Mortgages in Spain for non-residents — what expats need to know

Buying property in Spain as a non-resident is entirely possible, and many thousands of foreign nationals do so every year. Financing that purchase with a Spanish mortgage is also achievable — Spanish banks actively seek international business, particularly in coastal and tourist areas — but the terms differ materially from what residents can access.

This guide walks through everything a non-resident expat needs to understand before approaching a Spanish lender: from the loan-to-value ratios and interest rate environment you should expect, to the documentation stack, the full cost of buying, and what changes once you hold a DNV and become a Spanish resident.

Can non-residents get a mortgage in Spain?

Yes — unambiguously. Spain places no legal restriction on foreign nationals borrowing from Spanish banks to finance a property purchase. The major banks — Santander, BBVA, CaixaBank, Bankinter, and Sabadell — all have non-resident mortgage products, and in regions with high concentrations of foreign buyers (Costa del Sol, Costa Blanca, Balearic Islands, Costa Brava) the banks have well-established teams handling this business.

However, the terms available to non-residents are systematically different from those available to Spanish residents. The two most significant differences are the loan-to-value ratio and the documentation requirements. Non-residents represent a higher credit risk to Spanish lenders — they have income in a foreign currency, may have fewer Spanish financial ties, and in the event of default the bank's ability to pursue them is more complex. The loan terms reflect this.

Loan-to-value ratios for non-residents

The single biggest difference between non-resident and resident mortgages in Spain is the loan-to-value ratio (LTV). Spanish residents can typically borrow up to 80% of a property's appraised value. Non-residents are generally limited to 60–70% — and in practice, many banks apply 60% as their baseline for non-resident borrowers purchasing a second home or holiday property.

In concrete terms: if you are buying a property appraised at €400,000, a resident might borrow up to €320,000. A non-resident borrowing at 70% would receive €280,000 — needing to bring €120,000 in cash for the deposit alone, before the buying costs on top.

The appraised value the bank uses is determined by an official tasación — a property appraisal carried out by a certified valuer approved by the Bank of Spain. The bank will always use the lower of the appraised value or the purchase price to calculate the LTV, so in a market where purchase prices exceed tasación values, your effective LTV falls further.

Interest rates for non-residents in 2026

Spanish mortgages come in three main forms: variable rate (linked to Euribor), fixed rate, and mixed rate (fixed for an initial period, then variable). The dominant benchmark for variable mortgages is the 12-month Euribor, reviewed annually.

Following the European Central Bank's rate adjustment cycle in 2023–2024, the Spanish mortgage market in 2026 has stabilised with rates broadly as follows:

Non-residents typically pay slightly higher rates than equivalent resident borrowers, reflecting the additional credit risk. The spread above Euribor for non-residents is often 0.1–0.3 percentage points higher. Fixed-rate products may be similarly priced but with more conservative maximum terms — Spanish banks sometimes limit non-resident fixed mortgages to 20 years rather than the 30-year term available to residents.

Which banks lend to non-residents?

Most of Spain's major banks offer non-resident mortgages, though their appetite and terms vary. Here is a brief overview of the main lenders:

Santander

One of the most accessible options for non-resident buyers, particularly those from the UK (where Santander also operates). Santander has a dedicated international mortgage team and competitive rates. Their non-resident LTV is typically 70%.

BBVA

Spain's second largest bank is active in the non-resident mortgage market, with a strong presence in tourist areas. BBVA has digital application tools that can be initiated from abroad, reducing the need for in-person branch visits.

CaixaBank

Spain's largest bank by domestic market share, CaixaBank is strong in Catalonia and the Valencian Community — both popular destinations for foreign buyers. They offer competitive products but tend to require a longer established banking relationship.

Bankinter

Often cited by mortgage brokers as one of the most competitive on rate for non-resident borrowers. Bankinter's appetite for international business varies by region, but their products are worth comparing.

Sabadell

Strong in the Balearics and Catalonia. Sabadell has historically been active with UK buyers and may offer products denominated in sterling for the initial assessment, though the mortgage itself will be in euros.

