Spanish Mortgage Rates for Non-Residents 2026

Spain remains one of the most popular destinations for UK property buyers, and the Spanish mortgage market has become significantly more accessible to non-resident buyers in recent years. This guide covers what you need to know about Spanish mortgage rates, eligibility, and the application process for non-residents in 2026. Always verify current rate information against live sources such as the Bank of Spain (bde.es) and AEAT (agenciatributaria.es).

Current Spanish Mortgage Rates for Non-Residents (2026)

Following a period of rising rates in 2022–2024, the European Central Bank began cutting rates in mid-2024. As a result, Spanish mortgage rates have eased from their peak. In early 2026, indicative rates for non-resident UK buyers are approximately:

Fixed Rate Mortgages

• 10-year fixed: approximately 2.8–3.3%
• 15-year fixed: approximately 3.0–3.5%
• 20-year fixed: approximately 3.2–3.8%
• 25-year fixed: approximately 3.4–4.0%

Note: These rates assume full product bonification (direct salary, insurance, etc.). Non-resident rates are typically 30–50 basis points higher than equivalent resident rates. Verify current rates with the Bank of Spain: bde.es

Variable Rate Mortgages

• Standard variable: Euribor (12-month) + 0.9–1.5% margin
• Current 12-month Euribor (early 2026): verify the live daily rate at emmi-benchmarks.eu
• Resulting variable rate: approximately 3.4–4.2% (depending on current Euribor)

Mixed Rate Mortgages

• Fixed for first 3–10 years, then variable (Euribor + margin)
• Initial fixed rate: approximately 2.9–3.5%
• Growing in popularity as buyers seek initial rate certainty

LTV Limits for Non-Residents

• Maximum LTV for non-residents: 70% (some lenders go to 75% for strong applicants)
• Maximum LTV for Spanish residents: 80%
• Minimum deposit: approximately 25–30% of purchase price plus buying costs of approximately 10–15%
• Maximum mortgage term: typically up to 30 years for non-residents (same ceiling as residents), subject to the rule that the borrower must be no older than 70–75 at mortgage maturity — in practice this often results in shorter terms for older buyers, but there is no categorical 25-year cap for non-residents
• Maximum age at end of mortgage term: typically 70–75 years old (varies by lender)

Important Consumer Protection — Ley 5/2019

Under Spain's 2019 Mortgage Law (Ley 5/2019 — BOE-A-2019-3814), the lender — not the borrower — is responsible for paying the AJD (stamp duty), notary costs on the mortgage deed, and Land Registry costs for mortgage registration. This reversed the pre-2019 position and is a significant consumer protection. As a borrower, you pay only the property valuation (tasación, typically €300–€700).

Eligibility Criteria for Non-Resident Mortgages

Income Requirements

Spanish lenders apply a debt-to-service rule: total monthly mortgage payments (plus any other regular debt commitments) should not exceed 35% of gross monthly income. Spanish lenders accept income from: employment (P60, payslips), self-employment (tax returns, accounts), pensions, and rental income (typically discounted to 70–80% of face value for affordability purposes).

Credit Assessment

Spanish banks will request your credit history. UK buyers should provide a credit report from Experian, Equifax, or TransUnion. Spanish lenders broadly look for a clean credit history — no defaults or CCJs in the last 3–5 years.

Required Documentation

• NIE number (Número de Identificación de Extranjero)
• Valid passport
• Last 2–3 years of tax returns or P60s
• Last 3 months' payslips (if employed)
• Last 3–6 months' bank statements
• Evidence of deposit funds and their source (anti-money laundering compliance)
• Property nota simple from the Land Registry
• Building valuation (tasación) — typically arranged and paid for by the borrower

The Spanish Mortgage Application Process

Step 1 — Agreement in Principle

Before signing a purchase contract, obtain a mortgage agreement in principle (AIP) from your chosen lender or broker. This gives you a clear budget and demonstrates to sellers and agents that you are a serious buyer.

Step 2 — Formal Application

Once you have signed the reservation agreement and private purchase contract (contrato de arras), submit your full mortgage application with all documentation. The lender will instruct a property valuation (tasación).

Step 3 — FEIN and Statutory Reflection Period

If approved, the lender issues a Ficha Europea de Información Normalizada (FEIN) — the standardised European mortgage information document. Under Ley 5/2019 (Article 14), the lender must provide the FEIN at least 10 calendar days before the mortgage deed is signed (14 days in Catalonia). During this period, the borrower must attend a free notarial pre-signing advisory session (acta notarial previa) to confirm they understand the terms.

Step 4 — Notary Signing

The mortgage deed is signed at the notary's office on or after the 10th day from FEIN delivery. The notary pre-signing session (acta previa) must be completed before the signing appointment. Funds are released directly to the seller simultaneously with the property deed signing.

Tax Implications for Non-Residents

Rental Income Tax

If you rent your Spanish property, you must declare rental income and pay IRNR (Impuesto sobre la Renta de No Residentes). For non-EU residents (including UK buyers post-Brexit), the rate is 24% of gross rental income — expenses cannot be deducted. EU residents pay 19% and can deduct allowable expenses. Source: AEAT — Modelo 210 (agenciatributaria.es)

Capital Gains Tax on Sale — Progressive Scale

Spanish CGT for non-residents follows a progressive rate scale since 2023 budget amendments (Ley 31/2022):

• First €6,000 of gain: 19%
• €6,001 – €50,000: 21%
• €50,001 – €200,000: 23%
• €200,001 – €300,000: 26%
• Over €300,000: 28%

The buyer is required to withhold 3% of the agreed sale price and pay it to AEAT (Modelo 211) on account of the seller's CGT liability. The seller then files Modelo 210 to calculate the final liability and claim any refund. Source: AEAT; LIRNR (RD Legislativo 5/2004)

Non-Resident Property Tax (Imputed Income)

All non-resident property owners must file an annual IRNR declaration even if the property is not rented. The tax base is 2% of the catastral value (or 1.1% if revised in the last 10 years). The rate is 24% for non-EU residents. Example: a property with catastral value of €100,000 would incur approximately €264–€480 per year. Source: AEAT — Modelo 210