Spanish Mortgage rates Archives - How to buy in Spain https://howtobuyinspain.com/en/category/buy-property-in-spain/spanish-mortgage-rates/ The Expert Guide to Buying in Spain Wed, 11 Jun 2025 17:01:22 +0000 en-GB hourly 1 https://wordpress.org/?v=6.2.6 https://howtobuyinspain.com/wp-content/uploads/2017/02/cropped-favicon-32x32.png Spanish Mortgage rates Archives - How to buy in Spain https://howtobuyinspain.com/en/category/buy-property-in-spain/spanish-mortgage-rates/ 32 32 Your Ultimate 2025 Guide to Obtaining a Spanish NIE Number – NIE Spain https://howtobuyinspain.com/en/buy-property-in-spain/nie-number-spain/spanish-nie-number/ https://howtobuyinspain.com/en/buy-property-in-spain/nie-number-spain/spanish-nie-number/#respond Wed, 11 Jun 2025 05:43:00 +0000 https://howtobuyinspain.com/?p=12701 Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten   Your ultimate guide to your Spanish NIE number   What is the Spanish NIE? NIE is the abbreviation for “Número de Identificación de Extranjero”,

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Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten

 

Your ultimate guide to your Spanish NIE number

 

    1. What is the Spanish NIE?

      NIE is the abbreviation for “Número de Identificación de Extranjero”, it is a tax ID for foreigners in Spain. You shouldn’t compare it to the Spanish Golden Visa as the Golden Visa allows foreigners to get a residency if they invest in Spain.

      Check our one-minute videos on that:

      And here is our first Youtube video we did on the same content, you can watch both but the content is the same.

       

    2. Why do I need the Spanish NIE number?

      • Open a bank account
      • Buy a property or insure it
      • Get a mortgage
      • Sign an internet or a phone contract
      • Open a utility contract
      • Buy a car or get a driving license
      • Sign a work contract and get Social security
      • Setup a company
      • … and pay taxes

       

    3. What do I need to get my Spanish NIE number as a European citizen?

      Step 1: Fill in THREE forms in BLOCK CAPITALS “EX – 15 Solicitud de Numero de Identidad de Extranjero NIE y Cert“, per person requiring the NIE. You have to fill it in this Spanish version! But here is a very useful Version where you will find everything translated into English with precise instructions.

      Step 2: Fill in ONE Form 790 in BLOCK CAPITALS, here is the electronic version, and here is the Pdf version of the form 790 pre-filled, per person requiring the NIE. This is the document regarding payment instructions to get the NIE.

      Step 3: Make a copy of all the pages of your Passport

      Step 4: Two recent Passport pictures

      Step 5: Document proving why you need a Spanish NIE number, which differs depending on your intentions. In most cases it is one of those:

      -going to buy a property in Spain

      -job contract from the Spanish company

      -self-employed: a company ownership certificate

      -students: an acceptance letter from the school

      Step 6: Your future address in Spain and proof of health insurance if you are going to live in Spain

      Step 7: NIE application fee, less than 15€ (you could need to pay it to the nearest bank in cash)

      All those documents must be brought to the nearest Spanish Embassy or Consulate after taking an appointment or the General police office in Spain, read further “How do I get my Spanish NIE number?”

      Step 8: For a non-European citizen, proof of legal entry into Spain, like a landing ticket.

       

    4. How do I get my Spanish NIE number?

      There are two easy ways to get your Spanish NIE: either in your home country at the Spanish consulate or embassy, or in Spain. You can get it and do all the steps alone if you are not in a hurry or you can get it done by a third party if you are busy or in a hurry.

      At the Spanish consulate in your own country

      We found the most demanded Spanish embassies and consulates here below but if you don’t find your country, here is the main site to find any Spanish embassy or consulate in the world.

      Here are the addresses of some Spanish consulates and their Instructions for the NIE:

       

      In Spain, at the Directorate-General offices of the Police,

      There are some conditions to get it:

      the foreigner’s identity number, NIE, must be granted by the Directorate General of the Police if those foreigners are not in Spain in an irregular situation.

      Foreign nationals who are related to Spain due to their economic, professional, or social interests may apply personally for the NIE from the Directorate General of the Police, either directly or through the Foreign Nationals’ Offices or Police Stations. In the event that the foreigner is not in Spanish territory at the time of the application, he/she will request the assignment of the NIE from the General Police Headquarters for Foreign Nationals and Borders, through the Spanish Consular Offices abroad. More on that in Spanish on the website of the Spanish police.

