on your personal situation and risk tolerance.
Fixed rate mortgages in Spain mean your interest rate stays exactly the same for the entire term of the loan. If you lock in at 3.5 percent for 20 years, you'll pay 3.5 percent every single month for those 20 years, no matter what happens to the broader interest rate environment. Your monthly payment never changes, which makes budgeting incredibly easy.
Variable rate mortgages in Spain are tied to the Euribor, which is the Euro Interbank Offered Rate. This is the rate at which European banks lend money to each other, and it's set by the European Central Bank. Variable mortgages are structured as Euribor plus a margin. So your rate might be Euribor plus 1 percent, or Euribor plus 1.5 percent, or whatever margin your bank offers. The Euribor is reviewed either monthly or annually depending on your mortgage terms, and your interest rate adjusts accordingly.
As of mid-2025, Euribor is sitting around 2.1 percent. So if your mortgage is Euribor plus 1 percent, you'd be paying around 3.1 percent right now. But that could change. If Euribor drops, your rate drops and your payments decrease. If Euribor rises, your rate rises and you pay more.
There are also mixed or hybrid mortgages that give you a fixed rate for an initial period, often 5 or 10 years, and then switch to a variable rate for the rest of the term. These can be a good middle ground if you want initial stability but are willing to take some risk later.
For non-residents, Spanish banks often push you toward fixed rate products. They see fixed rates as lower risk for foreign buyers because your payment obligation is completely predictable. Many banks actually require non-residents to take fixed rates. Variable rates are more commonly offered to residents who have their full financial lives in Spain and can more easily adjust if rates rise.
So which should you choose if you have the option? If you value certainty and you want to know exactly what your housing costs will be for the next 20 years, go fixed. If interest rates are currently high and you think they'll come down in the future, variable might save you money. If you're planning to pay off the mortgage early or sell the property within a few years, variable often has lower early repayment penalties than fixed.
Right now in 2025, with rates having come down from their 2023 peaks but still not super low, fixed rates are popular because they lock in what are still historically decent rates. If you can get a fixed rate around 3 to 3.5 percent, that's quite good and protects you if rates go up again in the future.
Variable rates can be attractive if you believe the European Central Bank will continue cutting rates, which some analysts expect to happen gradually over the next couple years as inflation comes under control. If Euribor drops another point, variable rate borrowers will see their payments decrease significantly.
There's also an emotional component to this decision. Some people sleep better at night knowing their payment is locked in and won't change. Others are comfortable with the uncertainty of variable rates in exchange for potentially lower costs. Think about your own risk tolerance and financial situation.
One practical tip: if you go variable, make sure you can afford the payments even if rates rise by a couple percentage points. Don't stretch yourself so thin that you'd be in trouble if your rate went from 3 percent to 5 percent. Banks generally stress test variable rate applications to ensure you could handle rate increases, but you should do that calculation yourself too.
How to Apply as a Foreigner
The application process for a Spanish mortgage as a foreigner is actually pretty straightforward once you understand the steps. It just requires organization and patience.
First, get your NIE if you don't already have one. You cannot move forward without this. If you're in Spain, you can apply at a police station or have a lawyer handle it with a power of attorney. If you're in your home country, visit the Spanish consulate. This usually takes a few weeks, so start early.
Next, open a Spanish bank account. Some banks require you to have an account with them before they'll even consider your mortgage application. Others will open an account for you as part of the mortgage process. Either way, you need a Spanish bank account because that's where your salary or funds will be transferred to make the mortgage payments, and it's where the mortgage disbursement will go when you complete the purchase.
Decide whether you want to work with a mortgage broker or go directly to banks. Mortgage brokers in Spain work with multiple banks and can shop your application around to find the best deal. They know which banks are most friendly to foreign buyers, what documentation each bank requires, and how to present your application in the best light. Many brokers don't charge borrowers anything because they get paid commission by the banks when they place mortgages. Direct application to banks works too, especially if you already have a relationship with one of the major Spanish banks, but you'll only see that one bank's offering.
Gather all your documentation that we talked about earlier. Get everything translated that needs translating, get apostilles on documents that require them, organize everything neatly. Having a complete document package ready to go makes a massive difference in how quickly your application moves.
Research which banks are actively lending to non-residents from your country. Not all banks work with all nationalities equally. Some banks love British buyers, others prefer Americans or Germans. Your broker can help with this, or you can call banks directly and ask about their non-resident mortgage programs.
Submit your application. If you're using a broker, they'll handle this for you and often submit to multiple banks simultaneously to get you competing offers. If you're going direct, you'll submit your application to one bank and wait for their response. Most banks have an initial assessment period where they review your documents and run preliminary numbers. This usually takes one to two weeks.
