Real Estate in Spain · updated 12.07.2026
Mortgages in Spain for non-residents and residents: bank terms
Updated: 12 July 2026 · Verified by the EuroGarant team against official sources
In short: Spanish banks do lend to foreigners, but the terms depend heavily on your status. A non-resident is typically approved for 60–70% of the property value (LTV), a resident with a residence permit — up to 80%, and the resident's rate is usually lower as well. The key rules of the deal are set by the mortgage law Ley 5/2019: the bank pays most of the closing costs, and the borrower gets a mandatory period to study the terms before signing at the notary. Below you will find a comparison table, a list of documents and a step-by-step application process. One important caveat right away: buying a home, including with a mortgage, does not in itself grant any right to reside — the investor “golden visa” was abolished as of 03.04.2025.
Do Spanish banks give mortgages to foreigners
Yes. For a bank, the borrower's citizenship is secondary — what comes first is tax residency, the country where the income originates and how transparent it is. All applicants therefore fall into two large groups: non-residents (who live and pay taxes outside Spain) and residents (who live in Spain on a residence permit and, as a rule, are its tax residents). The bank's logic is simple: a resident's income is visible in the Spanish tax system and easier to “reach”, so residents get more money at a lower cost. A non-resident is a higher risk for the bank, which is offset by a lower LTV and a higher rate.
The same logic applies beyond mortgages: if you need money for renovations, furniture or the move itself, consumer loans are also available to foreigners, and you can put the bank file together with professional support — see a loan from a Spanish bank.
For Russian-speaking applicants there is also a third factor — EU sanctions restrictions and the banks' internal compliance policies: the origin of funds is checked especially carefully, and holding a residence permit in Spain or another EU country makes opening an account and getting your application reviewed considerably easier. How to obtain the status legally is covered in our guide “How to Get a Residence Permit in Spain”.
Comparing terms: non-resident vs resident with a permit
The figures below are market benchmarks for 2026: each bank uses its own scoring model, and the final offer depends on the borrower's profile, the property and the region.
| Parameter | Non-resident | Resident with a Spanish residence permit |
|---|---|---|
| LTV — loan-to-value | Usually 60–70% of the lower of the two figures: the purchase price or the bank appraisal (tasación) | Up to 80% for a primary residence; for a second home — usually 60–70% |
| Own funds | ≈ 40–50% of the price plus taxes and purchase costs (roughly an extra 10–15% on top of the price) | ≈ 30–35% of the price plus the same taxes and costs |
| Interest rate | Fixed — roughly 3–4,5%; variable — Euríbor + a margin of ≈ 1–2% | Fixed — roughly 2,5–3,5%; variable — Euríbor + a margin of ≈ 0.5–1.5% |
| Loan term | More often up to 20 years; age at final repayment — usually up to 70–75 | Up to 25–30 years with the same age limit |
| Debt burden | Payments on all loans — no more than 30–35% of net monthly income (a Banco de España recommendation, applied to both groups) | |
| Proof of income | Foreign documents with a sworn translation; income not in euros is discounted for currency risk | A Spanish employment contract, nóminas (payslips) and the declaración de la renta (tax return) — or foreign income under the DNV |
What the law Ley 5/2019 changed
The mortgage credit law (Ley 5/2019, in force since 16.06.2019, published in the BOE) significantly strengthened borrower protection — including for foreign borrowers:
- The bank bears the costs: the notary, registration with the Registro de la Propiedad, the gestoría (paperwork agency) and the AJD tax on the mortgage deed are paid by the lender; the borrower only covers the property appraisal (tasación)
- The FEIN and a reflection period: the bank issues a standardised terms sheet (FEIN), after which a mandatory period of at least 10 days applies before signing — giving the borrower time to compare offers
- A notary visit before the deal: the notary checks, free of charge, that the borrower understands the loan terms and records this in a separate deed
- Limits on early repayment and fees: the maximum fees for early repayment are directly capped by law
- Protection on multi-currency loans: a borrower whose income is not in euros gets the right to convert the loan — which is why banks assess “non-euro” income more conservatively
Documents for a mortgage application
The basic set for a foreigner (foreign documents need an apostille and a sworn translation into Spanish):
- A passport and an NIE — the foreigner identification number, without which the deal is impossible (for how to get one, see our NIE guide)
- Proof of income: an employment contract and payslips for 3–6 months, or tax returns and management accounts for business owners
- Tax returns for 1–2 years from your country of tax residence
- Bank statements for 6–12 months — the bank looks at the stability of balances and the origin of the down payment
- A credit history / certificate of no outstanding debts from your country of residence
- Details of current loans and obligations
- A preliminary contract (contrato de arras) for the chosen property
- For residents, additionally: the TIE card (foreigner ID card), empadronamiento (municipal registration), Spanish nóminas or the declaración de la renta
How to get a mortgage: 7 steps
- Get an NIE and open an account with a Spanish bank — your loan payments and utility bills will go through it.