       

    5. Who can get the NIE Spain number?

      1. Yourself
      2. A duly mandated representative

       

    6. How long does it take to get my Spanish NIE number?

      Between one hour to up to 2 months depending on the way you do it. So plan accordingly!

       

    7. How long is it valid?

      More than five years ago, the NIE was valid for only a few years but now, your NIE number remains valid forever. So, once you did the work, you can buy a property (if this was the reason why you needed one), even if it is in 5 years.

      Take our advice: get your NIE right away!

Download and print our infographics!

 

Infographic All your questions on the Spanish NIE answered - NIE Spain number

NIE Spain number, everything you need to know

 

 

Further reading on the subject

 

 

Looking for a qualitative new build property? Check our listings from reliable developers.

Discover the best new build projects in Spain available right now
€ 320,000
2 beds 1 bath 61.3 m²
€ 313,000
2 beds 2 baths 61.3 m²
€ 540,000
3 beds 3 baths 191 m²
€ 520,000
3 beds 2 baths 109 m²
€ 345,000
2 beds 2 baths 97 m²
€ 435,000
3 beds 2 baths 114 m²
€ 350,000
3 beds 2 baths 106 m²
€ 273,000
2 beds 2 baths 83 m²
€ 368,000
3 beds 2 baths 103 m²
€ 315,000
2 beds 2 baths 90 m²
€ 245,000
2 beds 2 baths 83 m²
€ 335,000
3 beds 2 baths 98 m²
€ 250,000
2 beds 2 baths 90 m²
€ 420,000
2 beds 2 baths 81.7 m²
€ 475,000
3 beds 2 baths 101.9 m²
€ 490,000
3 beds 2 baths 119.8 m²
€ 540,000
3 beds 2 baths 129.2 m²
€ 530,000
3 beds 2 baths 106.9 m²
€ 370,000
2 beds 2 baths 88.9 m²
€ 440,000
3 beds 2 baths 106.9 m²
€ 367,000
3 beds 3 baths 177 m²
€ 262,000
3 beds 2 baths 84 m²
€ 242,000
2 beds 2 baths 72 m²
€ 277,000
2 beds 2 baths 73 m²
€ 255,000
3 beds 2 baths 85 m²
€ 220,000
2 beds 2 baths 71 m²
€ 240,000
2 beds 2 baths 80 m²
€ 280,000
3 beds 2 baths 88 m²
€ 585,000
3 beds 3 baths 162 m²
€ 348,000
3 beds 2 baths 220 m²
€ 355,000
3 beds 2 baths 100 m²
€ 385,000
2 beds 2 baths 76 m²
€ 325,000
3 beds 2 baths 97 m²
€ 269,000
2 beds 2 baths 81 m²
€ 631,000
3 beds 2 baths 123 m²
€ 345,000
2 beds 2 baths 154 m²
€ 430,000
3 beds 2 baths 116 m²
€ 730,000
3 beds 2 baths 149 m²
€ 529,000
3 beds 2 baths 133 m²
€ 319,000
2 beds 2 baths 87 m²

 

If you want to invest in the Spanish real estate market in Spain, don’t hesitate to read our special report with the 10+ reasons why you should have a look at the Spanish property market.

If you are about to buy in Spain, have a keep look at our useful article: The most loved Spanish regions for foreigners’ properties: British, French, German,…

 

FAQ on Spanish NIE number

How do I get an NIE number in Spain?

To get a NIE, it's easy, fill the forms and get a meeting at your Spanish consulate. If you are not available, someone else can go do it for you. Read our step by step guide for more.

How long does a Spanish NIE number last?

NIE numbers are valid forever. So, don't wait, ask it now as it could take between 1 and 2 months.

How much is an NIE number in Spain?

The actual cost is less than 15€. Pay attention, you need to pay this in Cash at some consulates.

What documents do I need for NIE in Spain?

We have listed all the documents you need in our article: you need to fill 2 forms (the first one 3 times), you need a copy of your passport, two recent pictures, and a document proving why you need it,... Check our full list on our site

 

Looking for a property lawyer in Spain? Follow the link and get one of our local lawyers.

Looking for another real estate expert in Spain: Mortgage, Insurance, Survey of property, Property hunting, …? Ask us directly one of our 100+ local partners!

 

 

The post Your Ultimate 2025 Guide to Obtaining a Spanish NIE Number – NIE Spain appeared first on How to buy in Spain.

