Spanish Mortgage Guide: Rates, Requirements + How to Apply (2026)

Getting a mortgage in Spain as an expat is straightforward if you know the rules. The system is well-regulated, rates are competitive, and banks actively want foreign buyers, particularly on the Costa del Sol, where international sales are a core part of their business. Here is exactly how it works.

Can Non-Residents Get a Spanish Mortgage?

Yes. Non-residents can get Spanish mortgages, and most of the major banks have dedicated non-resident mortgage products. The key differences from resident mortgages:

• Lower LTV: 70% maximum for non-residents vs 80% for residents
• Shorter terms: often less than the 30 years residents can get (CaixaBank’s non-resident HolaBank allows 20)
• Higher income scrutiny: You need to demonstrate regular, documentable income, typically minimum €2,500/month net after existing commitments
• More documentation: Overseas income is harder to verify, so banks ask for more

EU citizens and non-EU citizens are treated similarly by Spanish banks: the distinction that matters is resident vs non-resident tax status, not nationality.

LTV Limits Explained

The LTV (loan-to-value) percentage is applied to the lower of:

1. The purchase price
2. The official bank valuation (tasación)

If you buy at €400,000 but the bank’s valuer assesses it at €380,000, the non-resident LTV of 70% applies to €380,000, giving a maximum loan of €266,000, not €280,000. You need to cover the difference plus the 30% deposit. On the Costa del Sol, where asking prices often exceed bank valuations in premium areas like Marbella’s Golden Mile, always get an indicative valuation before signing arras.

For residents: 80% LTV applies, capped at 80% of the lower of purchase price or valuation. On the same €400,000/€380,000 example: maximum loan of €304,000.

Interest Rates in 2026

Fixed Rate Mortgages

Fixed-rate mortgages (hipoteca fija) lock your rate for the full term. Headline fixed rates for purchase loans on the banks’ own pages, September 2026:

• Openbank: 2.80% to 2.90% depending on term, with bonus conditions met; 3.30% to 3.40% without.
• CaixaBank (CasaFácil): 2.85% with maximum bonus; 3.85% without.
• Unicaja: 3.15% for the first six months and 3.10% after that, with bonus conditions and a salary of €2,000 net or more paid in; from 4.10% after six months without the bonus conditions.

These are published starting rates. Each bank sets its own eligibility rules, and a non-resident quote can differ. The bonus conditions, such as paying your salary into the bank or taking its insurance, are worth 0.50 points at Openbank and 1.00 point at CaixaBank and Unicaja, so compare the TAE — annual percentage rate, including costs, not just the headline rate. Confirmed September 2026.

Variable Rate Mortgages

Variable rate mortgages (hipoteca variable) track the 12-month Euribor plus a fixed margin. The official monthly average was 2.798% in June 2026, 2.855% in July and 2.954% in August, against 2.114% in August 2025 and a peak of 4.160% in October 2023. At a 1.00-point margin, the August figure gives a rate of 3.954%. Confirmed September 2026.

Your rate changes on the review date set in your escritura — mortgage deed, usually once a year, using the monthly average for the reference month the deed names. A loan on the official index uses that monthly average, not a single day’s fixing. Each month’s figure becomes official when the Banco de España publishes it in the BOE, early the following month. You bear the risk of future Euribor rises.

Mixed Rate Mortgages

Some banks now offer mixed products: fixed for 5–10 years, then variable. Useful if you plan to sell or refinance within the fixed window. Openbank and Unicaja both publish one with the rate fixed for the first five years.

Which Banks Lend to Non-Residents?

Sabadell

Sabadell sells a Hipoteca no residentes — non-resident mortgage, and takes enquiries through a specialist adviser rather than publishing its terms online. It lends residents up to 80% of the price or valuation for a main home and says only that the limit is usually lower for non-residents. As a general rule, the loan must be repaid by age 75.

