Until just a few years ago, we advised all our clients against borrowing money for a home from a Spanish bank. The economic situation was too uncertain and at one point there was an imminent risk that interest rates would skyrocket. The entire Spanish banking system, in terms of conditions and valuation of homes, etc., was also poorly regulated. Now, however, the Spanish authorities, in collaboration with the major Spanish banks, have streamlined the entire banking system. Now it is advantageous and safe to both borrow money from, and buy a home, directly from, a Spanish bank. However, we recommend that you apply via a service that compares several different banks and conditions in a single, simple online application. More about it and link to the service below.

Home Loan in Spain – smoother with the right partner

Getting home loan in Spain can be a complex process, especially as a foreign buyer. That's why we partner with Habeno – an international loan broker that works with several of the largest Spanish banks. Instead of you contacting different banks yourself, jHabeno compares interest rates and terms for you and identifies the best options based on your situationYou get a clear overview and can make decisions with full control.

How Spanish mortgages work in practice

The process is simple and digital. You can start with a free preliminary assessment och get an estimate of how much you can borrow – often within 24 hours. Habeno then helps you gather and submit all the documents, communicates with banks, lawyers and notaries, and guides you all the way to closing.

Our customers especially appreciate that everything is gathered in one place and that you have a contact person who keeps the whole process together. Plus, you only pay if you choose to proceed with a loan offer.

Apply for a Spanish home loan here.

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Update on the interest rate situation in Spain

After the first interest rate cut in the fall of 2024, the European Central Bank continued to gradually lower the key interest rate in 2025 as inflation fell back within the target range.
The ECB's deposit rate is now around 2.40–2.75 percent, and the market expects further cautious reductions in 2026 – although at a slower pace than previously expected.

For Spanish home loan , the development means that interest rates have stabilized at a lower level than the peaks in 2023–2024, but that the variation between banks is large depending on: loan term, loan-to-value ratio

the customer's creditworthiness and whether the loan is variable (common in Spain) or fixede.g.

Most banks today offer interest rates in the range 2.8–3.5 percent for customers with good creditworthiness and at least a 30% down payment , which is significantly lower than during the interest rate peak but still above pre-pandemic levels.

Despite interest rates rising sharply between 2022 and 2024 – as a result of high inflation and the ECB’s rapid tightening – many buyers now feel that interest rates are once again manageable and relatively favorableCompetition between banks has also intensified, which has squeezed margins and made it possible to negotiate better terms than before.

If you are considering taking out a Spanish bank loan, it is important to compare different banks and loan offers to find the best option for you.

The Spanish Banking Association came out in March 2023 and announced that “we are among the best in Europe, maybe the whole world”. As is well known, it has been difficult to get a loan in Spain after the crisis that began in 2007. You have been allowed to take a maximum of 70% loan (60% in practice as you are not allowed to borrow for taxes etc.) and the repayment period is shorter than in many other countries. This restrictive behavior has paid off. Spain's inflation is not as high as in the rest of the EU and the banks do not waver. This will also have a positive impact on its housing market (or rather less negative), although for a while there will be great caution, which will slow down various projects in the housing market.

Regarding lower interest rates in Spain going forward:
In Spain, they have not been as aggressive in their approach as, for example, the Swedish Riksbank has been when it comes to interest rate increases.

Interest rates in the Eurozone are expected to be lowered further in 2026.

Please note that we only forward and help process applications to our clients (i.e. our brokers also handle your home purchase). A home valuation is valid for up to 6 months. As for the bank we work with for our clients, they now also take not paid for the valuation (However, many banks still charge from €400 and up). Please note that The valuation of the home determines how much you can get in loan.

We have started working with a new large bank in Spain since spring 2023. They offer a lot, among other things faster handling time. Our clients get quick answers on whether they will get a loan or not. They send out inquiries to several different banks and take into account the total cost of a loan.

• When CaixaBank, just before the pandemic, started offering a 20-year fixed rate of 2.10% (nominal rate, assuming the maximum discount is used or reached), this was the lowest Spanish rate in 30 years. A record number of Spaniards thus transferred their loans to CaixaBank. Since then, other banks have also lowered the rate. Then they raised it again when the ECB started raising rates.
• We work closely with multilingual bank directors in the organization. If you send your application through us, you will receive no extra fees. The advantage of going through us is that you do not have to translate your legal and financial documents into Spanish via an authorized translator.
• The bank now also approves the mortgage before the home has been valued.
• The bank sends an independent appraiser to value the home only after signing the reservation contract, but it is also possible to order (in which case you pay the cost yourself) a valuation on your own.
• They will inform you about the total cost of both the loan and the purchase of the home.
• NOTE! As we are currently receiving a large number of applications, we have decided that we must prioritize those who also use our brokerage services. 1. Write to info@spanskafastigheter.se if you want to apply for a loan. 2. Also indicate what type of property you are looking for and where in Spain you want to buy 3. and how much equity you have. The rest of the documents will be sent to the bank at a later date. The application costs nothing (it is only when you are so far into the loan process of a specific property purchase that it must be valued by an independent third party, according to Spanish law, that a fee is added. The valuation determines how much you can borrow, but it does not necessarily reflect the actual market value).
• Of course, we also provide tips and advice on which areas are best for investments for rental and value increase , where you should look for housing [see apartments in this exclusive area, Malaga, where prices have not yet increased as much as other areas) if you are looking for the cheapest holiday home possible, commercial properties, etc.

