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Foreigners can obtain a mortgage from a Spanish bank in 2025. They must demonstrate creditworthiness and present the required documents. Banks, e.g. Bank Sabadell, finance up to 70% of the property value and require a minimum 30% down payment as well as funds for transaction costs, which amount to around 10-15% of the transaction value. The loan agreement is signed at the notary together with the purchase deed.
What are the forecasts for mortgages in Spain in 2025?
Mortgage interest rates in Spain depend primarily on the Euribor. The forecasts for 2025 are optimistic:
- The Euribor is currently 2.9%, and experts predict it will fall further, which may improve loan terms.
- Inflation in Spain is expected to fall to 2.3%, which may also help bring interest rates down.
Can a foreigner get a mortgage in Spain?
Yes. Foreigners can apply for a mortgage in Spain. The conditions are adequate creditworthiness and a complete set of documents.
Banks distinguish between two groups of customers:
- residents, that is, people living in Spain,
- non-residents, that is, people living abroad.
From non-residents, banks most often require translations of financial documents, although they are increasingly dropping this requirement.
How much do banks finance and how much is the deposit?
- Financing: up to 70% of the property value (e.g. Bank Sabadell).
- Deposit: minimum 30%.
- Transaction costs: the bank requires funds to be secured to cover them, around 10-15% of the transaction value.
- Property valuation: around €300-700.
The bank takes into account the lowest valuation of the property, which may affect the amount of the loan granted.
What does a sample mortgage offer look like (January 2025)?
For customers from outside the eurozone, banks offer variable-rate mortgages. A sample Banco Sabadell offer:
- loan term: 20 years,
- interest rate in the first year: 2.90%,
- in the following years: Euribor + 0.60%.
The bank makes it possible to reduce the cost of the loan through additional products, such as life insurance and property insurance.
What documents are needed for a mortgage in Spain?
From individuals, banks require, among other things:
- a completed mortgage application form,
- an ID card,
- an NIE number,
- an employment contract and tax returns for the last 2 years,
- bank statements for the last 6 months,
- proof of salary payments,
- a document confirming the accumulated funds intended for the property purchase,
- documents relating to existing credit obligations and information from the credit bureau.
Self-employed people and business owners must additionally present, among other things, the company's tax returns and business account statements.
What does signing the loan agreement and paying for the property involve?
The loan agreement is signed at the notary, at the same time as the notarial deed of purchase. The notary reads out the terms of the loan agreement, and a bank representative finalises the documents. The costs of signing the loan agreement, such as notary fees or taxes, are covered by the bank.
Foreigners can pay for a property in three ways:
- a bankers' draft from an account in Spain,
- a bankers' draft from the account of a representative or lawyer,
- by transfer from an account in your country of residence.
Opening a bank account in Spain is relatively simple and is useful not only for the purchase but also afterwards, for example for paying utility bills.
Read also
Taxes in Spain – what you need to know before buying property in 2025
Buying property in Spain – step by step
Frequently asked questions
What deposit is needed for a mortgage in Spain?
Banks require a minimum 30% deposit, because they finance up to 70% of the property value. You also need funds for transaction costs, around 10-15% of the transaction value.
How much does a property valuation for the bank cost?
The valuation costs around €300-700. The bank takes into account the lowest valuation of the property, which may affect the loan amount.
Do financial documents have to be translated into Spanish?
From non-residents, banks most often require translations of financial documents, although they are increasingly dropping this requirement.
What interest rates do Spanish banks offer?
A sample Banco Sabadell offer from January 2025 for customers from outside the eurozone is a 20-year loan with an interest rate of 2.90% in the first year and Euribor + 0.60% in the following years.
Who pays for signing the loan agreement at the notary?
The costs of signing the loan agreement, such as notary fees or taxes, are covered by the bank. The agreement is signed together with the notarial deed of purchase.
Aria Spain, a licensed agency (RAICV no. 4123) selling new properties from developers with no commission for the buyer, helps in English with obtaining a mortgage, an NIE number, opening a bank account and the formalities at the notary. Book a free consultation.
