Financing & Mortgages: Benahavís & Costa del Sol

Who Can Borrow & Typical LTVs

Spanish banks lend conservatively, but they are very comfortable working with international buyers. The amount you can borrow is based on residency status, income profile and overall affordability rather than nationality alone.

In practice, resident buyers can often borrow a higher percentage of the property value, while non-residents should expect slightly lower loan-to-value limits. All lending is calculated on the lower of the agreed purchase price or the official bank valuation (tasación).

• Spanish residents: typically up to 70–80% LTV
• Non-residents: usually 60–70% LTV, depending on profile
• Affordability: total debt payments usually capped at ~30–35% of net income

Rates, Terms & Products

Spanish mortgages are available on variable, fixed and mixed structures, and the right choice often comes down to how long you plan to hold the property and your tolerance for rate changes.

Fixed-rate mortgages are popular with overseas buyers seeking predictable repayments, while variable or mixed products can offer lower initial costs. Mortgage terms typically run up to 25 or 30 years, though banks may cap the term based on age at maturity.

• Variable: linked to Euribor plus a bank margin
• Fixed: stable repayments for 5–30 years
• Mixed: fixed initially, then variable
• Insurance: home insurance is mandatory; life cover is often optional

Rates change regularly. We’ll always introduce you to brokers or banks who can quote accurately for your specific situation.

Documents Checklist

Mortgage applications in Spain are document-driven. Preparing paperwork early helps avoid delays once you’ve found the right property.

• Passport(s) and NIE (or proof of application)
• Recent payslips or tax returns/accounts
• Bank statements showing income and savings
• Details of existing loans or mortgages
• Employer contracts or client invoices, where applicable
• Proof and source of deposit funds (AML)
• Property details once selected

Process & Timeline

Once documentation is submitted, the mortgage process is relatively straightforward. Banks follow a defined approval sequence, with the valuation playing a central role.

1. Initial assessment: affordability review and indicative terms
2. Formal application: credit and compliance checks
3. Valuation: independent tasación ordered by the bank
4. Mortgage offer: final terms issued for review
5. Signing: mortgage deed signed at notary

Typical timeframe: around 3–6 weeks, depending on documents and valuation availability.

Bank Fees & Purchase Costs

In addition to the property price, it’s important to allow for bank-related fees and standard purchase costs. These vary by lender but are usually transparent from the outset.

• Arrangement fee (often 0.5–1.0% of the loan)
• Valuation fee, paid upfront
• Insurance costs (home insurance required)
• Notary and registry fees on deeds
• Purchase taxes — see our Purchase Costs Guide

Currency, Transfers & FX

If your income or savings are held outside the eurozone, currency planning is just as important as the mortgage itself. Exchange movements can significantly affect your final costs.

• Consider fixing FX rates in advance for deposits and completion
• Always send funds via verified client accounts
• Allow extra time for compliance checks on larger transfers

Practical Tips

• Start pre-approval early to strengthen your offer
• Confirm bank guarantees on off-plan purchases
• Coordinate currency transfers with legal milestones
• Compare total cost (APR/TAE), not just headline rates

FAQs

• Can non-residents get a mortgage? Yes — typically up to 60–70% LTV, subject to affordability.
• Can I sign from abroad? Yes, using a Power of Attorney arranged by your lawyer.
• Is a Spanish bank account required? Usually yes, for repayments and local bills.
• Is a survey mandatory? Not required, but recommended for older properties.