A guide to Spanish mortgages

Getting a Spanish mortgage could be your ticket into the country's desirable housing market. From cost to application, here's how to do it. Whether you've decided to move to Spain for the long term or are looking to buy a vacation home, you'll be pleased to hear that the country's real estate market is relatively affordable. However, before you start your property search, you should find out if you qualify for a Spanish mortgage and how much you can borrow as a foreigner in Spain. To find out the answers to these questions, read on and check out the following topics:

Mortgages in Spain

Should I buy real estate in Spain?

Who can get a mortgage in Spain?

Getting a mortgage as a foreigner in Spain

Types of Spanish mortgages

Variable rate mortgages

Fixed rate mortgages

Mixed interest rate mortgages

Mortgages with interest payments

Mortgages in non-Euro

Mortgages for elderly people in Spain

Mortgages for commercial real estate

Construction mortgages

Can I get a green mortgage in Spain?

Spanish mortgage rates

Online mortgage calculator

How do I apply for a Spanish mortgage?

Requirements for applying for a NIE

Mortgage application requirements

After applying for a Spanish mortgage

Banks offering mortgages to foreigners in Spain

Help to get a mortgage in Spain

How much does a mortgage cost in Spain?

Taxes and tax breaks when buying a Spanish mortgage

Do you need property insurance in Spain?

Mortgage payments in Spain

Additional payments and repayment of IpThis finance broker offers a free app and website in English to help you find the financing you need. They will connect you directly to banks and help you negotiate the best terms. Contact Wypo today and find or improve your mortgage.

Mortgages in Spain

Recent statistics show that around 76% of the Spanish population owns their home, which is above the European Union average of 70% (as of 2021). In addition, the country is open to international real estate investors, which means you don't necessarily have to be a resident of Spain to get a Spanish mortgage or buy a property. However, your residency status will affect the amount you can borrow from a Spanish bank.

Should I buy real estate in Spain?

The Spanish real estate market has lower revaluation rates than some other European countries, according to CaixaBank. For home buyers, this means that your home purchase in Spain is less risky than in many other EU countries such as the Netherlands, Germany and France. On the other hand, interest rates have been rising steadily since 2023, which means stagnant real estate prices in Spain. It's also worth remembering that housing prices vary greatly from city to city. For example, you will likely have to pay much more for a property in the center of Madrid or Barcelona.

Another aspect to consider is Spain's capital gains tax (CGT). Non-residents will be liable to pay 19% tax on the profit from the sale of real estate in Spain. CGT tax for residents ranges from 19% to 26%. Consequently, buying real estate in Spain as a short-term investment project can be a financial mistake.

Who can get a mortgage in Spain?

As mentioned, you do not necessarily have to be a resident or citizen of Spain to buy real estate in the country. However, you will need a Número de Identificación de Extranjeros (NIE) to get a Spanish mortgage. It's just a tax identification number for foreigners. While you may be able to get a loan through a bank in your home country, you will most likely need a mortgage from a Spanish bank. Your income and other debts are key factors in your creditworthiness. Self-employed borrowers must provide evidence for the last one to three years of earnings and a self-assessment method tax return.