What it takes to get a mortgage to buy a property in Spain
Everything that decides whether a Spanish bank will lend to you, in plain English. The criteria, the real cost of buying, fixed against variable, lending notes for your country, the documents, and the whole process from first check to the keys.
Qualifying comes down to a handful of clear rules: your age, your income, your deposit, the size of the loan, and how your debts compare with what you earn. Here is the whole picture at a glance, then we go through each part properly.
Walk through what the banks look for
Click through each test. These are the real thresholds our partner banks use, not generic estimates.
The qualifying criteria, one at a time
Your age
The main applicant must be no older than 65 when the mortgage is taken out, and no older than 75 when the term ends. So the older you are, the shorter the maximum term a bank will offer, which raises the monthly payment. Buying with a younger co-applicant can sometimes lengthen the term. There is also a minimum term of around 7 years, and while most lenders end the term by about 75, one lender will go to 79.
Your income
Banks want a minimum of about €2,000 a month after tax for a single applicant. Below that it becomes very difficult to qualify, whatever the property price. Employment, self-employment, pension and in some cases rental income can all count, as long as it is documented and stable. Joint applicants combine their incomes.
Your deposit and the loan-to-value
Loan-to-value, or LTV, is how much of the price the bank will lend. International buyers can usually borrow up to 70%, so a 30% deposit. Spanish residents up to 80%, so 20%. The bank lends against the lower of the price or its own valuation, so if the valuation comes in under the price, you make up the difference.
The minimum loan
Spanish banks do not generally lend below €60,000. For lower-value properties, or where you only need a small top-up, a mortgage may not be available and the purchase would need to be in cash. If your numbers sit near this floor, it is worth a quick chat before you commit.
Affordability, the 40% rule
This is the big one. The bank takes your net monthly income, adds everything you spend servicing debt each month (existing mortgages, car finance, loans, credit cards) plus the new Spanish mortgage payment, and works that total out as a percentage of your income. If it comes to more than 40%, you will not qualify. There is a calculator for this just below.
The documents you will need
Once you are ready to apply, the bank verifies everything above. Having these ready makes it far quicker.
- Passport
- 2 years of tax returns (unless you live in the UAE)
- Credit report
- 6 months of bank statements
- 3 months of payslips (if employed)
- Proof of any other income
- Proof of savings for the purchase
How much could you borrow?
The 40% rule sets a ceiling on your monthly payment, which in turn sets a rough ceiling on what you can borrow. Enter your net monthly income and your current monthly debt to see the headroom and an indicative maximum loan.
Lending notes by country
Spanish banks lend to buyers from all over the world, but what they ask for, and how smoothly it goes, depends on where your income and tax sit. Pick where you declare income for the headline points.
How banks treat different income
Most guides assume a salaried buyer, but the friction is usually in how your income is shaped. Here is how the common cases are viewed. The exact position is confirmed case by case.
Employed
The simplest case. Three months of payslips plus your tax returns. Stable salaried income is what banks model most easily.
Self-employed or company director
Workable, with more evidence. Expect three years of year-end company accounts plus three years of personal tax returns, and the company must not be running at a loss just to pay the owners. Banks take a more cautious view of variable earnings.
Retired or pension income
State pensions count and are straightforward. Private pensions only count if they pay for life with no option to take a lump sum. Here the age and term limits matter most too, since the mortgage normally has to end by about 75.
Rental or investment income
Rental or investment income can sometimes be counted in part, where it is documented and durable. It is assessed case by case rather than taken at face value.
The true cost of buying
Your mortgage covers a share of the price, but not the taxes and fees that come with a Spanish purchase. Budget roughly 10 to 13% of the price on top of your deposit. Here is where it goes.
Transfer tax or VAT
On a resale, transfer tax (ITP) varies by region, broadly 6 to 10% of the price. On a new build it is 10% VAT plus stamp duty (AJD).
Notary and land registry
The notary formalises the deed and the land registry records your ownership. Both run on official sliding scales tied to the price.
Gestoria and legal
A gestoria handles the paperwork and tax filing. Your lawyer checks the property and the contracts and protects the purchase.
Valuation and bank fees
You pay for the bank valuation (tasacion), and some lenders charge an opening fee. Since the 2019 mortgage law the bank pays the notary, registry and stamp duty on the mortgage deed itself, while you pay those on the purchase deed.
For a figure tailored to your region and property type, our cost calculator works it out on the real regulated scales.