CaixaBank

Large nationwide network. Its non-resident mortgage, HolaBank, lends up to 70% of the property’s value over up to 20 years (15 for some currencies). Residents of 15 countries in Western Europe, the USA and Canada can apply online; other non-residents apply at a branch. For residents, CaixaBank lends up to 80%, and the oldest borrower’s age plus the term cannot exceed 80.

BBVA

BBVA describes its fixed-rate mortgage as a loan for residents of Spain with income and assets only in euros, and publishes no non-resident mortgage. For residents it lends up to 80% on a main home and 70% on a second home, over up to 30 years, and the youngest borrower’s age plus the term cannot exceed 75.

Santander

Santander publishes a mortgage for non-residents buying a second home in Spain, with an online payment simulator, but no maximum loan-to-value. Ask for it in writing before you rely on a figure.

UCI (Unión de Créditos Inmobiliarios)

A specialist home-loan lender, owned by Banco Santander and BNP Paribas, rather than a retail bank. It lends non-residents up to 70% of the property’s value and offers fixed rates for up to 30 years. You can apply directly, online or at one of its branches.

Confirmed September 2026 against each bank’s own website.

Documents Required

For All Applicants

• Valid passport
• NIE number (Número de Identificación de Extranjero), mandatory before any mortgage can proceed
• Last 3 months’ bank statements (all accounts)
• Last 2 years’ tax returns from your country of residence
• Last 3 payslips (employed) or last 2 years’ accounts (self-employed)
• Property details: nota simple (land registry extract), price, and preliminary purchase contract if signed

Additional for Non-EU Applicants

• Apostilled (or notarised) copies of income documents translated into Spanish
• Credit report from home country (Equifax or Experian report, apostilled)
• Proof of funds for deposit (bank statements showing funds available)

Employed Applicants

• Employment contract or letter of employment confirming salary and permanent/indefinite status
• P60 or equivalent (UK), W-2 (US), or national equivalent for 2 years

Self-Employed / Business Owners

• Last 2 years’ company accounts signed by accountant
• Last 2 years’ personal tax returns
• Evidence of business ongoing (bank statements showing trading)

The Mortgage Process: Step by Step

Step 1: Get an Agreement in Principle (1–2 weeks)

Before making an offer, approach two or three banks (or a broker) with your documents for an indicative pre-approval. This tells you your maximum loan amount and the rate you qualify for. Banks issue a FEIN (Ficha Europea de Información Normalizada), the standardised European mortgage information sheet, which makes comparison straightforward.

Step 2: Find the Property and Make an Offer (variable)

Once you have pre-approval, your offer is credible. Sellers on the Costa del Sol know non-resident buyers often face longer mortgage timelines, so having pre-approval in hand strengthens your position.

Step 3: Sign Arras (Reservation Contract) (1 week)

A contrato de arras penitenciales (Article 1454 Código Civil) reserves the property. You pay 10% of the purchase price. If you withdraw, you lose it. If the seller withdraws, they pay you double. Include a mortgage condition clause (condición resolutoria hipotecaria), which allows you to recover your deposit if your mortgage is refused within the agreed timeline.

Step 4: Formal Mortgage Application (2–3 weeks)

Submit the full application to your chosen bank. They commission the official tasación (valuation), which you pay directly: €300–500 for standard residential property. The bank’s credit committee reviews the application and issues the formal binding offer (FEIN).

Step 5: Obligatory Reflection Period (10 days minimum)

By law (Ley 5/2019), once the bank issues the binding offer, you must wait a minimum of 10 calendar days before signing the mortgage deed. Use this time to review with an independent lawyer. The bank cannot pressure you to sign earlier.

Step 6: Notary Signing (Completion Day)

Two appointments: the private purchase deed (escritura de compraventa) and the mortgage deed (escritura de hipoteca), often on the same day at the same notary. The bank transfers funds directly to the seller. The notary sends the deeds for registration at the Registro de la Propiedad.

Total timeline from application to completion: 6–8 weeks for straightforward applications. Allow 10–12 weeks if your income is complex or requires translated documents.

