Mortgage Requirements in Spain
Everything you need to know before applying for a Spanish mortgage
Obtaining a mortgage in Spain as a foreign buyer involves navigating a complex landscape of requirements, documentation, and varying bank policies. The Spanish mortgage market differs significantly from those in Northern Europe, the UK, or the US, and what works in your home country may not apply here. Understanding these requirements before you start your property search can save you months of frustration and potentially thousands of euros.
Personal Requirements
What banks look for in you as a borrower
Income and Employment
Spanish banks place significant emphasis on your income stability and employment history. Unlike some markets where self-certification mortgages exist, Spanish lenders require comprehensive proof of your financial situation. For employed applicants, banks typically want to see at least two years of continuous employment, preferably with the same employer.
Self-employed individuals face additional scrutiny. Banks generally require three years of trading history with consistent or growing profits. Your business accounts will be examined in detail.
The general rule is that your total monthly debt payments, including the proposed mortgage, should not exceed 30-35% of your net monthly income. This is stricter than many other European markets.
Credit History and Financial Standing
While Spain does not use the same credit scoring system as the UK or US, banks will investigate your financial history thoroughly. They will check the CIRBE register, which records all debts held with Spanish financial institutions. For non-residents, banks often request credit reports from your home country.
Beyond credit history, banks examine your overall financial health. They want to see evidence of savings, consistent banking behavior, and no unexplained large transactions.
Age Considerations
Most Spanish banks require the mortgage to be fully repaid before the borrower reaches 70-75 years old. This effectively limits the maximum term available to older buyers. A 60-year-old might only qualify for a 10-15 year term rather than the typical 25-30 years.
Loan-to-Value Limits (LTV)
How much you can borrow relative to property value
The amount you can borrow depends primarily on your residency status in Spain. These limits are set by the Bank of Spain and apply to all lending institutions.
Spanish Residents
Up to 80% LTVIf you are a fiscal resident in Spain with NIE and can demonstrate Spanish tax residency, you may qualify for up to 80% financing. This means a minimum 20% deposit plus purchase costs.
Non-Residents
Up to 60-70% LTVFor buyers who do not have Spanish residency, most banks limit lending to 60-70% of the property value. Some banks may go slightly higher for exceptional profiles.
Important: These percentages refer to the lower of the purchase price or bank valuation.
Required Documentation
The paperwork you need to prepare
Spanish banks require extensive documentation. Preparing these documents in advance can significantly speed up your application. All documents from outside Spain may need to be officially translated and apostilled.
Purchase Costs
Additional costs beyond the property price
When buying property in Spain, budget approximately 10-15% of the property price for additional costs. These cannot typically be included in the mortgage.
The Mortgage Process
Step by step from application to completion
Initial Assessment
Submit your documents for preliminary review. The bank assesses your profile and indicates likely terms.
Formal Application
Complete formal application with full documentation. Bank orders property valuation.
Valuation & Analysis
Independent valuer assesses the property. Bank completes risk analysis.
Offer
Bank issues binding offer (FEIN/FIAE) with detailed terms and conditions.
Notary Appointment
Sign mortgage deed at notary. Funds released to complete purchase.
Navigate the Complexity with Expert Guidance
The Spanish mortgage market can be overwhelming, especially for first-time buyers in Spain. Each bank has different requirements, processing times, and appetites for risk. What gets rejected at one bank may sail through at another.
Our team has direct relationships with all major Spanish lenders and understands exactly what each bank is looking for. We can assess your situation, identify the banks most likely to approve your application, and guide you through the process efficiently.