Mortgage rates in Spain in 2025

Spanish banks are happy to cooperate with foreign citizens and issue mortgage loans to them. This service will allow you to purchase housing and pay its cost gradually or make a profitable investment. So, many buy apartments in tourist regions and then rent out housing to visiting guests.

Current situation in the mortgage market

If you decide to use a loan program, you will be wondering how much the mortgage rate is in Spain. At the moment, residents and non-residents of the country can use lending services, but the conditions for issuing a loan will be different. Residents can count on an amount that will cover up to 80% of the required amount, non-residents are given smaller amounts - no more than 70% of the cost of the object. The amount of the loan is calculated based on the valuation of the housing itself, which is indicated in the real estate document. At the same time, banks calculate a smaller amount, which must be taken into account when applying.

 

Mortgage loans are issued for a period of 5 to 30 years, payment programs can be different and the conditions depend on the rules of the financial institution. European banks adhere to a system of calculating rates, which includes fixed, floating or mixed schemes. We suggest considering mortgage interest rates in Spain in detail:

  • Fixed. You pay a certain amount every month, which is calculated depending on the size of the loan and the term of the loan. Such a rate is considered high, but the bank does not have the right to change the amount of the monthly payment, so you will be protected from possible changes in the exchange rate or economic conflicts in the future.
  • Floating. Rates are calculated depending on the established interbank values and may change every six months or a year. Such a system is considered profitable, since the size of the monthly payment will be quite low. However, there is always a possibility that the amount of payment will increase.
  • Mixed. For the first few years, you pay fixed amounts, the rest of the term the amount of the monthly payment may vary.

Currently, the interest rate is in the range of 2.5 to 3.5% per annum and in this form the offer looks very attractive to Russians.

 

How to apply for a mortgage

To obtain a loan, you need to contact the bank branch in person, through your representative or get a preliminary answer by sending an application by phone. The package of documents for obtaining a mortgage consists of the following certificates:

  • Passport;
  • a copy of the purchase and sale agreement;
  • a tax return showing income for the previous year;
  • extract from the credit bureau;
  • a certificate from a bank in Russia, which confirms the availability of funds of the applicant;
  • tax number of a foreign citizen.

The last item on this list raises the most questions, but the NIE or tax number of a foreign citizen is issued quickly and without any problems. This document is issued when an agreement needs to be signed or after the buyer has paid a deposit for the selected property. Documents must be translated into Spanish and notarized, in some banks it is enough to send your passport in any convenient way to obtain prior consent. All other documents are submitted to the branch when signing the loan agreement. 

 

The Impact of the Modern Economy

Recent events in the world have shown how the economies of all countries are interconnected. The instability of the exchange rate and events in the international securities market have also affected the state of the Spanish economy. However, the country's banking system has not experienced strong shocks, so the conditions for issuing loans have not changed. Local financial institutions, on the contrary, are trying to attract the maximum number of customers. So, some banks accept applications online, and you have the opportunity to apply for a mortgage while in Russia.  

 

Foreign citizens buy real estate in the country for several reasons - legalization and earnings. If you are planning to apply for a residence permit, you can use the purchase of housing as the main argument and mortgage agreements are considered as equally as fully purchased real estate. In addition, the process of applying for a loan does not take much time and it is enough to provide standard documents to apply. Most people who want to buy an apartment or cottage in Spain turn to special agencies. Firstly, here you can find a database of real estate from different regions, so it will not be difficult to find a suitable option for your family. Employees of the companies will help in collecting documents, talk about the pros and cons of living in different cities, and also take care of all communication with consulate employees.

 

The international economic situation in the real estate market has not affected the desire of many foreign citizens to settle in Spain. The number of residents is constantly increasing, so the cost of housing will be quite high. Especially high prices are set for housing located in large metropolitan areas or in tourist regions. Such real estate is perfect for living here with the whole family or renting it out.

Recommendations for borrowers

If you decide to use loans to buy real estate in Spain, here are some tips to help you choose the best housing option:

  • Determine the purpose of the purchase. Depending on the purpose for which the property is bought, criteria should be set for the properties. So, for living, it is better to choose an apartment in a large city or cottages in the suburbs, which are perfect for the whole family.
  • Set a budget. Even with the use of a mortgage, analyze your finances and set an upper bound on the purchase. We recommend that you count on an amount of no more than 60% of the cost of the property, so that later there are no problems with making the first payment.
  • Collaborate with agencies. In order to carry out the transaction quickly and without any problems, we recommend contacting the agency of the appropriate focus. In such a company, you will be offered a real estate database for study, help you collect all the documents and give a complete breakdown of the real estate market in Spain.

Mortgage agreements are very popular in Spain, so banks develop attractive and favorable conditions for their customers. You can realize your dream and start your own business in Europe or make a profitable investment by buying an apartment in a European resort.

 

Requirements for borrowers

Although each bank develops its own rules and requirements for its customers, there are several common standards. First of all, you need to prove your solvency. The best evidence will be a document from another bank, which confirms that you have funds in the required amount. As a first payment, you need to pay at least 40% of the specified amount, so it is important to set the amount of the future property in advance.

 

Banks pay special attention to ensuring that all these incomes are completely legal. You will be asked for a tax return and a certificate from a credit bureau that will demonstrate that you have no debts. Spanish banks also turn to Russian colleagues and ask for the applicant's credit history to get accurate information about the number of loans taken and their history. It cannot be said for sure that the presence of problems with the bank in the past will affect the new agreement, but it is the factor that will tilt the decision not in your favor.

 

The last recommendation is that you will be able to contact several banks and consider offers from different institutions. This will allow you to choose the best option and make a good deal. We advise you to start looking for a suitable bank with a consultation with a realtor or lawyer, as many real estate agencies work closely with banking institutions. 

It is quite possible to apply for a mortgage in Spain for a foreign citizen, but you will have to put up with strict bureaucratic standards. In such a situation, the easiest way is to contact a qualified specialist to control the entire process of collecting and preparing documents. In this case, you do not have to learn all the subtleties on your own and you can fully rely on the professionalism of an experienced agency employee.