Spanish mortgages for non-residents: how to finance your home in Mallorca
How much Spanish banks lend to foreign buyers, which documents they ask for, who pays which costs and how much of your own money you need.
Buying in Mallorca without living in Spain does not stop you getting a mortgage from a Spanish bank. The terms are a little stricter than for residents, but with good preparation the process is straightforward. Here are the essentials.
How much will the bank lend?
For non-residents, Spanish banks usually lend 60% to 70% of the lower of two figures: the purchase price or the bank's valuation. For residents the usual limit is 80%. Terms typically run to 20-25 years, and many banks require the loan to end before you turn 70 or 75.
How much of your own money do you need?
Add the part the bank does not lend to the purchase taxes and costs, which for a resale home in the Balearics come to roughly 9-12% of the price. As a rule of thumb, a non-resident should plan on around 40-45% of the price in own funds. Run your own numbers with our mortgage calculator.
Documents the bank will ask for
- Passport or ID card and NIE.
- An account with a Spanish bank (usually the lending bank).
- Proof of income: payslips and employment contract, or tax returns if self-employed.
- Recent bank statements and a list of other loans.
- A credit report from your home country (in Germany, SCHUFA).
- Property details: land registry extract (nota simple) and, if you have it, the deposit contract (arras).
Foreign documents usually have to be translated.
The valuation
The bank orders a valuation from an approved firm, and the buyer pays for it, usually a few hundred euros. If the valuation comes in below the price, the bank lends against the valuation and you cover the difference.
Who pays what
Under the 2019 mortgage credit law (Ley 5/2019), the bank pays the notary for the loan deed, the land registry, the gestor and the stamp duty (AJD) on the mortgage. The buyer pays the valuation and their own copy of the deed.
Buyer protection
The bank must give you the binding offer (FEIN) at least ten calendar days before signing. Before completion you attend a free advice session at the notary, who checks that you understand the terms. If your Spanish is limited, bring someone you trust or an interpreter.
Fixed, variable or mixed
- Fixed: the payment stays the same for the whole term.
- Variable: reviewed in line with Euribor; it can go up or down.
- Mixed: fixed for some years, variable afterwards.
Always compare the APR (TAE) and any linked products (insurance, salary deposits) the bank requires.
What about borrowing at home?
Some buyers prefer to borrow in their own country, for example secured on a property they already own there. It can be cheaper or quicker, so it is worth comparing both routes.
We can put you in touch
Ericsus & Falk works with foreign buyers every week and can introduce you to trusted banks and advisers in Mallorca. Call us on +34 656 811 145.
Cover photo: Joan Gené, public domain (CC0), Wikimedia Commons. Figures are for guidance; final terms depend on the bank and your profile.