Getting a mortgage (hipoteca) in Spain in 2026

Updated: October 2026

Buying a home in Spain with a Spanish mortgage is very possible as a foreigner, but the rules and costs differ from what many people know at home. This guide is for both residents and non-residents. It explains how much banks usually lend, how fixed and variable rates work, which costs you pay and what happens on signing day.

Resident or non-resident: how much can you borrow?

Spanish banks lend a percentage of the purchase price or the official valuation (tasación), whichever is lower. This is called the loan-to-value, or LTV. Your tax residence makes a big difference:

	Tax residents in Spain	Non-residents
Typical maximum LTV	Up to around 80% for a main home	Usually around 60–70%
Income checked	Spanish payslips, tax returns, contract	Foreign income, tax returns, credit reports
Typical term	Up to 30 years (often until age 70–75)	Often shorter, around 20–25 years

These are market practices, not legal limits, so each bank decides. Most lenders also want your total monthly debt repayments to stay below roughly a third to 40% of your net income. On top of the deposit, budget about 10–15% of the price for taxes and purchase costs, as banks rarely finance these.

Fixed, variable or mixed rate

• Fixed (fijo): the same rate for the whole loan. Predictable payments, which many newcomers prefer.
• Variable (variable): a margin (diferencial) added to the 12-month Euribor, reviewed usually every six or twelve months. Your payment goes up or down with the index.
• Mixed (mixto): fixed for the first years, then variable.

Euribor moves with European interest rates and changes every day. Check the latest official monthly figure from the Banco de España before you compare offers, and ask the bank to show what your payment would be if Euribor rose by one or two points. Banks often reduce the margin if you take extra products such as home insurance, life insurance or a salary deposit. Compare the TAE (APR), which includes these costs, not just the headline rate.

What a mortgage costs and who pays

Since the 2019 mortgage law (Ley 5/2019), the costs of setting up a mortgage are split between you and the bank:

You pay	The bank pays
Property valuation (tasación)	Notary fees for the mortgage deed
Your own copy of the deed, if you ask for one	Land registry fees for the mortgage
Opening fee, if the offer includes one	Gestoría (paperwork agency)
	Stamp duty (AJD) on the mortgage

This is only the mortgage. The purchase itself has separate costs that you pay: transfer tax (ITP) on resale homes, or VAT plus stamp duty on new builds, as well as notary and registry fees for the sale deed. Rates depend on the region. See our guide to property taxes for foreign owners for the yearly taxes once you own the home.

Early repayment fees are capped

For home loans to individuals signed since 16 June 2019, the maximum fees for paying off early are:

• Variable rate: 0.25% in the first 3 years or 0.15% in the first 5 years (depending on the contract), then nothing.
• Fixed rate: 2% in the first 10 years, then 1.5%.

Calculate your monthly payment and cash needed

Documents you will need

• Passport and NIE (foreigner identification number)
• Recent payslips and employment contract, or two years of accounts if self-employed
• Your latest income tax returns (Spanish or from your home country)
• Bank statements for the last six months, showing savings for the deposit
• Details of other loans and, for non-residents, a credit report from your home country
• The reservation or deposit contract for the property

Documents in other languages may need an official translation. You will also need a Spanish bank account for the repayments; our guide to opening a bank account in Spain explains how.

From application to signing at the notary

1. Pre-approval: the bank checks your income and gives an indicative offer.
2. Valuation: an approved valuer inspects the property. The loan is based on this value if it is lower than the price.
3. Binding offer (FEIN): the bank gives you the standard European information sheet and the draft contract at least 10 calendar days before signing.
4. Free notary meeting: before signing, you meet the notary you have chosen, who checks that you understand the terms. This advice is free of charge.
5. Completion: you sign the purchase deed and mortgage deed at the notary, usually on the same day, and the funds are released to the seller.

If you do not speak Spanish well, bring a sworn interpreter or an independent lawyer. Many buyers use a mortgage broker, which can help non-residents in particular, but check how the broker is paid before you commit.

Useful links

• Banco de España: which mortgage costs you pay
• Banco de España: early repayment fees
• Property taxes for foreign owners in Spain
• Opening a bank account in Spain
• Investment strategies for expats in Spain

FAQ: mortgages in Spain

Can a non-resident get a mortgage in Spain?

Yes. Most Spanish banks lend to non-residents, but usually only around 60–70% of the value, so you need a larger deposit and stronger proof of income.

How much deposit do I need?

As a resident, plan for at least 20% of the price plus 10–15% for taxes and costs. Non-residents typically need 30–40% plus costs.

Do I have to buy the bank’s insurance?

Home insurance covering the building is required, but you can usually buy it elsewhere. Life insurance and other products are often optional and offered in exchange for a lower margin, so compare the total cost.

Is my income in pounds or dollars a problem?

Not necessarily, but banks may lend less to allow for exchange-rate risk, and your repayments in euros will cost more or less as the currency moves.

Disclaimer: This article is general information only and is not financial or legal advice. Interest rates, lending criteria and costs change often – always check the current terms with your bank or an independent adviser before you sign.