Can a Foreigner Take a Mortgage in Spain in 2025?

Costa Blanca has been attracting Polish property buyers for years – Poles are among the top 10 nationalities buying homes and apartments in Spain. In the first quarter of 2025 alone, our compatriots purchased nearly 1000 properties on the Iberian Peninsula. Many of these transactions are financed through mortgages. This raises the question: can a Pole (or generally a foreigner) obtain a mortgage from a Spanish bank and under what conditions? Below, we explain the rules for obtaining a mortgage in Spain for foreigners, provide current interest rates, required down payments, a list of documents, differences compared to loans for Spanish citizens, and practical advice.

Mortgage for a Pole in Spain – Conditions for Obtaining

Yes, a Pole can obtain a mortgage in Spain. Spanish banks finance the purchase of properties by foreigners, including Poles. As an EU citizen, you have the right to apply for a mortgage under similar conditions as residents of Spain, although banks introduce certain distinctions depending on residency status. From the bank's perspective, creditworthiness is the most important factor – stable income and credit history. If you meet the financial requirements, your status as a foreigner does not eliminate your chances of financing a home purchase on Costa Blanca.

Banks distinguish between two types of clients:

Residents – individuals living and earning in Spain (local source of income).
Non-residents – individuals earning income outside of Spain (e.g., in Poland).

The terms of the loan may depend on residency status (e.g., maximum amount or type of interest rate – discussed below). However, regardless of status, every applicant must demonstrate a solid financial situation. The bank will thoroughly examine your income, obligations, and credit history before making a decision. Here are key conditions that a foreign borrower should meet:

Stable, documented income. Banks require proof of regular income – a permanent employment contract or a long-standing profitable business is preferred. The recommended minimum income is around €2,500 net per month (the higher, the better).
Sufficient creditworthiness. Your total loan payments (current and future mortgage) should not exceed about 30% of your net monthly income. Spanish banks ensure that income burden is not too high, which limits the risk of default.
Good credit history. A report from a credit bureau (in Poland from BIK) confirming timely payments of previous obligations will be necessary. Delinquencies or a negative history may prevent you from obtaining a loan.
Down payment and funds for costs. You need to have significant capital for the purchase – usually at least 30% of the property price plus additional funds for taxes and fees (discussed in the next section).
NIE number and a bank account in Spain. It is essential to have a NIE (Número de Identificación de Extranjero) – the identification number for foreigners in Spain. Additionally, before the loan is activated, you will need to open a local bank account, where the loan funds will be deposited and from which the repayments will be made.

Meeting the above requirements significantly increases the chances of a positive loan decision. Keep in mind that procedures in Spain can take several weeks – from submitting the application, through preliminary approval, to the final agreement before a notary (often 4–6 weeks in total). It is advisable to prepare documents in advance and plan the entire process.

Down Payment and Interest Rates in 2025

Down payment (buyer’s own contribution): Spanish banks require a higher down payment from foreigners than is typical in Poland. Generally:

Non-residents (buyers who do not live and pay taxes in Spain) can obtain financing for about 70% of the property value, meaning they must contribute 30% as a down payment. In some cases, the bank may require even 40% down payment – this depends on the assessment of the client's creditworthiness and risk.
Residents (individuals working and filing taxes in Spain) have access to higher financing – often up to 80% of the value of the property, and sometimes even 90% with very good financial standing.

Note: There are offers for loans covering 90–100% of the price, but these mainly concern properties previously repossessed by banks and offered under special conditions. Generally, you should assume the need to have around 30% of your own funds.

Additional purchase costs: Besides the down payment, the buyer also incurs transaction costs (taxes and purchase-related fees). In Spain, banks do not finance taxes and fees, so you need to have a separate budget for them. In total, these costs amount to about 10–15% of the property value. These costs include, among others: property transfer tax (ITP) or VAT (for new properties), notary fees, court fees for registration, and lawyer's fees. These expenses should also be factored into your financial plan for the purchase.

