Mortgage Spain Non-Resident Rates, LTV & Requirements

Non-Resident vs Resident Mortgages: Key Differences

Before diving into the application process, let's understand how non-resident mortgages differ from resident mortgages in Spain.

Non-Resident Mortgage Terms (2025)

Loan-to-Value (LTV):

• Maximum: 60-70% of property value
• Most common: 60-65%
• This means: 30-40% deposit required

Interest Rates:

• Variable: 3-5% (Euribor + 1.5-3%)
• Fixed: 4-6% (less common for non-residents)
• Typical: 3.5-4.5% variable

Loan Term:

• Maximum: 25 years
• More common: 15-20 years
• Age restriction: Loan must end before borrower turns 75

Minimum Loan Amount:

• Usually €100,000
• Some banks: €75,000
• Below this: Banks unlikely to approve

Resident Mortgage Terms (For Comparison)

Loan-to-Value (LTV):

• Maximum: 70-80% of property value
• First-time buyers: Sometimes up to 80%
• This means: 20-30% deposit required

Interest Rates:

• Variable: 2.5-4% (Euribor + 0.8-2%)
• Fixed: 3-5%
• Typical: 3-3.5% variable

Loan Term:

• Maximum: 30 years
• Common: 25-30 years
• Same age restriction: Ends before age 75

Minimum Loan Amount:

• Usually €50,000
• More flexible than non-resident

Side-by-Side Comparison Table

Why the difference?

Banks view non-residents as higher risk:

• Harder to pursue for payment if you default
• Income and employment harder to verify
• Less commitment to the property (investment vs primary residence)
• Currency risk if earning in different currency

The good news: Rates are still reasonable, and approval is straightforward if you meet the criteria.

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Which Spanish Banks Lend to Non-Residents?

Not all Spanish banks offer non-resident mortgages, but the major banks do. Here's your complete list:

Santander

Non-resident mortgages: Yes LTV: 60-70% Interest rates: 3.5-5% variable Minimum loan: €100,000 Notes: Largest Spanish bank, extensive experience with foreign buyers

Best for: Comprehensive service, English-speaking staff in major cities

BBVA (Banco Bilbao Vizcaya Argentino)

Non-resident mortgages: Yes LTV: 60-70% Interest rates: 3.5-5.5% variable Minimum loan: €100,000 Notes: Strong in Madrid and Basque Country, good online tools

Best for: Tech-savvy buyers, competitive rates

CaixaBank

Non-resident mortgages: Yes LTV: 60-65% Interest rates: 3.8-5.5% variable Minimum loan: €100,000 Notes: Strongest in Catalonia, conservative lending criteria

Best for: Barcelona area properties, established bank reputation

Sabadell

Non-resident mortgages: Yes LTV: 60-70% Interest rates: 3.5-5% variable Minimum loan: €100,000 Notes: Good for coastal properties, flexible approach

Best for: Costa del Sol, Costa Blanca buyers

Bankinter

Non-resident mortgages: Yes LTV: 65-70% Interest rates: 3.5-5.5% variable Minimum loan: €100,000 Notes: Often offers higher LTV than competitors, premium service

Best for: Buyers who can afford slightly higher rates for better LTV

Banco Sabadell

Non-resident mortgages: Yes LTV: 60-70% Interest rates: 3.5-5% variable Minimum loan: €100,000 Notes: Specialized non-resident department, good English support

Best for: First-time foreign buyers, comprehensive guidance

International Banks with Spanish Operations

Barclays Spain: Limited non-resident mortgages Deutsche Bank Spain: High-value properties only (€500,000+) ING Spain: Primarily residents only

Pro tip: Don't limit yourself to one bank. Apply to 2-3 banks simultaneously through a mortgage broker to compare offers and increase approval odds.

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Required Documents for Non-Resident Mortgage

Spanish banks require extensive documentation from non-residents. Start gathering these documents early—some take weeks to obtain.

