Many foreign buyers assume they need to pay cash for property in Spain — but that is not the case. Spanish banks actively lend to non-residents, and getting a mortgage as a foreigner is a well-established process, particularly on the Costa Blanca, Costa del Sol, Costa Cálida, and Costa Almería where banks are experienced with international buyers.
That said, the terms for non-residents are different from those offered to Spanish residents. You will typically borrow less, pay a slightly higher interest rate, and need to provide more documentation. This guide covers everything you need to know.
The Loan-to-Value (LTV) ratio — the percentage of the property value the bank will finance — is the first thing to understand.
| Buyer Type | Maximum LTV | You Need to Provide |
|---|---|---|
| Spanish Resident | Up to 80% | Minimum 20% + buying costs |
| Non-Resident (EU citizen) | 60 – 70% | Minimum 30-40% + buying costs |
| Non-Resident (non-EU citizen) | 50 – 60% | Minimum 40-50% + buying costs |
For a €200,000 property on the Costa Blanca, a non-resident EU buyer getting 60% LTV would need:
The LTV is calculated on the lower of the purchase price or the bank's valuation. If the bank values the property at €180,000 but you are paying €200,000, the 60% LTV is based on €180,000 — meaning you get €108,000 rather than €120,000.
Interest rates for non-resident mortgages in Spain are slightly higher than for residents, reflecting the additional risk the bank perceives.
| Rate Type | Typical Rate Range | How It Works |
|---|---|---|
| Variable Rate | Euribor + 1.5% to 2.5% (effective ~3% – 4%) | Rate adjusts annually or semi-annually based on Euribor |
| Fixed Rate | 3.5% – 5% | Rate stays the same for the full mortgage term |
| Mixed Rate | Fixed 3 – 5 years, then variable | Starts with a fixed rate, switches to Euribor + spread after the initial period |
The Euribor (European Interbank Offered Rate) is the benchmark interest rate that most variable-rate Spanish mortgages are tied to. Specifically, the 12-month Euribor is the standard reference.
When you see a variable mortgage quoted as "Euribor + 1.8%", this means your interest rate is the current 12-month Euribor value plus a fixed spread of 1.8%. If Euribor is at 2.5%, your rate would be 4.3%.
| Factor | Variable | Fixed | Mixed |
|---|---|---|---|
| Monthly payment | Lower initially, but can rise | Higher but predictable | Medium initially, then variable |
| Risk | Higher — exposed to Euribor rises | Lower — payments never change | Medium — protected initially |
| Best for | Short-term ownership, confident Euribor will stay low | Long-term ownership, want payment certainty | Want initial stability with flexibility later |
| Early repayment penalty | Max 0.25% (first 3 years) or 0.15% (after) | Max 2% (first 10 years) or 1.5% (after) | Depends on which phase you are in |
For holiday home buyers on the Costa Blanca or Costa del Sol who plan to keep the mortgage for 10-15 years, a fixed rate offers peace of mind. For buyers who may sell within 5-7 years, a variable or mixed rate often provides a lower total cost.
The maximum mortgage term for non-residents is typically 20 to 25 years, though this also depends on the borrower's age. Most banks require the mortgage to be fully repaid before the borrower turns 70 to 75 years old.
Spanish banks require thorough documentation from non-resident applicants.
Important: All documents not in Spanish may need to be officially translated (traducción jurada).
Spanish banks apply a strict debt-to-income (DTI) ratio of maximum 30 to 35%. This means your total monthly debt payments cannot exceed 30-35% of your net monthly income.
If you have a mortgage on your primary residence in another country, this will be counted in the DTI calculation.
| Stage | Duration | Details |
|---|---|---|
| Pre-approval / Initial assessment | 1 – 2 weeks | Bank reviews your documents and confirms approximate terms |
| Property valuation (Tasación) | 1 – 2 weeks | Bank sends an approved valuer to inspect the property |
| Formal offer (Oferta Vinculante) | 1 – 2 weeks | Bank issues a binding mortgage offer with full terms |
| 10-day reflection period | 10 days | Mandatory cooling-off period (Ley Hipotecaria 2019) |
| Notary visit (FEIN review) | 1 day | Borrower visits notary to confirm understanding of terms |
| Signing at notary | 1 day | Mortgage deed and property deed signed simultaneously |
| TOTAL | 6 – 8 weeks | From application to signing |
Tip: Start the mortgage process as early as possible — ideally while you are still searching for a property.
| Bank | Non-Resident Lending | Notes |
|---|---|---|
| CaixaBank | Up to 60-70% LTV | Spain's largest bank, strong international department |
| Banco Sabadell | Up to 60-70% LTV | Very active on the Costa Blanca, competitive rates |
| BBVA | Up to 60% LTV | Strong digital tools, English-speaking advisors |
| Unicaja | Up to 60% LTV | Strong in Andalusia (Costa del Sol, Costa Almería) |
| Bankinter | Up to 60% LTV | Good options for higher-value properties |
| Cajamar | Up to 60% LTV | Active on the Costa Blanca and Costa Almería |
Important: Do not approach only one bank. A mortgage broker adds enormous value — they know which bank is most likely to approve your profile and can negotiate better terms.
Yes. British (post-Brexit), American, Canadian, and other non-EU nationals can obtain mortgages in Spain. The LTV may be lower (50-60%) and the rate slightly higher, but it is entirely possible.
Some banks will consider projected rental income, typically at a reduced rate (e.g., 70% of expected rental income).
Self-employed applicants face more scrutiny. You will need 2-3 years of tax returns and business accounts. A broker can steer you to the right lender.
Yes. Spanish law caps early repayment penalties at 0.25% during the first 3 years for variable mortgages and 2% during the first 10 years for fixed mortgages.
Yes. The mortgage payments must be made from a Spanish bank account.
Mediter Real Estate works with trusted independent mortgage brokers across the Costa Blanca, Costa del Sol, Costa Cálida, and Costa Almería who specialise in non-resident mortgages.
Contact us today for a free initial mortgage consultation.
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