Table of Contents

• Can Non-Residents Get a Mortgage in Spain?
• How New Build Mortgages Work in Spain
• Getting a Mortgage in Principle Early
• What Documents Do You Need?
• Fixed vs Variable Rate Mortgages in Spain
• Which Banks Lend to Non-Residents?
• Mortgage Costs to Budget For
• Currency Risk and Hedging
• How Long Is a Spanish Mortgage Term?
• Key Takeaways
• FAQ

Can Non-Residents Get a Mortgage in Spain?

Yes — a non-resident mortgage in Spain is widely available, and Spanish banks actively lend to foreign buyers, and several international lenders also operate in the Spanish market. Non-residents are treated differently from Spanish residents in one key respect: the maximum loan-to-value (LTV) ratio you can access is lower.

• Spanish residents: up to 80% LTV on primary residences
• Non-residents: typically 60–70% LTV

This means if you are purchasing a new development in Spain as a non-resident, you should expect to put down a minimum of 30–40% of the purchase price as a deposit, plus your transaction costs on top of that.

How New Build Mortgages Work in Spain

Buying off-plan or a new build in Spain introduces a timing challenge that doesn’t exist with resale properties: the bank cannot lend against a property that doesn’t yet have a completion certificate (Licencia de Primera Ocupación). This means your formal mortgage offer is typically issued close to completion — not at the point of reservation.

The typical timeline works as follows:

• Reservation: You pay a small reservation deposit (usually €5,000–€10,000) to take the property off the market. No mortgage involved yet.
• Private purchase contract (contrato privado de compraventa): Signed shortly after reservation. You pay an initial tranche — typically 10% of the purchase price minus the reservation deposit. Again, funded from your own capital.
• Stage payments during construction: Depending on the developer and project timeline, there may be additional stage payments of 10–20% as construction milestones are reached. These are also paid from your own funds.
• Completion (escritura pública): The final payment — including the mortgage proceeds — is made at the notary when you sign the title deed. This is when the bank releases the funds directly to the developer.

The implication is important: for the months or years during construction, you’re paying stage instalments from your own pocket. Only at completion does the mortgage kick in. See our guide to how off-plan payment plans work in Spain for more detail on managing this cash flow.

Getting a Mortgage in Principle Early

Even though the formal mortgage offer comes at completion, it’s strongly advisable to obtain a mortgage in principle (oferta vinculante or pre-approval) before you reserve a property. This gives you:

• Confidence you can access the finance you need
• A clear picture of your total budget
• Stronger negotiating position with the developer

A pre-approval is not legally binding on the bank, but it is a reliable indicator of what you’ll be offered at completion — provided your financial circumstances don’t change significantly in the intervening period.

What Documents Do You Need?

Spanish banks require a thorough set of documents from non-resident mortgage applicants. Gather these early to avoid delays:

• Passport (valid, clear copies of all pages)
• NIE number (Spanish tax identification number — your lawyer can obtain this)
• Proof of income: Last 2–3 years’ tax returns (P60 or equivalent) and last 3 months’ payslips if employed; last 2 years’ accounts if self-employed
• Bank statements: Last 3–6 months showing regular income and savings
• Proof of existing assets and liabilities: Other property owned, existing mortgages or loans
• Employment contract or business registration documents
• Purchase contract for the property (provided by the developer)

All documents in a foreign language must typically be accompanied by certified translations into Spanish.

For an authoritative overview of what happens at the signing — and the legal role the notary plays in protecting both parties — see the official site of the Spanish Notaries (Consejo General del Notariado). It sets out the documents you will be asked to sign and how the notary verifies the deed before it is registered.

Fixed vs Variable Rate Mortgages in Spain

A non-resident mortgage in Spain is available in three main formats:

Fixed Rate

The interest rate is locked for the entire term. Rates have risen from the historic lows of 2020–2022 but remain attractive relative to many northern European markets. Fixed rate mortgages offer predictability — ideal if you want certainty on your monthly payments regardless of what happens to the Euribor.

Variable Rate

The interest rate fluctuates in line with the Euribor (the eurozone interbank reference rate), reviewed annually. Variable rates were extremely popular when Euribor was near zero but carry more risk in a higher-rate environment.

Mixed Rate

A hybrid product: fixed for the first 5–10 years, then switching to variable. Increasingly popular as buyers seek short-term security while preserving the option to benefit from future rate reductions.

To track current and historic rates before deciding between fixed and variable, consult the official Euribor rate history published by the European Money Markets Institute (EMMI), and review the Bank of Spain reference interest rates for context on the local market.