Swedish banks rarely agree to you having a Spanish home as collateral for a Swedish loan. The reverse situation naturally prevails in Spain.

In this article we will go through what applies to a loan from a Spanish bank, but we will start with what information they want from you.

How to get a loan promise from a Spanish bank for a home purchase

Submitting these documents before your visit will speed up the process and you can more or less get a loan promise before coming down to Spain. Loan promises do not otherwise exist in Spain, but we think it is important that our clients know approximately what price range they can move in even before they come down to look at homes:

Documents requested for loans in Spanish banks (for Swedish customers)

• NOTE! It is the bank that should have these documents. Not us. We only help you establish contact with the right person.
• The tax return from last tax year, the full tax information so that the total gross income is shown, and also the final tax, so they can see the net income. Read more about new tax laws in Spain.
• The last 2-3 salary slips (or pension payments) and employer certificate (indicating what type of employment contract you have)
• Copy on ID document.
• UC: credit information about debts in Sweden and any remarks, a lot of valuable information has been collected for the banks at the Swedish Information Centre, which, among other things, states the assessed value of properties, the declarations of recent years, etc. Very good as a basis. Visit: www.uc.se to make a statement about yourself. They often send a PDF within 24 hours.
• Bank funds: an overview of your account balances, service account, savings account, savings funds, share portfolios, etc. This is especially important for those who are requesting a large loan, but who, for example, have a lot of savings funds, etc. that you do not want to use. Normally, copies of bank statements from the last three months are sufficient.
• Liabilities: information about the amount of unpaid debts in Sweden and how much you pay in interest and repayments per month. One of the most important aspects in whether you are granted the loan or not is your debt ratioThe bank will only allow your total debt to amount to a certain percentage of your income (usually this calculation is based on your net income). The percentage varies from case to case but normally, for permanent residence in Spain, a debt ratio of 30-35% is accepted (up to 40% in special cases). For foreign citizens The accepted debt ratio is approximately 25-30%.
• Residence: the banks want to know whether the customer has a rental property or owns their own home (and if so, a valuation of the home), the cost of the rent and any debts, etc.

Are you self-employed:

• Then the banks want your tax return and accounting (profit and loss statement and balance sheet) so they can see the basis for your income. Preferably the last two years' accounting and tax returns.
• In general, Spanish banks, just like in Sweden, want a broad base so that they can get a picture of your net income (after tax and fixed costs in your home country) and thereby be able to determine your payment capacity for a loan in Spain.
• There is no problem with borrowing money from a Spanish bank with a Swedish company. It is very common for Swedish AB companies (but also other forms of companies) to borrow in Spain. However, you can get a maximum of 50 percent in mortgage loans if you take out the loan in the company.
• In addition, a shorter payment plan normally applies to companies. This applies to both Swedish and Spanish companies.

Good to know for those who want to borrow from a Spanish bank using spanishproperties.se

NOTE: As we do not receive commission, we only help our own clients with bank contacts. We work with several Spanish banks (all of which have Swedish-speaking bank directors and other Swedish-speaking staff, but please note that some documents may be in English. We are happy to help if you have questions or concerns about certain terms.) This mainly concerns the major banks CaixaBank, Cajamar and Banco Sabadell. We only work with employees at management level. If you want to apply for a larger loan for an investment, the application procedure is a little different. In that case, we arrange a meeting with one of the senior managers in Barcelona.

A major advantage of the banks we have chosen to collaborate with is that they has no requirements on how little you borrowOther Spanish alternatives often have a requirement that you have to borrow x amount of the home's total.

We compare banks' different terms and conditions, and provide opinions on which bank is most suitable in your particular case. We mediate and provide advice in your loan process, which is a free service we offer to customers who buy their home through us, or one of our partners, or bank repossession .

Are you looking for new development ? Banks have become increasingly restrictive in financing projects as they believe that too much is being built in relation to demand. The uncertainty factor is therefore high according to their risk departments. Instead, banks want to see safer types of project models, such as housing cooperative . These push prices down by up to 35% (as they remove the promoter and its sky-high margins from the equation) and are better regulated under Spanish law. The security is therefore significantly higher. Read more about Spanish housing cooperative here.

Read our great article about investing in property in Spain.

Overview: the most attractive projects of new houses and apartments on Costa del Sol and Costa Tropical.

