Mortgage in Spain. How to Get a Real Estate Loan As a Foreigner
July 19, 2021
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It used to be easy to buy real estate in Spain with a mortgage before 2008. Banks provided loans both for the full cost of the property and purchase taxes.Nowadays potential lendees are carefully checked. But it is still easier to buy a house with a mortgage in Spain than anywhere else in Europe. A foreigner with a stable income can count on a loan of 60% of the estimated value of the property.
Real Estate Loans in Spain
After the economic recession of 2008-2014, the financial well-being of Spain has been shaken. Incomes of many households have decreased, families could not continue to pay mortgage loans regularly. In such an environment, foreigners with stable incomes began to look even more profitable to banks.
The cost of a real estate object for a mortgage is not limited in Spain, but a lendee needs to convince the bank of the solvency.
The conditions for buying a commercial or residential property worth up to €500,000 are the same. The bank will consider individually cases, in which the object is more expensive (for example, a shopping center or a hotel). Such a checking requires a detailed assessment of the transaction. The loan conditions will depend on the amount of risks.
Mortgages for Foreigners
Many financial institutions in Spain are ready to consider applications from foreign borrowers: La Caixa, BBVA, Santander, Bankinter, Sabadell, Bankia and others.
Foreigners have an advantage, cause they do not need a guarantor. Despite this relaxation, the maximum requested loan amount for a foreigner rarely exceeds 60% of the cost of the object (up to 80%, in exceptional cases).
The requirements for submitted documents recently have been particularly high. Banks pay close attention to the financial reliability of customers due to frequent cases of payment delays or refusal of housing.
The main requirement is to confirm financial solvency and legal income.
It is important to provide complete information about the sources of funds (income declarations, certificates of employment, certificates of ownership of other property, account statements from other banks, etc.). It is more difficult to check the documents of non-residents than locals. If there is not enough information, it is likely that the bank will refuse.
Ideally the income should be three times higher than the monthly loan payment.
Irina Rud, the manager of EspanaTour:
The potential client of legal age must have an official income for at least two years. The borrower must be not older 75 years at the time of a final repayment. Regardless of age, all mortgage recipients must take out life insurance.
Bank Requirements for Real Estate
The real estate object must be liquid. If the client is unable to fulfill the obligations, the bank will have to resell the property.
Mortgage loans are most often provided for new real estate projects, but secondary housing in good condition in a good location also fits the bank requirements.
You will need to evaluate the property for a mortgage agreement. Most banks have their own list of experts for these purposes. Besides the property price, the valuation report indicates the period for which the housing can be sold at the specified price.
The valuation report includes information about three similar transactions on the real estate market or information about six similar objects over the past 12 months.
Examples of apartments in Spain
95 000 €
Penthouse in Torrevieja, Spain
100 sq.m3
Credit
This is a 3 bedroom paired quad on a private road 30 meters from a large communal pool. There is a garden at the front and side of the house and a few steps from the front door. On the ground floor there is a spacious living/dining room with a good-sized American kitchen, as well as two double bedrooms and a large family bathroom. From the small...
We present you a new luxury apartment in Benidorm. We present a premium residential complex in the city of Benidorm. Benidorm is the most cosmopolitan city in Spain, which attracts not only tourists from all over the world, but also residents of other regions of Spain with its unique microclimate – the mildest on the entire Mediterranean coast...
EspanaTour
253 000 €
Flat on Costa del Sol, Spain
79 sq.m222
A new complex located next to Atalaya Golf. Guarded urbanization 24 hours. The complex consists of a total of 123 apartments with 1, 2 and 3 bedrooms. The urbanization has large landscaped gardens and swimming pools, a tennis court, a green lawn for recreation, a playground, a SPA and a gym. The first phase consists of 34 apartments and is...
ESTATE BARCELONA
165 000 €
Flat on Costa Blanca, Spain
81 sq.m222
Apartments in Mille Palmeras, Pilar de la Horadada, Alicante. Living room, American kitchen, 2 bedrooms, 2 bathrooms, large terrace. The total area is 81 m2. The complex has a communal swimming pool, underground parking and a storage room.Mille Palmeras is a very sought-after area on the Costa Blanca, located between Deesa de Campoamor and Pilar...
