Buying property in Spain as a foreigner can be exciting, but financing can feel like a maze. Spanish banks lend to non-residents, but requirements are stricter than for locals. That’s why mortgage pre-approval is essential before you start property hunting.

Below, I’ll explain everything you need to know, using a €400,000 property example throughout so you can clearly see how the numbers work.

✅ How Mortgage Pre-Approval Works in Spain

Mortgage pre-approval is essentially the bank confirming how much they’re willing to lend you before you sign an “arras” contract (deposit agreement).

Steps:

1. Initial application → Provide documents (passport, proof of income, tax returns, bank statements).

2. Bank assessment → They’ll check affordability and loan-to-value (LTV).

3. Pre-approval issued → Usually valid for 3–6 months.

4. Final approval → After property valuation and legal checks.

💡 Example: On a €400,000 flat in Barcelona, most foreigners can expect 65–70% LTV, meaning:

• Loan: €260,000–€280,000

• Down payment: €120,000–€140,000 + taxes/fees (approx. 12%).

✅ Documents You’ll Need

Banks are strict with paperwork. Expect to provide:

• Passport & NIE (foreigner ID in Spain).

• Proof of income (payslips or tax returns for the last 2 years).

• Bank statements (3–6 months).

• Credit report (Experian, Equifax, or similar from your country).

• Proof of other assets or debts.

✅ Common Questions Banks Will Ask

Prepare to answer:

• What is your main source of income?

• Do you already own property abroad?

• Is this property for personal use or investment?

• Do you have existing debts or loans?

• Can you show stable income over the last 2 years?

Banks are risk-averse with foreigners, so clear, well-documented answers make a huge difference.

✅ How Age Affects Approval

Spanish banks typically require mortgages to be fully paid off by age 75. This impacts loan length:

• Buyer aged 35 → Up to 30–35 year mortgage possible.

• Buyer aged 55 → Maximum term ~20 years.

• Buyer aged 63 → May only get 10–12 years.

💡 Example: On a €400,000 property, a 63-year-old Canadian buyer might only secure a 12-year term, raising the monthly payments compared to a 35-year-old with a 30-year mortgage.

✅ Typical Mortgage Terms (Fixed vs. Variable)

• Loan-to-Value (LTV):

  • Non-EU buyers → 60–65% typical

  • EU buyers → up to 70%

• Interest rates (2025 averages):

  • Fixed rate → 3.0–3.5%

  • Variable → Euribor + 1.0–1.5% (starts lower, can rise)

• Mortgage length:

  • Non-residents: up to 25–30 years (if age allows)

  • Retirees: often capped at 10–15 years

✅ How Long the Process Takes

• Pre-approval: 1–3 weeks

• Property valuation: 1 week

• Final approval & signing: 6–8 weeks total

That means if you see your dream flat in Barcelona, you’ll want your pre-approval ready before making offers.

✅ Pro Tips to Boost Your Approval Chances

• Open a Spanish bank account early.

• Keep your debt-to-income ratio under 35%.

• Provide full documentation upfront — missing paperwork delays approvals.

• Consider adding a life or home insurance policy with the bank (sometimes improves chances).

• Work with a local mortgage broker who specializes in foreigners.