Spain Property Mortgage Estimator

For non-fiscal residents, banks typically finance between 60% and 70% of the property value (excluding purchase costs). This means you need a deposit covering the remaining 30-40%, plus taxes and fees (approx. 10-12%).

It is often simpler in Spain. Most UK or international banks require a mortgage guarantee on a property located in your home country (releasing equity). A Spanish bank, however, will take the mortgage directly on the property you are purchasing in Spain.

The Tasación is the official property valuation, carried out by an independent valuer appointed by the bank. It is mandatory. The bank will finance the lower amount between the actual purchase price and the Tasación value. If the valuation comes in low, you will need to increase your deposit.

There are three main types: Fixed Rate (Tipo Fijo), currently very popular for peace of mind; Variable Rate (usually Euribor + a margin), higher risk but often cheaper initially; and Mixed Rate (fixed for the first few years, then variable). The choice depends on the economic climate.

Spanish banks are strict: your total monthly debt repayments (including the Spanish mortgage + any existing loans at home) must generally not exceed 30% to 35% of your net income. They will analyze your payslips, tax returns, and bank statements.

For the initial feasibility study, no. But for the issuance of the final binding offer and signing at the Notary, the NIE (Foreigner Identification Number) is mandatory. This is the first administrative step you should take.

Yes. Generally, banks require the mortgage to be fully repaid before the borrower reaches 75 years old (sometimes 70 or 80 depending on the lender). This impacts the maximum term of the loan if you are over 50 or 60.

The process can be slower than in the UK or US. Allow approximately 4 to 8 weeks between submitting a complete file and signing at the Notary. It is crucial to plan ahead to ensure the property transaction proceeds smoothly.

Yes, it is mandatory for the bank to collect mortgage payments. This account will also be used to pay for utilities (water, electricity, local taxes). Some banks offer specific accounts for non-residents.

Expect to pay for the Tasación (€300-€500) and sometimes an opening fee (0% to 1% of the loan amount). Since the new mortgage law of 2019, the bank pays the majority of the notary and registry fees related to the mortgage deed itself.

It is a discount on the interest rate granted if you subscribe to the bank's ancillary products: home insurance, life insurance, alarm system, or direct deposit of income. Be sure to calculate if the cost of the insurance outweighs the savings on the rate.

Yes. Spanish law strictly limits early repayment penalties. They are very low (often 0.15% or 0.25% in the first few years, and 0% thereafter). This is a major advantage compared to other banking systems.

Not always. Many Spanish banks in tourist areas (Costa Blanca, Costa del Sol) have English-speaking staff and accept documents (payslips, tax returns) in English. However, a sworn translation may be required for certain official legal documents.

Often, yes. A broker knows which banks are currently lending to non-residents. They can negotiate better rates (often inaccessible to individuals directly) and, most importantly, they handle the administrative burden for you, providing peace of mind for your purchase.