Many expats have settled in Spain or invested in a holiday home there. You must know how the process works if you’re considering doing the same. Keep reading a guide that covers everything you need to know when buying a property in Spain as a foreigner.
Spain is your dream place if you’re looking for a warm climate, delicious food, and a high standard of life. Whether you’re considering working in Madrid or Barcelona or retiring to Alicante or Palma de Mallorca, you will need to find a property that suits your needs.
Continue reading for a guide that covers everything you need to know about buying a property in Spain with a mortgage as a foreigner.
Any foreigner can purchase a property in Spain without being a resident, but the process may become more complex without familiarity with the language and local legislation.
The price you’ll pay for buying a property will be influenced significantly by your desired location.
The most expensive properties in the country are in Barcelona, but if you’re interested in the coastal regions as well, you can find more varied prices.
Location | Price m2 in the city center | Price m2 outside of the center |
---|---|---|
Madrid | 3,956 EUR | 2,431 EUR |
Barcelona | 6,000 EUR | 3,500 EUR |
Valencia | 2,066 EUR | 1,346 EUR |
Alicante | 2,933 EUR | 1,550 EUR |
Palma de Mallorca | 4,275 EUR | 2,650 EUR |
The best place to buy a property in Spain in 2024 depends on personal preferences and specific requirements.
Spain offers various desirable locations, each with unique charm and advantages. Popular options include Barcelona, Madrid, Costa del Sol, and the Balearic Islands.
For instance, Valencia and Alicante are popular destinations for British citizens interested in buying a holiday home in Spain.
Property prices in Barcelona are among the highest in Spain, but at the same time, the cost per m2 for an apartment can be up to 60% cheaper than in London, depending on its location inside or outside the city center.
The city is home to many expats, so purchasing an apartment in Barcelona is a potentially good investment, especially for rental purposes.
Buying a house in Madrid might be suitable for you if it aligns with your financial capabilities and way of life. As of December 2023, Madrid's average cost per m2 reached a two-year high of 4,101 EUR.
Mallorca is a great place to buy a property, whether looking for a peaceful retreat or a fresh start. Many locals speak English, German, and French. Plus, getting a mortgage here is just like in the rest of Spain.
Buying a property in Tenerife can be cheaper than in cities like Madrid or Barcelona. With its popular beaches and attractions, there's a good opportunity for rental income.
However, consider that buying property in Tenerife can become complex due to legal considerations, language barriers, financing challenges, and various taxes and fees.
Exploring the Spanish mortgage landscape as a foreigner doesn't have to be intimidating. By understanding the specific requirements for securing a mortgage as a non-resident, you can confidently tackle the application process.
Stay informed to avoid the common mistakes non-residents face when applying for a mortgage in Spain, ensuring a smoother journey to owning your dream home.
The first step is to calculate your budget to determine how much deposit you can bring and how much you need to borrow.
Keep in mind that Spanish banks cover up to 70% of the purchase price or value of the property. This means you’ll need to pay at least 30% of the property’s value in cash as a down payment.
Be sure to research your options and find the banks that offer mortgages to foreigners with income from abroad. Check their eligibility conditions and the documents you’ll need to provide to qualify for a loan.
Homevest can help you compare mortgage offers from top Spanish banks that offer financing to non-residents.
After finding suitable banks, contact them to obtain preapproval and offers. This step will give you an idea of your monthly payments and help narrow your property search. Take the time to carefully review the terms and conditions of each offer before making a decision.
Once you have preapproval and offers, start looking for the right property. Searching for properties that fit your budget and meet your requirements can be time-consuming. You should also be prepared to negotiate with sellers to get the best deal possible.
After agreeing on a price, buy the property and begin paying your monthly mortgage loan. The loan period can range from 5 to 30 years, depending on the amount borrowed.
The mortgage loan process in Spain may differ from your home country, so it’s essential to research and work with professionals who can guide you through the process.
When buying a property and getting a mortgage in Spain, you’ll need the following documents:
Banks may ask for additional documents to determine an applicant's eligibility, which is done on a case-by-case basis. Keep reading to discover the documents checklist for a non-resident to apply for a Spanish mortgage.
The "Número de Identidad de Extranjero" (NIE) is an all-purpose ID and tax number in Spain required to buy a property and get a mortgage.
When living abroad, you can apply for the NIE number:
The required documents when applying for the NIE number are:
It’s worth mentioning that the NIE is usually issued within two weeks, but in exceptional situations, it may take longer. The document is sent to the applicant by email.
Sabadell, Cajasur, Unicaja, Bankinter, BBVA, Santander, Caixa, and UCI are among the banks from Spain that offer mortgages for those who earn income from abroad.
For married couples, it's usually better to apply together with most Spanish banks. Since marriages often involve shared finances, this can help in the application process.
Continue reading to understand the specifics when applying for a Spanish mortgage with a co-applicant and learn about the conditions you must meet to be eligible for financing.
Sabadell Bank is one of Spain's most competitive mortgage lenders, serving a wide set of non-resident applicants. If you want to move forward with Sabadell, you should know the minimum property purchase for non-residents is 150,000 EUR. The lowest rate is 3,53%, including Euribor 12m, and the term range varies between 3 and 25 years.
