With its warm Mediterranean climate, stunning landscapes, and a culture defined by art, food, and regional traditions, it’s easy to see why Spain remains a favourite for Brits buying property abroad. Whether you want to work, study or simply holiday in Spain, there really is a lot to like.
So, where do you begin when it comes to Buying property in Spain? Well, unless you can afford to buy a Spanish home outright, you’ll need to get a mortgage for a property in Spain. It all starts with learning what rules apply to Spanish mortgages for non-residents:
- What types of mortgages are available to non-residents and what are the eligibility requirements?
- Who offers mortgages to non-residents and should you use a Spanish mortgage broker to simplify your search?
- What is the process for applying for a Spanish mortgage and how long does it take?
- What costs, fees and taxes are there on Spanish mortgages for UK residents?
In the rest of this guide, we’ll take an in-depth look at your mortgage options in Spain, covering everything you need to know about Spanish mortgages for UK residents in easy, jargon-free steps.
Understanding Spanish residency
Perhaps the first thing to understand about Spanish mortgages for non-residents is the 90-day rule, which means that non-EU citizens and non-Spanish residents can only spend a maximum of 90 days out of every 180 in Spain. Since Brexit, UK residents are non-EU citizens.1
This guide is aimed at UK tax residents only. For more on mortgages for Spanish residents, please visit the Bank of Spain’s English language website.
This guide is written exclusively for UK residents and will not cover the implications of being a Spanish resident for tax purposes.
The basics: Understanding Spanish mortgages for non-residents
What is a Spanish non-resident mortgage?
A Spanish non-resident mortgage is simply a mortgage you take out to buy a property in Spain when you live elsewhere. The good news is that it’s perfectly possible for non-residents to buy Spanish property. In fact, it’s very common, though the process can be a little bit complex at times.
That’s because, like their peers elsewhere, Spanish lenders tend to prefer giving mortgages to residents, because it’s seen as less of a risk. What that means in practice is that Spanish mortgages for non-residents tend to cover less of the property’s value, so you’ll have to stump up a bigger deposit. Interest rates may also be higher for non-residents than for those who live permanently in the country.
What types of mortgages are available for non-residents?
Despite those caveats, plenty of lenders offer mortgages to foreign citizens and there is a range of mortgage types available. Most commonly, the Spanish mortgage market offers a wide range of fixed-rate deals, which feature a fixed interest rate for a set period and provide certainty over the value of monthly repayments.2
In addition, variable-rate mortgages are available that offer interest rates linked to the Euribor (Euro Interbank Offered Rate), which means your monthly payments can go up and down.2
Interest-only mortgages – where you pay off the interest each month rather than the capital (the original amount of money borrowed from the lender) – are less common in Spain and may be unavailable to non-residents.
Can non-residents get a mortgage in Spain?
In other words, there are plenty of mortgage products available for non-residents interested in buying Spanish property, but are you eligible to be accepted for one?
Minimum income requirements for non-resident mortgages
How much income you need to secure a Spanish mortgage depends to a large extent on the cost of the property you hope to buy. A Spanish bank will need to see proof that you can afford monthly repayments.
But what’s really important is the debt-to-income (DTI) ratio. Basically, this means that the bank will only offer you a loan with repayments up to a certain percentage of your income, to ensure you can afford to pay them. Non-residents are often expected to have a better DTI ratio (i.e., mortgage repayments represent a lower percentage of monthly income) than residents, to account for their perceived higher risk.
Loan-to-value (LTV) for non-residents
One way to stack the odds in your favour is to reduce your loan-to-value (LTV) ratio. That means paying a bigger deposit, which then also creates a more favourable DTI ratio, because your debt is smaller.
Having said that, you’re likely to need to pay a bigger deposit anyway for a Spanish property due to the lender’s higher perceived risk.
When you pay the deposit, you’ll need to send money to Spain. Make sure you are supported by experts who can help you find the most secure and cost-effective ways to do so.
Age limits for Spanish mortgages
Technically, there is no maximum age for getting a Spanish non-resident mortgage. In reality, banks are wary of lending to anyone over the age of 65.
However, it’s certainly possible to get a mortgage in Spain as a retiree, as long as you have an adequate pension, though a guarantor – often a relative – may be required.
You can also take advantage of a Lifetime Loan, which is a mortgage specifically designed for those over 65 who receive a pension. But you’ll need a residency visa to get one, so it’s not an option if you’re applying for a mortgage as a non-resident.
What documents do you need to get a mortgage in Spain?
To get a Spanish mortgage as a UK resident, you’ll need many of the same documents that a UK mortgage application would require:
- Proof of income or employment
- Proof of address
- Proof of ID
- Records of your current assets, debts and mortgages
- A UK credit rating
- Deeds for properties you already own
In addition, you’ll likely need a pre-agreement document from the seller of the Spanish property and, most importantly, an NIE.
The NIE (Número de Identificación de Extranjero) is a Spanish tax ID and you can’t purchase property in Spain without it. You can get it at a Spanish consulate or embassy in your home country.
Apply for a mortgage in Spain: a step-by-step guide for non-residents
- Find a mortgage that suits your needs: You can apply directly to a Spanish bank, or you can use a broker to do the heavy lifting for you. A good Spanish broker will be able to offer a wider range of mortgages that meet your requirements, taking your income and other factors into account.
- Do the paperwork: A lender will ask for the relevant paperwork, including your Número de Identificación de Extranjero. Collecting all relevant documents in advance will save time.
