Financing a home in Spain is perfectly attainable for non-residents—as long as you understand how banks assess affordability, what loan-to-value (LTV) ratios apply, the documents you’ll need, and who pays which costs at completion. After many years selling property on the Costa del Sol, Every Home Marbella’s trusted mortgage broker is Mortgage Direct, and we recommend working with them for their professionalism, deep expertise, and consistent ability to secure highly competitive terms for our clients. This guide distils practical advice from Mortgage Direct and shows how Every Home Marbella × Mortgage Direct coordinate your purchase so you can move from offer to completion smoothly.
Who can get a Spanish mortgage?
Spanish banks lend to residents and non-residents. For non-residents, standard retail lending typically tops out at 60–70% LTV (meaning a 30–40% deposit plus closing costs), while Spanish fiscal residents can reach up to 80% LTV depending on profile. Expect terms from 15–30 years, with a maximum borrower age at maturity usually around 75–80.
Quick reality check: besides the deposit, plan for ~10–13% of the price in fees & taxes (region-dependent).
What types of mortgages are available?
Spanish banks offer fixed, variable (Euribor-linked) and mixed rates (fixed for the first years, variable thereafter). The right choice depends on your time horizon and risk tolerance; Mortgage Direct regularly advises on which structure suits your case.
FX note: If your income and loan currencies differ, it’s classed as a foreign-currency mortgage. Spain’s Mortgage Law 5/2019 requires banks to include mechanisms that protect clients from exchange-rate risk—discuss this with your broker.
How much can I borrow?
(Affordability basics)
Banks assess affordability using your global income vs. debt. Non-residents should expect conservative underwriting where total monthly debt outgoings (including the new Spanish mortgage) stay within prudent limits. Mortgage Direct can run a pre-assessment and indicate realistic budget and LTV before you view.
Tips to boost eligibility
Mortgage Direct suggests practical steps (pay down revolving credit, consolidate liabilities, prepare longer income histories for self-employed, etc.) to strengthen your profile before applying.
What will it cost?
(Fees & who pays what)
Thanks to reforms culminating in 2018/2019, banks now cover the bulk of mortgage-related notary/registry/gestoría costs and AJD (stamp duty on mortgages)—whereas buyers still pay the property-deed notary/registry, transfer tax or VAT (on new builds), their lawyer, and the valuation. Typical items you’ll see:
- Buyer side (property deed): notary & registry (often ~0.1–0.5% of price), plus regional purchase taxes (ITP) or VAT + AJD for new builds, and your legal advisor’s fee.
- Bank side (mortgage deed): AJD = €0 to the buyer, and notary/registry/gestoría fees = €0 to the buyer; the bank pays these under current rules.
- Bank arrangement (opening) fee: typically ~1% of the loan (bank dependent).
- Valuation (tasación): from ~€400 (varies by property).
- Broker fee (Mortgage Direct): advisory is free until you proceed; then an initial application fee and a performance-based fee structure apply (with money-back protection if agreed terms can’t be achieved).
Documentation checklist (non-residents)
Have these ready to accelerate approval (specifics vary by country and bank):
- ID & NIE (NIE required to complete), credit report (e.g., Experian/Equifax), last 3–6 months’ bank statements, recent payslips / tax returns (2–3 years for self-employed), proof of funds for deposit & costs, existing mortgage statements (if any), and Mortgage Direct’s application forms/terms.
Step-by-step timeline
- Affordability check & strategy call with Mortgage Direct (sets budget, target LTV and product type).
- Document pack compiled and reviewed; soft quotes/bank indications obtained.
- Offer accepted on a property; arras (deposit) contract agreed with your lawyer.
- Formal bank approval & valuation instructed.
- Completion at notary: property deed and (if applicable) mortgage deed signed; keys handed over.
Special cases Mortgage Direct handles
- Holiday-home / non-resident mortgages (the most common for Costa del Sol buyers).
- Private-bank/HNW solutions (including structures that combine property LTV and portfolio collateral—availability depends on domicile/KYC).
- Bridging finance for time-critical purchases or chain gaps (loan-to-value caps and terms apply).
Work with the winning team: Mortgage Direct × Every Home Marbella
- Property first, finance ready: While we shortlist homes that fit your lifestyle and investment goals, Mortgage Direct ensures your affordability and product options are clear—so you can move fast when you find “the one.”
- Clear roles, one joined-up process: Every Home Marbella coordinates viewings/negotiation; Mortgage Direct secures the lending—both teams keep your timeline and costs front-of-mind through to completion.
Contact Mortgage Direct
(Costa del Sol buyers)
Your dedicated adviser: Simon Staples
- Email: simon@mortgagedirectsl.com
- Affordability Check: https://mortgagedirectsl.com/affordability-check/
- About Simon: https://mortgagedirectsl.com/about-us/simon-staples/
Company HQ & general contact
- Mortgage Direct, S.L. — C/ Velázquez 24, 2ºD, 28001 Madrid
- Website: https://mortgagedirectsl.com
- Email: info@mortgagedirectsl.com
FAQs (quick hits)
- Can I buy without an NIE? You can start the mortgage process, but you’ll need an NIE to complete.
- What if my income is in USD/GBP? Discuss FX-risk protections under Law 5/2019 with your broker.
- How quickly can I complete? With documents ready and a responsive valuation, many non-resident purchases complete in 6–10 weeks (case-dependent). (Process derived from Mortgage Direct’s step-by-step and cost pages.)
Call to action
If you’re exploring homes in Marbella or the wider Costa del Sol, line up your finance before you fall in love with a property. Email Simon to run your affordability today, and ask your Every Home Marbella agent to sync timelines so we can secure your offer and completion date with confidence.
Glossary (quick legend)
- LTV — Loan-to-Value
The percentage of a property’s price that a bank will lend. Example: 70% LTV means a 30% cash deposit (plus purchase costs). - FX — Foreign Exchange
Currency exposure when your income and mortgage (or property price) are in different currencies; can affect affordability and repayments. - AJD — Actos Jurídicos Documentados (Stamp Duty on legal documents)
A tax applied to notarised documents. For mortgages in Spain, the bank typically pays AJD on the mortgage deed under current rules; AJD may also apply on new-build purchases alongside VAT (rate varies by region). - ITP — Impuesto sobre Transmisiones Patrimoniales (Property Transfer Tax)
The main tax on resale property purchases in Spain; charged as a percentage of the price (rate set by each autonomous region). In Andalucía the ITP on resale property is a flat, fixed rate of 7% (in force since 28 Apr 2021). There are reduced rates for specific situations, e.g. 5% or 6% when the home will be your primary residence and you meet certain requirements (age, disability, large family, price caps), and 2% for purchases intended for resale by qualifying businesses. - VAT (IVA) — Value-Added Tax / Impuesto sobre el Valor Añadido
The sales tax on new-build residential property in Spain (commonly 10% for homes), usually paid together with AJD on the property deed. - NIE — Número de Identidad de Extranjero
Spain’s foreigner identification number; required to complete a property purchase, open utilities, pay taxes, etc. - HNW — High-Net-Worth
A client profile with significant investable assets; often eligible for private-banking mortgage solutions. - KYC — Know Your Customer
Regulatory due-diligence checks (identity, source of funds, income verification) that banks and brokers must complete before lending.