Which Banks Lend to Non-Residents?

The major Spanish banks — Santander, BBVA, CaixaBank, Sabadell, and Bankinter — all offer a non-resident mortgage in Spain. Each bank packages its non-resident mortgage in Spain differently in terms of pricing and criteria. Each has different criteria and pricing, so comparing across lenders is essential.

In addition, several international mortgage brokers specialise in Spanish property finance for British, Scandinavian, German, and other European buyers. Using a broker gives you access to multiple lenders simultaneously and can save significant time navigating the Spanish banking system.

Mortgage Costs to Budget For

Beyond the transaction taxes covered in our guide to taxes and costs when buying a new build in Spain, a mortgage adds further costs:

• Property valuation (tasación): €300–€600. Mandatory — the bank will not lend without an independent valuation of the property.
• Arrangement / opening fee: 0% to 1% of the loan amount. Many Spanish banks now offer zero-fee mortgages to attract buyers, so compare carefully.
• Home insurance: Compulsory under Spanish mortgage law. The bank will quote their own policy; you are legally entitled to use a third-party insurer instead.
• Life insurance: Not legally required but frequently requested by banks as a condition of the mortgage offer. You may again use your own insurer.

Currency Risk and Hedging

If your income is in a currency other than euros, you carry ongoing foreign exchange risk: as exchange rates move, your monthly repayment in your home currency fluctuates. Over a 20-year mortgage term, this can be material.

Options to manage this include:

• Maintaining a euro-denominated savings account to buffer exchange rate movements
• Using a currency forward contract to lock in a rate for an extended period
• Choosing a lender that also operates in your home currency (some international banks offer this)

How Long Is a Spanish Mortgage Term?

Spanish banks typically lend for terms of up to 30 years. For non-residents, the maximum term is often capped at 20–25 years, and the loan must usually be repaid before the borrower reaches age 75. The longer the term, the lower the monthly payment — but the more total interest you pay over the life of the loan.

Key Takeaways

• Non-residents can access Spanish mortgages but at lower LTVs — typically 60–70%
• For new builds, the formal mortgage offer is issued at completion, not reservation — get a pre-approval early
• Stage payments during construction come from your own funds; the mortgage only activates at the final signing
• Gather documents early: income proof, bank statements, and NIE are all required
• Compare fixed, variable, and mixed rate products from multiple lenders
• Budget for valuation, arrangement fee, and insurance on top of the loan

FAQ

Can I get a Spanish mortgage if I’m self-employed?

Yes, but lenders will typically require 2–3 years of certified accounts rather than payslips. Some banks also apply a haircut to self-employed income when calculating affordability. A mortgage broker experienced in non-resident lending can advise on which lenders are most accommodating of self-employed applicants.

Do I need a Spanish bank account to get a Spanish mortgage?

Effectively yes — Spanish banks require direct debit of mortgage payments from a Spanish account, and opening an account with the lending bank is standard practice as part of the mortgage process.

What happens if the developer goes bust before completion?

Under Spanish law, all stage payments for off-plan properties must be protected by a bank guarantee or insurance policy. If the developer fails to complete, you are entitled to a full refund of all payments made, plus interest. This is a key point to verify with your lawyer before signing any purchase contract — see our guide to how to vet a property developer in Spain.

Can I remortgage later if rates improve?

Yes — Spanish mortgages can be refinanced. Early repayment fees are regulated (capped at 2% in the first 10 years, 1.5% thereafter for fixed rate mortgages), so switching lenders or renegotiating terms is a realistic option if the rate environment changes significantly.

A non-resident mortgage in Spain unlocks the Costa del Sol property market for buyers who would otherwise need 100% cash. Ready to explore your options for a non-resident mortgage in Spain? Browse our current property listings, see our complete guide to new developments in Spain, or read our breakdown of the buying process for foreign buyers in Spain.

1. Why Off-Plan? The Case for Buying New

The primary appeal of off-plan and new build property is straightforward: you are buying at today’s price for a property that will be completed in 12–24 months. On the Costa del Sol, it is not unusual to see price increases of 10–20% between reservation and completion — meaning buyers who enter early can arrive at key handover already sitting on paper equity.

Beyond price appreciation, new builds offer modern open-plan layouts, A-rated energy efficiency, underfloor heating, high-spec kitchens, and smart-home infrastructure that older resale stock simply cannot match. Maintenance costs in the early years are also significantly lower — everything is under warranty and nothing is worn out.

