Mortgages in Spain for Expats – A Complete Guide for 2025

Buying a home in Spain is a dream for many expats, but understanding how mortgages work in Spain is crucial before making the investment. Whether you’re a resident or a non-resident, getting a mortgage in Spain has different requirements, costs, and processes.

At 247 Expat Insurance, we help expats protect their investments with home, health, and life insurance, ensuring a smooth transition to life in Spain. In this guide, we cover how to get a mortgage in Spain, interest rates, requirements, and the best banks for expats.

Can Expats Get a Mortgage in Spain?

• Yes! Both residents and non-residents can apply for a mortgage in Spain.
• Spanish banks typically offer lower mortgage amounts to non-residents compared to residents.
• Interest rates are competitive compared to other European countries.

Expats who live and work in Spain have access to better mortgage conditions than non-residents, and can borrow a higher percentage.

Resident vs. Non-Resident Mortgages in Spain

If you plan to live in Spain long-term, getting residency will give you access to better mortgage terms.

Mortgage Interest Rates in Spain (2025)

• Fixed-rate mortgages provide predictability but have higher initial rates.
• Variable-rate mortgages start lower but fluctuate based on the Euribor rate.
• Some banks offer mixed mortgages, which combine both.

In 2025, Spanish mortgage rates remain competitive but can vary based on economic conditions.

How Much Can Expats Borrow?

✔ Spanish banks typically finance:

• Up to 80% of the property value for residents, with more available depending on circumstances and income.
• Between 50-70% for non-residents.

✔ You must cover the remaining 20-40% as a down payment plus taxes & fees (around 12-15% of the property price).

For more information on all taxes and fees involved in the purchase, click here, and we will explain them all.

Non-residents should expect to provide a higher down payment.

Requirements for Getting a Mortgage in Spain

To apply for a mortgage, expats need:

• Valid Passport – Proof of identity.
• NIE (Foreigner Identification Number) – Required for financial transactions in Spain.
• Proof of Income – Payslips, tax returns, or proof of self-employment income.
• Bank Statements – Typically for the last 6-12 months.
• Employment Contract (if applicable) – For employed applicants.
• Property Valuation (Tasación) – Conducted by a Spanish bank or independent firm.
• Credit History Report – May be required from your home country.
• Depending on the requirements of the bank, other documents may be required.

Spanish banks will evaluate your income, creditworthiness, and financial stability before approving a mortgage.

Best Banks for Expats Getting a Mortgage in Spain

Santander, BBVA, and Sabadell are popular choices for expat mortgages in Spain.

Additional Costs When Buying a Property in Spain

• Taxes & Fees: Expect to pay 10-15% of the property price in additional costs.
• Property Valuation Fee: €300-€800.
• Notary & Registration Fees: Around €1,000 - €3,000.
• Home Insurance: Required by most banks; available through 247 Expat Insurance ask us for a free quote.
• Life Insurance to cover the mortgage amount; available through 247 Expat Insurance ask us for a free quote.

Factor in extra costs when calculating your budget for buying a home in Spain.

Step-by-Step Process for Getting a Mortgage in Spain

1️⃣ Find a Property – Work with a trusted real estate agent (e.g., VIBE Real Estate).

2️⃣ Get a Mortgage Pre-Approval – Check with Spanish banks for the best rates.

3️⃣ Secure Your NIE Number – Needed for financial transactions.

4️⃣ Hire a Lawyer – To assist with the legal paperwork (Platinum Legal Spain can help).

5️⃣ Property Valuation – Required for mortgage approval.

6️⃣ Sign the Mortgage Agreement – With a Spanish notary.

7️⃣ Final Payment & Registration – Complete the transaction and register the property.

Working with professionals like VIBE Real Estate and Platinum Legal Spain ensures a smooth home-buying process.

Alternatives to a Traditional Mortgage

• Mortgage from a Foreign Bank – Some UK, U.S., and EU banks offer Spain-specific mortgages.
• Developer Financing – Available for new-build properties.
• Private Loans & Investor Funding – Used in certain high-value purchases.

If you can’t get a mortgage through a Spanish bank, alternative financing options may be available.

How 247 Expat Insurance Can Help Homeowners in Spain

Buying a home is a major investment—protect it with the right insurance. 247 Expat Insurance provides:

• Home Insurance – Covers property damage, theft, and liability.
• Life Insurance – Can be required for some mortgages.
• Health Insurance – Needed for residency applications.
• Car Insurance – If you’re relocating and need a vehicle.

📩 Get a free quote today!

Disclaimer

Mortgage rates, terms, and regulations may change over time. Always consult with a financial or legal professional before making mortgage decisions in Spain.