Overview
Can a foreign buyer get a mortgage in Spain?
Yes, and 2026 is a notably better moment than 2023 or 2024. The European Central Bank cut its key rate repeatedly between 2024 and early 2025, bringing Euribor down from its October 2023 peak of 4.16% to around 2.4% by the end of 2024. Since then Euribor has fluctuated rather than kept falling in a straight line: it stood at roughly 2.57% in March 2026 and had risen to around 2.92% by August 2026. Average mortgage rates for residents fell to about 2.87% by the end of 2025, still among the lowest in years.
For non-residents the picture is positive but different. Spanish banks lend actively to foreign buyers, who make up roughly 19% of all Spanish property transactions, but the terms are materially stricter than for residents. Expect a lower loan-to-value, typically 60 to 70% of the appraisal value, a higher rate, from around 2.8 to 3.5% fixed for a strong profile, and a shorter maximum term.
The good news for buyers in 2026 is that Euribor remains well below its 2023 peak. Non-resident fixed rates that were above 4% in 2023 now start from 2.8% for strong borrower profiles.
Key conditions, 2026
What non-residents can expect from Spanish banks
| Condition | Residents | Non-residents |
|---|---|---|
| Maximum LTV | Up to 80% | 60–70% of appraisal value |
| Fixed rate | 2.5–3.5% | 2.8–3.5% (strong profile) |
| Variable rate | Euribor + 0.5–1.2% | Euribor + 1.5–2.5% |
| APR | 2.5–3.5% | 3.0–4.5% |
| Maximum term | Up to 30 years | 20–25 years (max age at end: 75) |
| Loans above €500,000 | Fixed rates available | Some banks more restrictive with fixed rates at this size, varies by lender |
| Min. net monthly income | Varies | ~€2,500–€3,500 |
Sources: Fluent Finance, Investropa, Bravosestate, Baleario and Euribor monthly averages (2026). Rates are indicative; your actual offer depends on your profile and the bank.
Three rate types
Fixed, variable or mixed: which is right for you?
Spanish banks offer three mortgage structures. For non-residents in 2026, fixed and mixed rates are usually the most appropriate.
- Fixed rate (tipo fijo). The rate stays the same for the full term. For non-residents, 2.8 to 3.5%, with a maximum term of 20 to 25 years. Best for buyers who value predictability and plan to hold long term.
- Variable rate (tipo variable). Linked to Euribor plus the bank’s margin. For non-residents, Euribor + 1.5 to 2.5%, which works out to roughly 4.4 to 5.4% at the current Euribor level (about 2.9%, August 2026). Best for buyers with a high risk tolerance who expect Euribor to fall again.
- Mixed rate (tipo mixto). Fixed for the first 3 to 10 years, then variable. Popular in 2026, as it offers short-term certainty with long-term flexibility. Best for buyers who want stability at first but are open to a variable rate later.
- A note for luxury buyers. On larger loans (above €500,000) some Spanish banks are more cautious about offering a full fixed rate to non-residents and may steer these applications toward mixed or variable structures. This varies a lot by lender, so ask a broker which banks currently offer fixed rates at this loan size.
How much do you need?
The real cash requirement, worked through
This is the most commonly misunderstood part of buying with a mortgage in Spain. Banks lend on the appraisal value, not the purchase price, and appraisals are often lower than the agreed price. You cover the gap yourself.
Worked example: a purchase price of €1,000,000
| Item | Amount |
|---|---|
| Appraisal value | €900,000 |
| Mortgage at 70% LTV | €630,000 |
| Down payment (price minus mortgage) | €370,000 |
| Additional purchase costs (10 to 12%) | €100,000–€120,000 |
| Total cash required | about €470,000–€490,000 |
The practical rule for non-residents: have 40 to 50% of the property value in liquid cash before you start the mortgage process. That covers the deposit, the gap between appraisal and price, and all the purchase costs.