ESTATE BARCELONA
145 900 €
Flat on Costa Blanca, Spain
71 sq.m222
Ground floor apartment (in Russian 2nd floor) in Pilar de la Horadada, Alicante, Costa Blanca. Living room, kitchenette, 2 bedrooms, 2 bathrooms, terrace of 6 m2, solarium. The total area is 71 m2. The complex has a communal swimming pool, a large garden and underground parking. Pilar de la Horadada is a coastal town with excellent...
ESTATE BARCELONA
723 500 €
Flat in Barcelona, Spain
133 sq.m332
Residence
Apartments in one of the best complexes of the Diagonal Mar area - Illa del Cel in Barcelona. Diagonal Mar complexes are one of the most frequently requested real estate objects among our clients. Now there is an opportunity to purchase apartments of different sizes, with different number of bedrooms in a completely renovated condition in Illa...
ESTATE BARCELONA
145 950 €
Apartment in Santiago de la Ribera, Spain
70 sq.m22
. New Phase Release – just 18 stylish modern apartments with communal swimming pool. These beautiful homes are set in 2 blocks with a communal garden and swimming pool zone. They offer spacious living areas with wide terraces, choose from a ground floor model or a penthouse with large roof top solarium.
Just a 10 minute walk to the popular...
OLE INTERNATIONAL HOMES S.L.
1 234 000 €
Flat on Costa Blanca, Spain
163 sq.m33
Residence
New development with sea views, practically located on the frontline of Poniente Beach, just 50 meters away, in a privileged location on the Mediterranean coast, in residential is composed by 1, 2, 3 and 4-bedroom apartments with stunning views of the sea, and with large terraces that will allow you to have the unique feeling of sailing from...
Mercury Group
704 500 €
Flat on Costa del Sol, Spain
269 sq.m42
Residence
Exclusive promotion of homes with large terraces and common areas that will allow you to enjoy all the comforts in Estepona, one of the main municipalities on the Costa del Sol. You will breathe peace and enjoy the sea and the mountains in a place where you can have everything at one step without giving up maximum privacy. Communal swimming...
Mercury Group
165 000 €
Apartment in Torrevieja, Spain
115 sq.m431
If you are looking for spacious, bright SOUTH facing home with Sea Views. We offer you this magnificent 3 bedroom penthouse with its fitted wardrobes, with air conditioning units in each room, bathroom with shower, separate kitchen and fully furnished and equipped with access to laundry, and of course huge living room with sea views. Don't miss...
Habita International Estates Ltd
420 000 €
Penthouse in Santa Pola, Spain
80 sq.m221
Online ViewingRemote Transaction
Apartments with Terraces in a Private Compound of Santa Pola, Alicante, Costa Blanca
Nestled in Santa Pola, these apartments feature spacious terraces and are set within a private complex. Santa Pola is a coveted coastal municipality in Alicante province, embraced by the Costa Blanca region's pleasant climate and renowned for its exquisite...
TEKCE
1 190 000 €
Penthouse in Fuengirola, Spain
90 sq.m322
ResidenceOnline ViewingRemote Transaction
Luxury Properties in a Complex Near the Sea in Fuengirola
The luxury properties are in a rich amenities complex in Fuengirola. The region is a hot tourist spot in southern Spain also proximity to other famous destinations as well. With long beaches, clear air, and various amenities, Fuengirola is loved by many people all around the world.
The...
TEKCE
209 000 €
Apartment in San Pedro del Pinatar, Spain
66 sq.m322
Online ViewingRemote Transaction
2-Bedroom Chic Flats with Impressive Views in San Pedro del Pinatar Costa Calida
San Pedro del Pinatar is situated on the Mar Menor coastal saltwater lagoon in Murcia Province, Spain. The town is known for its salt ponds, rich marine life, fishing, salt production, and tourism. There are various ports in the area, including a fishing port, a...
TEKCE
266 000 €
Penthouse in Mijas, Spain
61 sq.m322
Online ViewingRemote Transaction
New Flats Within Walking Distance of All Daily Amenities in Las Lagunas de Mijas
The new flats are located in Mijas, a picturesque municipality located on the Costa del Sol in the province of Malaga, Spain. The town is divided into three main areas: Mijas Pueblo, Mijas Costa, and Las Lagunas. Mijas offers a perfect blend of traditional...