Fixed or variable
Spanish mortgages come in two shapes. The right one depends on how much certainty you want and how you feel about the payment moving over the life of the loan.
Fixed rate
- The rate and the payment never change for the whole term.
- Easy to budget, no exposure to rate rises.
- The starting rate is usually a little higher than variable.
Variable rate
- Priced as the 12-month Euribor plus the bank's margin.
- Often a lower starting payment than fixed.
- The payment moves up or down as Euribor changes, usually once a year.
There are also mixed rates, fixed for an opening period then variable after, though for non-residents only one lender currently offers them. The mortgage calculator shows the monthly payment and total cost side by side so you can compare.
How the lending process works
From the first check to completion, a Spanish mortgage runs through a clear sequence. Knowing it up front means no surprises.
Pre-qualification
A quick read of your income, deposit and age to confirm you fit the criteria and to size what you can borrow, before you commit to anything.
Agreement in Principle (AIP)
With your documents, the bank gives an agreement in principle on the amount and rate, subject to the valuation and final checks.
Choose an FX provider
Set up a currency provider to move your deposit and purchase funds into euros at a good rate. Worth doing early, since the exchange rate sets the real size of your deposit and payments.
Valuation (tasacion)
An approved valuer inspects the property. The bank lends against the lower of the price or the valuation.
Binding offer (FEIN)
The bank issues the formal binding offer, the FEIN, setting out the rate, costs and terms in full.
Reflection period
Spanish law gives you a 10 day reflection period to review the binding offer with your lawyer before you sign anything.
Transfer of funds
Once the offer is signed, transfer your funds to your Spanish bank account ready for the notary to disburse at completion.
Notary and completion
You sign the mortgage and the purchase deed at the notary, the funds are released, and the keys are yours. We can sign on your behalf if you cannot travel.
Sort the mortgage before you commit
In Spain you usually reserve a property and then sign an arras contract, paying around 10% of the price. Arras is binding. If you pull out, you normally lose that deposit. If the seller pulls out, they owe you double. The real danger for buyers is signing arras and paying the 10% before the mortgage is confirmed, then not getting the loan and losing the deposit.
The fix is simple. Get pre-qualified before you sign anything, and have your lawyer review the arras contract, ideally with a clause that protects you if the mortgage is declined. Because Foxes runs the mortgage and the legal side together, the two stay joined up, so you are never committing to a contract your finance has not caught up with.
Why applications get declined
Most refusals come down to a handful of things. Spotting them early is exactly what a pre-qualification is for.
- Debt over 40% of income. The single most common reason. The new payment plus existing debt tips over the ceiling.
- Income that cannot be documented. If it does not show clearly in tax returns and bank statements, the bank cannot count it.
- Age against the term. The 75 limit at the end of the term can shorten the loan so much the payment no longer fits the 40% rule.
- A valuation below the price. If the property values low, the loan shrinks and you need a bigger deposit to bridge the gap.
- A land registry problem the seller will not fix. If the title or registry has an issue the seller cannot or will not resolve, the purchase cannot complete.
Frequently asked questions
Yes. Spanish banks lend to non-resident buyers from many countries. Non-residents are usually limited to 70% LTV and may see different rates and terms from residents.
Most Spanish mortgages run 20 to 30 years. Up to 40 is possible but usually only for residents. The term is also capped by age, as the mortgage normally has to end by about 75, which can shorten the term for older applicants.
Spanish lenders do not use a simple salary multiple. They use affordability instead, so your total monthly debt, including the new mortgage, should generally stay below about 40% of your net income.
A fixed rate gives a guaranteed payment for the whole term, which suits buyers who want certainty. A variable rate tracks Euribor and can fall as well as rise. A mixed rate combines the two. The right choice depends on your view of rates and how much payment certainty you want.
Your existing mortgage counts as a monthly debt in the 40% affordability test, so it reduces what you can borrow in Spain. But your relationship and credit history with a bank abroad do not carry over to the Spanish lender, even if it shares a brand name.
From a complete application to signing at the notary is commonly around four to eight weeks, depending on how quickly your documents and the valuation come together. A pre-qualification takes minutes.
Generally the mortgage is for the purchase itself, lent against the price or valuation. Costs like renovation are usually funded from your own cash, though there are options worth discussing case by case.
See what you can actually borrow
Two free routes, no obligation. Get an indicative answer in 60 seconds, or talk it through with a named, regulated advisor who reviews every check personally.