]]> https://howtobuyinspain.com/en/buy-property-in-spain/nie-number-spain/spanish-nie-number/feed/ 0 %%title%% %%page%% Learn about the Spanish NIE number, its importance for property transactions, and the process to obtain it for a smooth buying experience. how to get nie in spain,Mortgage in Spain,NIE,NIE Spain,Spain NIE,Spanish NIE,spanish nie card,what is an nie number in spain,Spanish NIE number _Your Spanish NIE Number step 1 Your Spanish NIE Number step 2 Your Spanish NIE Number step 3 Infographic All your questions on the Spanish NIE answered Infographic All your questions on the Spanish NIE answered Stéphane co-founder of HTBIS What are the best Spanish mortgage rates? June 2025 update https://howtobuyinspain.com/en/buy-property-in-spain/spanish-mortgage-rates/spanish-mortgage-rates-2025/ https://howtobuyinspain.com/en/buy-property-in-spain/spanish-mortgage-rates/spanish-mortgage-rates-2025/#comments Wed, 04 Jun 2025 12:37:49 +0000 https://howtobuyinspain.com/?p=6573   Click on any flag to get an automatic translation from Google Translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten   What are the best Spanish mortgage rates?   Here is our June 2025 update with the latest data available Leveraging our expansive network

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The post What are the best Spanish mortgage rates? June 2025 update appeared first on How to buy in Spain.

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Click on any flag to get an automatic translation from Google Translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten

 

What are the best Spanish mortgage rates?

 

Here is our June 2025 update with the latest data available

Leveraging our expansive network of local partners, we secure Spain’s most favourable mortgage rates for those looking to finance their homes. Throughout much of 2022, we observed significant discounts on mortgage rates as inflation surged while long-term rates remained subdued, thanks to the European Central Bank’s (ECB) efforts. In early 2025, inflation is more controlled, at 1.9% as of May 2025, returning to the low end of the range over the past three years. It appears that economies are suffering from the ECB’s restrictive monetary policy. In this context, some market experts expect the central bank to lower rates. We can already see this impacting mortgage conditions and long-term rates.

To stay informed about the latest Spanish mortgage rate trends, it’s crucial to consult real-time data from the most recent mortgages issued in Spain. This insight allows you to understand the most competitive rates currently available. Foreigners must note that rates may vary since their assets are primarily overseas.

We’ve built the most extensive database to monitor fluctuations in this sector, allowing us to generate dynamic and engaging charts. The “Instituto Nacional de Estadísticas” (INE) has recently published mortgage statistics for Spain as of March 2025, providing a clear view of current market rates.

Thanks to our network of local partners, we get the best mortgage rates in Spain if you want to finance your home in Spain. Take 30 seconds to complete this quick form to get the best Spanish mortgage rates.

 

  1. Spanish mortgage rates: our 2-minute video

     
    Would you like to watch this video in your language? Click on the bottom right of the video on “cc” to get subtitles in your language.

     

  2. What are the current mortgage rates in Spain?

     

    Current market conditions

    • The average mortgage has an interest rate of 2.97% (vs 3.25% end of December 2024)
    • The lowest rate ever was 2.44% reached in September 2020.
    • The average rate for variable-rate mortgages is 2.82% (vs 3.16% end of December 2024)
    • The average rate for fixed-rate mortgages is 3.05% (vs 3.30% end of December 2024)

     

    Check the evolution of the mortgage rates (average, fixed and variable ) over the last years on our interactive chart (browse with the mouse to check data)

     

    What are the best mortgage rates for our customers?

    As of September 2024, our partner can get perfect conditions for mortgages for our non-resident buyers:

    • Fixed rates: from 2.85%
    • Mixed solution: from 2.50% fixed for 5 years, after Euribor + 0.75%
    • Variable rates: from 2.50% fixed for 1 year, after Euribor + 0.75%

    And of course, they don’t stop with foreigners, our partner gets very competitive mortgage rates for Spaniards:

    • Fixed rates: from 2.52% (if taking other products like insurance from the bank, for instance,…)
    • Mixed solution: from 1.50% fixed for 5 years, after Euribor + 0.60%
    • Variable rates: from 1.35% fixed for 1 year, after Euribor + 0.25%

    So, don’t hesitate to fill out this quick form if you want a free quote from our partner. They specialise in working with foreigners looking for a mortgage in Spain. Please note that to get the best rates, banks add some conditions, as in your home country.

    Essential information on Spanish Mortgages for non-residents

    As a non-resident, you can take a mortgage to finance your second home or your investment. Of course, since your assets won’t be based in Spain, the bank will require warranties and generally won’t allow a loan-to-value ratio of more than 70%. The loan-to-value is the amount of mortgage you can get divided by the value of your property before tax, but this percentage is only for reasonable inquiry. Don’t hesitate to ask for a free quote from our mortgage broker; he knows exactly how it works and which Spanish banks are friendly to foreigners.

