Yes, Spanish banks lend to foreigners. That is the good news. The less good news is that they lend you less, ask for more paperwork, and take longer than you expect, and almost nobody tells you that before you fall in love with a flat.
Here is what actually happens, so you can plan around it.
The short version
- Non residents are typically offered 60 to 70 per cent of the value. Residents often reach 80.
- So you need 30 to 40 per cent in cash, plus the 10 per cent of purchase costs.
- Banks lend on the lower of the price or the valuation, not on the price you agreed.
- Most banks want your total debts to stay under about 35 per cent of your net income.
- Allow four to eight weeks, and start before you sign a deposit contract, not after.
How much they will actually lend you
| Your situation | Typical lending | Cash you need |
|---|---|---|
| Spanish resident, Spanish income | Up to about 80 per cent | 20 per cent plus 10 per cent costs |
| Non resident, foreign income | Around 60 to 70 per cent | 30 to 40 per cent plus 10 per cent costs |
| Non resident, complex income | Sometimes less, or refused | Depends entirely on the bank |
On a 400,000 euro flat as a non resident, that means roughly 120,000 to 160,000 of deposit plus about 40,000 of costs. Around 160,000 to 200,000 euros of your own money. That is the number to plan with, not the price on the listing.
The valuation trap
The bank does not lend on what you agreed to pay. It sends its own valuer, and lends a percentage of the lower of the price and that valuation.
If you agree 400,000 and the valuer says 370,000, your 70 per cent is calculated on 370,000, not on 400,000. You have to cover the difference in cash. In a fast market where buyers compete above asking, this catches people out constantly.
What the bank will ask you for
- Passport and NIE. The NIE is not optional here.
- Proof of income: employment contract, recent payslips, or if you are self employed, two or three years of accounts and tax returns.
- Tax returns from your own country, often the last two.
- Bank statements, usually six to twelve months.
- A credit report from your country in some cases, plus a check of the Spanish credit registry.
- Proof of your existing debts, including mortgages and loans abroad. They count.
- Proof of the origin of your deposit. Spain applies strict anti money laundering rules, so be ready to show where the money came from.
Documents in another language usually need an official translation, and sometimes an apostille. That step alone can add a couple of weeks, so ask early exactly what format your bank wants.
Fixed, variable or mixed
Spain has all three. Variable rates are tied to the Euribor plus a margin, so your payment moves with it. Fixed gives you the same payment for the whole term. Mixed starts fixed for a few years and then goes variable.
I am not going to tell you which to take, that depends on rates at the moment you sign and on your own risk tolerance, and it is a conversation for a broker or your bank. What I will say is: compare the real total cost, not the headline rate, because the products that advertise the best rate are usually the ones that require the most extras.
Bundled products (productos vinculados)
Spanish banks improve your rate if you also take their home insurance, life insurance, a salary direct debit, a credit card, a pension plan. Legally they cannot force you, and since the 2019 mortgage law your bank must give you a binding offer with time to review it before signing.
In practice these products can cost more per year than the rate discount saves you. Ask for the numbers with and without, and compare the total, not the percentage.
How long it takes, and in what order
- Get a pre approval before you start viewing. It tells you your real budget and makes you a credible buyer.
- Find the property and agree the price.
- Sign the deposit contract (arras), normally around 10 per cent. This is where the risk sits, see below.
- The bank valuation, which you pay for.
- Binding offer and the mandatory notary appointment to review the terms.
- Completion at the notary, where the purchase and the mortgage are signed together.
Realistically four to eight weeks from application, longer if your documents come from abroad or your income is unusual.
The mistake that costs real money: signing the arras with no mortgage clause. Under the standard deposit contract, if you cannot complete you lose your deposit, and «the bank said no» is not automatically an excuse. If your purchase depends on financing, that has to be written into the contract by your lawyer. This is the single most expensive thing foreign buyers get wrong.
Should you use a mortgage broker?
For a foreign buyer, often yes. A broker knows which banks are currently comfortable with non residents, with your nationality and with your kind of income, which changes constantly. Going bank by bank yourself is slow, and every refusal costs you weeks.
I am not a broker and I do not sell mortgages. I work with clients on the property side and I point them to people who do this properly.
Questions I get asked a lot
Can I get a Spanish mortgage without living in Spain?
Yes. Non resident mortgages are normal. You just get a lower percentage and more paperwork.
Does my income abroad count?
Yes, but banks apply their own criteria to foreign income and some currencies and countries are treated more cautiously than others.
Can I buy without a mortgage?
Of course, and it makes you a stronger buyer in a competitive market. Just make sure you can prove the origin of the funds.
Are there extra costs on the mortgage itself?
Since the 2019 law most of the mortgage set up costs fall on the bank, but you pay the valuation and, in practice, the insurance products you end up taking. Ask for the full breakdown in writing.
You might also want to read
The Madrid Buying Guide
Everything I explain to my own buyers: the real timeline, the money in full, the legal checks and the red flags. In one place you can keep.
- The honest timeline
- The 10 per cent on top
- Price cheat sheet by district
- Documents you need
- The process step by step
- The legal checks that matter
- Viewing checklist and red flags
- Useful Spanish phrases
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Buying in Madrid and want someone on your side?
I do the property part: the search, the viewings, the checks and the negotiation, working only for you. And I will tell you early if the numbers do not add up, before you spend money on a valuation.
Talk to me on WhatsAppOr book a free 30 minute callGeneral information from a property adviser, not financial, mortgage or legal advice. I do not sell mortgages. Lending criteria, percentages and rates vary by bank and change frequently. Always get a binding offer in writing and have your lawyer review the deposit contract before you sign it.