Mortgage in Spain – Banks, Rates and Terms 2026

Yes, you can take out a mortgage in Spain as a Swede. Spanish banks lend to EU citizens regardless of whether you live in the country or not. As a non-resident you are normally granted 60–70% of the property's appraised value, meaning you need at least 30–40% in equity plus 10–14% for purchase costs. The rate for non-residents is in March 2026 at 3–5% depending on the bank, rate type and which additional products you take out.

That sounds like a lot of cash — and it is. But for many Swedish buyers a Spanish mortgage is still the smartest option. You avoid borrowing further against your Swedish property, you get interest deductions in Sweden on the interest payments, and you do not tie up all your equity in a single asset.

In this guide we go through which banks offer mortgages to Swedes, what it costs, which documents you need and how to avoid the most common mistakes. We also cover the difference between fixed, variable and mixed rates — and give a concrete calculation example so you can see what it actually costs per month.

Can Swedes take out a mortgage in Spain?

Yes, without restrictions. There are no nationality-based restrictions on mortgages in Spain. If you can demonstrate sufficient income, submit the right documentation and meet the bank's credit requirements you will be approved — regardless of citizenship or country of residence.

As a Swedish EU citizen you also have better terms than buyers from countries outside the EU. You pay lower tax on rental income (19% instead of 24%), and more banks accept SEK income as the basis for credit assessment.

What you need to have sorted before contacting the bank:

• NIE number — mandatory for all financial transactions in Spain
• Spanish bank account — most banks require you to open an account with them
• Stable income — permanent employment, a business with at least 2 years' history, or a pension
• Equity — at least 30–40% of the purchase price plus purchase costs

How much can you borrow? (LTV ratio)

The loan-to-value ratio — LTV — differs depending on whether you are a resident or non-resident in Spain.

Important: LTV is calculated on the appraised value (tasación), not the purchase price. The tasación can be lower than the price you pay, particularly in hot markets. If you pay 200,000 euros for an apartment appraised at 180,000 euros and the bank approves 70% LTV, you can borrow 126,000 euros — not 140,000. The difference you pay from your own pocket.

Most Spanish banks land at 60–65% LTV for Swedish buyers who do not live permanently in Spain. Banks such as Sabadell and CaixaBank can go up to 70% for customers with a strong financial profile and SEK/EUR income.

Why does Spain require such a high down payment?

Spanish banks were badly burned during the financial crisis of 2008–2014. During the housing bubble they were approving loans of 100% or more of the property's value. When prices fell by 30–40% the banks were left with enormous credit losses. Since then the Banco de España (the Spanish central bank) has introduced stricter lending rules. Non-residents are considered higher risk — you live in another country, pay in another currency and may be harder to reach in the event of payment problems.

What does the mortgage cost? (Rates 2026)

The rate on your Spanish mortgage depends on three factors: rate type (fixed, variable or mixed), your status (resident or not) and what bank products you take out in addition to the loan.

Variable rate (hipoteca variable)

Variable rates in Spain are based on Euribor 12 months plus the bank's margin. In March 2026 Euribor 12m is at 2.86%. The bank's margin for non-residents is normally 1.0–2.0 percentage points, giving a total rate of approximately 3.9–4.9%.

The rate is revised once a year (sometimes every six months). If Euribor rises your rate rises — and vice versa. During 2023 Euribor 12m peaked at 4.2%, which pushed variable mortgages to 5–6%. Since then the ECB has cut its benchmark rate and Euribor has fallen back.

Fixed rate (hipoteca fija)

With a fixed rate you lock in the rate for the entire term. You know exactly what you pay each month, regardless of what happens to Euribor. For non-residents fixed rates in March 2026 are at 3.0–4.5% depending on the bank and term.

Fixed rates are most popular among foreign buyers. You avoid the currency risk that arises if Euribor rises and your SEK income does not keep pace. The disadvantage: if Euribor falls further you pay more than you would have with a variable rate.

Mixed rate (hipoteca mixta)

A mixed rate combines the two. You get a fixed rate for the first 5–10 years, then the loan switches to a variable rate (Euribor + margin). This gives security during the years of greatest exposure, and lower cost towards the end of the term if Euribor is low.

Which rate type suits you?

