Mortgage in Spain as an expat: everything you need to know

In recent years, Spain has become a hotspot for property buyers from abroad, with over 250,000 homes purchased by non-residents in the past two years. 

But what about expats — foreigners working and living in Spain? For them, securing a mortgage can be more straightforward. UCI bank reports that 23% of its mortgage loans this year went to foreigners. 

Can expats living in Spain get mortgages under the same conditions as Spanish citizens? 

Yes, they can, especially if they are part of the system, pay taxes, and have stable jobs.

How can you qualify for a mortgage in Spain as an expat?

Expats can access resident mortgages under conditions similar to those offered to Spanish nationals. 

However, eligibility criteria vary slightly from one bank to another. 

Residency status plays a crucial role—expats with stable employment and residency permits have the best chances of qualifying. 

Banks generally assess the borrower’s overall stability, considering factors such as:

• Employment type (salaried or self-employed)
• Length of employment contract (permanent contracts are often preferred)
• Monthly income (consistent income is key)
• Residency status (having a residency permit improves eligibility)
• Debt-to-income ratio (banks will evaluate if the borrower can comfortably handle mortgage payments)

These factors help banks determine if the expat is a reliable candidate for a mortgage.

What documents do expats need to prepare for a mortgage in Spain?

Resident expats are typically required to present the following documents:

• NIF (Número de Identificación Fiscal) is essential for any major financial transaction in Spain
• Proof of income: recent payslips or income statements to show consistent earnings
• Employment contracts to demonstrate job stability (permanent contracts are often preferred)
• Bank statements from the last six months to provide a clear picture of your financial health and spending habits
• Tax returns to verify your income and financial status
• Credit report: In some cases, banks may also require a credit report from your country of origin to assess your creditworthiness.

What are the current interest rates for mortgages in Spain?

The average interest rate for new home mortgages in Spain is 3.30%, according to the Spanish Institute for Statistics (INE) in August 2024. 

As we already said, resident expats in Spain generally have access to the same rates as Spanish nationals, which are significantly better compared to the higher rates offered to non-residents. 

The actual rate you receive will depend on the bank, the type of mortgage, your financial profile, and credit rating.

Mortgage rates and market conditions change often, so staying informed and acting when rates are favorable is important.

What mortgage products are available for expats in Spain?

Expats in Spain have access to various types of mortgage products, though options typically vary across different banks.

Here are some specific mortgage options available for residents and expats in Spain:

The comparison was made in November 2024, where TIN stands for Nominal Interest Rate, and APR stands for Annual Equivalent Rate.

Conditions in this context include taking out home insurance with the same bank, life insurance, or getting payroll into their bank account. 

The terms and interest rates often depend on employment stability: salaried expats might be offered more favorable rates, whereas self-employed individuals could face more stringent requirements or higher rates.

Assess your affordability with Homevest Spain

Homevest can help you estimate your budget to see the maximum loan you can secure from Spanish banks, regardless of the size of your deposit.

Whether you’re buying solo or as a couple, you can find out fast and easy how much you can afford and what’s your price range. 

All you need to do is share a few key details like your residency, income sources, expenses, and liabilities. 

You’ll receive an accurate estimation straight to your inbox to guide your next steps in your buying process.  

What common challenges do foreign residents face when applying for a mortgage in Spain?

Language barriers can make the legal and financial paperwork confusing without help. 

Differences in job contracts can also be an issue—banks often prefer permanent contracts, which makes it harder for people with temporary or freelance jobs. 

Freelancers might also have problems with double taxation, which can affect their finances. However, working with a bilingual mortgage advisor can help solve many of these problems.

Sources used and checked in November 2024:

1. Caixa Bank Research: Buying a home in Spain and taking out a mortgage as a foreigner
2. Best and cheapest mortgages November 2024 
3. Mortgage statistics, Instituto Nacional de Estadística
4. Foreigners sign the highest number of mortgages in Spain
5. BBVA: How a mortgage works
6. BBVA: Documentation required to apply for a mortgage
7. Banco de Espana

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.