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

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. 

Can EU citizens get a mortgage in Spain?

Any EU citizen can get a mortgage in Spain without being a resident. 

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. However, expect a minimum of 30% of the property's value.

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, UCI, Unicaja, and Cajasur are among the banks in Spain that offer mortgages to EU citizens.

A Sabadell mortgage can be worth considering because it can offer an interest rate as low as 4%.

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 4,38%. 

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. 

Although UCI and Santander's offers may come at a higher price, UCI is ideal for those seeking tax-efficient renovation mortgages. Meanwhile, a Santander mortgage is a good choice for properties priced below 100,000 EUR.

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.

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. 

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:

The cost comparison was made in October 2024

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 2023, foreigners accounted for a record-breaking 15.12% 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. 

Explore our guide for the best places to buy a holiday home in Spain, prices, and considerations for non-residents purchasing property.

Homevest assists EU citizens in securing Spanish mortgages from abroad

Navigating mortgage requirements in a foreign country can be challenging, especially with the repeated paperwork involved when approaching multiple banks.

Homevest simplifies the process, providing a digital service that speeds up your application. You’ll be connected with a dedicated mortgage broker who advocates for your interests, enabling you to receive and compare multiple offers to secure the best terms.

What are the benefits of Homevest?

• quick and easy process 
• no fees on your end
• dedicated mortgage broker to assist you in selecting the right mortgage
• flexible product support to address all your questions about the Homevest service

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.

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 discover how Stefan and Vivien, a German couple, successfully bought a property in Costa Brava, with Homevest's assistance. 

Sources used in October 2024:

1. Home purchases and sales by foreigners in Spain in 2023
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.