Is borrowing in Spain possible for Belgians and Dutch people? Yes, taking out a Spanish mortgage is a common method of financing the purchase of property. For non-residents (foreigners not living in Spain), Spanish banks typically finance 60% to 70% of the purchase value or appraisal value. You should be mindful of a strict income check whereby your total charges should not exceed 30% to 40% of your net income.
1. How much can you borrow (Loan-to-Value)?
The maximum borrowing capacity for non-residents differs from that for Spanish residents. Whereas residents can borrow up to 80%, banks limit the risk for foreigners.
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Maximum quota: 60% to 70% of home value.
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The reference value: The bank is looking at the lowest value between the purchase price and the assessed value (tasación).
Expert Example:
You buy a property for €400,000, but the official appraisal (valuation) is only €350,000. The bank finances 70% from the lowest value (€350,000).
Maximum loan: €245,000.
Your own contribution: €155,000 + purchase cost (about 12-14%).
Note on new construction: For new construction projects, banks usually only finance the balance at the notarial deed (completion). All interim instalments and advances to the promoter should be self-financing with own resources.
2. Financial Terms & Repayment capacity
Spanish banks are strict in their risk analysis. Your case hinges on your repayment capacity and age.
The 40% rule
Your total monthly loan charges (including your home loan in Belgium/Netherlands, car loans and the new Spanish mortgage) may not exceed 40% of your net monthly income amounts. If this percentage is exceeded, a guarantor (family member or own company) can sometimes help.
Duration and Age
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Maximum duration: Standard 15 to 20 years for non-residents (up to 30 years for residents).
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Age limit: The mortgage must be fully repaid by the time you 75 years becomes.
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Are you 60 years old? Then you can borrow for a maximum term of 15 years. This increases your monthly repayment and weighs more heavily on the 40% rule.
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Documentation (KYC)
Prepare for thorough screening. The bank requires at least:
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KYC (Know Your Customer) form.
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Personal income tax assessment notices (last 3 years).
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Pay slips or proof of periodic income (last 3 months).
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Current account extracts (last 6-12 months) and proof of indebtedness (CKP).
3. Interest, charges and early repayment
Since the new 2019 mortgage law, the costs for the borrower have dropped significantly and the conditions for early repayment have become more transparent.
Interest rates: Fixed or Variable?
Interest consists of the Euribor (base rate) plus a fixed margin from the bank. This margin varies based on your profile and the purchase of ancillary products (such as fire or debt balance insurance).
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Variable: Revised every six months. Riskier with rising Euribor.
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Fixed: Certainty about your monthly cost, often slightly higher entry rate.
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Mixed: For example, 10 years fixed, then variable.
One-off and recurring costs
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For the bench: Since 2019, the bank pays the notary and registration fees of the mortgage deed.
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For you: You pay the estimation costs (valuation) and any opening costs/administration fees (reckon at least €1,000).
Find the cost of a mortgage in Spain here.
Severance payment (Penalty interest)
Do you want to repay the loan early? The law imposes strict caps:
| Type of interest | First years | After period X |
| Fixed rate | Max. 2% (first 10 years) | Max. 1.5% (from year 11) |
| Variable rate | Max. 0.25% (first 3 years) | Max 0.15% (from year 5) |
4. Calculation example: Short vs. Long Duration
Is it smart to keep the term as short as possible? Not always. From investment point of view (cash flow when leasing), a longer term is often more interesting, despite the higher total interest cost.
Scenario: You borrow €72,000 (Interest rate: 2.75%).
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Option A (20 years):
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Monthly charge: € 390
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Total interest after 5 years: €9,486 (if sold after 5 years).
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Option B (10 years):
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Monthly charge: € 687
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Total interest after 5 years: €8,652 (if sold after 5 years).
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Conclusion: At 20 years, you pay more interest in total, but your monthly obligation is almost €300 lower. This gives more financial breathing space and makes the property easier to 'self-finance' when renting out.
5. The FEIN document
After approval of your file, you will receive the FEIN (Ficha Europea de Información Normalizada). This is the bank's binding offer.
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Validity: Minimum 10 days (14 in Catalonia), but often valid for up to 3 months.
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Action: You need to sign the purchase and mortgage deed at the notary within this period.
Frequently asked questions (FAQ)
Can I borrow 100% of the purchase price in Spain? No, Spanish banks usually finance a maximum of 60% to 70% of the lowest value (valuation or purchase price) for non-residents. You must finance the buyer's fees and the remaining 30-40% with your own funds.
What are the costs of taking out a Spanish mortgage? Since the 2019 law change, most costs (notary, registration, stamp duty) are borne by the bank. As a customer, you only pay the valuation fee (approx. €300 - €600) and any opening costs of the bank. In practice, however, banks charge different administration fees.
Is life insurance compulsory? Although not always strictly required by law, almost all Spanish banks make taking out debt balance insurance and fire insurance a condition for getting a mortgage (or a more favourable interest rate).
Up to what age can I borrow in Spain? Most banks apply an age limit of 75 years. This means that the mortgage must be fully repaid before the oldest borrower reaches this age.
About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.
Update December 2025