    Don’t miss our new detailed article on that subject: Mortgage rates in Spain for non-residents: our detailed guide.

     

  3. Calculate the cost of your Spanish mortgage

     
    Check our ultimate Spanish mortgage calculator.

    To help you out, we’ve created an easy-to-use table showing the monthly repayments depending on the amount you want to borrow for a mortgage. If you want to go deeper into details, use our calculator to fine-tune your mortgage to your situation, and you will find out what your monthly payments, mortgage schedule, etc., would be.

     

    What is the cost of a €100,000 mortgage over 10 years?

    If you want to go into the details, here is a calculation example we did:

    As you will see, if you take out a €100,000 mortgage for 10 years at a rate of 3.5%, your monthly payment to repay the mortgage will be €989.

    Thanks to our Spanish mortgage rate calculator, you can change any number and calculate what your situation would be.

     

    Summary table of your monthly reimbursements for a €100.000 Mortgage

     

  4. Buy to let in Spain?

     
    If you are about to invest in Spain, it is always interesting to compare the financing conditions with your return prospects. Check our last article on that subject:

    What return will you make on your Spanish Property investment? If you see your property investment in Spain as an investment, adding some financing (without being crazy) will increase your return and decrease your costs.

     

  5. Should I take a mortgage with fixed or variable rates?

     
    Fixed-rate and variable-rate mortgages are the two main categories of mortgages you can choose from. Of course, there are many other possibilities between the two.

    Check the evolution of the percentage of mortgages with fixed and variable rates, with the inflation rate

     

    The Spanish mortgage market has undergone a dramatic transformation since 2021. Our latest data shows 64% of property investors now choose fixed-rate mortgages at 3.17%, while just 36% opt for variable rates – a complete reversal from the pre-2021 landscape when variable rates dominated at 60-65%.

    This shift tells a compelling story: When inflation exploded from near-zero to 11% in 2022, investors rushed to lock in fixed rates, pushing fixed-rate adoption to 75% at its peak. Now, even as inflation has cooled to 2.30%, the majority remains cautious – maintaining their preference for fixed-rate protection.

    The key takeaway: Spanish property investors have learned from the recent inflation shock. Despite rates declining from their peaks, 64% still choose the certainty of fixed rates over potential savings from variable options. This persistent preference for stability suggests the market anticipates future inflation risks – a view we share, as we believe current inflation levels represent the lower end of the range.

     

    Why would you take a fixed-rate mortgage?

    A fixed-rate mortgage has the advantage that, regardless of future market conditions, it will remain the same. To get that advantage, you will, on average, pay a higher rate than with a variable-rate mortgage. For instance, as of September 2024, mortgages with variable rates were issued at rates of 2.92%, while those with fixed rates were issued at 3.30% for an average length of 24 years.

    Why would you take a mortgage with a variable rate?

    It could be because it is less expensive than a mortgage with fixed rates (monthly instalments) because you don’t see inflation or rates going higher or because you are comfortable financially and can face higher rates in the future. Another reason variable rates cost less than fixed rates is that for the banks issuing them, it matches their sources of funds, such as savings accounts, and they take less risk by issuing them rather than fixed-rate mortgages.
    To sum up, if you want safety, take a fixed-rate mortgage. If you see inflation spiking or interest rates going higher (in general due to a strong economy) you could as well go for a fixed-rate mortgage. Of course, the longer your mortgage is, the higher your risk will be.
    Don’t hesitate to ask your Spanish mortgage broker for pricing with both and compare both offers.

     

    Inflation update since the start of 2023

    After the big inflation spike of 2022 around the world and in Spain, inflation in Spain is finally moderating to +2.2% as of August 2024. We note that since 2022, the trend has changed clearly, and the majority of mortgages are issued with fixed rates. We kept telling you in 2022 to lock in those crazy long-term rate levels… remember our chart:

    Line graph showing Spanish mortgage rates, including average, variable, and fixed options from 2019 to 2023, with a sharp rise in 2022. Large text reads "HUGE SALE." Relevant for those tracking Spanish mortgage rates for non residents.

    As we enter 2025, with inflation now at what we view as the lower end of its range, we see a higher risk of inflation rising from here. Some people see a real risk of inflation staying high, which in turn should lead to higher variable rates. Since June 2023, we have still seen fixed-rate mortgage initiations dominate, and we believe this trend should continue. While rates have declined through late 2024 and early 2025, we strongly recommend locking in fixed rates now while they remain historically attractive. As of early 2025, with both short-term and long-term rates converging around 2.3-2.4%, this presents an excellent opportunity to secure predictable financing costs before potential inflation pressures push rates higher again. Check our interactive chart on that.