- Get pre-approval (pre-aprobación): the bank will assess your income and set a working budget before you pay a deposit.
- Choose a property and sign the arras — a preliminary contract with a deposit (usually 10%). Include a mortgage clause in it: if the bank declines, the deposit is returned.
- Order a tasación — an independent appraisal by an accredited valuation company; the bank calculates the LTV from the lower of the two figures: the price or the appraisal.
- Get the FEIN and compare offers — the standardised form lets you compare the rate, fees and bundled products (insurance, cards) in an identical structure.
- Complete the preliminary notary visit — the mandatory check of your understanding of the terms under Ley 5/2019, no earlier than 10 days after the FEIN.
- Sign the escritura (deeds) of sale and mortgage at the notary and pay the taxes — the bank will register the mortgage and transfer the money to the seller.
How residence status changes the mortgage math
The difference between a “non-resident with money” and a “resident with a permit” is not just 10–20 points of LTV. A resident saves on the rate over the entire life of the loan, gets a longer repayment horizon and a lower monthly payment. A holder of a digital nomad residence permit shows the bank foreign remote income legalised in Spain — a strong position for scoring. With an NLV holder, banks look at passive income and savings: employment is excluded under this status, so rental income, dividends and deposits become decisive.
The link also works in reverse: owning a home (including a mortgaged one) strengthens your file when renewing a residence permit as proof of ties to the country and of your place of residence. But not the other way round: since the “golden visa” was abolished on 03.04.2025 (details in our review of the golden visa's fate) neither a purchase nor a mortgage creates an immigration ground — the status is obtained separately, through the DNV, NLV, study, business or family.
If you plan to close the deal with a loan, choosing the bank, negotiating the terms and assembling the file can all be handled turnkey — see help with a Spanish mortgage.
And on taxes: once you become a resident, you enter the Spanish tax system in full — IRPF (personal income tax) on worldwide income, a possible wealth tax and the 183-day rule. How it all works is explained in “Taxes in Spain”. A non-resident owner, in turn, files an annual non-resident return (Modelo 210) even without renting the property out.
Common reasons banks decline
- Debt burden above 35% of net income — the bank counts all loans, including foreign ones
- An untraceable origin of the down payment — compliance will not clear funds without a documented history
- Income in a “weak” currency without stable conversion into euros — the bank discounts it or declines
- An incomplete file: missing sworn translations, apostilles or recent tax returns
- A gap between the declared income and actual account activity over recent months
More breakdowns of practical situations can be found in the “Questions and Answers” section and in other articles in the “Real Estate” category.
Disclaimer: rates, bank requirements and immigration rules change regularly, and the terms of any specific deal depend on the borrower's profile, the property and the region. This material is for reference only and does not replace individual advice: check the current terms for your situation before the deal.
Read also
- Utilities and Household Bills in Spain
- Buying Property in Spain as a Foreigner
- Moving on the NLV: How the Financially Independent Settle In
Official sources: Ley 5/2019 — the mortgage credit law (BOE) · Banco de España — the bank customer portal · Ley Orgánica 1/2025 — abolition of the “golden visa” (BOE)