TEKCE
154 900 €
Flat in Torrevieja, Spain
58 sq.m321
Online ViewingRemote TransactionCredit
This apartment is located just few meters from Los Locos beach on the first floor of the prestigious Orbiplaya residential complex.
The property consists of a living room, two bedrooms, a fully equipped bathroom, a modern American kitchen completely furnished where you can prepare your favorite dishes and enjoy them with your family and...
Planeta Spain
199 000 €
Studio on Tenerife, Spain
41 sq.m111
We offer for sale a very beautiful renovated studio overlooking the ocean and the island of La Gomera in Playa Paraiso, Paraiso del Sur residential area. .The first line of the sea, just 3 minutes walk to the beach and the promenade.A beautiful and sunny terrace with direct sea views.
The complex has 24-hour security and a swimming pool, which...
VYM Canarias
285 000 €
Penthouse in Villajoyosa, Spain
88 sq.m432
Online ViewingRemote Transaction
Apartments for Sale in Villajoyosa, Alicante, Costa Blanca
The apartments are located in Villajoyosa, a coastal town in the Alicante province. This area belongs to Costa Blanca, a Mediterranean region famous for its favorable climate most of the year and its quality and paradisiac beaches.
This municipality counts all the services needed for a...
TEKCE
187 000 €
Townhouse in Torre de la Horadada, Spain
71 sq.m543
WE SELL A TOWNHOUSE BY THE SEA IN TORRE DE LA HORADADA, WITHIN WALKING DISTANCE FROM THE SEA AND THE BEACH.We have for sale this lovely duplex townhouse with a communal pool. The house is located near the sea, 50 m from the beaches of the Mediterranean Sea. The 104 m2 apartment with a small garden and private parking consists of three bedrooms...
E-Style
315 000 €
Flat on Costa Blanca, Spain
120 sq.m2
DETAILS
Type:Apartment
For sale/for rent:For sale
Province:Alicante
Town:Altea
Area:PUERTO L. CAMPOMANES
Bedrooms:2
Bathrooms:2
Living area:120 m²
Constructed area:140 m²
Type of property:Re-sale
EXTRAS
Built Year:1982
Kitchen:Independent - Refurbished - Equipped
Balcony:Open terrace
Orientation:Southeast...
Mercury Group
577 000 €
Flat on Costa Blanca, Spain
90 sq.m3
Residence
BIOKO DeLUX is born from the success obtained with our previous promotions
BIOKO and BIOKO II although bringing new trends and the luxury that the area requires.
Mil Palmeras is one of the most beautiful urbanizations of the Costa Blanca, surrounded by all kinds of services and of course, the best beaches, which we only have a few meters...
For individuals: a certificate from the place of work indicating the salary, signed by the general director and certified with the company's seal. For legal entities: data on the company's balance sheet for the current and previous year and a certificate of personal monthly income
Tax return
A certificate from work about the position held, the amount of salary and length of service
An agreement on the reservation of an object between the seller and the buyer
An extract from the bank with information about the cash flow for at least a year
Company registration documents and an extract from the Unified State Register of Legal Entities (for business owners)
Credit history in your home country. If the buyer has already taken out a loan in Spain, then all the information about it is in the bank's database, and a credit history is not required
NIE (Non-resident Identification Number)
Certificate of ownership of other real estate. At the same time, it does not matter where your real estate is located
Summary with brief information about the client and all the attached documents
Attention! All documents must be translated into Spanish and notarized.
Typical Mortgage Conditions
Currency type
Euro
Loan amount
Up to 60% of the estimated value
Mortgage term
10-20 years
Age of a lendee
20-60 years
Interest rate
3%-6%
Early repayment of the loan
Possible, but you can get a fine The rate varies depending on the bank, from about 0.5 to 2.5% of the repayable amount
The maximum loan term for a foreigner is on average 20-25 years, while for residents of Spain it can reach up to 40 years. It is more profitable for banks to provide loans for a long time, which is also an advantage for borrowers: the longer the term, the lower the monthly fee. The buyer can decide whether to pay the bank faster or reduce the amount of the monthly payment. The contract must have a clause about the possibility of early repayment of the loan.