    We wrote an article on that subject: “Fixed or Variable Mortgage for My Spanish Home?“

    6.  

  6. How do you secure the best mortgage rates in Spain?

     
    You are about to buy a lovely second home in Spain. Do you want to know how to get the best mortgage rates on your Spanish property? Even as a foreigner?
    Check our detailed paper on this subject and follow the link or listen to our 2-minute video on how to apply for your mortgage up to the end and get all our tips to get the best rates:

     
    You have to ask yourself: What is the ideal mortgage customer for a bank? The bank will take a risk, the risk of not being repaid. In this case, the bank will need to take legal action to control your property and sell it on the market afterwards. We saw what happened after the 2008 financial crisis: thousands of properties were handed over to banks as owners couldn’t pay their mortgages.

    The ideal mortgage customer for a Spanish bank

    • has a good professional profile: he is employed and has a stable, nice income stream,
    • has a good credit report, he does not have too much debt vs. his income,
    • can afford to have debts: his debt-to-income ratio is under 35%, which means that his monthly net income is three times bigger than his monthly debt repayments.
    • The property has a good resale value:
      1. The property price is correct vs. the market
      2. There is demand in the market for such a property
    • is coming from OECD countries. As you know, with anti-money laundering laws that have gone into effect across Europe, it is challenging for banks to lend to residents of certain countries. Of course, if you are a resident of the European Union, it will be the easiest.

     

    How to get the best rates as a non-resident?

    How to get the best rates as a non-resident?

     

    Get a free mortgage quote

    At howtobuyinSpain.com, you’re in good hands. We work with a mortgage broker who gets the best mortgage prices from all Spanish banks. Depending on your profile, some banks will be more aggressive, while others won’t. Our mortgage partner knows that, and they will go to the best bank or will ask for quotes from many Spanish banks to get you the best quote. They work with all the biggest Spanish banks, including BBVA, Bankia, and Santander. Get a free mortgage quote from our partner.

    7.  

  7. Spanish Mortgage Rates: Market Insights and Trends

     

    423,761 mortgages issued in Spain in 2024

    2022 was a record year for mortgage rates in Spain, with 464,000 credits issued. Even stronger than 2021, which was already strong. So, in 2024, with the rise of interest rates, the number of mortgages is back to a strong level and growing 11% vs previous year (which was itself a weak year with a decrease of 18%), while at the same time, the number of transactions increased by 7% to 636,909.

    A healthy market: Only 67% of properties are bought with a mortgage (vs 64% in 2023). In our opinion, the market is not over-leveraged. Have a quick look at the table for statistics since 2015. Yes, we are far from the high-leverage situation we had in 2007.

     

    Last but not least, it is always interesting to know the long-term rates and the Euribor, as those are the rates at which Spanish banks get financed.

    Spanish Bank Financing Costs: 10-Year Bond Yields vs. Euribor Rates (2020-2025)

     

    The chart reveals a fascinating story of European monetary policy and interest rate evolution:

    The Ultra-Low Rate Era (2020-2022)

    From 2020 through early 2022, all rates remained historically low. The 10-year Spanish bond yield hovered between 0% and 0.5%, while both 1-month and 12-month Euribor rates were actually negative – a remarkable period where banks essentially paid to borrow money.

    The Great Rate Surge (2022-2024)

    Starting in early 2022, we witnessed a dramatic shift. All three rates exploded upward in response to the ECB’s aggressive monetary tightening to combat inflation:

    • 10-year bonds peaked around 3.7% in late 2023
    • 12-month Euribor reached above 4%
    • 1-month Euribor climbed to nearly 4%

    The Turning Point (Late 2024-2025)

    The most encouraging development for investors is the clear reversal beginning in late 2024. As of early 2025, all rates have begun declining:

    • 1-month Euribor: 2.4% (down from ~4%)
    • 12-month Euribor: 2.3% (down from >4%)
    • 10-year bond: 2.8% (down from ~3.7%)

    Implications for Property Investors – Our View

    While the current rate decline is encouraging, we believe investors are seeing a critical inflection point. With inflation now at what we view as the lower end of its range, we see asymmetric risks tilted toward higher inflation from here. In this environment, we strongly recommend property investors lock in long-term fixed rates now. The convergence of short and long-term rates around 2.3-2.4% presents an excellent opportunity to secure predictable financing costs before potential inflation pressures push rates higher again.

    The strong 11% year-over-year growth in Spanish mortgage issuance suggests the market agrees – now is the time to act on financing while rates remain historically attractive.

