Financing conditions, bank requirements, and documents needed to secure a mortgage in Spain.

Financing and Down Payment

Poles, both residents and non-residents of Spain, have the opportunity to obtain a mortgage to purchase real estate.
For those permanently residing outside of Spain, banks typically finance up to 70 percent of the property value, which means having a minimum of 30 percent as a down payment.
Residents can potentially secure financing for up to 80–90 percent of the property value, depending on creditworthiness and the bank.

Loan Term

The standard loan term for foreigners ranges from 20 to 25 years.
Banks prefer clients with documented, steady incomes and a credit history that confirms financial stability.
In some cases, with a shorter loan term, it is possible to obtain a lower margin and more favorable interest rates.

Interest Rates and the Euribor Index

The majority of mortgages in Spain have variable interest rates based on the Euribor index.
At the beginning of 2025, the Euribor was approximately 2.9 percent.
Banks add their own margin to it, which can range from 0.8 to 1.5 percent, depending on the offer.
It's worth comparing different proposals, as some institutions offer mixed loans – fixed rates for the first few years, followed by variable rates.

Creditworthiness and Required Documents

To apply for a mortgage, the monthly installment should not exceed 30–35 percent of the borrower's net income.
Banks thoroughly analyze all income sources and any potential financial obligations.
Required documents include:
– passport or ID card,
– N.I.E. number,
– employment certificate or proof of business activity,
– bank statements from the last three months,
– tax declarations,
– information on other loans and obligations.
Some banks might also request a property appraisal before they finalize the mortgage approval.

Practical Tips

It’s a good idea to use the services of a financial advisor or lawyer fluent in Polish to help compare bank offers and translate documents.
The most favorable loans are generally offered by large banks such as Banco Sabadell, CaixaBank, BBVA, or Santander.
Always inquire about the total loan cost (TAE), which includes all commissions and additional fees.
If you plan to repay your loan early, ensure that the contract does not impose high penalties or restrictions.
A sensible approach, thorough comparison of offers, and understanding of loan conditions will help avoid unnecessary costs and stress.