How to Get a Mortgage in Spain as a Foreigner in 2025
By George Nayda
12 August 2025
12 min read
SMART BUYING
How to Get a Mortgage in Spain as a Foreigner in 2025
Getting a mortgage in Spain as a foreigner is possible but only if you understand the rules, prepare your documents, and choose the right lender. This guide walks you through the 2025 process step-by-step and answers the questions most buyers don’t think to ask.
Why Getting a Mortgage in Spain in 2025 is Different for Foreigners
Quick answers (so you know the shape of this article)
How much can you borrow? Most non‑residents get 60 to 70% LTV (loan‑to‑value), based on the lower of purchase price or bank valuation.
What about affordability? Banks like your debt‑to‑income (DTI) at or under approximately 30 to 35% of your net monthly income, counting all loans worldwide.
How long does it take? From first call to notary, allow 4 to 8 weeks if you’re organised.
What will you need? Passport + NIE, bank statements, income proofs, tax returns, and translations/apostilles where required.
If you read nothing else, read the finance clause tip in Step 6. It protects your deposit.
Who this guide is for
You’re buying a €300K to €1.5M property on the Costa del Sol (new build or resale).
You live outside Spain (non‑resident), or you spend less than 183 days/year here.
You want a clean, step‑by‑step path and a realistic view of costs, timing, and risks.
Step 1 to Step 3
Step 1: Set a smart budget (how banks see your numbers)
Spanish lenders look at two gates: LTV and affordability.
LTV: For non‑residents, banks usually lend 60 to 70%. Some buyers with strong profiles reach 70%; some nationalities, income types, or risk flags sit closer to 60%.
Affordability (DTI): Banks want your total monthly debt payments (existing loans + the new Spanish mortgage) to be ≤30 to 35% of your net monthly income. They use stable, provable income after taxes.
Currency: If your income is not in euros, banks may stress‑test the rate. Expect a small buffer.
Example (simple math):
You earn €10,000 per month net (after tax). Max debt load is approximately between €3,000 to €3,500. If your existing car loan is €500 per month, your room for a Spanish mortgage payment is roughly €2,500 to €3,000.
Bottom line: Your usable budget is not just “70% LTV.” It’s 70% and a DTI that fits. If one gate fails, the answer is no.
Pro tip: Ask for a bankside calculation sheet (or use a broker). It will show your DTI and the maximum monthly payment the bank will accept. Now you can shop with a number that actually clears credit
Step 2: Get your NIE and a Spanish bank account
NIE (Número de Identidad de Extranjero): This is your foreigner tax ID. You need it to buy, get utilities, and sign at the notary. Apply in Spain or at a Spanish consulate.
Bank account: Many lenders require you to open an account for the direct debit and to pay insurance/policies tied to the loan. It also simplifies incoming transfers for completion day.
Pro tip: Do this before you view the property seriously. It shaves weeks off later.
Step 3: Build the document pack (clean files get fast “yes”)
Spanish banks are detail-driven. Give them a tidy, complete pack in one go.
Core documents (all applicants / co-borrowers):
Passport/s and NIE
Last 6 to 12 months of bank statements (personal + business if self-employed)
Income proofs
Salaried: last 3 to 6 months payslips + latest tax return
Self-employed / company owners: last 2 years' accounts + tax returnsCurrent loans or mortgage statements (home country)
Proof of down payment and closing costs (savings/investments)
Credit report (if available in your country)
If you already reserved a property: reservation/arras and purchase price
Translations/apostilles if required; ask your bank/mortgage advisor before you pay for them.
Make it easy to approve you: One PDF per item, named clearly. No screenshots. Highlight non-obvious income, like bonuses or dividends, and be ready to show they’re regular.
Steps 4 and 5
Step 4: Choose your route: bank direct or mortgage advisor
You can walk into a bank, or you can use a mortgage advisor who works with several lenders at once. Both work. The question is speed and fit.
Bank direct (when to use):
- You already bank with a Spanish lender.
- Your profile is straightforward.
Mortgage advisor (when to use):
- You want one pack sent to multiple banks.
- You’re self-employed, have a mixed income, or need 70% LTV.
- You value faster feedback and one point of contact.
Fees? Mortgage advisors generally charge around 1% mortgage setup fee. Clarify upfront.
Pro tip: Ask for a side-by-side key facts sheet with rate type, term, LTV, fees, valuation cost, bundled insurances, and timeline.
Step 5: Pick the right mortgage type
Fixed rate: Stable payments, slightly higher in 2025, good for certainty.
Variable: Moves with Euribor, good for quick prepayment.
Mixed: Fixed for a period, then variable.
