Welcome to the Servicios de Extranjería blog! If you’re thinking about buying a property in Spain as a foreigner —whether resident or non-resident—, today we’ll explain how mortgage financing works for international clients: what documentation banks usually request, what differences exist compared with Spanish nationals, how interest rates are behaving in 2025, and what steps you should follow to sign with full legal security.

1) 2025 MORTGAGE OUTLOOK: WHAT’S HAPPENING WITH RATES AND THE EURIBOR?

The benchmark for most variable-rate mortgages and the variable portion of mixed ones continues to be the 12-month Euribor. As of October 2025, it stands at around 2.20%, following an average of roughly 2.17% in September —a level clearly below recent peaks, although with slight upticks at the end of the quarter. This stabilisation has restored competitiveness to mixed-rate offers and to variable-rate loans with narrow spreads for solvent clients.

2) RESIDENT VS NON-RESIDENT: FINANCING, AFFORDABILITY AND LIMITS

Spanish banks differentiate conditions based on risk. For tax residents (those who pay taxes in Spain), an LTV —loan-to-value ratio, meaning the loan amount over the purchase or appraisal value, whichever is lower— of up to 80% is common for primary residences. For non-residents, maximum financing is usually limited to 60–70%, requiring greater initial savings to cover the down payment and taxes.
This can be seen in specific international programmes such as CaixaBank’s HolaBank, which caps loans at 70%, in line with market practice. Sabadell and other entities offer up to 80% for main homes and 70% for second homes —a useful reference for non-resident buyers.

In addition to LTV, banks calculate repayment capacity. The general industry guideline is that mortgage and other debt payments should not exceed 30–35% of net income. The Bank of Spain’s Customer Portal publicly recommends keeping total debt below 40% of income. If your income is in another currency, the bank will usually apply prudential margins to account for exchange-rate risk.

3) RULES OF THE GAME: TRANSPARENCY, DEADLINES AND KEY RIGHTS

Law 5/2019 on Real Estate Credit Contracts (LCCI) strengthens material transparency. It requires the bank to provide, at least 10 calendar days before signing, the FEIN (binding offer) and FiAE (warnings document), and to arrange a free notarial meeting where the notary verifies that you have received and understood the documentation. If this step is not completed, the loan cannot be signed.
For foreign clients with income in another currency, the law grants the right to convert the mortgage into the currency of your income or country of residence as protection against exchange-rate fluctuations.

4) DOCUMENTATION AND LEGALISATION: WHAT CHANGES FOR FOREIGNERS

Beyond your passport, banks will require a NIE (Foreign Identification Number) and, if you are not living in Spain, often a non-resident certificate. Opening an account with a Spanish bank facilitates payments and collections; nowadays, there are remote account-opening solutions for non-residents designed for international buyers.
You will also be asked for proof of income (payslips, contracts, tax returns, and bank statements) and evidence of the lawful origin of funds —requirements derived from anti-money-laundering regulations. The law does not define a universal “standard pack”, so each institution may adapt documentation requirements according to the risk level.
When documents are issued abroad, they must usually be translated by a qualified professional and legalised via The Hague Apostille or consular legalisation if your country is not party to the Convention. Our firm collaborates with En Otras Palabras, who can handle complete translation of any document.

5) MOST ATTRACTIVE FINANCIAL CONDITIONS FOR INTERNATIONAL PROFILES

In 2025, mixed-rate mortgages have gained ground: several banks combine a low fixed-rate initial period with a variable segment featuring competitive spreads (examples include Euribor +0.50/0.65 for highly solvent, well-linked clients). Fixed rates have decreased compared with 2023–2024, while variable ones are once again an option if you expect a stable Euribor and can tolerate fluctuations.
As a non-resident, you can expect slightly higher spreads and stricter fees than residents, as well as the need to maintain an active account for instalment and insurance management. You should also always check the nominal rate/APR (TIN/TAE), discounts and early-repayment penalties, and compare at least three real offers from the same day.

6) SIGNING ROADMAP: FROM PRE-SCORING TO REGISTRY ENTRY

The process usually starts with a pre-assessment of solvency and tax residence, followed by a valuation carried out by an accredited appraisal company. Remember that valuations expire after six months, so coordinate your purchase and signing schedule accordingly.
Once you receive the FEIN and FiAE, the mandatory 10-day reflection period begins. During this time, you must attend the notary appointment (free of charge) to receive advice and pass the comprehension test. On the signing day, the bank will typically require valid property damage insurance on the mortgaged asset. Afterwards comes the registry inscription and the disbursement of funds as agreed in the deed.
Having your foreign documentation translated and apostilled from the outset will prevent last-minute delays.

7) COSTS AND INSURANCE: WHO PAYS WHAT, AND WHICH POLICIES MAY BE REQUIRED

Since the LCCI, the rule is clear: you will pay for the valuation, and the bank will cover the costs of the mortgage deed’s notary, registry, administrative fees and the related stamp duty tax (AJD). For purchase contracts, cost distribution may vary, but for mortgages this is the standard arrangement.
Regarding insurance, mortgage law requires the mortgaged property to be insured against damage (fire, etc.). The bank can demand such coverage but must accept equivalent policies from other insurers without worsening conditions for not purchasing its own insurance. In practice, however, banks often require you to take their linked policy initially —but you may freely switch providers at the first renewal without penalty, once the loan is granted.

8) CURRENCY RISK, INTEREST RATE AND TAX PROFILE: THREE CRITICAL ANGLES FOR NON-RESIDENTS

Those earning in dollars, pounds, or other currencies face exchange-rate volatility when repaying a euro-denominated mortgage; this is why the LCCI recognises the right to convert the loan into your income or residence currency.
If your income is in euros but your tax residence is abroad, the bank may apply enhanced due diligence (further proof of fund origin, tax certificates, and transfer traceability) according to its money-laundering risk assessment.
If you intend to rent out the property, the bank will value stable income more favourably than expected rental income, which is usually considered conservatively (discounted).
In any case, keeping your financial effort within 30–35% —or below 40% of total debt— significantly increases the likelihood of approval and access to better rates.

IN CONCLUSION…

Financing a home in Spain as a foreigner is perfectly feasible if you respect three key pillars:

Prepare your international documentation in time, with translation and Apostille.
Adjust your budget to risk parameters (non-resident LTV and 30–35% affordability ratio).
Take advantage of a stabilised rate environment where mixed and variable mortgages with low spreads are once again highly competitive.

At Servicios de Extranjería, we guide you every step of the way —from obtaining your NIE and opening a bank account, to coordinating translations/legalisations and liaising with banks and notaries— so that your signing is as predictable as it is secure.

Ready to take the next step? Contact Servicios de Extranjería —we’ll help you build your future in Spain.

👉 Contact: www.serviciosdextranjeria.com