Spanish mortgages for non-residents: how much you can borrow and what banks ask for
Spanish banks will lend to high-net-worth expats, but on their terms: a lower loan-to-value than residents get, a thick documentary file, and roughly a tenth of the price again in costs on top before you own a thing. A non-resident can usually borrow around 60 to 70% of the bank’s valuation, against up to roughly 80% for a resident. So your deposit here is larger than it would be at home (indicative market ranges, as at October 2026). Banks have grown more careful, too: residential mortgage foreclosures rose 27% in the first half of 2026, to 9,596 cases[1]. What follows is educational, not advice for your own situation.
How much can a non-resident borrow?
A Spanish bank lends against its own valuation, not your asking price. For a non-resident, that gap is your deposit. Loan-to-value (the share of the property’s value the bank will lend) typically runs at about 60 to 70% for a non-resident, where a resident can often reach 80%. If the bank values the property below the price you agreed, it lends against the lower figure, and you make up the difference in cash.
Those percentages are indicative market ranges, not a quote. The binding number comes from a specific bank’s valuation and your own profile: income, existing debts, age, and how the bank reads your country’s paperwork. A broker or the bank gives you the exact figure. Get it before you commit to a price.
The caution is about the bank’s own risk, not a failing market. Foreclosures rising 27% sounds alarming, but distress in the Spanish market is still historically low, with no sign of a systemic crash[2]. House prices grew 9% in the first half of 2026[3], and demand from Northern Europe is strong: Dutch purchases were up 19.5% in the second quarter[4]. Across Spain, foreign demand eased by about 13% over the same period, a recalibration from exceptional highs rather than a downturn[5]. For a buyer, that means a little more room to prepare properly, and no reason to delay out of fear.
The paperwork a Spanish bank asks for
The file is substantial, and assembling it before you approach anyone is the difference between walking in prepared and walking in hopeful. Expect to provide:
- An NIE, the foreigner’s tax identification number. You cannot sign a mortgage, open a bank account or complete a purchase without it, so get it first.
- Proof of income: recent payslips if employed, or two to three years of accounts and tax returns if self-employed or a company director.
- Home-country tax returns and, in many cases, a tax residence certificate.
- Bank statements covering several months, plus statements for any existing assets.
- A record of existing debts: mortgages, loans and credit commitments, so the bank can set your debt-to-income ratio.
- The property’s details, including a land-registry extract (the nota simple). As the lawyer Belen Battaglia puts it, “the only way the buyer has to check that the seller owns the property and can legally sell it is through the land registry extract”[6].
A bank will usually want documents translated and, for some, officially legalised. Allow time for that.
Fixed, variable or a mix?
Spanish mortgages come fixed, variable or as a combination. The choice is about how much rate certainty you want to pay for. A fixed rate holds for the life of the loan: your payment never moves, which suits a buyer who wants a predictable budget and plans to hold for years. A variable rate is linked to Euribor, the eurozone interbank rate, plus a margin, so your payment falls when Euribor falls and rises when it rises. A mixed product fixes the rate for an opening period, then turns variable.
The honest answer is that it depends on your plans and your tolerance for a moving monthly figure. A buyer who wants to know the exact cost for the next twenty years leans fixed. One comfortable with some variation, perhaps expecting to repay early, may prefer variable. There is no best option for everyone. Work it through with a broker or the lender against the live rates on offer.
The costs that sit on top of the price
Budget for roughly 9 to 14% on top of the purchase price, as at October 2026. Where you land in that range depends on one question: is the home a resale or a new build? You pay one main tax or the other, never both.
- Resale: transfer tax (ITP) at a flat 7% in Andalucía.
- New build: VAT (IVA) at 10% plus stamp duty (AJD) at 1.2%, so 11.2%.
The fees come on top of either. Your own lawyer typically charges around 1% plus 21% VAT, the notary and land registry together usually come to well under 1%, and if you borrow, the bank’s valuation and any arrangement fee are yours to pay too. That adds roughly 1.5 to 3%, the higher end if you take a mortgage.
So a resale lands at around 9 to 10% and a new build at around 13 to 14%. On a €1 million resale that is roughly €90,000 to €100,000 on top of the price, and on a €1 million new build roughly €130,000 to €140,000. Ask your lawyer for the exact figures on the property you are buying before you agree a price.
The notary is a state-appointed official who reads and witnesses the deed, and that is all. The notary “will not perform due diligence; they only formalize the transaction based on information provided”[7]. The checks that protect you, confirming the seller’s title, any charges on the property and the licences, are your own lawyer’s job, not the notary’s. Those costs are part of the real price of the house, whether the listing mentions them or not.
Private banks and larger purchases
For larger purchases, private banks offer high-net-worth buyers more flexible terms: deals built around a documented picture of your assets and income, and arrangements that often sit alongside assets you hold with the bank. The relationship can widen what is possible, and sometimes improve the rate.
It does not remove the floor. A private bank still lends against its own valuation of the property, and still wants the full picture of your assets and income. The relationship buys you more flexibility, not a way round the valuation that governs every Spanish mortgage. The preparation that follows matters just as much here.
What to do before you approach a bank
In order:
- Get your NIE. Everything else queues behind it.
- Gather the income and asset file: tax returns, payslips or accounts, bank statements and a list of existing debts, translated where needed.
- Budget the costs on top, roughly 9 to 10% on a resale or 13 to 14% on a new build, as cash you need in addition to the deposit.
- Commission an independent valuation, so you are not surprised by the bank’s own figure.
- Instruct your own lawyer to run the land-registry and licence checks before you sign anything.
Approach the bank or broker with realistic loan-to-value expectations, the full document file, and the costs on top already budgeted. On those terms, the lending is there.
This article is provided solely for informational purposes, reflecting Northern Estate’s interpretation of current legal frameworks and market practices, which are inherently subject to change. It does not purport to offer, nor should it be interpreted as offering, professional investment, financial, or real estate advice. Individuals considering any form of investment or financial planning in relation to luxury real estate should consult with a qualified professional advisor to tailor advice specifically to their circumstances. Northern Estates has endeavored to ensure the accuracy of the information herein; however, we cannot accept liability for any errors or omissions.
Sources
[1] Spanish Property Insight (2026) ‘Mortgage foreclosures rise in H1 2026’. Available at: https://www.spanishpropertyinsight.com/2026/09/26/mortgage-foreclosures-rise-h1-2026/
[2] Spanish Property Insight (2026) ‘Mortgage foreclosures are rising in Spain, but distress is still historically low’. Available at: https://www.spanishpropertyinsight.com/2026/08/08/mortgage-foreclosures-are-rising-in-spain-but-distress-is-still-historically-low/
[3] Spanish Property Insight (2026) ‘Spanish house prices rise 9pc but market growth stalls in H1 2026’. Available at: https://www.spanishpropertyinsight.com/2026/10/08/spanish-house-prices-rise-9pc-but-market-growth-stalls-in-H1-2026/
[4] Spanish Property Insight (2026) ‘Market snapshot: Dutch market in Q2 2026’. Available at: https://www.spanishpropertyinsight.com/2026/09/12/market-snapshot-dutch-market-in-q2-2026/
[5] Spanish Property Insight (2026) ‘Foreign demand for Spanish property falls sharply in first half of 2026’. Available at: https://www.spanishpropertyinsight.com/2026/10/19/foreign-demand-for-spanish-property-falls-sharply-in-first-half-of-2026/
[6] B. Battaglia, Move to Spain, 11 October 2026.
[7] Move to Spain, ‘Buying property in Spain: the notary’s role’, 11 October 2026.