Key Takeaways
- ✓ Non-residents can borrow 60–70% of the purchase price (or valuation, whichever is lower).
- ✓ Fixed rates in 2026 sit at approximately 3.5–4.5% for 15–25 year terms.
- ✓ You’ll need 30–40% of the price in cash (deposit + purchase costs).
- ✓ The full process from application to funds typically takes 4–8 weeks.
- ✓ Spanish banks require a bank valuation (tasación) which costs €300–€600.
How Much Can You Borrow?
Spanish banks lend to non-residents at a maximum of 60–70% loan-to-value (LTV), based on the lower of the purchase price or the bank’s independent valuation. Residents can borrow up to 80%. This means that as a non-resident, you need at least 30% of the property price in cash, plus an additional 11–14% for purchase costs. For a €200,000 property, that’s approximately €80,000–€90,000 in available funds.
Interest Rates (2026)
Fixed rates: 3.5–4.5% for 15–25 year terms. Fixed-rate mortgages have become the norm in Spain since the ECB rate rises of 2022–2024. They offer payment certainty and are recommended for most buyers.
Variable rates: Euribor + 1.0–1.5%, currently resulting in rates of 2.5–3.5%. These are cheaper initially but carry interest rate risk. Most banks cap variable-rate terms at 30 years.
Mixed rates: Some banks offer a fixed rate for the first 5–10 years, then switch to variable. This can be a good compromise.
Required Documents
Banks typically require: passport, NIE, last 2–3 years of tax returns, last 3–6 months of bank statements, employment contract or proof of pension/self-employment income, and a credit report from your home country. The exact requirements vary by bank. Having documents translated into Spanish (or at least English) speeds up the process.
The Timeline
Week 1–2: Submit application and documents to 2–3 banks. Comparison shopping is important — rates and conditions vary significantly.
Week 2–3: Bank orders a valuation (tasación, €300–€600). The valuer inspects the property and produces a report.
Week 3–5: Bank reviews valuation and issues a binding offer (FEIN). You have 10 days to review this.
Week 5–8: Sign the mortgage deed at the notary (same appointment as the purchase). Funds are released.
Mortgage Costs
| Cost | Amount |
|---|---|
| Valuation (tasación) | €300–€600 |
| Arrangement fee (some banks) | 0–1% of loan |
| Notary (mortgage deed) | Paid by the bank (since 2019) |
| AJD stamp duty on mortgage | Paid by the bank (since 2019) |
Worked Example
Let’s say you want to buy this three-bedroom apartment in central Torrevieja:
| Item | Amount |
|---|---|
| Purchase price | €225,000 |
| Mortgage (65% LTV) | €146,250 |
| Cash deposit needed | €78,750 |
| Purchase costs (~12%) | €27,000 |
| Total cash required | €105,750 |
| Monthly payment (25 yr, 4% fixed) | ~€773 |
For the full property purchase process, see our complete buying guide.