Additional costs
Mortgage costs to budget for
| Cost | Amount | Paid by |
|---|---|---|
| Appraisal fee | €300 – €800 | Buyer |
| Notary fees (mortgage deed) | €1,000 – €2,000 | Bank (2019 reform) |
| Land registry fee | ~1% of the mortgage | Bank (2019 reform) |
| Stamp duty (AJD) | ~1.2% of the loan | Bank (2019 reform) |
| Bank arrangement fee | 0.5–1% of the loan | Buyer, negotiable |
| Linked products (insurance) | Varies | Buyer, often required for the best rate |
Since Spain’s 2019 mortgage-law reform, the bank pays the notary, registry and stamp-duty costs. The buyer pays the appraisal and any arrangement fee. Linked products (home and life insurance) are optional but often required to get the best rate, known as a bonificación.
Documentation
What documents do you need?
- A valid passport or national ID.
- A Spanish NIE number (tax ID, required before you apply).
- Proof of income: payslips for the last 3 to 6 months, or tax returns for the last 2 years if self-employed.
- Bank statements for the last 3 to 6 months.
- An overview of your assets and liabilities: property, investments, existing loans.
- An employment contract or proof of business ownership.
Documents from abroad may need an official (sworn) translation and an apostille. Having everything ready before you approach a bank speeds up the process considerably.
The process
Step by step, from application to completion
- Get your NIE number. A Spanish NIE is required before any bank will process your application. Apply at the Spanish consulate in your home country or at a national police station in Spain; allow 2 to 6 weeks.
- Ask for pre-approval before you make an offer. A pre-approval (aprobación previa) gives you a realistic budget and makes you a more credible buyer in negotiations. Submit your documents to your chosen bank or broker for a preliminary decision, usually within 1 to 2 weeks.
- Instruct the official appraisal. Once you have an agreed price, the bank commissions an official appraisal (tasación) from a certified appraiser; this sets the loan amount. It costs €300 to €800 and is paid by the buyer.
- Receive the FEIN and FIAE. The bank must give you a European Standardised Information Sheet (FEIN) and a warning sheet (FIAE) with all the loan terms. You have a minimum 10-day reflection period to review them, a legal requirement in Spain.
- Attend the mandatory notary session. Before signing, you meet a notary to confirm you understand the rates, fees and risks. This is compulsory under Spanish mortgage law; the notary acts as an independent adviser to the borrower.
- Sign the mortgage and purchase deed. The purchase deed (escritura de compraventa) and the mortgage deed are usually signed at the same notary session. From first application to signing takes 6 to 10 weeks for a well-prepared application.
Which banks?
Which Spanish banks work with non-residents?
All the major Spanish banks offer non-resident mortgages. In 2026 the most active for international buyers are:
- Banco Santander. Its “Mundo Mortgage” programme for non-residents, with an online simulator and English-speaking support. LTV up to 70%.
- CaixaBank. Its “HolaBank” programme for international clients, which accepts documents in your language for preliminary approval.
- BBVA. A strong international presence and digital processes, competitive for buyers with clean documentation.
- Banco Sabadell. Long specialised in mortgages for foreign buyers, with a good track record for Dutch and British clients.
Working with an independent mortgage broker who submits your application to several banks at once usually produces better terms than approaching one bank directly. Ibiza Now works with specialists who focus only on international buyers in the Balearics.
Alternative
Remortgaging a property in your home country
Some buyers release equity from their main home in the Netherlands, Belgium, the UK or Germany to fund a cash purchase in Ibiza. This avoids the Spanish mortgage process entirely and can speed things up a lot: a cash purchase usually completes in 4 to 6 weeks, against 8 to 10 with a mortgage.
There are trade-offs, though. Home-country mortgage rates may be higher, terms are often shorter, and there are no Spanish tax benefits. Currency risk matters too if your income and mortgage are in a currency other than the euro. Always take professional advice before choosing this route.
Want a mortgage introduction for your Ibiza purchase?
We work with independent mortgage specialists who focus only on financing for international buyers in Ibiza. They can assess your profile, compare banks and guide you through the process in your own language, with no obligation.