In Spain, obtaining a mortgage as a foreigner presents a unique opportunity to acquire property, especially in the context of the country's cautious but accessible banking sector post the 2008–2014 economic recession. Despite stricter lending criteria than in the past, foreign buyers without fiscal residency status in Spain can still secure loans covering up to 60-70% of the property's value or market estimate, whichever is lower. This is notably higher than many other European countries​​.

The 2019 mortgage law introduced significant protections for borrowers, including the option of a "foreign currency loan", allowing non-residents to convert their mortgage debt into a different currency under certain conditions. While some Spanish banks have ceased lending to foreigners due to this change, major institutions like Banco Santander, Banco Sabadell, CaixaBank, and Bankinter continue to cater to non-resident clients. The bank's willingness to lend to a non-resident is influenced by the borrower's nationality and the economic stability of their home country​.

To apply for a mortgage in Spain, non-residents must provide a comprehensive set of documents, including identification, fiscal residence certificate, employment and income proof, tax returns, bank statements, credit history, property reservation agreement, and an appraisal of the property’s market value​​.

These conditions highlight Spain's openness to foreign investment in real estate while maintaining a prudent approach to lending. This scenario makes Spain an attractive option for foreigners looking to invest in property, offering a balance of opportunity and security.

Features of Lending:

Regarding Income Requirements for a Mortgage: 

It is advised that your monthly income should be at least three times the monthly mortgage payment. This assures banks of your capability to repay the loan.

Documents Required for a Mortgage Application:

Property Valuation Process: 

Obtaining a mortgage in Spain involves a critical step of property valuation, essential for mortgage contract approval. Most banks collaborate with certain experts whose valuation reports are considered. These reports include the property's value and the estimated time it could be sold at this value.

A valuation report includes data on three similar transactions in the property market or information about six comparable properties sold in the last 12 months. This helps banks assess the real value and potential of the property, a crucial aspect in mortgage issuance.

Property Requirements:

Types of Interest Rates:

Additional Expenses:

Although securing a mortgage in Spain as a non-resident involves a comprehensive set of requirements, with our assistance at Spain Costas, this journey becomes much more accessible. Our expertise can transform a seemingly complex process into an achievable objective, ensuring that acquiring your dream home in Spain is not just a possibility, but a reality within reach.