Question 1

Do I need to be a Spanish resident to get a mortgage?

Accepted Answer

No. Non-residents can get mortgages in Spain. The terms differ — typically up to 70% LTV compared with 80% for residents — but the process is well established. We work with non-resident buyers every day.

Question 2

Do I need to be an EU citizen to qualify?

Accepted Answer

No. Buyers from outside the EU — including the UK (post-Brexit), the US, Canada and the Middle East — regularly obtain mortgages in Spain. Each nationality has specific documentation requirements that we help you navigate.

Question 3

Can I get a mortgage if I am retired?

Accepted Answer

Yes, provided the income — pension, investments, rental income — meets the bank's affordability criteria. Banks assess the loan term based on age at maturity, so the structure may differ from a standard case.

Question 4

Can I get a mortgage if I am self-employed?

Accepted Answer

Yes, though banks require more documentation — typically two to three years of accounts, tax returns and evidence of income stability. This is one of the profiles we specialise in.

Question 5

What is the minimum deposit for non-residents?

Accepted Answer

Most banks finance up to 70% of the property value (or valuation, whichever is lower) for non-residents, so you would typically need at least 30% plus buying costs. Exact figures depend on your profile and the bank.

Question 6

Why take a mortgage instead of paying cash?

Accepted Answer

There can be financial and fiscal advantages to financing rather than paying outright, including preserving liquidity, potential tax efficiencies and leveraging low rates. Each case is different — the right answer depends on your full financial picture.

Question 7

Are there tax advantages to financing?

Accepted Answer

Potentially, depending on your tax residency, the property use (primary home, rental, holiday) and the jurisdiction. We always recommend consulting a qualified tax adviser for your specific situation.

Question 8

What types of mortgages exist in Spain?

Accepted Answer

The main types are fixed-rate (tipo fijo), variable-rate (tipo variable, linked to Euribor) and mixed (fixed for an initial period, then variable). Each has trade-offs depending on your plans and risk appetite.

Question 9

Fixed, variable or mixed — which is better for me?

Accepted Answer

It depends on your risk appetite, how long you plan to hold the property and current market conditions. We compare offers across all three structures so you can decide with full information.

Question 10

Are there interest-only mortgages in Spain?

Accepted Answer

Interest-only mortgages are extremely rare in the Spanish market. Most banks require full capital repayment (amortisation) over the loan term. If this is important to you, we can explore the limited options available.

Question 11

Is equity release an option in Spain?

Accepted Answer

Equity release products (hipoteca inversa) exist but are uncommon and subject to strict conditions. They are typically available only to residents over 65. We can assess whether this applies to your situation.

Question 12

What is Euribor and how does it affect my mortgage?

Accepted Answer

Euribor (Euro Interbank Offered Rate) is the benchmark rate that variable and mixed mortgages in Spain are linked to. When Euribor rises, variable-rate payments increase; when it falls, they decrease. Your mortgage review date determines when changes apply.

Question 13

What are vinculaciones (product tie-ins) and can I avoid them?

Accepted Answer

Banks often offer better rates in exchange for taking additional products — life insurance, home insurance, direct debit of salary, credit card. Spanish law (LCCI 2019) limits what can be required versus what is optional. We explain the real cost of each tie-in so you can make an informed choice.

Question 14

Are rates higher for non-residents?

Accepted Answer

Generally yes — non-resident rates tend to be slightly higher than resident rates, reflecting the bank's perceived risk. The difference varies by bank and profile.

Question 15

How much difference does being non-resident really make?

Accepted Answer

Beyond rates, the main differences are LTV (typically 70% versus 80%), additional documentation requirements and a smaller pool of banks willing to lend. With the right preparation, these are manageable.

Question 16

How long does the mortgage process take?

Accepted Answer

Typically three to four months from first conversation to signing at the notary. The timeline depends on documentation readiness, property search duration and bank processing times.

Question 17

What documents do I need?

Accepted Answer

The standard list includes passport, proof of income (payslips or accounts), tax returns, bank statements, credit report from your country and proof of deposit. Self-employed buyers and company directors need additional documentation. We provide a personalised checklist based on your profile.

Question 18

What is a FEIN and why does it matter?

Accepted Answer

The FEIN (Ficha Europea de Información Normalizada) is a standardised document the bank must give you at least 10 days before signing. It contains all the binding terms of your mortgage — rate, fees, total cost. Under Spanish law (LCCI 2019), you cannot sign without it.

Question 19

What is a nota simple and why do I need one?

Accepted Answer

A nota simple is an extract from the Land Registry confirming who owns the property, its description and any charges or liens. It is essential before any purchase.

Question 20

Do I need a NIE before applying for a mortgage?

Accepted Answer

Yes. The NIE (Número de Identidad de Extranjero) is required for any financial or property transaction in Spain. You can apply at a Spanish consulate abroad or in Spain.

Question 21

What are the buying costs beyond the property price?

Accepted Answer

Expect additional costs of roughly 10-15% of the purchase price: transfer tax (ITP) or VAT (new builds), notary fees, land registry, legal fees and mortgage-related costs (valuation, arrangement fee, insurance). The exact percentage varies by region.

Question 22

Do costs vary by region?

Accepted Answer

Yes, significantly. Transfer tax (ITP) ranges from 6% to 11% depending on the autonomous community. Some regions offer reduced rates for specific cases.

Question 23

Is there a fee for your service? When do I pay?

Accepted Answer

Our fee is regulated under Spanish law and is payable only upon successful mortgage completion — never upfront. The initial consultation and personalised buyer dossier are free.

Question 24

What taxes do I pay as a non-resident owner?

Accepted Answer

Non-resident property owners in Spain pay annual income tax on imputed rental income (even if the property is not rented) and local property tax (IBI). If you rent the property, rental income is taxed separately. We recommend a qualified tax adviser for your specific obligations.

Question 25

What happens if my currency drops after signing?

Accepted Answer

If you earn in GBP, USD or another currency but pay your mortgage in EUR, exchange rate movements directly affect your monthly cost. This is why we coordinate with currency exchange specialists from the start.

Question 26

Can I refinance later if rates change?

Accepted Answer

Yes. Refinancing (subrogación or novación) is possible and regulated. Early repayment fees are capped by law. We can review your options at any time after purchase — this is part of our After the Keys programme.

Question 27

Is it better to buy or rent in Spain as a foreigner?

Accepted Answer

It depends on your plans — how long you intend to stay, whether the property is for personal use or investment and your financial situation. We can help you understand the financial case for each option.

Question 28

Can I rent out my property when I am not using it?

Accepted Answer

Yes, but rental regulations vary by region and some areas require a tourist licence. There are also tax implications for non-resident landlords. Check local rules before committing.

Question 29

Why use a mortgage broker instead of going directly to a bank?

Accepted Answer

A broker compares offers from multiple banks, presents your case professionally and negotiates terms you may not get walking in alone. For international buyers especially, having someone who understands both your profile and the Spanish banking system saves time, money and stress.

Question 30

Do you work with all banks in Spain?

Accepted Answer

We work with a wide range of banks but we are selective — we present your case where it has the best chance of success, rather than sending applications everywhere. The point is knowing where your case makes sense.

Question 31

Can you help with currency exchange?

Accepted Answer

We coordinate with Moneycorp, a regulated currency exchange provider, to help you manage transfers efficiently. Exchange rates can significantly impact the real cost of your purchase.

Domande frequenti

Before you start

Mortgage vs paying cash

Types of mortgage

Rates and conditions

The process

What it costs

After the purchase

Buy vs rent

Why Dream Nest

Currency exchange

Altre domande?