Mortgages in Spain for International Buyers: How to Secure the Best Deal in 2024

Thinking of buying property in Spain but need a mortgage? Whether you’re considering a holiday home, investment property, or permanent move, understanding how mortgages work for international buyers in Spain is essential. In this guide, we cover everything you need to know about Spanish mortgages for non-residents in 2024, including loan-to-value (LTV), documentation, and what it means for residents versus non-residents.

What Loan-to-Value (LTV) Can International Buyers Expect?

For non-residents, Spanish banks typically offer up to 70% LTV, meaning you’ll need to have a deposit of at least 30% of the purchase price, plus closing costs. However, for residents (those holding a Spanish residency permit and living full-time in Spain), some banks may offer up to 80% LTV, particularly for a primary residence.

• Non-Residents (holiday home, investment): Max 70% LTV
• Residents (permanent home): Max 80% LTV (case-dependent)

Documents You’ll Need for a Spanish Mortgage

To apply for a mortgage in Spain, you’ll need to present various documents to prove your income, identity, and financial stability. Here’s a checklist of what most banks will require:

• Copy of your passport
• Proof of income (e.g., last 3 pay slips, pension statements, or self-employed accounts)
• Last 6 months of bank statements
• Tax returns from the last year (e.g., P60, tax declaration)
• Credit report from your country of residence (if applicable)
• Details of other properties and debts (if any)
• Pre-agreement or reservation contract for the property (if already reserved)
• Proof of funds for the deposit and fees

Which Banks Offer Mortgages to Non-Residents?

Several reputable banks in Spain offer mortgages to international buyers, including:

• Sabadell
• CaixaBank
• Bankinter
• BBVA
• Unicaja
• UCI (specialist in international buyer mortgages)

Each bank will have slightly different criteria and rates, so working with a local mortgage broker can help you secure the best deal based on your circumstances.

Does Buying for Residency Impact Your Mortgage?

Yes! If you’re planning to apply for residency (for example, a non-lucrative visa or residency by work), banks may offer you more favourable terms. Buying a permanent home to live in as a resident may qualify you for better rates and higher LTV options.

For those buying investment properties or second homes, while LTV is slightly lower, banks are still very receptive to international buyers with stable income and good credit.

Interest Rates on Mortgages in Spain (2024)

As of 2024, mortgage rates in Spain vary depending on fixed or variable rates:

• Fixed-rate mortgages: Typically between 3.5% and 4.5% for non-residents (subject to profile)
• Variable-rate mortgages: Often set as Euribor + 1.5% to 2%

Rates are subject to change and depend on your income, nationality, and the bank’s offer. Always get a personalised offer!

Residency vs. Holiday Home vs. Investment: What’s the Difference?

Here’s a quick breakdown of how banks view your mortgage application based on the property’s purpose:

• Permanent residency: Higher LTV, lower rates, considered safer by banks.
• Second home (holiday use): Standard 70% LTV, average market rates.
• Investment (rental income focus): More scrutiny, sometimes lower LTV depending on risk profile.

Why Work with a Broker?

A mortgage broker working across Spanish banks can help:

• Negotiate the best rates for non-residents
• Explain each bank’s pros and cons
• Handle the paperwork and translations
• Guide you through bank account setup and NIE number (tax ID)

Final Thoughts

Securing a mortgage in Spain as an international buyer is entirely possible and relatively straightforward with the right guidance. Whether you’re buying a villa in Marbella, a beachfront apartment in Malaga, or an investment in the Costa del Sol, understanding the process and what banks expect will set you up for success.

Need help finding the best mortgage deal? We work with trusted mortgage brokers and can connect you to the right experts. Contact us today to get started on your Spanish property journey.

📲 Ready to start? Book a call here: https://calendly.com/chris-nusunrealty/discovery-call

Related Links:

• Buying Costs in Spain for International Buyers
• Explore Properties in Costa del Sol