Essential Documents Checklist

1. Identification

• ☐ Passport (all pages, valid for 6+ months)
• ☐ NIE (Número de Identificación de Extranjero) - REQUIRED
• ☐ Proof of address in home country (utility bill, bank statement)

2. Income Verification

• ☐ Last 3 years of tax returns (official copies)
• ☐ Last 6 months of bank statements (all pages)
• ☐ Employment contract OR business registration
• ☐ Last 3 payslips (if employed)
• ☐ Letter from employer confirming position and salary
• ☐ Company accounts (if self-employed, last 2-3 years)

3. Credit History

• ☐ Credit report from home country
• ☐ Experian, TransUnion, or equivalent
• ☐ Letter from home bank confirming good standing
• ☐ Existing mortgage statements (if applicable)

4. Property Documentation

• ☐ Purchase contract (contrato de compraventa)
• ☐ Property valuation (tasación) - Bank will arrange
• ☐ Nota simple (property registry extract)
• ☐ Architect's certificate (for new builds)
• ☐ Building insurance quote

5. Additional Documents

• ☐ Marriage certificate (if applying jointly)
• ☐ Divorce decree (if applicable)
• ☐ Will mentioning the Spanish property (recommended)

Document Translation Requirements

What must be translated:

• Tax returns (if not in English/Spanish)
• Employment contracts (if not in English/Spanish)
• Bank statements (sometimes accepted in English)

Who can translate:

• Sworn translator (traductor jurado)
• Official translation agencies
• Cost: €30-60 per page
• Timeline: 1-2 weeks

What doesn't need translation:

• Passport (internationally recognized)
• Credit reports (usually accepted in English)
• Bank statements in English (most banks accept)

NIE Application: Do This First

You cannot apply for a Spanish mortgage without a NIE. Period.

How to get NIE:

• Option 1: Apply at Spanish consulate in your country (4-8 weeks)
• Option 2: Book appointment in Spain (2-6 weeks to book + process)
• Option 3: Hire gestoría to handle it (€150-250)

Cost: €12 for NIE application fee

Timeline: Allow 4-8 weeks before mortgage application

→ Complete NIE appointment booking guide

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Income Requirements for Non-Resident Mortgages

Spanish banks scrutinize income carefully for non-residents. Here's what they're looking for:

Minimum Income Threshold

Most banks require:

• Minimum gross annual income: €30,000-40,000 per year
• Higher property values: Higher income required
• Some banks: €25,000 minimum for small loans

Example:

• €200,000 property, €120,000 mortgage (60% LTV)
• Minimum income required: €35,000/year gross

Debt-to-Income Ratio

Maximum allowed:

• Total debt payments cannot exceed 35-40% of gross monthly income
• This includes: Mortgage payment + existing loans + credit cards

How banks calculate:

Monthly gross income: €4,000 Maximum debt allowed (35%): €1,400 Existing car loan: €300 Available for Spanish mortgage: €1,100/month

Can you afford the mortgage?

• €120,000 loan at 4%, 20 years = €727/month
• Total debt: €300 + €727 = €1,027
• Within €1,400 limit? Yes, approved

Proof of Ongoing Income

Banks want stable, verifiable income:

Employed (salaried):

• Permanent contract: Excellent
• Fixed-term contract: Acceptable if 2+ years remaining
• Self-employed: Needs 3 years of accounts

Self-Employed:

• Minimum 2-3 years in business
• Profitable for last 2 years
• Tax returns showing consistent income
• Business bank statements

Retired/Pension:

• Pension statements (last 6 months)
• Proof pension is guaranteed for life
• Pension must cover mortgage payments comfortably

Investment Income:

• Dividend statements
• Rental income (home country)
• Bank accepts if stable for 2+ years

What banks DON'T accept:

• Sporadic freelance income
• Cash-based business (unless properly declared)
• Cryptocurrency gains
• Gifts or family support

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Non-Resident Mortgage Application Process & Timeline

Here's the complete step-by-step process from first inquiry to signing the mortgage deed.

Week 1: Pre-Application & Comparison

Tasks:

• Research mortgage brokers or contact banks directly
• Submit preliminary application (basic info + property details)
• Provide initial documents (passport, income summary)
• Banks provide preliminary offer (in principle)

What you receive:

• Estimated interest rate
• Estimated LTV percentage
• Required deposit amount
• List of documents needed

Time required: 3-5 business days

Week 2-3: Document Submission

Tasks:

• Gather all required documents (see checklist above)
• Complete official mortgage application forms
• Submit to bank with all supporting documents
• Bank begins formal review

Common delays:

• Waiting for credit reports
• Getting documents translated
• Obtaining employer letters

Time required: 1-2 weeks (mostly gathering documents)

Week 4: Property Valuation

Tasks:

• Bank orders official property valuation (tasación)
• Independent valuer visits property
• Valuation report completed
• Bank receives report