Most Scandinavian buyers choose fixed or mixed rates. The reassurance of knowing exactly what the property costs per month carries a lot of weight when managing expenses in another country and another currency.

Which banks offer mortgages to Swedes?

Several major Spanish banks have special programmes for foreign buyers. Here are the key players:

CaixaBank

Spain's largest bank has started offering the entire application process digitally for non-residents — you do not need to visit a branch in Spain to apply. Rates from 3.2% (fixed) and up to 70% LTV. CaixaBank is a good choice if you want to handle everything remotely.

Sabadell

Sabadell has an international division (Sabadell International) with experience of Scandinavian customers. They accept income in SEK, NOK, DKK and several other currencies. Rates from 3.4% and LTV up to 70%. Remote processing is possible.

BBVA

One of Spain's four major banks, but BBVA primarily lends to people with euro income. If you have a salary in SEK BBVA may be harder to use. However, a strong option if you have income in the eurozone or if you are a resident.

Bankinter

Targets investors and holiday home buyers. Rates from 3.6% and LTV up to 65%. Bankinter is known for fast processing but often requires you to take out home insurance and life insurance through them.

UCI (Unión de Créditos Inmobiliarios)

UCI specialises in mortgages and is partly owned by Santander and BNP Paribas. Unlike other banks UCI requires no cross-selling — you do not need to open a salary account, take out insurance or transfer savings. This makes UCI popular among foreign buyers who want a clean mortgage without add-on agreements.

Which documents are needed for a mortgage application?

Spanish banks require extensive documentation from foreign borrowers. Gather everything before contacting the bank — it speeds up the process considerably.

Personal documents

• Valid passport — copy of all pages
• NIE number — Número de Identidad de Extranjero
• Marital status — marriage certificate or single status declaration (if relevant)

Financial documents

• Last 2 years' tax returns — Swedish tax returns from the Swedish Tax Agency
• 3–6 most recent payslips — or equivalent proof of income
• Employment contract — current, stating salary and employment type
• Bank statements 6–12 months — from your Swedish bank, showing income and outgoings
• Existing loans — details of mortgage in Sweden, car loans, consumer loans
• Credit check — from UC or equivalent

Self-employed and pensioners

If you are self-employed you also need the last 2–3 years' financial statements, F-tax certificate and VAT registration. Pensioners need a pension statement from the Swedish Pensions Agency.

Property-related documents

• Nota simple — registry extract showing ownership and any encumbrances
• Arras (deposit agreement) or purchase contract — if already signed

All documents must be translated into Spanish by an authorised translator. Some documents may require an apostille (international legalisation). The bank will tell you exactly what is needed — but allow 1–2 weeks to gather everything.

What does the application process look like?

The entire process from first bank contact to disbursement normally takes 4–8 weeks. Here are the steps:

Step 1: Pre-approval (pre-aprobación)

Contact the bank or a mortgage broker with your financial details. The bank makes a preliminary assessment of how much you can borrow. The pre-approval is not binding but gives you a realistic budget before you look for a property. It normally takes 1–2 weeks.

Step 2: Find a property and sign arras

Once you have a pre-approval you can look for a property with confidence. When you find the right property you sign an arras contract (deposit agreement) and normally pay 10% of the purchase price as a deposit to the seller. The money is held in escrow and returned if the purchase does not go through for reasons specified in the agreement.

Step 3: Tasación (valuation)

The bank orders an independent valuation of the property — a tasación. The valuation is done by an authorised valuation company (sociedad de tasación) and costs 250–600 euros depending on the property's size and location. The tasación determines how much the bank actually approves in lending. Allow 1–2 weeks.

Step 4: Final credit assessment

With the tasación and all documents in place the bank carries out its final credit assessment. They check your ability to pay, that the property is unencumbered and that all legal conditions are met. This takes 1–2 weeks.

Step 5: Oferta vinculante (binding offer)

The bank sends you a binding loan offer — oferta vinculante — which under Spanish law you must receive at least 10 days before signing. The offer specifies the rate, term, monthly payment, repayment schedule and all costs. Review it carefully, ideally with the help of an independent solicitor.

Step 6: Signing at the notary

The mortgage is signed on the same day as the purchase deed (escritura) at the Spanish notary. The bank pays the loan amount directly to the seller. You sign both the escritura de compraventa (the purchase deed) and the escritura de hipoteca (the mortgage deed).