Mortgage Costs: What You Actually Pay

Since the Ley Hipotecaria (Law 5/2019), the bank pays its own legal and registration costs. What you pay:

Cost	Who Pays	Typical Amount
Bank valuation (tasación)	Buyer	€300–500
Arrangement/opening fee (comisión de apertura)	Buyer (if applicable)	0–1% of loan
Notary fees (mortgage deed)	Bank (since 2019)	Bank pays
Land registry fees (mortgage)	Bank (since 2019)	Bank pays
AJD stamp duty on mortgage	Bank (since November 2018)	Bank pays
Independent legal review (optional but recommended)	Buyer	€500–1,500

Total buyer mortgage costs: approximately €800–6,000 depending on whether there is an arrangement fee. Compare this against the broader purchase costs covered in our property purchase costs guide.

Using a Mortgage Broker in Spain

Mortgage brokers (intermediarios de crédito inmobiliario) are regulated by the Bank of Spain and must be registered in the Registro de Intermediarios de Crédito Inmobiliario. They earn a commission from the bank (typically 0.5–1% of the loan amount), not from you, although some charge a flat advisory fee (€500–1,500).

Brokers are particularly useful for: non-standard income, complex residency situations, non-EU applicants, and anyone who wants to compare 5+ lenders without making 5 separate applications. On the Costa del Sol, look for bilingual brokers who know the non-resident application process.

Early Repayment and Overpayments

Spanish mortgage law (Ley 5/2019, article 23) caps the compensation a bank can charge when you repay early, and it can never exceed the bank’s actual financial loss:

• Variable rate mortgages: 0.15% of the capital repaid during the first five years, or 0.25% during the first three years. The contract picks one of the two, and nothing can be charged after that period.
• Fixed rate mortgages: 2% of the capital repaid during the first 10 years (or from the date the fixed rate starts), and 1.5% after that.

These caps cover loans signed from 16 June 2019, when Ley 5/2019 came into force, and older loans renegotiated or moved to another bank since then. Any other older loan follows the terms in its deed, with one exception: the conversion rule below applies whatever year the loan was signed.

You can make partial overpayments at any time, and banks must accept them. Many expats on the Costa del Sol make annual lump-sum reductions as rental income accumulates, reducing both term and total interest.

Switching a variable loan to a fixed rate

Converting a variable loan to a fixed rate, or to one fixed for an initial period of at least three years, carries early-repayment compensation capped at 0.05% of the capital repaid early during the loan’s first three years, and nothing after that (Ley 5/2019, article 23.6). If no capital is repaid, nothing may be charged. For a home loan within the law’s scope, this applies whatever year the loan was signed.

There are two ways to do it: a novación — renegotiation with your current bank, which the bank can accept or refuse, or a subrogación — moving the loan to another bank. The cap is the same for both. It has been 0.05% since 24 November 2022, and between that date and 31 December 2024 the charge was suspended entirely.

Zero compensation is not a free switch. The valuation (tasación) falls on you. The lender pays the notary and registry costs of the deed and the gestoría — agency that handles the paperwork (Ley 5/2019, article 14.1.e), and the stamp duty on a mortgage deed is the lender’s tax. Ask for the full cost in writing before you commit.

Moving to another bank needs no consent from your current one, provided the new lender pays off the loan by public deed (Ley 2/1994, article 2). Your current bank then has seven calendar days to certify what you owe, and 15 calendar days after that in which it can keep the loan only by formalising a renegotiation with you. A matching offer on its own forces nothing, and the bank cannot refuse the payoff.

A lower rate alone does not prove a saving: compare the TAE and the cost of any bonus conditions. Confirmed September 2026.

Mortgage and the Beckham Law

If you are taxed under the Beckham Law special regime, Spanish banks treat you as a resident for mortgage purposes, so you can access 80% LTV products. However, your declared Spanish income may be limited, which affects the affordability calculation. Some banks specifically ask for your global income declaration; others accept Beckham-regime income only. Clarify this before applying.