Important:

• Valuation often comes in 5-10% lower than purchase price
• Bank lends based on valuation, NOT purchase price
• If valuation is low, you need larger deposit

Cost: €250-400 (you pay this)

Time required: 1-2 weeks

Week 5-6: Mortgage Offer (FEIN)

Tasks:

• Bank reviews all documents + valuation
• Credit committee approves mortgage
• Bank issues FEIN (Ficha Europea de Información Normalizada)
• This is your binding mortgage offer

FEIN includes:

• Exact loan amount
• Interest rate (fixed or variable)
• Term (years)
• Monthly payment amount
• Total cost over life of mortgage
• All fees and conditions

Validity: 10 days (you must accept within this time)

Time required: 1-2 weeks

Week 7-8: Final Signing

Tasks:

• Review FEIN carefully (hire lawyer to review)
• Accept offer in writing
• Schedule notary appointment
• Arrange life insurance (usually required)
• Arrange building insurance (required)
• Attend signing at notary

At the notary:

• Both buyer and bank representative attend
• Notary reads entire deed aloud (in Spanish)
• You sign mortgage deed (escritura de hipoteca)
• Bank transfers funds to seller
• You receive property keys

Time required: 1-2 weeks

Total Timeline: 7-10 Weeks

Fastest possible: 6 weeks (everything goes perfectly) Typical: 8-10 weeks With delays: 12-14 weeks

Common delays:

• Slow document gathering (add 2 weeks)
• Low property valuation requiring renegotiation (add 2 weeks)
• Bank credit committee backlog (add 1-2 weeks)
• Holiday periods (August, Christmas) (add 2-4 weeks)

Pro tip: Start mortgage process BEFORE making purchase offer. Get approval in principle first, then make offer conditional on mortgage approval.

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Costs of Getting a Spanish Non-Resident Mortgage

Beyond the deposit and monthly payments, expect these upfront and ongoing costs:

Upfront Mortgage Costs

Example on €150,000 mortgage:

• Arrangement fee (1%): €1,500
• Valuation: €350
• Notary: €450
• Registry: €300
• Gestoría: €400
• Total upfront: €3,000

Ongoing Mortgage Costs

Life Insurance (Seguro de Vida):

• Required by most banks
• Cost: €20-80/month depending on age and loan amount
• Decreases over time as loan reduces
• Age 40, €150,000 loan: ~€35/month

Building Insurance (Seguro de Hogar):

• Always required with mortgage
• Cost: €200-500/year (€17-42/month)
• Covers structure, not contents
• Bank often requires you use their provider

Annual Mortgage Review Fee:

• €0-50/year
• Some banks charge annual admin fee

Early Repayment Fees:

• Fixed rate: Up to 2% of amount repaid
• Variable rate: Up to 0.25% of amount repaid (first 5 years), 0% after
• Partial overpayments: Usually allowed up to 10% annually

Total Cost Example

€200,000 property, €120,000 mortgage (60% LTV), 20 years at 4%:

Upfront costs:

• Deposit (40%): €80,000
• Arrangement fee (1%): €1,200
• Other mortgage costs: €1,800
• Total cash needed: €83,000

Monthly costs:

• Mortgage payment: €727
• Life insurance: €30
• Building insurance: €30
• Total monthly: €787

Total paid over 20 years:

• Principal: €120,000
• Interest: €54,480
• Insurance (20 years): €14,400
• Total cost: €188,880

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Currency Considerations for Non-Resident Mortgages

Critical point: Your mortgage will be in Euros (EUR), but you might earn in pounds, dollars, or another currency.

Exchange Rate Risk

The problem:

• Mortgage payment: €800/month
• If you earn in USD and transfer to Spain monthly
• Exchange rate shifts: €1 = $1.10 → €1 = $1.20
• Your €800 payment costs $880 → $960 (9% increase)

How to mitigate:

Option 1: Keep salary in Euros

• Negotiate salary paid in EUR if working remotely
• Opens EUR bank account as primary
• Eliminates exchange risk

Option 2: Multi-Currency Mortgage

• Some Spanish banks offer mortgages in GBP/USD
• Rare, usually only for high-value properties
• Interest rates 0.5-1% higher
• Ask: Santander International, BBVA

Option 3: Forward Contracts

• Lock in exchange rate for 12 months
• Use currency broker (Wise, OFX, CurrencyFair)
• Guarantees payment amount

Option 4: Currency Account

• Open EUR account in home country
• Transfer large lump sum when rates favorable
• Pay mortgage from EUR account
• Reduces frequency of exchanges

Tax Treatment of Forex Gains/Losses

Check with tax advisor: Exchange rate movements may have tax implications in both Spain and your home country.

