Mortgage Guide

Mortgages

Buying property in Spain as a non-resident whilst using a mortgage is becoming increasingly popular. Many clients who at one time would have been all cash buyers are now approaching purchasing a bit differently. Many see taking advantage of one of the lowest interest rates in Europe as a smarter option than tying up huge portions of their available capital.

Let's look at the process and what to expect if you decide to at least explore this option.

Can Non-Residents Get a Mortgage in Spain?

Yes. Spanish banks regularly lend to non-residents, particularly buyers from the EU, UK, and other stable economies. However, the terms are more conservative than for residents.

Deposit Requirements

For non-residents, expect:

• 30–40% deposit of the purchase price
• +10–15% extra for taxes and fees (these cannot be added to the mortgage)

This means you'll need a larger upfront deposit.

Typical Purchase Costs Include

• Property Transfer Tax (resale) or VAT (new builds)
• Notary fees
• Land Registry fees
• Legal fees
• Mortgage arrangement costs

Mortgage Pre-Approval

We always recommend getting pre-approved before viewing or committing to a property. It's the safest way to approach buying with a mortgage — in Spain, to reserve a property you must pay a reservation fee, and if your mortgage is subsequently declined you would likely lose that deposit.

What Lenders Will Assess

• Income and employment stability
• Existing debts
• Credit history
• Currency (important if you earn outside the eurozone)

Documents You'll Need to Provide

• Passport
• Proof of income (payslips, tax returns)
• Bank statements
• Credit report

Mortgage Terms for Non-Residents

Our clients are often surprised when exploring a Spanish mortgage — quite often the rates can be fixed for the full term of the loan, removing the need to reassess every few years as in many other countries.

• Loan-to-value (LTV): 60–70%
• Term: up to 20–30 years (often capped by age, usually 70–75)
• Interest rates: fixed or variable (linked to Euribor)
• Affordability rule: monthly payments must not exceed 30–35% of your net income

How We Can Help You

Sunshine Homes work with specialist, regulated mortgage brokers who help thousands of people buy in Spain with a mortgage. We work with Mortgage Direct, who are regulated by the Bank of Spain and offer an efficient and safe way to buy.