- Find a property: Get pre-approval from the lender, if possible, to make securing your dream home easier. View it, agree on a price and let your lender know.
- Wait for approval: The lender will value the property and assess your financial situation. If it feels the valuation is fair and affordable, it will issue a mortgage offer. Read it carefully before signing.
The length of time this process takes depends on a number of factors, but being prepared in advance can speed things up. Assuming your paperwork is in order, it typically takes between six and eight weeks to get approval on a Spanish mortgage as a non-resident.
Spanish mortgage costs, fees and taxes
Be aware that significant costs are associated with Spanish mortgages for non-residents.
The main ones are:
Valuation fee: buyers need to pay the fee for the property valuation – typically around €300 to €600.3
This is a valuation and not a survey, so it won’t look closely at the state of the property in terms of structure or maintenance. If you want a more in-depth survey, you will have to pay for it separately.
Completion fee: also known as an arrangement fee, this is charged by the lender and usually amounts to around 1% of the value of the loan.3
Other costs not directly related to the mortgage application may include broker fees, legal fees if you need to hire a lawyer, and stamp duty – a property tax that can differ from region to region.4
Early repayment charge: ERCs are a fee you pay if you pay off your Spanish mortgage early. The maximum legally allowed fee is 1% for early repayment of variable-rate mortgages, or up to 0.5% for fixed-rate ones within the initial years. The rules are enforced by the Bank of Spain, meaning that there will be consistency between lenders.5
One thing to remember is that exchange rate fluctuations can impact both the price you pay for a property and the amount of rental income you receive if you’re planning to let it out, so speak to a currency specialist for real-time insights on live exchange rates.
Mortgage lenders and financing options for non-residents
Most of the major Spanish lenders offer Spanish mortgages for UK residents. They include Santander, BBVA, CaixaBank, ING and EVO. Getting the right loan for your circumstances can be confusing, so it’s often worth contracting an English-speaking Spanish broker to search the market on your behalf. Their local expertise can also help give you a good chance of getting approved for a Spanish mortgage.
Can you get a UK mortgage to buy a property in Spain?
So far, we’ve talked about getting a mortgage from a lender in Spain. It’s also possible to get a mortgage from a lender in the UK to fund a Spanish property purchase.
A number of major banks with a presence in the UK offer international mortgage services, usually for countries where they have an office. You’ll need to check that your chosen destination is covered, but several UK lenders cover popular overseas property markets like Spain. Santander is one example of a Spanish bank with a large UK presence.
There are two major benefits to borrowing in the UK for property purchases abroad:
- You can arrange the mortgage in English and avoid translation issues (and costs)
- A UK bank will have easy access to your credit history, simplifying the process
On the flipside, you will have a more limited choice of mortgage products and interest rates, so this may be a more expensive option.
Frequently asked questions
How difficult is it to get a mortgage in Spain?
Securing a mortgage in Spain as a non-resident is very doable, though the process may differ from what you’re used to. Spanish banks tend to ask for detailed documentation, and the approval process can take time. With the right advice and preparation, it’s a straightforward path, and many overseas buyers successfully finance their Spanish property this way.
How much deposit do I need for a mortgage in Spain?
Non-resident buyers are generally expected to put down a larger deposit than residents, and lenders will often finance a lower percentage of the property’s value. It’s also worth factoring in the cost of taxes and legal fees, which are typically paid upfront and aren’t covered by the mortgage.
What is the average mortgage rate in Spain?
Mortgage rates in Spain vary depending on the lender, your financial background, and whether you choose a fixed or variable rate. While rates can be competitive, they do change regularly, so it’s helpful to speak with a specialist who understands the local market and can guide you through your options.
Buying in Spain? We’ll help you stay in control of your mortgage payments
Taking out a mortgage in Spain is a big step, and dealing with cross-border payments, unfamiliar paperwork, and a different currency can make it a little more complicated. At Lumon, we help make your international payments one less thing to worry about, so you can focus on settling into your new place in the sun.
From paying your deposit to keeping up with monthly mortgage repayments, we make it easy to move your money across borders at a competitive exchange rate, helping you get the most from every transfer.
Here’s how we support your Spanish property journey:
Automate mortgage repayments: Our Regular Payment Plan lets you set up automatic monthly transfers, so you never have to chase payment deadlines or worry about missing a due date.*
Manage your money online: Prefer a hands-on approach? Our secure online account gives you the flexibility to send funds abroad on your schedule.
Specialist support when you need it: Your dedicated Lumon currency specialist will guide you through the process and help you build a currency strategy that suits your plans and peace of mind.
Because exchange rates can shift without warning, your repayments may cost more or less from month to month if your income is in a different currency from your mortgage. We’re here to help you plan ahead and make your money go further, no matter where you are in your Spanish home-buying journey.
*Terms and conditions apply. Speak to our team to check if you’re eligible for our Regular Payment Plan.
Sources used:
- UK Government – Entry requirements – Spain
- Bank of Spain – Fixed and variable rate mortgages
- Bank of Spain – Mortgage-related expenses
- Government of Spain – Property taxes
- Bank of Spain – Early redemption
Sources last checked on 03/07/2025
The information provided is for general information purposes and does not constitute legal, tax or other professional advice from Lumon, and it is not intended as a substitute for obtaining advice. It is recommended you seek professional advice from a financial advisor or any other professional.