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Can You Remortgage Later?

Yes, you can refinance your Spanish mortgage. Here's when it makes sense:

Reason 1: You Become a Spanish Resident

Big advantage: Qualify for better resident rates

Example:

• Current non-resident mortgage: 4.5%, 60% LTV
• Refinance to resident mortgage: 3.2%, potential 70% LTV
• Savings: €150-300/month on €150,000 mortgage

Requirements for resident mortgage:

• Spanish tax residency (183+ days/year in Spain)
• NIE changed to resident status
• Spanish tax returns filed

Reason 2: Interest Rates Drop

When to consider:

• Current rate 1.5%+ higher than available rates
• At least €50,000 remaining on mortgage
• At least 5+ years remaining

Costs of remortgaging:

• New valuation: €250-400
• Notary fees: €300-600
• Registry fees: €200-400
• Early repayment fee: 0-2% of loan
• Total: €1,000-2,500

Break-even calculation: Will savings exceed costs within 2-3 years?

Reason 3: Release Equity

If property value increased:

• Original purchase: €200,000 (€120,000 mortgage at 60% LTV)
• Current value: €250,000
• New mortgage potential: €150,000-175,000 (60-70% of new value)
• Cash released: €30,000-55,000

Uses:

• Renovations
• Second property deposit
• Business investment

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Should You Use a Mortgage Broker?

Short answer: For non-residents, usually yes.

What Mortgage Brokers Do

Services provided:

• Compare rates from multiple banks
• Submit applications to 2-3 banks simultaneously
• Handle all document collection and translation
• Chase banks for faster processing
• Negotiate better rates/terms
• Guide you through Spanish mortgage regulations
• Coordinate with lawyers and estate agents

Costs

Fee structure:

• Typically: 0.5-1% of loan amount
• Minimum fee: €1,000
• Some charge: €500-800 flat fee

Example:

• €150,000 mortgage
• Broker fee (0.8%): €1,200

Pros of Using a Broker

✅ Access to better rates:

• Brokers often negotiate 0.2-0.5% lower rates
• Savings can exceed broker fee over loan term

✅ Higher approval odds:

• Know which banks prefer non-residents
• Submit strongest application
• Multiple applications = better chance

✅ Saves enormous time:

• They handle all paperwork
• You don't navigate Spanish bureaucracy
• Particularly valuable if not in Spain

✅ English-speaking support:

• Most brokers serving expats speak fluent English
• Translate documents and requirements
• Explain Spanish mortgage peculiarities

Cons of Using a Broker

❌ Upfront cost:

• €1,000-2,000 fee
• Paid regardless of approval

❌ Not truly independent:

• May have preferred banking relationships
• Commission from banks (in addition to your fee)

❌ You can do it yourself:

• Contact banks directly (free)
• If Spanish-speaking and organized, totally doable

When Brokers Are Worth It

Hire a broker if:

• You're a non-resident (definitely)
• You don't speak Spanish fluently
• You're not in Spain during application
• You're time-poor
• First Spanish property purchase
• Complex income situation (self-employed, multiple sources)

Skip broker if:

• You're Spanish-speaking and in Spain
• Simple employment situation
• Large deposit (low risk for banks)
• Time to do research and comparison yourself

Recommended Mortgage Brokers for Non-Residents

→ Browse Spanish mortgage brokers

Look for:

• Specializes in non-resident mortgages
• English-speaking
• Transparent fee structure
• Reviews from other expats
• Regulated by Banco de España

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Tax Implications of Non-Resident Property Ownership

Owning Spanish property as a non-resident has ongoing tax obligations:

Non-Resident Income Tax (IRNR)

If you rent out the property:

• Tax on rental income: 19-24% of NET income
• EU residents: 19%
• Non-EU residents: 24%
• Must file quarterly tax returns
• Deduct expenses: IBI, community fees, insurance, repairs

If property sits empty:

• Imputed income tax: 1-2% of cadastral value annually
• Yes, taxed even if no rental income
• €200,000 cadastral value × 1.5% = €3,000 imputed income
• Tax due: €3,000 × 19% = €570/year