Mortgage interest rates in Spain (2025): The interest rate offerings are varied – both variable and fixed rate loans are available. Here are a few facts about current rates:

Variable interest rate: The most popular option, especially for non-residents. It is based on the Euribor 12M + bank margin. In 2025, the standard margin is about 1.5–2.0%, resulting in an interest rate of Euribor + ~1.5% per year. For example, at the beginning of 2025, banks offered loans with an interest rate of Euribor + 1.62% under standard conditions, with the possibility of reducing it to Euribor + 1.02% by meeting additional requirements. Currently (January 2025), the Euribor 12M is about 2.9% and is projected to decrease to ~2.1% by the end of the year, suggesting possible reductions in variable loan repayments in the future.
Fixed interest rate: For those valuing certainty in repayments, fixed-rate loans are available, although more often for residents than for non-residents. Fixed interest rates in Spanish banks in 2025 are around 3–4% per year. More and more Poles are opting for fixed rates to avoid the risk of rising repayments in the future. Sometimes, mixed loans are also offered – e.g., fixed for the first few years, then variable.
Margins and discounts: Spanish banks often offer lower margins in exchange for using additional products (cross-selling). For example, Banco Santander reduces the interest rate for: funding an account with a specified amount annually, making at least 3 monthly payments from the account, using a card, purchasing property insurance through the bank, and holding investment products. By meeting these conditions, you can reduce the loan margin by about 0.60 p.p. (e.g., from Euribor+1.62% to ~Euribor+1.02%). It is worth asking about such discounts, as they can significantly reduce the cost of the loan.

Note: For non-residents, Spanish banks generally offer loans with variable interest rates or possibly temporarily fixed (mixed). Fixed interest rates are mainly available to those earning in euros in Spain. This means that a Pole earning in PLN will most often receive an offer for a loan with a variable rate, linked to Euribor (the bank protects itself against currency risk in this way).

Documents Required to Obtain a Loan (Resident vs. Non-resident)

The procedure for applying for a mortgage in Spain involves providing the bank with a complete financial documentation. The requirements are similar to those in Poland, but non-residents must present documents from their country of residence and source of income. Here is a typical list of documents that the applicant prepares (they may vary slightly depending on the bank):

Identity proof: Passport or identity card (for inspection and copy).
NIE number: The official identification number for foreigners in Spain – absolutely required before finalizing the loan. (If you do not have it yet, the bank may accept the application conditionally, but the number will be needed at the latest when signing the contract).
Documents confirming income: Most often annual tax returns (e.g., PIT for the last 1–2 years) and a current certificate from the employer about income or financial documents of the company in the case of self-employment. The bank may also request the last pay slips (e.g., the last 2–3 pays) or other confirmations of regular income.
Employment or business confirmation: A copy of the employment contract (contract) indicating the position and form of employment or company registration documents and income certificates from the business (for entrepreneurs). It is important to demonstrate continuity and stability of employment.
Bank statements: Bank account histories for the last 6 months – both personal and business accounts (if applicable). The bank will analyze salary inflows and outflows (e.g., repayments of other loans, rent, etc.).
Credit history: A report from the Credit Information Bureau (BIK) or another institution collecting repayment history. The Spanish bank must assess your creditworthiness abroad – it often accepts reports in English or Spanish.
Documents regarding the property being purchased: If a reservation or preliminary agreement (Spanish: Contrato de Arras) has already been signed, a copy must be provided. Additionally, the bank will commission a property valuation by a licensed appraiser for its own use, but the cost (about €300–700) is borne by the client. It is also advisable to prepare the reference number of the land registry to facilitate the property assessment process.

Are translations of documents necessary? – Increasingly, banks accept documentation in English, and even recognize Polish tax forms and can analyze them. However, it is safe to have key certificates translated into Spanish or English (at least the PIT and employment certificate), especially if the bank requests it. All documents should be current (from the current year) and complete to avoid delaying the application process.