What documents do non-residents need for a Spanish mortgage?

The documentation required for a non-resident mortgage is more extensive than for a resident, reflecting the bank's need to verify income and identity from abroad. You will typically need:

• NIE — your Número de Identificación de Extranjero, required for any property transaction in Spain
• Passport — certified copy of your full passport
• Bank statements — typically the last 3–6 months of your main bank account, showing income credits and spending patterns
• Proof of income — payslips (last 3 months), employment contract, or for self-employed applicants, at least 2 years of business accounts and tax returns
• Tax returns — last 1–2 years of personal tax returns from your home country
• Proof of existing assets — savings, investments, other property (strengthens the application)
• Property details — the preliminary contract (arras), nota simple (land registry extract), and tasación (official appraisal)
• Life insurance — most Spanish banks require a life assurance policy linked to the mortgage; this is often cross-sold through the bank itself

All non-Spanish documents will need to be officially translated into Spanish (by a sworn translator — traductor jurado) and may need to be apostilled. This adds time and cost to the process — allow at least 4–6 weeks to gather and prepare the full documentation pack.

Taxes and costs on a Spanish mortgage

The mortgage itself comes with associated taxes and costs. Non-residents need to understand these before budgeting:

Impuesto de Actos Jurídicos Documentados (IAJD)

The IAJD — stamp duty on legal documents — was historically charged to borrowers on their mortgage deeds. A landmark 2018 Supreme Court ruling transferred this obligation to the bank. The rate varies by autonomous community, typically 0.5–1.5% of the mortgage deed value. Since 2018, this is paid by the lender, not the buyer — an important saving compared with the pre-2018 position.

Tasación (official appraisal)

The bank requires an official property appraisal by a certified valuer. This costs approximately €300–600 depending on property size and location, and is paid by the borrower regardless of whether the mortgage is ultimately approved.

Notary and registry fees for the mortgage deed

In addition to the notary and registry costs for the property transfer, there are separate notary and registry fees for registering the mortgage deed. These are typically €800–1,500 depending on the mortgage amount.

The full buying cost stack for non-residents

The mortgage costs sit within a much larger total cost of buying. Non-residents purchasing a resale property in Spain should budget approximately 12–15% of the purchase price on top of the property price for the following:

• Impuesto de Transmisiones Patrimoniales (ITP) — transfer tax on resale properties; rate varies by region, typically 6–10%
• IVA + Actos Jurídicos Documentados — for new-build properties instead of ITP: IVA at 10% (21% for commercial) plus AJD at 0.5–1.5%
• Notary fees — for the property purchase deed; regulated, typically 0.1–0.5% of declared value
• Land registry fees — for registering the property in your name; similar scale to notary fees
• Legal fees — for your independent lawyer, typically ~1% of purchase price plus IVA
• Mortgage costs — tasación, notary for mortgage deed, registry for mortgage
• Agent commission — in Spain, commission is typically paid by the seller; verify this in your specific transaction

How the DNV changes the mortgage picture

The Spain Digital Nomad Visa creates an interesting progression for property buyers. Many DNV applicants plan to buy in Spain as part of their longer-term relocation — but some begin the mortgage process while still legally non-resident.

Once a DNV holder has been in Spain for more than 183 days in a calendar year, they become a Spanish tax resident. Once they have their TIE (Tarjeta de Identidad de Extranjero), they hold legal residency. At this point, they can approach banks on resident terms — accessing up to 80% LTV, potentially lower rates, and longer mortgage terms.

The practical implication: if you plan to buy property and finance it with a Spanish mortgage, it may be worth waiting until after your first year on the DNV before approaching lenders. By that point, you will be a resident borrower rather than a non-resident, which can meaningfully reduce the deposit required and improve the rate you are offered.

That said, some DNV applicants purchase property first and then refinance once they achieve residency. Spanish mortgages can typically be novated (renegotiated with the same bank) or subrogated (transferred to another bank) without triggering a fresh property transfer tax, making refinancing once resident a viable strategy.