Wealth Tax (Impuesto sobre el Patrimonio)

Threshold: Net assets in Spain exceeding €700,000

Rates: 0.2-3.5% progressive (varies by region)

Only applies if:

• Property value + other Spanish assets > €700,000
• Calculate net worth (value minus mortgage)

Annual Property Tax (IBI)

What: Municipal property tax Amount: €300-2,000/year depending on location and value Who pays: Owner (whether resident or non-resident)

Capital Gains Tax on Sale

If you sell:

• Tax on profit: 19-24%
• EU residents: 19%
• Non-EU residents: 24%
• Calculate: Sale price minus (purchase price + improvements + purchase costs)

Retention:

• Buyer must withhold 3% of sale price
• Pay to tax authorities
• You claim refund if overpayment

Can You Deduct Mortgage Interest?

For non-residents:

• Generally NO deduction for mortgage interest
• Only if renting property (deduct against rental income)
• Not deductible if property empty/personal use

For residents:

• Previous deduction eliminated in 2013
• No mortgage interest deduction for primary residence
• Exception: Mortgages from before 2013 grandfathered

Critical: Consult Spanish tax advisor (asesor fiscal) before purchase to understand your specific situation.

→ Find Spanish tax advisors

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Non-Resident Mortgage Checklist

Before You Start

• ☐ Confirm you qualify (income €30,000+, 30-40% deposit saved)
• ☐ Understand currency exchange implications
• ☐ Apply for NIE (allow 4-8 weeks)
• ☐ Check credit report in home country
• ☐ Calculate affordability (35% debt-to-income max)

Choosing Bank or Broker

• ☐ Compare rates from 3+ banks
• ☐ Consider mortgage broker (€1,000-2,000)
• ☐ Verify broker regulated by Banco de España
• ☐ Get quotes in writing with all fees disclosed

Document Preparation

• ☐ Gather 3 years tax returns
• ☐ Obtain 6 months bank statements
• ☐ Get employer letter/contract
• ☐ Order credit report
• ☐ Translate non-English documents
• ☐ Make certified copies of passport

Application Process

• ☐ Submit formal application with all documents
• ☐ Cooperate with property valuation
• ☐ Review FEIN offer carefully (hire lawyer)
• ☐ Arrange life insurance quote
• ☐ Arrange building insurance quote
• ☐ Accept mortgage offer in writing

Before Signing

• ☐ Hire independent Spanish property lawyer (€1,500-2,500)
• ☐ Lawyer reviews mortgage deed
• ☐ Understand early repayment penalties
• ☐ Confirm total costs (arrangement fee + other charges)
• ☐ Verify monthly payment amount

At Signing

• ☐ Attend notary appointment (or grant power of attorney)
• ☐ Bring passport and NIE
• ☐ Bring proof of insurance
• ☐ Sign mortgage deed (escritura de hipoteca)
• ☐ Receive copy of all signed documents

After Mortgage Approved

• ☐ Set up EUR bank account for mortgage payments
• ☐ Arrange standing order/direct debit
• ☐ Understand tax obligations (IRNR, wealth tax)
• ☐ Register with tax authorities if renting property
• ☐ Keep all mortgage documents safely

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Related Guides

Property Buying Resources

• Hidden Costs Buying Property Spain (Budget 10-15% Extra) →
• Spanish Property Transfer Tax (ITP) by Region →
• NIE Appointment Spain: Complete Booking Guide →

Expat Finance & Tax

• Spanish Tax Residency (183 Day Rule) →
• Opening a Bank Account in Spain →
• Non-Resident Tax Obligations Spain →

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Need Help with Your Spanish Mortgage?

Professional Mortgage Services

Spanish mortgage brokers: Compare rates from all major banks, handle applications, save time and stress. → Browse mortgage brokers (€800-2,000)

Property lawyers (abogados): Review mortgage terms, ensure legal compliance, protect your interests. → Find property lawyers (€1,500-3,000)

Tax advisors (asesores fiscales): Navigate non-resident tax obligations, optimize tax position. → Find tax advisors (€500-1,500)

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This guide was last updated in January 2025. Mortgage rates, LTV ratios, and lending criteria change regularly. Always verify current terms directly with banks or brokers.

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Lifetti helps expats navigate Spain's property market with step-by-step guides, cost breakdowns, and verified professional connections.