Mortgages in Spain Extensive Guide

A comprehensive analysis of Non-Resident property mortgages in Spain

Teba Siles | · 4 min. read

This report provides a detailed analysis of non-resident property purchases and mortgage activities in Spain, based on data from various reliable sources, including El Colegio de los Registradores de la Propiedad Española and Idealista. The report is divided into four parts: an overview of non-resident property purchases in 2023, a comparison with the 1st trimester of 2024, mortgage trends among non-residents, and requirements for Americans seeking mortgages in Spain.

Non-Resident Property Purchases in Spain for 2023

In 2023, non-residents purchased a record 15% of properties in Spain, marking a significant milestone in the property market. The distribution of these purchases across various regions was as follows:

  • Balearic Islands: 31.71%
  • Comunidad Valenciana: 29.27%
  • Canary Islands: 28.41%
  • Murcia: 24.11%
  • Cataluña: 15.88%
  • Andalucía: 14.98%

Regarding nationalities, the main non-resident buyers were the following:

  • British: 9.55%
  • German: 7.26%
  • French: 6.64%
  • US Citizens: 1.58%

Mortgages Among Non-Resident Buyers

From the 15% of properties purchased by non-residents, 8.78% were acquired with a mortgage. Within this group, British buyers represented the highest percentage of mortgaged purchases.

Non-Resident Property Purchases in Spain in the 1st Trimester of 2024

In the first trimester of 2024, non-residents purchased a 14.21% of the total property transactions in Spain. The regional distribution of these purchases was:

  • Balearic Islands: 31.72%
  • Comunidad Valenciana: 28.79%
  • Canary Islands: 26.01%
  • Murcia: 23.36%
  • Cataluña: 15.61%
  • Andalucía: 13.83%

The nationalities of these buyers were primarily:

  • British: 9.13%
  • German: 6.77%
  • US Citizens: 1.54%

Mortgages Among Non-Resident Buyers

Among these non-resident purchases, 8.71% were financed with a mortgage, with British buyers again having the highest mortgage usage at 9.68%.

Non-Resident Mortgages in Spain for 2023

Overview of Non-Resident Mortgage Demand

In 2023, non-residents showed significant interest in the Spanish mortgage market. The demand for mortgages by non-residents in Spain showed a diverse range of nationalities:

  • British: 15.5%
  • German: 14.2%
  • Swiss: 9%
  • American: 8.9%

Swiss and American non-residents had the highest average household incomes, with the Americans averaging €9,527 and the Swiss averaging €9,097. The average age of non-resident buyers varied slightly, with Europeans averaging 40 years old and Americans slightly older at 42 years old.

The distribution of property purchases financed by mortgages among non-residents was as follows:

  • Comunidad Valenciana: 28.2%
  • Andalucía: 20.7%
  • Cataluña: 14.7%

These numbers show the solid interest of non-residents in the Spanish real estate market, with significant demand from British, German, Swiss, and American buyers. The higher incomes of American and Swiss buyers, along with substantial mortgage amounts, underscore the financial capability and commitment of these international investors. The Comunidad Valenciana, Andalucía, and Cataluña were the most popular regions for non-residents purchasing properties with a mortgage.

Mortgages for Americans Purchasing a Property in Spain

For Americans looking to maximize their return on investment by purchasing a property in Spain, particularly in Marbella, these are some of the main points to consider, which vary depending on the lender:

  • Loan-to-Value (LTV): American buyers can borrow up to a maximum of 70% of the purchase price or the valuation (the lower of the two values). 
  • Loan Term: Up to a maximum of 25 years.
  • Maximum Borrower Age: In general terms, the maximum age is up to 80 years old.
  • Additional Purchase Costs: It is recommended estimating an additional 6% to 12% of the purchase price to cover the fees and taxes related to the purchase transaction (notary, registry, administration and taxes).

The mortgage process for Americans is streamlined with the help of Lionsgate Capital, the leading mortgage brokers in Spain. They specialize in securing the best mortgage terms and interest rates for high-net-worth and ultra-high-net-worth individuals buying property in Spain. Partnering with The Agency Marbella, Lionsgate Capital ensures a seamless experience, guiding each and every client through the entire process, saving each of them time, money, and effort.

The Spanish real estate market continues to attract significant interest from non-residents, with substantial investments in properties and a consistent demand for mortgages. In order to optimize their real estate investment, non-residents who mortgage in Spain can benefit from tax deductions, maintain liquidity and diversify their portfolio to invest in other areas with higher returns. The data from 2023 and early 2024 highlights the strong presence of British, German and American buyers. The attractive mortgage terms available, coupled with the professional guidance from a professional brokerage firm such as Lionsgate Capital, make Spain and Marbella an appealing destination for international property investors.