     

    Historical evolution of Spanish mortgage rates and other & useful information

    • The average mortgage duration is 25 years
    • Only 9% of issued mortgages in Spain are more significant than 80% of the property value.
    • 33% have variable interest rates (vs 37% in December 2024)
    • 67% have fixed interest rates (vs 63% in December 2024)
    • The average amount issued per mortgage is €156,700.

     

    Check the evolution of the average amount issued per mortgage over the last year in Spain in our interactive chart

    • How much leverage is given by banks? What is the average Loan-to-Value in Spain? (If your property value is 100%, how big will your mortgage be?) The quick answer is 64%.
    • 42,831 mortgages were issued +48% vs last year.
    • € 6.7 billion of mortgages issued for housing in March 2025, +65% compared to 2024.

     

  8. Resources on Spanish mortgage rates

     

    Discover the best new build projects in Spain.
    € 320,000
    2 beds 1 bath 61.3 m²
    € 313,000
    2 beds 2 baths 61.3 m²
    € 540,000
    3 beds 3 baths 191 m²
    € 520,000
    3 beds 2 baths 109 m²
    € 345,000
    2 beds 2 baths 97 m²
    € 435,000
    3 beds 2 baths 114 m²
    € 350,000
    3 beds 2 baths 106 m²
    € 273,000
    2 beds 2 baths 83 m²
    € 368,000
    3 beds 2 baths 103 m²
    € 315,000
    2 beds 2 baths 90 m²
    € 245,000
    2 beds 2 baths 83 m²
    € 335,000
    3 beds 2 baths 98 m²
    € 250,000
    2 beds 2 baths 90 m²
    € 420,000
    2 beds 2 baths 81.7 m²
    € 475,000
    3 beds 2 baths 101.9 m²
    € 490,000
    3 beds 2 baths 119.8 m²
    € 540,000
    3 beds 2 baths 129.2 m²
    € 530,000
    3 beds 2 baths 106.9 m²
    € 370,000
    2 beds 2 baths 88.9 m²
    € 440,000
    3 beds 2 baths 106.9 m²
    € 367,000
    3 beds 3 baths 177 m²
    € 262,000
    3 beds 2 baths 84 m²
    € 242,000
    2 beds 2 baths 72 m²
    € 277,000
    2 beds 2 baths 73 m²
    € 255,000
    3 beds 2 baths 85 m²
    € 220,000
    2 beds 2 baths 71 m²
    € 240,000
    2 beds 2 baths 80 m²
    € 280,000
    3 beds 2 baths 88 m²
    € 585,000
    3 beds 3 baths 162 m²
    € 348,000
    3 beds 2 baths 220 m²
    € 355,000
    3 beds 2 baths 100 m²
    € 385,000
    2 beds 2 baths 76 m²
    € 325,000
    3 beds 2 baths 97 m²
    € 269,000
    2 beds 2 baths 81 m²
    € 631,000
    3 beds 2 baths 123 m²
    € 345,000
    2 beds 2 baths 154 m²
    € 430,000
    3 beds 2 baths 116 m²
    € 730,000
    3 beds 2 baths 149 m²
    € 529,000
    3 beds 2 baths 133 m²
    € 319,000
    2 beds 2 baths 87 m²

     

    Check out our latest articles on Spanish mortgage rates

    All our interactive charts in this article are available in a downloadable format

     

     

    Line graph showing Spanish mortgage loan-to-value (LTV) ratios from 01/2016 to 01/2025, highlighting that the best banks in Spain for mortgages will finance 64% of property value in 2025.

    The average Spanish mortgage loan-to-value ratio is 64% in 2025, recovering from recent dips but still below 2019 peaks. Data shows banks’ willingness to finance property purchases has stabilised after pandemic-era fluctuations.

    A line graph shows that only 8.6% of Spanish mortgages have loan-to-value ratios above 80%, indicating low risk for the best banks in Spain for mortgages and stable Spanish mortgage rates for non residents.

    Spanish banks show remarkable lending restraint in 2025, with just 8.6% of mortgages financing above 80% of property value, down sharply from 15% in 2020. This conservative approach protects the banking sector and homebuyers from overleveraging in Spain’s robust but carefully regulated property market.

    Line graph comparing Spanish 10-year bond yields and Euribor rates (1 and 12 month) from 2020 to 2025, with text noting spanish mortgage rates 2025 are unlikely to decline further.

