Yes. Foreign and non-resident buyers can finance a property purchase in Spain with a Spanish mortgage. Some banks offer financing of up to 70% of the property value, although the amount available depends on the lower of the purchase price or bank valuation, as well as your income, existing debts, assets and credit profile. Buyers must normally cover the remaining balance plus taxes and purchasing costs from their own funds.
🏦 What types of Spanish mortgages are available?
Spanish banks offer fixed-rate, variable-rate and mixed mortgages. Variable mortgages are commonly linked to Euribor plus a lender’s margin, while mixed mortgages provide a fixed rate for an initial period before changing to a variable rate. Euribor may rise or fall, so it should not be described as automatically cheaper or more stable than financing in another country.
📉 How does financing work for new-build properties?
For an off-plan purchase, the mortgage is generally completed when construction is finished and the property is formally handed over. Buyers therefore need to plan separately for the reservation payment and staged payments required during construction.
Some developments offer developer mortgage subrogation, allowing the buyer to apply to take over the part of the developer’s existing mortgage allocated to their property. This may reduce administration and offer competitive terms because the bank already knows the project. However, the buyer must still pass the bank’s affordability and credit checks and the existing mortgage should always be compared with alternative offers.
🧾 Can Spanish and overseas financing be combined?
In some cases, buyers can combine a Spanish mortgage with borrowing arranged in their home country, such as a loan secured against an existing property. This may reduce the amount of cash required upfront, but it also increases overall borrowing and financial risk.
A mortgage specialist can help compare lenders, financing structures, interest rates and total costs. Every mortgage application is assessed individually and approval or favourable terms cannot be guaranteed.
