Navigating International Mortgages in Spain: A Guide for Foreign Buyers

Navigating International Mortgages in Spain

A Guide for Foreign Buyers

Spain’s sun-drenched coastlines, high quality of life, and steady property market continue to attract international buyers. Whether you're a retiree looking to relocate permanently or an investor building a portfolio, the good news is: you don’t need to be a Spanish citizen or resident to secure a mortgage in Spain.

In 2025, more banks and mortgage brokers than ever before are offering international mortgage products tailored to foreign buyers, although the process of navigating international mortgages in Spain differs significantly from what you're used to in the UK or US as your local high street bank will not be able to provide you with a mortgage for a property abroad.

Can Foreigners Get a Mortgage in Spain?

Yes. Non-residents can apply for a mortgage through both Spanish banks and a growing number of specialist international lenders like our provider FluetFinance who have €0 fee.

However, being a non-resident (living in Spain less than 183 days a year) usually means:

• You can borrow 60–70% of the property’s value (Loan-to-Value or LTV ratio)

• Resident buyers can access up to 80% LTV

Navigating International Mortgages in Spain

Mortgage Types Available to Non-Residents

1. Variable-Rate Mortgages

   • Linked to the Euribor (Euro Interbank Offered Rate)

   • Monthly payments can rise or fall over time

   • Typically offer lower initial interest rates

2. Fixed-Rate Mortgages

   • Fixed monthly payments for the term of the loan

   • Popular with retirees and risk-averse buyers

   • Rates in 2025 range between 3.5% to 5.5%

3. Interest-Only Mortgages

   • Rare, but occasionally available for high-net-worth individuals or investors

Requirements for Getting a Mortgage in Spain (as a Foreigner)

To apply for a mortgage, you’ll typically need to provide:

• NIE Number (Foreigner Identification Number) – a legal must-have for buying property

• Passport or ID

• Proof of income (last 6–12 months' payslips, pension statements, or tax returns)

• Credit report (from your home country)

• Bank statements (typically 6–12 months)

• Preliminary property purchase contract

• Down payment of 30–40% of the purchase price

Debt-to-income ratio is key: most banks will approve loans only if your total debts (including the new mortgage) are less than 35–40% of your net income.

Costs and Fees to Consider

• Notary, registry, and legal fees: approx. 2–3% of the property value

• Some banks many charge you a valuation fee: €300–€500 (Our provider FluentFinance charge €0)

• Property tax (ITP or VAT): varies between 6–10%

• Insurance: Building and often life insurance are required

Here’s a mortgage affordability summary based on example inputs :

Property Price	Deposit	Loan Amount	Interest Rate	Term (Years)	Monthly Payment
€250,000	€75,000	€175,000	4.0%	25	€923.71

This is an estimate. Spanish Prime Property can help you refine these numbers based on your actual financial profile, available banks, and current interest rates.

Why Buyers Are Choosing to Finance in Spain

• Leverage: Keep more of your capital liquid

• Currency advantage: If your home currency is strong against the euro, repayments can be more affordable

• Longer terms: Spanish mortgages can be up to 25–30 years, even for buyers in their 60s (depending on profile)

• Tax benefits: Some deductions may apply if the property is rented

How Spanish Prime Property Helps You Secure the Right Mortgage

Navigating international mortgages can be complex, especially with language barriers and unfamiliar legal frameworks. That’s where Spanish Prime Property becomes your most valuable partner.

Through our partner FluetFinance broker we offer:

Pre-Qualification Support

• Evaluate your borrowing power

• Free Quotations

• Advise you on the best banks for your financial profile

Lender Matching

• Work with a wide network of Spanish banks, international lenders, and mortgage brokers who specialise in non-resident buyers

Documentation & Legal Guidance

• Help prepare and translate paperwork

• Liaise with notaries, valuers, and banks on your behalf

Fixed-Rate vs Variable Consultation

• Tailored advice depending on whether you're buying for investment or retirement

Multi-Currency Support

• Combine mortgage planning with currency exchange to maximise your savings and lock in favorable euro rates

While buying property abroad may seem daunting, Spain’s international mortgage market is mature and accessible. With the right preparation—and the help of local experts like Spanish Prime Property—your dream of owning a home under the Spanish sun is more achievable than ever.

Whether you're looking for a new-build in Costa Blanca or a seaside retreat in Calpe, financing your future in Spain can be straightforward, secure, and smart.