    Spanish Bank Financing Costs_ 10-Year Bond Yields vs. Euribor Rates (2020-2025)

    Line graph showing the average size of a mortgage in Spain from 01/2019 to 01/2025, peaking sharply in early 2020 and ending at €152,000—an important trend for those tracking Spanish mortgage rates for non-residents.

    Line graph showing the average size of a mortgage in Spain from 01/2019 to 05/2023, peaking sharply in early 2020 and ending at €152,000—an essential trend for those tracking Spanish mortgage rates for non-residents.

    Bar chart showing the number of mortgages issued in Spain from 2016 to 2024, with an 11% growth indicated for 2024—ideal for those tracking mortgage in Spain or planning ahead for Spanish mortgage rates 2025.

    Spanish mortgage activity showed robust 11% growth in 2024, with 423,741 new loans issued against 636,909 property sales. While still below the 2022 peak, the upward trend and 67% mortgage utilization rate suggest renewed confidence in Spain’s real estate financing market after the 2023 contraction.

    Line graph compares percentages of fixed and variable rate mortgages in Spain, highlighting a shift toward fixed rates around 2022. Annotations indicate inflation, interest rates, and trends in Spanish mortgage rates 2025.

    Line graph compares percentages of fixed and variable rate mortgages in Spain, highlighting a shift toward fixed rates around 2022. Annotations indicate inflation, interest rates, and trends in Spanish mortgage rates 2025.

    Line chart showing mortgage in Spain and inflation for April 2025: Fixed rate at 3.17%, variable at 2.94%, average at 3.08%, and inflation rate at 2.30%.

    Line chart showing mortgage in Spain and inflation for April 2025: Fixed rate at 3.17%, variable at 2.94%, average at 3.08%, and inflation rate at 2.30%.

    Line graph showing the average mortgage in Spain term in 2025 at 25 years, fluctuating around 24-25 years. Spanish flag in the top right corner. Includes trends related to spanish mortgage rates 2025.

    Spanish mortgage durations have steadily lengthened since 2020, reaching an average of 25 years in 2025. While shorter than the 30-year standard in some countries, this represents a gradual extension of loan terms in Spain’s property market, potentially helping buyers manage monthly payments despite rising property values.

    FAQ Spanish mortgage rates

    How much deposit do I need for a Spanish mortgage?

    For your second residence and as a non-fiscal resident, a bank will finance no more than 70 % of the value of your property. This means that you would need to invest at least 45% of the property value from your assets.

    What is the interest rate in Spain?

    As of March 2025, the average mortgage has an interest rate of 2.97%. The lowest rate ever was 2.44%, very close to the current level! The average mortgage duration is 25 years 33% have variable interest rates 67% have fixed interest rates. The average rate for variable-rate mortgages is 2.82%, and The average rate for fixed-rate mortgages is 3.05%. Read our dedicated article on that subject for more recent data.

    Can foreigners get a mortgage in Spain?

    Yes, foreigners can get a mortgage up to 70% of the Value of a property.

    Can I get a Spanish mortgage?

    It is very easy to get a mortgage in Spain. What are the documents requested? Your Passport / ID for all the applicants Your NIE: “Número de identificación fiscal para extranjeros” or Foreign Resident’s Tax Number. How do you get your NIE in Spain? What do you need to get it? Why do you need it? Last 3 paychecks with the contract of employment Proof of income/Contract A view of your assets and debts If it’s a new building: the “Deed for the new building” The private sale-purchase contract If you have a mortgage at home, land registry information on the property and the mortgage If pensioners: Official proof of annual income.

    Nice terrace in an old Spanish street

    Here are the statistics for earlier years:

     

          • The Spanish mortgage rates situation for December 2021

              • Average mortgage has an interest rate of 2.53%
              • The lowest rate ever was 2.44% reached in Nov 2020!
              • The average mortgage duration is 24 years
              • 32% have variable interest rates
              • 68% have fixed interest rates
              • The average rate for variable rate mortgages is 2.08%,
              • The average rate for fixed-rate mortgages is 2.8%,
              • The average amount issued per mortgage is €145,500: an increase of 1.9% vs last year.
              • 32,905 mortgages were issued +23% vs last year.
              • 4,8 € Bn of mortgages issued for housing in December 2021, +32% vs last year.