If the bank is interested, they'll issue a mortgage in principle or preliminary approval. This tells you how much they're willing to lend you and at approximately what rate. It's not a final approval yet, but it's a strong indication that you'll get the mortgage. This preliminary approval is useful when you're negotiating to buy a property because it shows sellers you're a serious buyer with financing lined up.
Once you have a property identified and an offer accepted, the bank will commission a valuation. They'll send an independent appraiser to assess the property and determine its value. This costs a few hundred euros and you usually pay for it upfront. The valuation typically takes a week or two.
Assuming the valuation comes back at or above the purchase price, the bank will issue final approval and a binding mortgage offer. This will specify exactly how much they're lending you, at what interest rate, over what term, and with what conditions. Review this carefully. Make sure you understand all the fees, whether there are penalties for early repayment, what happens if you want to sell the property before the mortgage is paid off.
You'll have a mandatory cooling off period of about 10 days between receiving the final mortgage offer and signing it. Spanish law gives you this time to review everything and change your mind if needed. Use this time to read every detail of the mortgage contract, ideally with help from a lawyer or advisor who can explain any complex terms.
Finally, you'll sign the mortgage deed at a notary. This typically happens at the same time you complete the property purchase. Everyone involved goes to the notary's office, you sign the property deed, you sign the mortgage deed, the seller signs over the property, the bank transfers your mortgage funds to the seller, you transfer your deposit and additional funds, and you walk out owning Spanish property with a Spanish mortgage.
The whole process from initial application to signing usually takes anywhere from 6 to 12 weeks, assuming you have all your documents ready and there aren't any complications. EU citizens might move a bit faster, around 4 to 6 weeks. Non-EU buyers might take longer, especially if there are issues with translating documents or verifying foreign income.
A few practical tips for the application process: Stay responsive. Banks will ask you for additional documents or clarification as they review your application. Reply quickly. Every delay on your end adds days or weeks to the process. Be completely honest in your application. Don't exaggerate your income or hide debts. Spanish banks will verify everything, and if they catch you lying, your application gets rejected immediately. Consider getting pre-approved before you start seriously looking at properties. This saves time when you find something you like, and it helps you know exactly what your budget is so you don't fall in love with properties you can't actually afford.
Have realistic expectations about your borrowing capacity. A general rule of thumb is that your monthly mortgage payment plus any other debt payments shouldn't exceed 30 to 35 percent of your net monthly income. If your payment would be higher than that, banks will be concerned about your ability to repay. So run the numbers before you apply and make sure the property price you're looking at actually works with your income level.
Be patient. Spanish bureaucracy moves slower than what you might be used to in other countries. Don't panic if things take time. This is normal. Just keep following up politely and making sure nothing is getting stuck.
Making It Work for You
Getting a mortgage in Spain as a foreigner requires more cash upfront and involves more paperwork than you might be used to, but it's absolutely doable and it can make buying property here much more accessible than paying cash for everything. Thousands of foreign buyers successfully get Spanish mortgages every year, and there's no reason you can't be one of them.
The key is to start preparing early, get your documents organized, understand what banks are looking for, and work with professionals who know the system. Whether you use a mortgage broker, a lawyer, or both, having expert help is worth every euro you spend on their fees.
Remember that Spanish banks actually want to lend to foreign buyers, especially in areas like the Atlantic coast where the property market is stable and values are solid. You're not asking them to take a crazy risk. You're offering them a good loan on a valuable piece of real estate, backed by your stable income and substantial deposit. Present yourself as the reliable borrower you are, and banks will be happy to work with you.
The mortgage rates available in Spain right now are competitive internationally. The requirement for a large deposit is real, but if you've saved that money already or you're selling another property to raise the funds, it's perfectly manageable. And the benefit of getting a Spanish mortgage is that you keep more of your cash liquid for other things rather than tying it all up in Spanish real estate.
Think about your long term plans too. If you're eventually planning to become a Spanish resident, you could potentially refinance your mortgage down the line under resident terms, which could get you better rates and a longer term. If you think you might sell the property in a few years, make sure you understand the early repayment terms so you're not hit with massive penalties.
The most important thing is not to let the mortgage process intimidate you out of buying property in Spain if that's what you really want. Yes, there are hoops to jump through. Yes, you need to get organized and deal with bureaucracy. But people do this every single day, and it works out fine. The Atlantic coast has some of the most beautiful property in Spain, with authentic culture and fantastic quality of life, and getting a mortgage to buy here is a perfectly reasonable financial decision if the numbers work for your situation.
Do your research, ask questions, get good advice, and move forward with confidence. Your dream property on Spain's Atlantic coast is waiting for you, and now you know exactly how to finance it.