If you’re interested in buying a house in the Costa del Sol and Andalusia areas, a great option would be a mortgage from Cajasur. You can borrow between 80.000 and 1.000.000 EUR at a lower rate of 4,74%. However, depending on the customer profile, you should know there is a 0-1.5% opening fee.
Unicaja Banco is a flexible Spanish lender with a wide offering for non-residents. You can access a mortgage with a lower rate of 5,19%.
After the bank approves your application, they will open an account at Unicaja Banco to directly debit the repayments and sign the mortgage at the notary's office of your choice.
Santander's Mundo Mortgage for non-residents provides a broad range of options for individuals seeking to purchase a second home in Spain, with loan amounts ranging from 100,000 to 1,000,000 EUR and both fixed and variable rates.
The lowest rate is 5,58%, including Euribor 12m, and the term range varies between 1 and 20 years.
Bankinter is one of the best options for applicants from the US and UAE. You can choose between a fixed-rate and a variable-rate mortgage, depending on the currency of your income.
If you prefer to pay a fixed monthly amount, you can choose the same interest rate and installment for the entire mortgage term. If you want to adapt to the market situation, you can have a Euribor-indexed variable interest rate, to which Bankinter adds a fixed spread.
BBVA's mortgage solutions for non-residents provide both fixed and variable-rate options, with repayment terms extending to 30 years, easing financial strain with manageable installments.
The loan amount offered ranges from 100,000 to 2,000,000 EUR, accommodating various financial needs and welcoming applicants from various nationalities and residency countries. However, BBVA's services are restricted to those earning Euros and applying from overseas.
CaixaBank Holabank mortgage scheme is tailored for non-residents seeking to invest in the Spanish real estate market. CaixaBank bank's average interest rate over the past three months was 3,64%.
The scheme's wide acceptance of multiple currencies, high loan amounts, and an extended term range of 5-20 years to various financial situations.
If you’re searching for a flexible non-resident lender offering mortgage options for new-builds and fixer-uppers, including financing for renovation, UCI is your answer. The minimum property purchase for non-residents is 150.000 EUR, while the minimum mortgage is 60.000 EUR.
Continue reading to learn more about the best Spanish mortgages for non-residents and how to compare the offers quickly and fee-free.
Over the past three months, Sabadell made the best offer of all banks in Spain, at 2.75%.
If a lower initial rate and a longer repayment period are what you're looking for, consider a variable mortgage. If you're interested in comparing fixed vs. variable rate mortgages for non-residents, learn about the pros and cons and other factors before making your choice.
Continue reading to explore December's mortgage rates for non-residents and discover the most advantageous deals, helping you to make an informed decision.
If you’re looking for a solution to save time, Homevest might be an alternative worth considering.
Homevest offers a digital platform that simplifies the mortgage application process for non-residents interested in buying a property in Spain.
By submitting your mortgage documents a single time through this service, you gain access to top banks in Spain, including Sabadell, Santander, and Unicaja.
You can compare mortgage offers from the best Spanish banks and choose what’s best for your financial situation.
The costs of buying a property in Spain depend on several factors, such as the location or whether you are buying a new property from a developer or a resale property from an individual.
You should keep in mind that buyers pay the majority of the costs, usually involving:
Service | Price |
---|---|
Property transfer tax |
8-12% of the purchase price |
Notary costs, title deed tax, land registration fee |
800-900 EUR |
Property Registry fee |
350 EUR |
Legal fees |
1% |
Estate Agent Fee |
3% |
It’s worth mentioning the property price would be the most significant expense that you will incur when buying a property in Spain, outside of the purchase price.
Buying a new property will usually be split into VAT (IVA) and purchase tax (AJD). For example, if you buy a new property in Andalusia for 100,000 EUR, then you will pay VAT of 10% and purchase tax of 1.5%.
Also, don’t forget the seller usually pays the estate agent fees in Spain, typically around 3% of the price.
Understanding the taxes associated with buying a property in Spain is crucial for non-residents. Read on to learn more.
Buying a property in Spain is a great idea for investment purposes.
Foreigners, including British, Germans, French, Romanians, Belgians, Italians, and Dutch, accounted for a significant 21.4% of property purchases in 2023. Even if you don't plan to permanently reside in Spain, renting out the property can still provide a worthwhile investment opportunity.
There are no restrictions for US citizens when it comes to buying property in Spain.
Buying a property is a big deal, and navigating the system in a new country can be challenging. Fortunately, buying your dream house in Spain is easier with Homevest’s help. Keep reading to discover all your answers when buying a house in Spain as an American.
The process and the costs are the same as before, even though the UK is no longer part of the EU. Continue reading to learn about the process when buying a property in Spain from the UK, requirements, and valuable tips for making an informed decision.
Sources used and checked on January 2024:
We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.
As a non-resident applying for a mortgage in Spain from abroad, it's understandable to be unfamiliar with the process. Discover how to avoid three key mistakes during your application.
Using a mortgage broker may lead to favorable deals, given their access to multiple lenders and a broader range of loan products than a single bank. Learn key requirements when applying for a mortgage in Spain as a Canadian citizen. Explore how Homevest helps compare international mortgage offers.
Lenders consider the applicants' combined income, which may increase the borrowing amount and the chances of approval. Continue reading to discover everything you need to know when applying for a Spanish mortgage with your partner.
A platform for mortgages
Homevest is a pan-European mortgage and homebuying platform. We strive to bring the mortgages in the 21st century.