Buying property overseas can be an attractive investment choice. As well as diversifying your assets, the opportunity to soak up the sun in your very own holiday hub is one of many great perks of owning a Spanish house. Or perhaps you're moving to Spain and looking for a place to call home.
Whatever the reason for your purchase, you'll need to find a way to finance it. While buying with cash is an option, there are also plenty of reasons why you might instead opt for a mortgage.
Our guide to getting a mortgage in Spain is here to help prepare you for the exciting journey ahead.
Who can get a mortgage in Spain?
Fortunately, you don’t need to be a citizen or resident of Spain in order to obtain a mortgage for purchasing local property. Foreign buyers continue to represent a significant share of Spain’s housing market, with around 12-13% of property transactions in 2024 involving non-Spanish nationals, according to the General Council of Notaries.
Get prepared
As a non-resident, you will be required to obtain your own unique tax identification number, known as a Número de Identificación de Extranjeros (NIE). The NIE is used broadly across Spain to identify internationals for purposes such as working, studying, and buying property.
Begin the process by making your appointment using the official NIE website. Wait times for appointments can take up to a month, so it’s well worth booking in advance to make the process as smooth as possible!
Alongside your NIE, ensure you have all necessary financial documents to hand. Anything from proof of income to tax details, and any outstanding debts. Spanish lenders in 2025 tend to apply stricter anti-money-laundering checks, so you’ll usually need translated and notarised copies of foreign income statements or tax returns.
As with any type of loan, your financial situation will be key in determining your borrowing eligibility. You can then begin shopping around for the best mortgage deals.
Getting your mortgage
Non-resident mortgages are available from Spanish lenders to individuals who don’t conduct their primary business activities in Spain, or for those who spend less than 183 calendar days per year in the country.
In short, anyone who pays taxes outside of Spain should be able to obtain a non-resident mortgage.
You may also be able to get a mortgage from your UK bank, if they offer international mortgages (although this has become less common since Brexit).
With your tax code in order, you can begin thinking about which type of mortgage best suits your needs. The majority of mortgages for non-residents will typically require a 30% to 40% deposit towards the property’s total cost. Loan-to-value ratios for non-residents are usually capped between 60% and 70%, depending on nationality and income stability.
What types of mortgages are available for non-Spanish citizens?
The most common types of mortgages awarded to non-residents are:
Fixed rate mortgage
Fixed rate mortgages are among the most popular options for non-residents. As the name suggests, the interest rate on a fixed rate mortgage loan remains unchanged for the entire borrowing period.
The benefits of a fixed rate mortgage lie mainly in the consistency of payments, allowing individuals to budget for the years ahead with the stability and comfort of one continuous figure for the duration of their mortgage term. As of 2025, Spain’s relatively low fixed mortgage rate averages at around 2.97%, with non-residents usually eligible to borrow for up to 25 years.
While fixed rate mortgages can sometimes incur slightly higher costs overall, applicants don’t need to worry about changing European Central Bank (ECB) interest rates, making them an arguably safer option.
Variable rate mortgages
Variable rate mortgages differ from fixed rate mortgages as interest paid can fluctuate based on the national base rate, or the Euribor rate. This type of mortgage can be a more attractive option for some, offering typically lower deals, alongside the possibility that over time the interest charged could actually decrease. Often, variable rate mortgages will offer one year of fixed fee payments, providing some leeway to borrowers in terms of initial budget planning.
However, the borrower should be aware that notable increases in the variable rate could ultimately leave them with significantly higher monthly payments in the long term as interest rates shift.
This makes variable rates somewhat riskier, though the promise of potentially lower payments over time can also score you a great deal. With an average borrowing term of 15-25 years, variable rate mortgages average an interest rate of around 2.87%.
How long will it take to get my mortgage approved?
It usually takes between 4-6 weeks for an approved mortgage application to come through from a Spanish lender. Allow yourself ample time for the process by setting aside at least two months, leaving plenty of space for any property valuations and the completion of necessary paperwork.
Save money on your overseas transfers
Transferring significant funds will no doubt be an integral part of any large overseas purchase, including buying property. Look after your money with Currencies Direct’s reliable and secure overseas transfers, and make your cash go further with our excellent exchange rates.
We offer a range of services, tailored to your individual needs. A forward contract, for example, is perfect for someone going through the some-times lengthy process of purchasing a property, as this will allow you to fix a favourable exchange rate for up to a year. Giving you plenty of time to complete the purchase without the value of your transfer being eroded by an unfavourable shift in the currency market.
We also offer a bespoke payments platform called Redpin, which modernises the property completion process. You can avoid hefty bank fees and unnecessary delays by directly and securely transferring money between buyer and seller.
Avoid unnecessary costs and get the most out of our exceptional exchange rates, by getting in touch today.
