Mortgage in Spain 2025 – Terms, Rates, and How to Apply
Mortgage in Spain in 2025
This is a very detailed guide on obtaining a mortgage in Spain. It's a long read, and if you don’t want to go through it but just want to buy on a mortgage, contact us at Granfield Estate—the contact form is at the bottom of the page. We will ask you a few questions and tell you your chances of getting a mortgage. If you have good credit potential, we’ll explain how we can help you arrange a hassle-free mortgage from start to finish. However, if you prefer to understand everything yourself, the article will take about 10 minutes to read.
We work with citizens and residents of the EU, including Germany, the Netherlands, Sweden, Finland, and other EU countries.
We also assist non-EU citizens from the USA, Canada, Ukraine, Russia, Kazakhstan, Belarus, etc., who have EU residency, work in international companies, or receive a stable income in euros, pounds, US dollars, Swedish kronor, or Swiss francs. Seafarers, programmers, and other modern remote workers—welcome.
What interest rates do banks offer now?
Mortgages in Spain are available to both residents and non-residents, i.e., people whose primary income is not in Spain. However, conditions differ for these categories of borrowers. Spanish residents, including foreign nationals with a residence permit who pay taxes in Spain, receive more favorable conditions compared to non-residents.
It is important to note that having a Spanish residence permit does not automatically make you a fiscal resident. Banks evaluate applicants primarily based on their income sources.
For example, you will not be granted a mortgage if you hold Spanish residency, live in Spain, but do not work. However, you have a high chance of getting a mortgage if you are a Ukrainian citizen with German residency and an official employment contract in Germany.
Of course, if you work in Spain on a contract with a high official salary, your future is quite secure. Also, self-employed individuals (autónomo) can purchase property on a mortgage.
As of April 2025:
- Spanish residents and citizens receive mortgage rates from 2.5% to 3.9%.
- Non-residents receive mortgage rates from 2.9% to 4.9%.
How to lower the mortgage rate?
Almost all banks offer interest rate reductions if you purchase insurance from them, insure your life, install an alarm system, or transfer your salary to their bank. This is called bonificación. Most banks offer a 1% reduction on interest rates if you meet their conditions throughout the mortgage term.
We recommend using this opportunity if you need the bank's services anyway. For example, if you are going to insure your property regardless, why not do it with the bank and get a mortgage discount?
For example, Santander Bank reduces the base rate for residents as follows:
- Salary transfer to their bank: -0.50%
- Alarm system installation: -0.20%
- Property and life insurance: from -0.10%
Types of Mortgage Rates
“I saw banks offering a loan at … +0.90%, what does this mean?”
Yes, the previous section discussed fixed mortgage rates (fijo in Spanish). These rates are set at the time of loan issuance and remain the same throughout the mortgage term.
However, there are also variable rates (variable in Spanish). These are linked to the Euríbor rate, currently at 2.4%. The European Central Bank calculates this rate, and it can be checked on the ECB website. Spanish banks borrow money at this rate, add their interest (currently 0.7% to 1.99%), and offer you a mortgage. Your rate will be recalculated annually based on the Euríbor rate.
A variable rate can be more beneficial for borrowers, but during economic crises, payments might increase slightly. If you are willing to take a small risk for savings, a variable rate is your choice.
There is also a mixed rate (Mixto), where the rate is fixed for an initial period and later linked to the Euríbor rate.
Down Payment.
How much money will the bank provide, and how much of your own funds do you need? I have seen that sometimes the bank gives 100% of the property's value.
Yes, that's true, such cases exist, but they are for those who work in Spain. You need to demonstrate a long work history with a good income, and it is preferable to be a civil servant.
If you are a resident of Spain with an average income, the bank usually gives you 60-80%. If you are a non-resident, you should expect to receive 50-70%. The remaining money will need to be provided by you, plus additional expenses.
Additional costs?
Besides the down payment, there are additional costs:
- Taxes on the purchase (ITP or IVA): 10% in Alicante province
- Notary and property registration fees
- Property valuation and other legal fees (approximately 3% additional cost)
Thus, on top of the down payment, you will need about 13% of the property price.