How much can you borrow? 

Normally you can borrow 60-70 percent of the purchase price (some bank repossession up to 90%, but it is unusual to be allowed to borrow more than 70% even when buying these). Please note that you not allowed to borrow for taxes and feesYou will therefore need to pay approximately 40 percent in equity capital of the total amount (For example, with a 70% loan, you should have about 30% equity.) How much you can borrow depends largely on the type of home you buy and where it is located. If you buy an investment home in a popular area with a long history of (or good conditions for) renting, this gives you a greater chance of a higher amount than if you buy a renovation project in the countryside.

The valuation of your Spanish property is done by an independent third party. Before the crisis, banks had their own valuation staff. This is no longer allowed because it ended up with banks attracting customers with high loans and thus inflating the bubble. If the home is valued higher than the sales the price (or vice versa), it is the minimum amount you can borrowFor example, if the home is valued at 1.2 million SEK, but you buy it for 1 million, you can borrow 60-90% of 1 million.

Note: Some foreign banks (such as Danish and Swedish banks) currently have a minimum requirement of borrowing at least 100,000 Euros to be granted a loan. This requirement has  not  the Spanish banks we recommend and collaborate with.

How high is the interest rate on a loan in Spain?

[Note that the lowest interest rate is usually obtained when you tie the loan to 20-25 years] There is an individual interest rate, which means that your interest rate depends on a number of different factors, such as where and what you buy, your income, etc. (your risk profile). CaixaBank's average interest rate at the time of writing: Euribor + 2.2. [ The Euribor value can be found here]

The average interest rate for a loan in Spain fell from 4.21% to 3.29% from 2015-2016 and continued to fall for several years. However, it increased slightly in connection with interest rate increases to curb inflation in the wake of the energy crisis 22. It has since fallen sharply in connection with tariff concerns in 2025.

The terms of the mortgage loan are subject to La Caixa's risk criteria. Loan options:

• Mortgage. With the Préstamo Hipotecario Bonificado (the interest-subsidized mortgage loan), you provide a lump sum of the entire capital at the beginning of the deal and this is always done with the home as collateral.
• With a mixed subsidized interest rate. In the first few years, you can benefit from fixed rates with an attractive interest rate without having to give up a variable interest rate after a few years.
• With a fixed subsidized interest rate. The security of having fixed quotas with attractive interest rates throughout the loan term.
• With variable interest rate. 

If you want to know in advance (if you apply for a loan promise) how high an interest rate you can expect, the bank needs answers to the following questions:

• The Price of the property you are going to buy (so we need to know in advance which property you intend to buy).
• Net income per year.
• Do you have other loans, if so, how much do you pay per month?
• Do you own real estate?
• Do you have home loan in Sweden? How much do you pay per month on the loan?
• Do you have properties that you rent out? How much do these bring in per month?
• What is your occupation? How long have you been employed at your current job?
• Note: Keep in mind that it is difficult to get a loan from a Spanish bank for rural housing. If you are looking financing for a rural listing please contact your Swedish bank first and foremost.

When must the loan be paid off in terms of age limit?

Some banks have a limit of 67 years for a mortgage loan, others are a little more generous in that regard. Most have now changed the age limit to 75 years. Soon enough, all banks will be at that age limit for repayment.

How long is the repayment period on a Spanish home loan? The repayment period is usually 20 years for a foreigner.

Spanish loans (as well as RUT and ROT deductions) are deductible in Sweden.

Service package for those buying a home in Spain

CaixaBank (popularly known as "La Caixa"), or HolaBank, which it recently changed its name to in terms of offices aimed at the international market, offers various types of services that are tailored to those who have just bought a home in Spain.

This concerns, among other things:

The CaixaBank Club package with mortgages at the lowest possible interest rates, credit cards, car and home insurance and alarm systems for the home. Call center open 24 hours a day. Legal guidance, as well as direct contact with carpenters and plumbers.

CaixaBank also offers a concept they call “Living Solutions Plan” which gives you access to help finding domestic help (for full-time employment, or for example cleaning services), help with booking appointments with Swedish-speaking doctor, help with everything Paperwork involved in buying a Spanish property (as well as payment of annual taxes, etc.). Read answers to frequently asked questions about buying a home in Spain.

Links to our newsletters with the best investments in different parts of Costa del Sol:

• Newsletter Nerja
• Newsletter Marbella and the rest of the western Costa del Sol (Mijas, Fuengirola, Estepona etc)

Are you curious about your options for taking out a loan from a Spanish bank? Send your thoughts to info@spanskafastigheter.se and we will get back to you as soon as we can.

We are only able to help those who also indicate, as previously mentioned: 1. What type of property you are looking for. 2. Where in Spain you are looking. 3. How much equity you have. 4. Where in the process you are (if you are on your way down to look at the property, if you are about to bid on a specific property, or if you have planned to travel down later).