2. Payment Structure: How the Money Flows

New build purchases in Spain follow a structured payment schedule that differs significantly from a standard resale transaction:

• Reservation deposit — typically €6,000–€10,000, paid to take the property off the market while legal checks are completed.
• Private purchase contract (10–30%) — signed within 2–4 weeks of reservation. Usually 10%, but can reach 30% depending on the developer. This payment is protected by bank guarantee.
• Construction stage payments — some developers add 1–2 further tranches tied to construction milestones (e.g. structure complete, roof complete).
• Completion payment — the remaining balance (typically 60–80%) is paid at notary on key handover, financed by mortgage or own funds.

This staged structure is cash-flow predictable and gives buyers time to arrange financing — but requires careful advance planning, particularly if a mortgage is involved.

3. NIE Number and Spanish Bank Account

Before you can sign anything legally binding in Spain, you need two things: an NIE (Número de Identificación de Extranjero) and a Spanish bank account.

The NIE is your Spanish tax identification number, required for all property transactions, mortgage applications, and utility contracts. It can be obtained at a Spanish consulate in your home country or at a police station in Spain — typically in 4–8 weeks. Your lawyer can apply on your behalf via power of attorney.

A Spanish bank account is required to pay taxes, set up utility direct debits, and in most cases to receive a Spanish mortgage. Opening one remotely is possible with several banks (Sabadell, Bankinter, and others serve non-residents actively). Budget 2–4 weeks. Start both processes immediately after paying your reservation deposit.

4. Spanish Mortgages for Non-Residents on New Builds

Non-residents can obtain Spanish mortgages, though on slightly different terms than residents. Key parameters:

• LTV (Loan-to-Value): Spanish banks typically lend up to 60–70% of the purchase price or appraisal value (whichever is lower) for non-residents, compared to 80% for residents.
• New build mortgage timing: Most banks will not formalise a non-resident mortgage until the property receives its Licencia de Primera Ocupación (First Occupation Licence — see below). Apply early, get an in-principle offer, and have the full amount confirmed before completion is scheduled.
• Stress test: Spanish banks apply a stress test based on your global income and existing liabilities. Monthly mortgage repayments typically cannot exceed 30–35% of net monthly income.
• Currency risk: If your income is in DKK, NOK, SEK, or GBP, factor in exchange rate movements — both in the stage payments and the monthly repayments.

5. Taxes on New Build Property in Spain

New build purchases are taxed differently from resales — and knowing the difference matters for your budget.

• IVA (VAT): 10% — applied to new build residential property. This replaces the ITP (Transfer Tax) paid on resale purchases.
• AJD (Stamp Duty / Actos Jurídicos Documentados): 1.2% — applied in Andalucía (Málaga, Marbella, Estepona, Nerja etc.). Other regions may differ slightly.
• Total transaction tax: ~11.2%

By comparison, resale properties are subject to ITP (Impuesto de Transmisiones Patrimoniales) at 7–10% in Andalucía, with no IVA. The new build tax burden is slightly higher — but often offset by the lower negotiated purchase price relative to comparable resale stock.

Additional costs to budget: notary fees (~0.5%), land registry (~0.3%), and legal fees (typically 1% + VAT). Total transaction costs on a new build in Andalucía are typically 13–14% on top of the purchase price.

6. Construction Milestones and Payment Stages

Reputable developers provide a clear construction timeline with milestone updates. Typical stages:

• Foundation and underground works
• Structure / frame complete
• Roof and weatherproof shell
• Interior fit-out and installations
• Landscaping and communal areas
• LFO application and approval
• Key handover

Construction timelines in Spain have extended in recent years due to supply chain pressure. Build in a buffer of 3–6 months beyond the stated completion date when planning your finances. Your lawyer’s contract should include provisions for delayed delivery.

7. The LFO — Why It Is Non-Negotiable

The Licencia de Primera Ocupación (LFO) — also called the First Occupation Licence or Cédula de Habitabilidad — is issued by the local town hall after verifying that the completed building matches the approved plans and meets all habitability standards.

You cannot legally live in the property, connect utilities, or formalise a mortgage without an LFO. Do not complete your purchase — regardless of developer pressure — until the LFO is issued and your lawyer has confirmed it. In rare cases developers attempt to hand over keys before the licence is granted; this is a significant legal and financial risk.

8. Legal Guarantees on New Builds

Spanish law mandates that all new build residential properties carry the following warranties:

• 1 year: Cosmetic defects (finishes, paintwork, tiling)
• 3 years: Installations and systems (plumbing, electrical, HVAC)
• 10 years: Structural defects (foundation, load-bearing walls, roof)

These guarantees are in addition to the bank guarantee (aval bancario) that covers your stage payments in the event the developer fails to deliver. Always verify the bank guarantee is in place before making any payment beyond the reservation deposit. Your lawyer handles this as standard.