Differences Between Loans for Spaniards and Foreigners

Mortgages for foreigners generally operate similarly to those for Spanish citizens, but there are several significant differences and additional requirements:

Required down payment: As mentioned, non-residents must make a higher down payment – usually 30% of the price (financing up to 70%), while Spaniards and residents can often obtain a loan with a 20% down payment (financing 80%), and in some situations even more. Banks perceive foreign clients as somewhat riskier, hence they require greater security in the form of their own capital.
Maximum loan term: Foreigners typically receive loans for a shorter term. For non-residents, the maximum repayment period is usually 20–25 years, while residents/Spanish citizens can extend repayment up to 30 years. This is partly due to banks' caution with longer obligations from foreign clients and often a higher average age of foreign property buyers.
Interest rate offerings: Spaniards have a full choice between fixed and variable rate loans. Non-residents often can only obtain loans with variable rates (sometimes in a mixed format: initially fixed for a short period, then variable). Banks limit the availability of fixed rates for those earning in foreign currencies to avoid currency risk and interest rate differences. In practice, a Pole working in the country will receive a variable rate offer linked to Euribor, while, for example, a Pole living and working in Spain (a resident) can freely choose between fixed and variable rates.
Procedures and formalities: For a Spanish citizen, the loan process is somewhat simpler – they use their identity card (DNI/NIF), provide local nominas (pay slips), and Spanish tax returns. A foreigner must additionally obtain a NIE number, and their financial documents are foreign, which requires analysis (sometimes translation) by the bank. Formalities are conducted in Spanish, which for foreigners means the need for document translation and often the participation of a sworn translator when signing the loan agreement at the notary. It is advisable to seek the assistance of a local lawyer to ensure understanding of all provisions – for a Pole, the language barrier and legal differences can be challenging.
Financial conditions and promotions: When assessing a foreigner, the bank may require higher creditworthiness (e.g., higher net income) than from a similar local client. However, the mortgage for a foreigner is secured on the same property, so banks often offer similar interest rates as for Spaniards. It is worth noting that in recent years, loans in Spain have had lower base interest rates than in Poland (Euribor vs. WIBOR), making them attractive for foreign investors as well. However, foreigners do not benefit from some government programs supporting purchases (dedicated to residents). For example, the Spanish government offers young citizens guarantees for the missing down payment of up to 20% of the property value, which does not apply to foreign buyers.

In summary, the most important differences boil down to higher down payments, a somewhat shorter repayment period, and the need for foreigners to submit additional documents. The procedures for assessing creditworthiness and establishing mortgage security on the property are very similar to those for local clients.

Example Banks Offering Loans to Foreigners (2025)

In 2025, many large Spanish banks have offers aimed at foreign clients, including Poles. It is worth getting to know a few popular institutions that finance property purchases by foreigners:

Banco Santander – the largest bank in Spain, often recommended to foreigners. It offers fairly flexible conditions for non-residents and the possibility of reducing the margin through packages (account, inflows, insurance). Some documentation and service can be handled in English.
CaixaBank – the second-largest bank, known for serving international clients. It has English-speaking advisors, and the loan process can be quick and efficient due to its experience with foreigners. Mobile applications and online banking are available in English, making it easier to manage the loan.
Banco Sabadell – a bank popular in tourist regions (with branches in Costa Blanca). It specializes in loans for non-residents – offering attractive financing conditions up to 70% of the property value. An example offer from Sabadell at the beginning of 2025 is a loan with a variable interest rate (first year ~2.9%, then Euribor + 0.60%) upon meeting additional cross-selling conditions.
BBVA – a large bank with modern online banking. It allows remote handling of the loan process, which is convenient for foreign clients. It offers both variable and fixed-rate loans (for residents), and its mobile application has an English version.

In addition to the above, Bankinter, Banco Popular (now part of Santander), and UCI (Unión de Créditos Inmobiliarios) also have offers for foreigners. When choosing a bank, pay attention to the margin level, availability of service in English (or Polish), and required additional products. Compare offers from several banks – differences in interest rates and costs can be significant.

