Introduction

Many foreign buyers in Spain prefer to use a mortgage (Hipoteca) to finance their property purchase. The good news is that Spanish banks grant mortgages not only to citizens but also to foreign residents and investors. Of course, the conditions, documentation, and loan amounts for foreigners can be slightly different. This article provides a comprehensive guide to obtaining a mortgage in Spain.

1. Loan Amounts for Foreigners

Spanish banks typically:

  • Offer up to 80% of the property value for Spanish citizens.
  • Offer between 50% and 70% of the property value for foreign buyers.

Example: For a property worth €200,000, a foreign buyer can usually receive between €100,000 and €140,000 as a mortgage.

2. Basic Requirements

To be approved for a mortgage, foreign buyers must:

  • Have verifiable and stable income.
  • Maintain a good banking and credit history.
  • Provide valid documentation to prove the source of income and bank account activity.

3. Required Documents

Foreign buyers usually need to present:

  • Valid passport
  • NIE (Número de Identidad de Extranjero)
  • Proof of income (such as payslips or tax returns)
  • Bank statements from the last 6 months
  • Property purchase agreement

The Dreamland team assists with preparing and officially translating these documents.

4. Interest Rates and Repayment Terms

  • Mortgage interest rates in Spain usually range between 2.5% and 5% annually, depending on the market and contract type.
  • Repayment terms typically range from 10 to 30 years.
  • Mortgages are generally issued in euros, even if your income is in another currency.

5. The Mortgage Process Step by Step

Choose a property and make a preliminary agreement

Apply to the bank and submit required documents

Bank reviews your financial situation

Receive a pre-approval (Pre-approval)

Sign the mortgage agreement and property deed at the notary (Notario)

Conclusion

Obtaining a mortgage in Spain as a foreigner is entirely possible and very common, but it requires accurate documentation and knowledge of the process.

With the guidance of Dreamland, you can secure the best mortgage conditions from trusted Spanish banks and purchase your dream home with confidence.

Dreamland — by your side at every step of buying property and obtaining a mortgage in Spain.