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 does the bank provide, and how much do you need?

Some banks offer 100% financing, but only for those working in Spain with a strong employment record and high income, preferably as government employees.

- Spanish residents with an average income typically receive 70-80% financing.

- Non-residents can expect 50-70% financing.

- The remaining amount, plus additional costs, must be covered by the buyer.

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.

Income Requirements

Banks assess the stability and sufficiency of your income for mortgage payments and maintaining your standard of living.

Minimum work experience:

- 6 months (better 1 year) under a permanent contract

- 1 year for self-employed (autónomo)

- Mortgage payments should not exceed 30% of your monthly income, and you must have enough funds left for a comfortable life.

Credit History

A good credit history is essential. No overdue loans. The bank will verify this. You can check your credit score through services like Equifax.com.

Borrower Age

- Minimum: 18 years, but banks generally approve mortgages from 25 years.

- Maximum: Must be fully repaid by 68 years.

Guarantors (Avalista)

If a borrower has an unstable income or high debt, a guarantor (avalista) may be required. The guarantor takes full financial responsibility if the borrower defaults. The bank can seize the guarantor’s assets and accounts if payments are not made.

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.

Service Cost & Steps

The full service costs €1590 (including VAT).

Steps:

1. Credit potential assessment (free)

2. Document preparation & application submission (€300 deposit)

3. Bank pre-approval & risk assessment

4. Mortgage signing at a notary (with legal support)

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.