Term: 20 to 30 years, age limits apply. Currency risk if not in EUR.
Decision rule:
Long-term certainty choose: fixed.
Prepay early choose: variable or mixed.
Steps 6 and 7
Step 6: Offer on a property the safe way (arras + valuation)
In Spain, you sign a reservation, then arras before a notary.
Protect yourself with a finance clause: Makes the contract subject to mortgage approval or valuation equal to or higher than the purchase price. Without it, you risk losing your deposit.
Valuation: Bank orders from an approved appraiser. If lower than the price, you must cover the gap.
Example: €800K agreed, €760K bank valuation, then bank lends 70% of €760K, not €800K.
Pro tip: Pre-approval before arras reduces risk.
Step 7: Approval, insurance, and completion at the notary
Bank issues binding offer (FEIN/ESIS). You get a cooling-off period.
Insurances:
Home insurance required.
Life insurance is optional, but it can improve the rate.
Notary day: Sign purchase + mortgage deeds. Funds arrive by draft or transfer. Bring passports, NIEs, POA if needed.
After signing: Deeds to registry, bank sets up direct debit, lawyer files taxes.
Step 8, Costs & Mistakes
Step 8 Timeline (August 2025 reality)
- Week 0 to 1: Budget, DTI, lender/broker, NIE, bank account.
- Week 2: Submit pack, get pre-approval.
- Week 3 to 4: Offer accepted, arras signed, valuation ordered.
- Week 5 to 6: Final underwriting, binding offer, insurances, notary booked.
- Week 7 to 8: Sign, keys, registry, utilities.
What will it cost (beyond the property price)
In Andalusia, the main extra costs for a property purchase are:
For RESALE properties:
ITP tax: 7% of the purchase price
Notary: generally between €8000 to €2,500 (depends on property price and number of pages)
Land Registry: approximately between €1,000 to €2,000
Lawyer: Around 1% + VAT
Typical total: approximately 9 to 10% of the purchase price (without a mortgage).
For NEW-BUILD / Off-Plan properties:
IVA (VAT): 10% of the purchase price
AJD (stamp duty): 1.2% in Andalusia (on the purchase price)
Plus notary, registry, lawyer, gestor as above
Typical total: between 10 to 12% (without a mortgage).
If you’re using a mortgage, add:
Bank arrangement fee (0 to 1.5% of the loan; some banks are at 0%)
Valuation (generally €300 to €700)
Possible insurance tie-ins (home, sometimes life)
Why some guides quote between 12 to 14%:
If you include mortgage costs, higher lawyer fees, and top-end notary/registry charges, totals can reach these upper rangesespecially for lower-priced properties where fixed fees make up a larger percentage.
Examples:
€500K resale, 70% LTV mortgage €210K to €220K cash needed.
€1.2M resale, 60% LTV mortgage €600K to €630K cash needed.
Six mistakes:
No finance clause in the reservation papers.
Sending screenshots instead of PDFs.
Assuming 70% on price, not valuation.
Underestimating transfer times.
Chasing the lowest headline rate without a full cost check
One of the most common mistakes I’ve seen over the years is viewing homes without mortgage pre-approval only to fall in love with a property that’s far beyond what the bank will lend.
FAQ, Action Plan & Final Word
FAQ (August 2025)
Non-residents? Yes, 60 to 70% LTV possible.
Job history? Preferably 12 to 24 months.
Dividend/rental income? Yes, if regular and provable.
DTI? 30 to 35% net income.
80 to 90% LTV? Rare for non-residents.
Best type 2025? Fixed for certainty; variable/mixed if prepaying soon.
Prepayment penalties? Small, product-dependent.
Age limits? End of term generally up to 70 or with in some cases, up to 75.
Life insurance? Not required, but sometimes improves rate.
Currency loans? Rare, risky.
S.L. structure? Possible, stricter.
Nationality limits? Most can borrow, but compliance varies.
Off-plan? Value at completion, 4 to 3 months before completion, please don't take any new loans before completion.
How to speed up the process:
Get NIE + account early.
Send the full pack of all required documents at once.
Use a mortgage advisor for multiple bids with different banks.
Have a local lawyer ready before offer.
Action plan:
Today: Check DTI, start NIE, gather PDFs.
Within 7 days: Choose route, submit pack, request pre-approval.
Before deposit: Finance clause in arras, transfer plan ready.
During search: Check valuations, flag risks.
Final word:
Treat the mortgage like a project: one budget, one clean pack, one timeline. You’ll save weeks, reduce stress, and improve your odds of getting the right home.
Send me a WhatsApp on: +34 951 870 121
Next step: I’ll send a one-page checklist, and we’ll build your approval pack in 48 hours.
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