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Buying property in Spain as a foreigner does not mean you have to pay cash. Spanish banks actively lend to non-residents, and mortgage conditions have become increasingly competitive. This guide covers everything you need to know about financing your Spanish property purchase in 2026.

Can Foreigners Get a Mortgage in Spain?

Yes. Spanish banks offer mortgages to both EU and non-EU nationals, whether you are a tax resident in Spain or not. The main differences between resident and non-resident mortgages are the loan-to-value (LTV) ratio and sometimes the interest rate.

Resident vs Non-Resident Mortgage Terms

Types of Mortgage Available

Fixed Rate (Tipo Fijo)

Your interest rate stays the same for the entire loan term. Provides certainty and predictable monthly payments. In 2026, typical fixed rates for non-residents range from 3.0% to 4.5%.

Variable Rate (Tipo Variable)

Based on the Euribor (European interbank rate) plus a bank margin. Reviewed every 6 or 12 months. Currently competitive, but payments can rise if Euribor increases. Typical margins: Euribor + 1.0% to 2.0%.

Mixed Rate (Tipo Mixto)

Fixed rate for an initial period (typically 3–10 years), then switches to variable. A popular compromise.

Documents Required

The Mortgage Application Process

1. Get a pre-approval — submit your financial documents to one or more banks. This gives you a budget range before you start property hunting.
2. Find your property — once you have pre-approval, make an offer with confidence.
3. Formal application — the bank orders a property valuation (tasación) and performs due diligence.
4. Binding offer (FEIN) — the bank issues a binding loan offer with all terms, fees, and conditions.
5. 10-day cooling-off period — you must wait at least 10 days before signing.
6. Sign at the notary — the mortgage deed is signed at the same time as the property deed.

Costs of a Spanish Mortgage

Tips for Getting the Best Mortgage

1. Compare multiple banks — rates and conditions vary significantly. Consider CaixaBank, Sabadell, Santander, BBVA, and Bankinter.
2. Use a mortgage broker — brokers specialising in non-resident mortgages can access deals not available directly.
3. Maintain a clean credit history — some banks check your home country credit rating.
4. Keep your deposit in one account — banks want to see the deposit funds clearly.
5. Factor in all purchase costs — you need the deposit PLUS approximately 10–14% for taxes and fees.
6. Consider currency risk — if your income is in GBP, USD, or another non-euro currency, exchange rate fluctuations affect your repayments.

Alternatives to a Spanish Mortgage

• Remortgage your home country property — often simpler and may offer better rates
• Private financing / developer finance — some new-build developers offer payment plans
• International mortgage brokers — specialised firms can arrange cross-border lending
• Equity release — if you have equity in existing property