Non-resident mortgages — what Spanish banks actually want

The basics non-residents need to know

Spanish banks are comfortable lending to non-residents but their underwriting is more conservative. Expect a maximum LTV of 60–70%, compared to 80% for Spanish residents. The bank will want proof that monthly mortgage + existing debt (Spanish or foreign) doesn't exceed 30–35% of your gross monthly income.

Rates are typically quoted either fixed for the full term, or variable (Euribor + spread). In 2026, fixed mortgages for non-residents run 3.5–4.5%, and variables are Euribor + 1.5%. With the Euribor hovering around 2.5–3%, the difference is small — most non-residents pick fixed for simplicity.

The documents you'll be asked for

Every Spanish bank asks for a variation of this list. Gather these before you start talking to lenders — it saves weeks.

• Passport + NIE (get the NIE first — see our NIE guide)
• Last 2 years of tax returns (US: Form 1040. UK: SA302. DE: Steuerbescheid)
• Last 3 months of bank statements for all accounts
• Employment confirmation (pay stubs or employer letter)
• W-9 (US citizens) or equivalent FATCA declaration
• Statement of net worth — list of assets + liabilities
• Proof of funds for your deposit (the 30–40% you're not borrowing)
• Credit report from your home country if available (Experian, Schufa, etc.)

USD income — the hidden haircut

If you're paid in US dollars, Spanish banks often apply a currency-risk discount: they'll underwrite as if your income was 80–90% of actual, on the assumption that USD could drop against the euro mid-mortgage. This effectively reduces your maximum LTV. Some banks will offer to hold the mortgage in USD instead — ask specifically, it's not usually offered up front.

Mortgage brokers who specialise in non-residents

Rather than approach five Spanish banks directly, most international buyers use a Mallorca-based broker who submits your file to multiple lenders in parallel. The best-known options:

• Lionsgate Capital — Palma-based, strong with high-net-worth US and UK buyers. No broker fee (paid by bank).
• Mortgage Direct — English-language service, process-focused, good for first-time non-resident buyers
• Fluent Finance Abroad — German-speaker friendly, strong with DE/AT/CH buyers
• Tulip Advisors — newer option, specialises in Dutch and Scandinavian buyers

Timing — what 'closing in 6 weeks' really means

The standard Spanish purchase flow is: signed reservation (1 week), private purchase contract + 10% deposit (2–3 weeks), mortgage approval (4–6 weeks), notary signing (1 week). So from offer acceptance to keys-in-hand, plan on 8–12 weeks.

The two things that most often slow this down for non-residents: (1) getting your NIE in time, and (2) bank delays on the formal valuation. Both are solvable if you front-load them before you find the property.

When paying cash beats mortgage

With rates at 3.5–4.5%, many cash-rich buyers skip the mortgage. Worth doing the maths: if your money at home is earning 4%+ in safe instruments, a Spanish mortgage is roughly break-even after the bank's setup fees. Below €1M purchase price, the paperwork-to-benefit ratio often tips toward paying cash.