In some cases, banks prohibit paying off the loan ahead of schedule during the first five years. It is also worth remembering that the bank is more likely to offer a fixed-rate mortgage option to a non-resident of the country, since this option is less risky for him.
Mortgage loans in Spain have three types of interest rates
Fixed. Monthly contributions are the same for the entire loan term. Usually, foreigners are offered loans at 3-4% per annum.
Floating. Such a rate is associated with risks, since it is tied to the Euribor Index (the average rate at which banks lend money to each other).
Mixed. The bet will be fixed at the start of payment, and then it will change to a floating one. This type of loan is suitable for those who want to pay off the mortgage ahead of time.
Examples of houses and villas in Spain
1 100 000 €
Villa in Orihuela Costa, Spain
410 sq.m46
Residence
Detached Villa in Dehesa de Campoamor, Orihuela Costa. This newly constructed building features three floors: a ground level with a day area and a bedroom; a fi rst fl oor with a night area, consisting of 3 bedrooms; and a second fl oor, with a solarium and porch, all surrounded by a landscaped plot, and including a pool.Located next to...
OLE INTERNATIONAL HOMES S.L.
319 900 €
Chalet in La Marina, Spain
158 sq.m433
Naranja Spain
375 000 €
Villa in Spain
120 sq.m32
Spacious 3 beds luxury detached villa in Mar de Cristal .
OLE INTERNATIONAL HOMES S.L.
320 000 €
House on Costa Blanca, Spain
120 sq.m
We have a 545 m2 plot in Pilar de la Horadada, in front of a green area (Plaza de España).
For this plot, we offer several options, where the client can choose the type of home they want, built m2, number of bedrooms, bathrooms, if they want the house on one floor or two, etc. We offer these two options for reference:
Option 1:...
We present a comfortable villa with sea and mountain views in La Nucia. The villa has an area of 114 sq.m. it consists of two levels. The house has:
two bedrooms (12 and 8.5 sq.m.),
two bathrooms,
spacious living room of 18 sq.m.,
kitchen with dining area,
terrace with sea and mountain views,
laundry.
In the courtyard there...
We present a new villa in a beautiful modern residential complex in Finestrat. The gated complex consists of detached villas, each of which has its own plot, swimming pool, Parking space. It is located in an area with developed infrastructure. The complex is located near the golf course, 3 km from the shopping center "La Marina", where there are...
We present a stunning spacious villa with three floors in Pinar de Campoverde. Pinar de Campoverde is a quiet Spanish town located on the shores of the Mediterranean Sea. It is part of the province of Alicante in the southeastern part of Spain. The calm and measured rhythm of life attracts those who appreciate comfort and silence. Due to the...
We present a bright two-storey duplex in a beautiful residential complex in Torrevieja, La Mata district. Torrevieja is a popular Spanish resort town and municipality in the province of Alicante in the southern part of the Costa Blanca. The city is considered the third largest in the province after Alicante and Elche. The resort is popular...
EspanaTour
685 000 €
House on Costa Blanca, Spain
150 sq.m33
Residence
This newly constructed detached villa is located just 300 meters from the beach in Villajoyosa. The property boasts a generous plot size of 400m2 and a constructed area of 150m2. With 3 bedrooms and 3 bathrooms, it provides ample living space for families or those who enjoy entertaining guests. The villa comes complete with a private pool and a...
Mercury Group
810 000 €
House on Costa Blanca, Spain
152 sq.m32
Residence
Incredible villas that are located in the exclusive urbanization in Sierra area stands out for its beautiful green areas, full of vegetation such as pine trees, vines, olive trees and aromatic bushes. All necessary services (shopping centres, restaurants, golf courses, theme parks, etc.), Benidorm beaches and golf courses are within a 5 minutes...
Mercury Group
505 000 €
House on Costa Blanca, Spain
203 sq.m33
Residence
The villas are located in Gran Alacant, in an urbanization located in a quiet area and with all the necessary services nearby. The beaches are less than 5 minutes away by car. The houses are on two floors, are built on a plot from 370 m², have an area of 203 m² and consist of 3 bedrooms (with en suite bathroom in master bedroom and dressing...
