INTERNATIONAL
BUYERS
International buyers purchasing property in Spain can access mortgage financing with an LTV between 60% and 75%, terms of between 20 and 30 years, and conditions that vary depending on income currency, financial profile, and property type. The entire process—from the initial consultation to signing before a notary—takes between 8 and 12 weeks.
The Spanish mortgage market for international buyers is complex: each financial institution applies different criteria to income sources, currencies, property types, and ownership structures. A case one bank rejects automatically may be readily financed by another. Altavista Finance understands these criteria in detail and knows exactly which institution is the right fit for each international buyer.
50+ financial institutions
WHO CAN GET A MORTGAGE AS AN INTERNATIONAL BUYER
Any adult individual can apply for a mortgage in Spain as an international buyer, although the terms vary significantly depending on their profile. Key factors include:
For financing purposes, an international buyer is anyone who earns and declares their income abroad, regardless of where they physically reside. This distinction determines the financing terms, maximum LTV, and required documentation.
The currency in which income is earned is one of the most important factors. Depending on the currency and income structure, the buyer may access financing as an individual or through a property-holding company.
Profiles with complex structures—multiple companies, income across several jurisdictions, or indirect ownership—require institutions with flexible criteria and experience in international financing.
Primary residence, second home, buy-to-let investment, rural property, or commercial property: the terms vary. Some institutions do not finance certain property types or locations.
TYPICAL TERMS FOR INTERNATIONAL BUYERS
| ITEM | TYPICAL RANGE |
|---|---|
| Loan-to-Value (LTV) | 60%–75% |
| Interest rate | 2%–5% (fixed, variable, or mixed) |
| Term | 20–30 years |
| Minimum down payment | 25%–40% of the purchase price |
| Maximum age at maturity | 75–80 years (depending on the institution) |
| Process duration | 8–12 weeks |
These figures are indicative. The specific terms depend on the buyer’s profile, the financial institution, and market conditions at the time of application. AVF works with more than 50 institutions and knows each one’s actual terms—not just their published terms.
PURCHASE COSTS
In addition to the down payment (25–40% of the purchase price), the buyer must budget for transaction costs. In total, these account for approximately 8% to 15% of the purchase price.
| ITEM | DETAILS |
|---|---|
| Transfer Tax (ITP) | For resale properties. It varies by autonomous community: between 6% and 13% of the purchase price. New-build properties are subject to VAT (10%) plus Stamp Duty (AJD). |
| Valuation | Official property valuation by an authorised valuer. Required for mortgage approval. |
| Administrative agent | Administrative processing of the transaction: tax settlement, Land Registry filing, and mortgage registration. |
| Notary | Formalisation of the sale deed and, where applicable, the mortgage deed. |
| Estate agent | Commission for brokering the purchase. Usually paid by the seller, but this varies by market and transaction. |
| Mortgage adviser | Credit intermediary fees. AVF operates on a success-fee model. |
Total estimated: between 8% and 15% of the purchase price.
AVF does not provide tax or legal advice, but works with specialist tax advisers and lawyers who can guide you on each of these items.
HOW THE PROCESS WORKS
01
Pre-qualification
We assess your financial profile, nationality, property type, and objectives. We identify the institutions best suited to your case and design a financing strategy. We tell you exactly which documents you need and in what format.
02
Documentation
We prepare and translate everything the institutions need to assess your profile. We verify every document before submission.
03
Pre-approval
We submit your application to selected institutions from our panel—not to all of them, only those that fit your profile. We receive and analyse the offers, negotiate the terms, and present the options with a clear comparative analysis.
04
Valuation
Once the institution has been selected, we coordinate the property valuation with authorised valuers. We verify that the valuation supports the terms offered.
05
Review and signing
We review all final terms with you. We accompany you to the notary and coordinate with the institution and all other parties so everything is transparent and follows the agreement.
COMMON CHALLENGES FOR INTERNATIONAL BUYERS
Currency risk
When income is denominated in a currency other than euros, institutions apply reductions to affordability calculations to cover exchange-rate risk.
Non-standard income
Self-employed buyers, company directors paid through dividends, and income from multiple jurisdictions require institutions with flexible criteria and experience in international structures.
Complex corporate structures
Buyers with multiple companies, income spread across several legal entities, or indirect ownership structures present an additional layer of complexity.
Timelines and remote coordination
Buying from abroad requires coordinating time zones, powers of attorney, and documents in different languages and formats. Poor coordination can delay the transaction by weeks.
BUYERS BY COUNTRY OF RESIDENCE
UK residents
The largest group of international buyers in Spain, concentrated on the Costa del Sol, the Balearic Islands, and the Costa Blanca.
US residents
A growing market. These profiles need an intermediary with experience in the specific requirements of financing for US-based buyers.
French residents
Concentrated in Barcelona, the Costa Brava, and Ibiza. Relatively straightforward processes and good availability of lenders.
Dutch residents
A strong expatriate community on the Costa Blanca and in the Balearic Islands. Generally well-documented profiles with smooth access to financing.
UAE / Dubai residents
A growing HNW/UHNW segment, concentrated in Marbella, Madrid, and the Costa Blanca. These buyers often have complex income structures that require private banking and tailored solutions.
REAL TRANSACTIONS WITH INTERNATIONAL BUYERS
FREQUENTLY ASKED QUESTIONS ABOUT MORTGAGES FOR INTERNATIONAL BUYERS
What is the maximum LTV for an international buyer in Spain?
The typical LTV for international buyers ranges from 60% to 75%. This means the buyer needs to contribute 25% to 40% as a down payment, plus purchase costs—taxes, notary fees, and registration—which usually represent an additional 8% to 15%.
How much does a mortgage in Spain cost for an international buyer?
Interest rates for international buyers currently range from 2% to 5%, depending on the profile, the financial institution, and the mortgage type (fixed, variable, or mixed).
Can a US resident get a mortgage in Spain?
Yes. Some institutions in Spain work with US-based buyers and understand the specific requirements of these profiles. AVF has experience in this segment and knows which institutions are the best fit.
Do I need an NIE to apply for a mortgage?
Yes. The NIE (Foreigner Identity Number) is mandatory for any real estate transaction in Spain, including a mortgage application.
Can I get pre-approval before finding a property?
Yes. AVF can assess your profile and obtain an indicative pre-approval before you have selected a specific property. Pre-approvals are valid nationwide.
How long does the mortgage process take for an international buyer?
Between 8 and 12 weeks from the initial consultation to signing before a notary.
What happens if a bank rejects my application?
A rejection by one institution does not mean you cannot obtain financing. Each institution uses different criteria. AVF knows the criteria of more than 50 institutions and can redirect your application to those that best fit your profile.
What taxes and costs do I pay when buying property in Spain?
Total purchase costs represent between 8% and 15% of the purchase price. They include Transfer Tax (6%–13%, depending on the autonomous community) or VAT (10%) for new-build properties, plus valuation, administrative, notary, and other costs.
Can I buy through a company?
Yes. The purchase can be financed through property-holding companies, SPVs, or other corporate structures. AVF has experience financing corporate purchases.
What is the difference between working with AVF and going directly to a bank?
A bank only offers its own products. AVF knows the actual terms of more than 50 financial institutions and identifies which one best fits each profile. We also negotiate the terms, support you throughout the process, and charge only if we secure the financing (success fee).
CONTACT US
If you are considering a real estate transaction in Spain and want to understand which options make sense to explore, we would be happy to talk.