9. The Snagging Process

Before signing at the notary and collecting your keys, you have the right to inspect the property with a professional snagging surveyor. A thorough snagging inspection typically identifies 40–150 items — everything from scratched skirting boards to poorly sealed windows or minor plumbing issues.

The developer is obligated to rectify snags before handover, or accept a written retention of funds held in escrow until repairs are completed. Never skip a professional snagging inspection — it is one of the most cost-effective investments you can make in the purchase process. Budget €300–€500 for a qualified independent surveyor.

10. Working With a Specialist Agent

Spain New Developments is operated by Plexo Properties, a licensed real estate agency on the Costa del Sol and a member of GIPE (Spain’s official property agents association). Plexo Properties specialises in helping Scandinavian and Northern European buyers find and purchase new build and off-plan properties in the region — speaking English, Danish, Norwegian, Dutch, and German.

Having a specialist on your side goes well beyond finding the right development. The team:

• Identifies vetted developments with strong developer track records and verified bank guarantees
• Connects you with independent English-speaking lawyers who specialise in new build conveyancing
• Guides you through NIE applications, bank account opening, and mortgage pre-approval
• Walks you through the snagging inspection and LFO verification process
• Remains your point of contact from first inquiry through to key handover — and beyond

Whether you are looking for a holiday home, a rental investment, or a permanent relocation, buying new build in Spain is a well-trodden path — when you have the right team around you.

Ready to start? Get in touch with the Plexo Properties team today and let us walk you through the current new build opportunities on the Costa del Sol.

While traditionally known as the “Garden of the Costa del Sol,” Estepona has officially overtaken its neighbors to become the undisputed leader of new construction. But why is it outpacing the rest of the coast, and which town is following close behind?

Estepona has nearly double the new developments of other major municipalities on the Costa del Sol. This isn’t by accident; it’s the result of a decade-long strategic transformation.

1. The “Marbella Alternative” with Better Value

Marbella has reached a “ceiling” in terms of available land and entry-level pricing. In 2026, buyers are looking for the same luxury—sleek infinity pools, smart-home tech, and floor-to-ceiling sea views—but at a price point that still offers room for capital appreciation. Estepona provides exactly that, with modern apartments often priced 20–30% lower than comparable units in Marbella.

2. A “Developer-Friendly” Town Hall

While some municipalities are notorious for red-tape delays, Estepona’s Town Hall has been remarkably efficient at granting building licenses. The local government has successfully reduced the town’s debt to zero, allowing them to reinvest in infrastructure and even slash property taxes (IBI), making it a “fiscal haven” for investors.

3. Urban Transformation

Estepona has undergone a massive “face-lift.” The pedestrianization of the town center (over 130 streets), the new Bulevar Parque Central, and the nearly completed Coastal Path (Senda Litoral) have made it the most walkable and sustainable town on the coast.

The Rankings: Who is Leading the Charge?

In terms of the sheer volume of cranes on the skyline and units currently under construction for 2026 delivery, the leaderboard looks like this:

The Runner Up: Why Mijas is Taking Second Place

If Estepona is the king of 2026, Mijas (and specifically La Cala de Mijas) is the crown prince.

Mijas is currently seeing a massive surge in new developments because it bridges the gap between the luxury of Marbella and the convenience of Fuengirola. The “Mijas Golf Valley” and the stretches of land in La Cala offer large-scale plots that allow for “resort-style” complexes—huge gated communities with gyms, co-working spaces, and lagoons—that are harder to build in more congested areas.

Top 3 Trends for 2026 Developments

• Eco-Luxury (NZEB): Almost all 2026 deliveries in Estepona and Mijas are “Nearly Zero Energy Buildings,” featuring aerothermal heating and solar integration.
• The “New Golden Mile”: This stretch between San Pedro and Estepona is where the most prestigious “branded residences” (partnerships with fashion or car brands) are now located.
• Wellness Amenities: Standard pools are no longer enough. 2026 projects feature saltwater lagoons, indoor heated spas, and dedicated yoga decks.

Is it too late to buy?

Actually, 2026 is seen as a “stabilization year.” While prices have risen, the demand from international buyers (specifically from North America and Northern Europe) remains at record highs. Buying off-plan in Estepona or Mijas today still offers the best entry point before these projects are completed and prices jump again.