Practical Tips for Buyers on Costa Blanca (Loan Process)

Purchasing property in Spain with the involvement of a loan is a process that is worth planning well. Here are some practical tips for Poles interested in a mortgage on Costa Blanca:

Obtain your NIE number in advance: The NIE number is absolutely essential – without it, you cannot finalize the purchase or the loan. Obtain it as soon as possible in Spain (e.g., through the consulate or police station in Spain) to avoid delaying procedures later.
Open an account with a Spanish bank: Open a bank account in Spain before the purchase. It will be needed for making loan repayments, paying utility bills, and often also for obtaining better loan conditions (e.g., discounts on the margin for salary inflow). Banks require that the borrower has an account with them, where the loan amount will be deposited and from which repayments will be deducted.
Prepare financial documents: Start gathering documentation in advance. Ask your employer for a certificate of income/contract, gather PITs from previous years, bank statements, BIK report. Ensure that the documents are complete and current. If the bank requires translations into Spanish or English, have them done by a sworn translator – although many banks accept documents in English, it is advisable to have translations of key items. Complete documentation will speed up the application process.
Ensure your creditworthiness: Before submitting the application, try to improve your financial standing. Pay off small loans or credit cards to reduce current obligations. Ensure that the planned loan repayment does not exceed ~30% of your net income – if it exceeds, consider a larger down payment or a longer loan term. Do not take out new loans just before applying for a mortgage in Spain.
Compare offers and negotiate: You do not have to limit yourself to your first offer. Contact several banks or use the services of an independent mortgage advisor who knows the Spanish market. Differences in margins or fees can save you thousands of euros over the life of the loan. Once you have preliminary offers, negotiate the terms – if you have high creditworthiness or a larger down payment, the bank may sometimes agree to lower the margin or commission. Also, remember the mentioned additional products: opening an account with salary inflow, purchasing life insurance or property insurance through the bank can lower the interest rate. Assess what is beneficial and what you can forgo.
Be aware of additional transaction costs: Ensure that besides the down payment, you have secured funds for taxes and purchase-related fees (about 10–15% of the property price). In practice, when buying a house for €200,000, you need about €60,000 for the down payment (30%) plus e.g., €25,000 for costs (taxes, notary, fees). The missing down payment or costs cannot be covered by the loan – you must have them in cash.
Choose the right type of interest rate: Consider what is better for you – fixed repayment or lower initial variable cost. If you value stability and predictability, consider a loan with a fixed interest rate (Spain offers attractive fixed rates of ~3–4%, and many Poles choose this to avoid worrying about repayment jumps). However, if you expect interest rates to fall, you might choose a variable rate – forecasts for 2025 suggest that Euribor may start to decline as inflation slows down. However, you must be prepared for possible fluctuations – rates may rise or fall in the future. Some banks also offer a compromise in the form of fixed rates for the first 2–3 years, then variable – this is an option worth considering if you are concerned about the first years of repayment.
Ensure support from experts: Do not hesitate to seek help from professionals. A Polish-speaking real estate agency in Costa Blanca or an experienced lawyer can guide you through the process smoothly. A mortgage advisor will help compile the application and negotiate with the bank, while a lawyer will ensure legal oversight and document translation. Remember that the loan agreement in Spain is signed at a notary simultaneously with the purchase deed – it is good to have someone by your side who can explain any unclear provisions. Investing in professional advice often pays off in the form of better loan conditions and greater peace of mind for the buyer.

Summary – Take Advantage of Our Support

Purchasing property in Spain, especially in such an attractive region as Costa Blanca, is within reach for Polish investors as well. A mortgage for foreigners in Spain is indeed possible – you just need to prepare adequately and meet the conditions set by the bank. If you are thinking about realizing your dream of a home by the Spanish sea and need assistance throughout the process – from choosing a property, obtaining financing, to finalizing the purchase – contact our real estate agency. We offer comprehensive support for clients from Poland at every stage of the transaction. We will help you safely navigate the loan procedures and realize your plans for your own home in sunny Spain. We invite you to contact us – we are happy to answer all your questions and make your purchase on Costa Blanca simple and enjoyable!

‍

Sources:

Can a Pole take a loan in Spain? https://www.totalmoney.pl/artykuly/kredyt-w-hiszpanii

‍