WORTH KNOWING

Foreign individuals (non-residents) can get a mortgage in Spain.

Here's what to expect:

Maximum Loan-to-Value (LTV)

Typically 60%–70% of the property's purchase price or appraised value (compared to up to 80% for residents). This means you usually need at least 30%–40% down payment.

Interest Rates

Usually slightly higher than for residents, often between 3%–6%, depending on the bank and your financial profile.

Term

Usually up to 20–25 years.

Requirements

• Passport or EU/EEA ID
• NIE (Número de Identificación de Extranjero — foreigner ID number)
• Proof of income and assets (e.g., bank statements, employment contract, tax returns)
• Credit history check (sometimes in your home country)
• Spanish bank account

💡 Some banks require you to also have Spanish residency, but many allow mortgages for non-residents if you meet the criteria.

Foreign companies can apply for a mortgage in Spain, but it is more complicated:

Purpose of Purchase

• If it's for commercial or investment purposes (e.g., renting property), a company structure is more common.
• If it's for private use, banks prefer individuals.

Loan Terms

• Usually 50%–60% LTV, sometimes less.
• Interest rates may be higher.
• Shorter loan terms (often 15–20 years).

Requirements

• Company registration documents (translated into Spanish)
• Proof of economic activity
• Financial statements
• Spanish tax identification for the company
• Sometimes a Spanish-based partner or representative

Costs

• Additional legal and notary costs
• Company maintenance costs
• Annual corporate tax obligations

• Annual IRNR (Non-Resident Income Tax) declarations.
• Guidance for residency vs non-residency tax obligations.
• Wealth and Inheritance Tax planning.
• Support with foreign income and double taxation treaties.

If you are non-residence in Spain, you need to pay non-residence tax yearly. We will support you to find the smoothest and the most economical way. Pay your non-residence tax simple online in 5 min and avoid high legal fees. You can also use this link below to declare the Imputed Income, Rental Income, Capital gains. Click here

• Monthly and quarterly IVA (VAT) filings.
• IRPF and Corporate Tax returns.
• Payroll, employee contributions, and bookkeeping management.
• Strategic tax optimization for business owners.

• Rental income tax declarations (short- or long-term).
• Deductible expenses and fiscal representation.
• Non-resident landlord services — we handle everything from tenant contracts to reporting.

You must declare rental income and pay tax on it.

If you are a tax resident in Spain:

• Rental income is included in your Personal Income Tax (IRPF).
• Tax rates are progressive (19%–47%, depending on total income).
• You can deduct allowable expenses such as:
  • Mortgage interest
  • Repairs and maintenance
  • Property management fees
  • Utilities (if paid by you)
  • Local taxes related to the property

If you are a non-resident:

• Rental income is taxed at a flat rate of 24% for non-EU residents (19% for EU/EEA residents).
• You cannot deduct as many expenses as residents, except for mortgage interest (and only if you are from the EU/EEA).

Regardless of residency, property owners in Spain must pay:

IBI (Impuesto sobre Bienes Inmuebles)

• Annual municipal property tax based on cadastral value.
• Usually around 0.4%–1.1% of cadastral value.

Wealth Tax (Impuesto sobre el Patrimonio)

• Applies if your net assets exceed a certain threshold (varies by region, usually ~€700,000 excluding primary residence).
• Tax rates: 0.2%–2.5%.

Plusvalía Municipal (Capital Gains on Sale)

• Paid when you sell the property; calculated based on increase in cadastral value.

• If you rent out your property short-term for tourism, there may be additional VAT (IVA) or special tourism regulations.
• If you rent long-term, normal rental income rules apply (no VAT).