What does it cost to take out a mortgage in Spain?

In addition to the interest there are one-off costs when taking out the mortgage. Most fees are paid by the bank since the law change in 2019, but not all.

The major saving came in 2019 when the stamp duty (AJD) on mortgages was shifted from the buyer to the bank. Previously it was a significant cost — 0.5–2% of the loan amount depending on the region.

As a buyer today you primarily pay the tasación (250–600 euros) and any opening fee. Many banks have completely eliminated the opening fee to be competitive, but this varies. Always ask for the total cost in writing before signing.

Calculation example: Mortgage on an apartment in Torrevieja

Let us take a concrete example. You buy a two-bedroom apartment on the Costa Blanca for 180,000 euros.

Assumptions:

• Purchase price: 180,000 €
• Tasación: 175,000 € (5,000 € below market price — common)
• LTV: 65% of tasación = 113,750 €
• Equity: 180,000 – 113,750 = 66,250 € (down payment)
• Purchase costs (tax, notary, registration): ~20,000 € (approx. 11%)
• Total equity you need: 86,250 € (approx. 48% of the purchase price)

Monthly loan cost:

With a fixed rate of 3.5% you pay approximately 660 euros per month for 20 years. Total repayment: approximately 158,400 euros, of which 44,650 euros in interest. With the Swedish interest deduction (30%) the real interest cost falls to approximately 31,250 euros — provided the deduction remains in place throughout the term.

Can you finance via your Swedish bank instead?

An alternative to a Spanish mortgage is to extend your existing mortgage in Sweden — if you own a property with sufficient value increase. This can be simpler and cheaper, but there are disadvantages.

Many Swedish buyers choose a combination: part financing via the Swedish bank and the rest via a Spanish mortgage. This spreads the risk and gives access to both markets' terms. Regardless of financing method the same purchase process applies — read more about popular areas such as the Costa del Sol if you are considering Andalusia.

What are the most common mistakes?

Over our years in the Spanish market we see the same mistakes repeated. Here are the ones you should avoid:

1. Starting the process too late. You sign arras and have 60 days to complete the purchase — but the mortgage process takes 4–8 weeks. Start bank contact before you sign arras, ideally with a pre-approval in place.

2. Underestimating equity required. Many buyers only count the down payment and forget the purchase costs (10–14%). A property for 200,000 euros does not require 60,000 euros in cash — rather 85,000–90,000 euros.

3. Not comparing banks. Rates and terms vary significantly between Spanish banks. The difference between the best and worst offer can be 1.0 percentage points or more. Contact at least 3 banks or use a mortgage broker.

4. Ignoring cross-selling. The bank offers a lower rate if you take out their insurance and salary account. Calculate this — sometimes you save money, sometimes it costs more than the rate discount.

5. Forgetting currency risk. You earn in SEK but pay the loan in EUR. If the krona weakens against the euro your actual loan cost rises. A 10% swing in the exchange rate can increase your monthly payment by 60–70 euros.

6. Skipping independent legal advice. Always engage your own abogado (solicitor) to review the mortgage agreement before signing. The bank's solicitor represents the bank — not you.

How do you get the best rate?

Spanish banks negotiate. Unlike Swedish banks where the rate is often "take it or leave it" there is room to bargain in Spain. Here are the strategies:

Use a mortgage broker. Brokers such as Habeno (who work with Söderberg & Partners) negotiate with several banks on your behalf and often have access to better terms thanks to their volumes. Their service is normally free — they receive commission from the bank.

Demonstrate a strong financial profile. The lower the LTV, the better the rate. If you can put down 40–50% instead of 30% you get noticeably better terms.

Consider the bank's additional products. Taking out home insurance, life insurance and directing your income to the bank can reduce the rate by 0.5–1.0 percentage points. Work out the total cost — it can be worth it.

Compare at least 3 banks. Ask for a written oferta vinculante from each bank before deciding. Compare the total loan cost (including all fees), not just the rate.

Apply at the right time. Banks have quarterly targets and can be more flexible towards the end of the quarter. This is not something you can entirely control, but it does not hurt to bear it in mind.

Frequently asked questions about mortgages in Spain

Last updated: April 2026. Rates, LTV ratios and bank terms may change — always contact the bank or a qualified adviser for current terms. This guide does not constitute financial advice.