Your Income
As I wrote to you earlier, the bank is interested in how regularly you receive income and whether it is sufficient to pay for the mortgage and maintain your lifestyle. Your income should be consistent and official.
Your income must not be below the average level accepted in your country. For example, for Spain, it is a minimum of 20,300 euros per year.
Furthermore, all your monthly payments for any existing loans of any type in all countries, plus your future mortgage payment in Spain, should not exceed 30% of your income so that the remaining funds are sufficient for a comfortable living.
Credit History
You need to have a good credit history and not have any delinquencies on previous loans. The bank will definitely check this. We recommend independently checking your score in advance on specialized services, for example, in Spain you can order it through the link https://aps.bde.es/cir_www/cir_wwwias/xml/Arranque.html# in the UK, USA through https://www.equifax.com/ we have links for all countries, ask your manager where you can check your credit history in your country.
Borrower's Age
The minimum age is 18, but in reality, banks approve mortgages for people starting from 25 years old.
The maximum age is also listed on bank websites as up to 75-80, but in practice, this means that the mortgage must be fully repaid by the time the borrower reaches this age. This means you can take out a 15-year mortgage until the age of 60.
How Can We Help You?
If you want to simplify the mortgage process, receive support from the experienced Granfield Estate team, and benefit from our established banking connections, we are here to help. Unlike your bank manager, who hasn't called you back in a month, we are always in touch.
We can conduct a free express assessment of your situation. If you qualify, we’ll sign a service contract and submit your documents to the bank. We handle the entire mortgage process, accompany you at the notary, and manage all necessary payments and contracts post-purchase.
Our Bank Network
We work with multiple banks and apply to at least three banks immediately. Many banks do not work with foreigners and non-residents, so we find the best option for you.
How much it costs, steps of the process
Payment schedule:
1. Investigation of your credit potential - free of charge.
2. Refundable deposit for sending documents to the bank - €500.
3. Balance on the day of the transaction - €490.
In total, the entire process of obtaining and agreeing on a mortgage and our support in the bank and with the notary costs €990, including VAT. Payment can be made by card, cash, or online link.
Additional services:
- All or some stages of the transaction and mortgage obtaining can be done by proxy, without your presence. Assistance in notarizing a power of attorney is free of charge.
- We will handle all communication with the seller, agreement of the deal terms, deposit contract, and property document checks - €300.
- After the transaction, our assessor will transfer contracts for electricity, water supply, and tax deductions to the new owner's account - €200.
Thus, complete "turn-key” processing will cost - €1490, + NIE, urgent processing - €200/person.
First step – investigation of credit potential. Our specialist will conduct an interview for free and evaluate your situation, possibly asking for some documents to assess how likely you are to be approved for a mortgage.
Second step – if we believe you have high credit potential and your mortgage is likely to be approved. We enter into a contract with you, you deposit €500. Then we gather a package of documents with you to send to at least 3 banks that are likely to approve mortgages for clients of your profile.
If none of the initial banks approve your mortgage, we will try to expand the list of banks to get you pre-approval, but if no bank approves your mortgage, we will fully refund your deposit and cease work.
Third step – if the bank pre-approves your mortgage case, your documents go through the risk department and the bank forms a FEIN, finalizing the terms of your loan that need to be signed in the presence of a notary. This is done so that the borrower clearly understands the loan terms and can reconsider within 10 days. Our lawyer will accompany you at the notary to explain the mortgage conditions.
Fourth step. After 10 days following the signing of the FEIN at the notary, the real estate purchase-sale transaction and mortgage notarization can be carried out. At this meeting, besides you as the buyer, our lawyer who will assist and translate for you, the sellers, and bank representatives must be present.
Final step – after the transaction, our assessor transfers contracts for electricity, water supply and tax deduction from the new owner's account.
We also offer power of attorney services, allowing you to complete the process remotely.
Leave your contact details, and our specialist will assess your mortgage eligibility in Spain for 2025.