Can EU citizens get a mortgage in Spain? Everything you need to know

Despite the dip in the housing market during the pandemic, Spain continues to be an excellent place to invest. In 2022, foreigners accounted for a record-breaking 14.6% of total property purchases in the country. If you’re looking to get a mortgage in Spain, understanding the process is essential. Fortunately, Homevest is here to help. Continue reading for more details.

Delia Mihuț
Written by Delia Mihuț
Published at 2023/05/22 10:49
Readtime 5 minutes

Dreaming of a sunny Spanish villa or a cozy apartment in Barcelona for your remote work? It's no wonder Spain attracts many EU citizens, lured by its sun-soaked weather, delectable cuisine, and relaxed Mediterranean lifestyle. 

If you’re looking to get a mortgage in Spain, understanding the process is essential.

Fortunately, Homevest is here to help. As a digital solution, Homevest allows you to secure a mortgage from abroad easily. 

We’ll look at how Homevest can work for you later in this guide. Let’s start with some basic facts about the property market and then go in-depth about the mortgages in Spain for EU citizens. 

What’s the property market like in Spain?

The property market can vary significantly across regions. Coastal areas, particularly tourist hotspots, tend to have higher demand and prices due to their attractiveness for holiday homes and rental investments. These areas offer a vibrant lifestyle, access to beaches, amenities, and bustling tourist infrastructure.

In contrast, rural areas may have lower prices and less demand. These regions appeal to those seeking a more tranquil lifestyle, with landscapes and a closer connection to nature.

The prices for the most popular places preferred by EU citizens are:


LocationPrice per square meter in the city centerPrice per square meter outside of the center
Alicante2,233 EUR1,600 EUR
Malaga3,704 EUR2,375 EUR
Tenerife2,080 EUR 1,600 EUR
Palma de Mallorca4,316 EUR2,566 EUR


Is Spain a good place to buy a property?

Despite the dip in the housing market during the pandemic, Spain continues to be an excellent place to invest. In 2022, foreigners accounted for a record-breaking 14.6% of total property purchases in the country.

Statistics reveal that most EU citizens investing in Spain are British, Germans, French, Romanians, Belgians, Italians, and Dutch. 

Even if you don't buy a property to move there permanently, you can rent it out, and it's still an investment worth considering, especially now when it's easier to obtain a digital nomad visa.

Can EU citizens get a mortgage in Spain?

Any EU citizen can get a mortgage in Spain without being a resident. Even though the UK is no longer part of the EU, British citizens still have the right to buy property in Spain.

To be eligible for a mortgage in Spain, you must meet several criteria set out by the specific lender you use. 

It’s worth mentioning that the requirements may vary depending on the lender and individual circumstances, but here are some factors that typically affect mortgage eligibility:

1. Employment type 

Applicants with permanent employment contracts or stable self-employment are generally favored. Some lenders require a minimum period of employment or self-employment. The period depends on the lender, which can range from 6 months to 2 years.

2. Credit history

A solid credit record with timely payments and low debt levels enhances the chances of securing a mortgage.

3. Type of property

The type of property can influence mortgage eligibility. Lenders may have specific guidelines regarding the property's condition, location, and usage (e.g., primary residence, second home, or investment property). Certain property types, such as newly constructed or resale properties, may have different requirements.

4. Deposit requirements

The amount required can vary depending on the applicant's financial profile, the property's value, and the lender's policies. A higher deposit can improve the chances of mortgage approval and result in more favorable loan terms.

What is the best Spanish mortgage for EU citizens?

Sabadell, Bankinter, BBVA, Santander, Caixa,, Unicaja, and Cajasur are among the banks in Spain that offer mortgages to EU citizens.

It’s essential to analyze the banking offers of each lender before deciding what is most suitable for your situation. Sabadell can be worth considering, as it offers an interest rate of 1.2% + Euribor 6m

Cajasur is also a suitable option if you want to buy a property in the Costa del Sol and Andalusia areas. You can borrow between 80.000 and 1.000.000 EUR at a variable rate of 2% + Euribor 12m. 

Unicaja also offers excellent options with mixed interest rates, providing the security of fixed payments during the initial repayment period and then transitioning to a variable interest rate for the remainder of the term. One example of these offers is a fixed rate of 2.30% for the first 5 years, followed by a variable rate that combines Euribor with a spread ranging between 0.6% and 1.5%.

Continue reading about the best Spanish mortgages for non-residents and compare the available offers.

What documents do EU citizens need to prepare when applying for a mortgage in Spain?

When applying for a mortgage in Spain, EU citizens typically need to prepare the following documents:

  1. Valid Identification: a passport or ID card is required to verify your identity
  2. NIE number (Número de Identidad de Extranjero) 
  3. Proof of income: pay slips for the last 3 months or income tax returns. If you are self-employed, you may need to provide business financial statements or tax documents
  4. Employment details: work contract with all annexes
  5. Bank statements: bank statements for the last 6 months are usually required to demonstrate your financial stability and ability to meet mortgage payments
  6. Credit history: a credit report to assess your creditworthiness
  7. Property information: the purchase agreement or a property appraisal
  8. Residency proof: for homeowners, provide the Land Registry title. For renters, include the Lease Agreement

Note that specific requirements may vary between lenders, and it's recommended to check with the chosen bank for their exact document requirements when applying for a mortgage in Spain.

Homevest assists EU citizens in securing mortgages for properties in Spain while residing abroad

Navigating the system in a new country can be challenging, and it can be frustrating to prepare the required documents each time you submit them to the banks from which you would like to receive offers.

Homevest is a solution that could save time and energy in this process. It’s a digital service that accelerates the application process for an international mortgage and helps you compare the available options. 

What are the benefits of Homevest?

  • The process is quick and simple because Homevest automatically estimates a budget for your loan
  • You can compare credit options in one place and choose what suits your needs best
  • You can centralize the necessary documents for your credit application and easily forward them to banks
  • You receive tailored support and guidance throughout the process - Homevest ensures that banks prioritize your application
  • The service is free. Homevest receives a commission from the bank when a mortgage is completed

What are the costs of getting a mortgage in Spain for EU citizens?

The costs of getting a mortgage in Spain for EU citizens depend on several factors. 

Here are some expected costs associated with obtaining a mortgage in Spain:

  1. Loan application fees (may include administrative fees and appraisal costs)
  2. Property transfer tax (depending on whether the purchase is for a new or resale property)
  3. Notary and registry fees: In Spain, mortgage contracts must be signed before a notary public and registered with the property registry. 
  4. Opening commission: depending on the financial institution, from 0 to 2% of the borrowed capital
  5. Property insurance: Mortgage lenders usually require you to have property insurance, including building insurance and potentially contents insurance. The insurance cost will depend on the value of the property and the coverage necessary.

Understanding the various taxes associated with buying property in Spain is crucial for EU citizens. Read on to learn more.

EU citizens seeking a mortgage in Spain can face a complex process. However, Homevest offers a solution by simplifying applications, providing tailored assistance, and helping find suitable financing options. 

Continue reading to explore a case study featuring Ferran, one of Homevest's clients, and discover his experience of purchasing a property in Spain from Finland through this platform.

Sources used for this article:

  1. Home purchases and sales by foreigners in Spain in 2022
  2. Property prices Alicante
  3. Property prices Malaga
  4. Property prices Tenerife
  5. Property prices Palma de Mallorca
  6. What are the expenses associated with a mortgage?

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.

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