Mercury Group
1 395 000 €
House in Benahavis, Spain
262 sq.m644
Residence
Exclusive Andalusian-style Villa with Infinity Pool and Sea/Mountain Views in Monteome to the spectacular Villa Teranga where elegance intertwines with nature at its finest. This exclusive single-family home majestically sits on an expansive plot of 2,438led in an enclave exuding charm and tranquility, this property is accessed via a private...
Habita International Estates Ltd
1 870 000 €
Villa in Spain
615 sq.m434
Exquisite Villa with Contemporary Design and Stunning Sea Views in Benitachell, Alicante
Nestled in the sought-after tourist destination of Costa Blanca, this opulent villa in Alicante Benitachell embodies the epitome of luxury living. The region boasts a collection of pristine beaches and showcases the remarkable Mediterranean climate and...
TEKCE
2 060 000 €
Villa in San Miguel de Salinas, Spain
290 sq.m545
ResidenceOnline ViewingRemote Transaction
4 Bedroom Detached Luxury Villa Inside a Golf Resort in San Miguel de Salinas
Luxury villas situated in Las Colinas Golf Resort in Orihuela Costa, in the province of Alicante, Spain. It's known for its high-quality golf facilities, luxurious properties, and beautiful surroundings. The resort offers a range of amenities, including a golf course,...
TEKCE
35 000 000 €
Villa in Marbella, Spain
2000 sq.m171515
ResidenceOnline ViewingRemote Transaction
Luxury Mansion in the Prime Area of Marbella
Marbella is a charming destination in Costa del Sol, luxurious and serenity together. Its glamor has transcended Spain and has been influencing world trends. Today it is recognized as one of the places that enjoy beautiful Mediterranean air, stunning beaches, and numerous entertainment options.
The...
TEKCE
495 000 €
Chalet in Calella, Spain
216 sq.m542
Villa with a large plot of land on the Costa Brava.
EuropaHome
1 620 000 €
Villa on Tenerife, Spain
288 sq.m33
Residence
VYM Canarias
840 000 €
Villa on Costa Blanca, Spain
160 sq.m33
Residence
These single-family houses are located in Sierra Cortina de Finestrat, the residential complex consists of 9 houses and offers fantastic views of the Mediterranean Sea and the city of Benidorm.
The houses have 3 bedrooms and 3 bathrooms. All bedrooms have access to a private terrace. All facilities have their own swimming pool and a garage for 2...
VYM Canarias
5 500 000 €
House on Costa Brava, Spain
428 sq.m1666
Residence
This impressive villa is set on a large plot of 3,500 m², perched on the cliffs of the Costa Brava, on the seafront, offering unrivaled views of the Mediterranean Sea. On the ground floor, the central part is occupied by a living room with a dining room on one side and a library with a fireplace on the other. Next we find the kitchen with access...
Mercury Group
1 800 000 €
House in Girona, Spain
265 sq.m544
Residence
Designer villa in the L´Alzina area, located in a prestigious golf resort in Caldes de Malavella, Costa Brava.
The unusual play of light in the room and the picturesque panoramic views of the majestic Pyrenees make your stay unforgettable.
Bright living room with access to the garden and chill out area with a large infinity pool. All...
It is necessary to remember about the additional costs that await the borrower. Among the main ones, we note the following.
Commission for opening a bank account: 1-2% of the loan cost
Bank account maintenance fee: about €30 per quarter
Independent assessment of the property value: about €300
Verification of registration data: about €25
Borrower's life insurance: about €90 per quarter
Insurance against non-payment of the loan: about €2,000 at a time for the first five years for the entire amount of capital
Home insurance: about €30 per month for the entire term of the mortgage
Mortgage broker services: 0.5-1.0% of the loan cost
Irina Rud, the manager of EspanaTour:
The entire process from the moment of applying for a loan to the issuance of a loan takes from two to five weeks. Both the lendee and their legal representative can apply by proxy. Proving that the applicant has an additional source of income or owns real estate in different countries can help to get a positive answer and speed up the procedure.