Opening a Spanish Bank Account First

You will need a Spanish bank account to receive the mortgage and make repayments. Most banks require you to open an account with them to process the mortgage. Our guide to banking in Spain covers account opening for non-residents. The process takes 1–2 weeks and requires your NIE, passport, and proof of address. Start this before your mortgage application.

Related guides: Buying Property in Spain | Property Purchase Costs | Banking in Spain | Beckham Law

Frequently Asked Questions

Can I get a Spanish mortgage with a UK income after Brexit?

Yes. Brexit did not change mortgage eligibility for UK nationals: Spanish banks treat UK income the same as any non-EU income. You need apostilled income documents and a translated tax return. Expect the documentation process to take 2–3 weeks longer than for EU applicants.

How much deposit do I need for a Spanish mortgage as a non-resident?

A minimum of 30% of the property value (based on the lower of purchase price or bank valuation), plus purchase costs of 10–12% (ITP, notary, registro, gestoría). On a €400,000 property: €120,000 deposit + approximately €40,000–48,000 in costs = around €160,000–168,000 total cash needed before getting the keys.

Can I get a Spanish mortgage if I am self-employed?

Yes, but it requires more documentation. Banks want 2 years of accounts, personal tax returns, and bank statements showing consistent income. If your income has been variable, expect questions; banks use the lower of your last 2 years’ average income as their baseline.

Is it better to get a fixed or variable rate Spanish mortgage in 2026?

Headline fixed rates on the banks’ own pages run from 2.80% to 3.15% with bonus conditions met, and 3.30% to 4.30% without (September 2026). A variable rate is the 12-month Euribor, 2.954% in August 2026, plus your margin: at a 1.00-point margin that is 3.954%. Which costs less over the life of the loan depends on your margin, the cost of the bonus conditions and the future path of the Euribor. Compare the TAE of each offer rather than the headline rate.

How long can I get a Spanish mortgage for?

Standard terms for residents: up to 30 years. Non-residents: often less (CaixaBank’s HolaBank allows 20 years). There is also an age restriction: the borrower’s age plus the term cannot exceed 75 at BBVA and, as a general rule, Sabadell, or 80 at CaixaBank; check each bank’s policy. A 55-year-old non-resident applying at most banks will be offered a maximum 20-year term.

What is a mortgage broker’s fee in Spain?

Regulated brokers typically earn their commission from the bank (0.5–1% of the loan). Some also charge the client a flat advisory fee of €500–1,500, separate from bank commission. If a broker charges you a percentage of the loan rather than a flat fee, compare their total cost to applying directly. By law, brokers must disclose all fees upfront in the ESIS document.

Can I get a mortgage in Spain as a foreigner?

Yes. Most major Spanish banks offer mortgages to non-resident foreigners, at up to 70% LTV at the banks that publish a figure. Headline fixed rates ran from 2.80% to 4.30% in September 2026, depending on bonus conditions, and a non-resident quote can differ. You will need an NIE, proof of income, and bank statements.

Do I need a Spanish bank account for a mortgage?

Yes. Your mortgage payments will be debited from a Spanish bank account. Most buyers open an account at the same bank providing the mortgage. See our banking guide for details.

What fees are involved in a Spanish mortgage?

Expect arrangement fees of 0.5-1% of the loan amount and valuation fees of EUR 300-500. The bank pays the notary, registry and gestoría costs of the mortgage deed (Ley 5/2019, article 14.1.e), and it has paid the stamp duty (AJD) on the deed since November 2018.

Should I use a mortgage broker in Spain?

A broker can save time comparing offers across banks and may negotiate better terms, especially for non-resident or complex income scenarios.

Related Guides

• Buying Property on the Costa del Sol
• Mortgages for Expats in Spain
• Renting vs Buying in Spain
• Property Costs in Spain
• IBI Property Tax
• Choosing a Property Lawyer