Buying a property abroad is a dream for many, and the Costa Blanca in Spain continues to attract international buyers looking for holiday homes, investment properties, or permanent residences. With over 300 days of sunshine, a Mediterranean lifestyle, and excellent infrastructure, the region is a natural choice. But one question arises again and again: how does financing a property in Spain work if you are a foreign buyer?
At La Boutique Luxury Real Estate, we work with many international clients, and here is a complete guide to understanding the mortgage process in Spain for non-residents.
Yes—foreign buyers can get a mortgage in Spain. Spanish banks actively finance non-residents, though the conditions differ slightly from those offered to Spanish residents.
Residents can borrow up to 80% of the property value.
Non-residents typically qualify for 60–70% financing.
This means that if you are buying property in Spain as a foreigner, you should expect to provide a 30–40% down payment, plus purchase taxes and fees.
Applying for a mortgage in Spain requires proof of financial stability. Most banks will ask for:
Passport or EU national ID
Spanish NIE number (foreigner’s tax ID, mandatory for all buyers)
Proof of income (payslips, employment contract, or company accounts if self-employed)
Bank statements (usually last 3–6 months)
Details of existing loans or mortgages in your home country
Foreign documents must often be officially translated into Spanish by a sworn translator.
When applying for property financing in Spain as a non-resident, you can expect the following conditions:
Mortgage duration: up to 20–25 years
Minimum loan amounts: usually starting at €100,000 (varies by bank)
Interest types:
Variable mortgages linked to Euribor (Euro Interbank Offered Rate)
Fixed-rate mortgages for long-term stability (increasingly popular among international buyers)
Additional requirements: banks often require home insurance and may also suggest life insurance linked to the mortgage.
When budgeting, international buyers should allow 10–13% extra for taxes and purchase costs on the Costa Blanca. These include:
Property transfer tax (ITP) for resale homes or VAT (IVA) for new-build properties
Notary and Land Registry fees
Bank arrangement fees if applying for a mortgage
Remember, these costs are separate from your down payment.
Find your property – Choose your ideal home on the Costa Blanca.
Check your mortgage eligibility – Get pre-approval from a Spanish bank or mortgage broker.
Open a Spanish bank account – Required for all property transactions.
Apply for your NIE – Essential to buy property in Spain.
Submit documents – Provide income proof, bank statements, and ID.
Bank valuation – The lender commissions an independent property valuation.
Mortgage offer – The bank issues a binding offer once approved.
Notary signing – Both the purchase deed and mortgage deed are signed together.
While the process is clear, buying property in Spain as a foreigner involves multiple steps that can feel complex. At La Boutique Luxury Real Estate SL, we assist our clients every step of the way—introducing you to trusted lawyers, coordinating with banks, and making sure everything runs smoothly from the first viewing to the notary signing.
Financing property in Spain as an international buyer is absolutely possible with the right preparation. Whether you’re planning a second home, a Mediterranean retirement, or an investment, understanding how mortgages in Spain work for foreigners will help you buy with confidence.
At La Boutique Luxury Real Estate, we believe luxury is in the details. From carefully curated homes to seamless guidance through the financing and legal process, our mission is to make buying your dream home on the Costa Blanca as effortless as possible.
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