             

            The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
                • Aragon, +33% to 1.159 mortgages
                • Extremadura, +29% to 683 mortgages
            The top region in terms of amounts of mortgages issued (Annual)
              • Balears, 211m€, +116%
              • La Rioja, 19m€, +77%
              • Aragon, 169m€, +70%

     

    The Spanish mortgage rates situation for October 2021

                            • Average mortgage has an interest rate of 2.48%
                            • The lowest rate ever was 2.44% reached in Nov 2020!
                            • The average mortgage duration is 24 years
                            • 33% have variable interest rates
                            • 67% have fixed interest rates
                            • The average rate for variable rate mortgages is 2.11%,
                            • The average rate for fixed-rate mortgages is 2.7%,
                            • The average amount issued per mortgage is €137,900: an increase of 1.9% vs last year.
                            • 33,105 mortgages were issued +67% vs last year.
                            • 4,6 € Bn of mortgages issued for housing in August 2021, +70% vs last year.

     

    The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
                            • Navarra, +77% to 510 mortgages
                            • Murcia, +7% to 1,099 mortgages
                            • Andalusia, +2% to 6,589 mortgages
    The top region in terms of amounts of mortgages issued (Annual)
                            • Madrid, 1.2bn€, +89%
                            • Andalusia, 793m€, +89%
                            • Catalonia, 863m€, +87%

        • The Spanish mortgage rates situation for February 2021

                          • Average mortgage has an interest rate of 2.49%
                          • The lowest rate ever was 2.44% reached in Nov 2020!
                          • The average mortgage duration is 24 years
                          • 47.3% have variable interest rates
                          • 52.7% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.16%,
                          • The average rate for fixed-rate mortgages is 2.88%,
                          • The average amount issued per mortgage is €131,380: an decrease of 13.8% vs last year.
                          • 31,647 mortgages were issued -23.1% vs last year.
                          • 4,1 € Bn of mortgages issued for housing in February 2021, -29.9% vs last year.

           

          The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
                          • Murcia, +45% to 1007 mortgages
                          • La Rioja, +40% to 215 mortgages
                          • Valencian Community, +24% to 3600 mortgages
          The top region in terms of amounts of mortgages issued (Annual)
                          • Navarra, 54m€, +19%
                          • La Rioja, 18m€, +16%
                          • Gallicia, 116m€, +13%

        • The Spanish mortgage rates situation for January 2021

                          • Average mortgage has an interest rate of 2.47%
                          • The lowest rate ever was 2.44% reached in Nov 2020!
                          • The average mortgage duration is 24 years
                          • 48.8% have variable interest rates
                          • 51.2% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.17%,
                          • The average rate for fixed-rate mortgages is 2.81%,
                          • The average amount issued per mortgage is €129,003: an increase of 13.5% vs last year.
                          • 27,518 mortgages were issued -31.6% vs last year.
                          • 3,5 € Bn of mortgages issued for housing in January 2021, -22.4% vs last year.

           

          The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
                          • Navarra, +63% to 458 mortgages
                          • Balears, +27% to 643 mortgages
                          • La Rioja, +24.4% to 153 mortgages
          The top region in terms of amounts of mortgages issued (Annual)
                          • Cantabria, 40m€, +0%
                          • Catalonia, 758m€, -7%
                          • Castilla y Leon, 126m€, -9%

        • The Spanish mortgage rates situation for December 2020

                          • Average mortgage has an interest rate of 2.53%
                          • The lowest rate ever was 2.44% reached in Nov 2020!
                          • The average mortgage duration is 24 years
                          • 51.6% have variable interest rates
                          • 48.4% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.20%,
                          • The average rate for fixed-rate mortgages is 2.97%,
                          • The average amount issued per mortgage is €135,658: an increase of 9.2% vs last year.
                          • 26,128 mortgages were issued -14.8% vs last year.
                          • 3,5 € Bn of mortgages issued for housing in December 2020, -7% vs last year.

           

          The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
                          • Cantabria, +9.3% to 354 mortgages
                          • Extremadura, +4.8% to 551 mortgages
                          • Aragon, +0.2% to 862 mortgages
          The top region in terms of amounts of mortgages issued (Annual)
                          • Aragon, 111m€, +62%
                          • Castilla y Leon, 118m€, + 38%
                          • Galicia, 123m€, +34%

        • The Spanish mortgage rates situation for November 2020

                          • Average mortgage has an interest rate of 2.45%
                          • The lowest rate ever was 2.44% reached in Nov 2020!
                          • The average mortgage duration is 24 years
                          • 52.6% have variable interest rates
                          • 47.4% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.05%,
                          • The average rate for fixed-rate mortgages is 2.86%,
                          • The average amount issued per mortgage is €136,676: an increase of 5.5% vs last year.
                          • 28,756 mortgages were issued +2.4% vs last year.
                          • 3,9 € Bn of mortgages issued for housing inNovember 2020, +3% vs last year.

           

          The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
                          • Pais Vasco, +19% to 1729 mortgages
                          • Cantabria, +16% to 324 mortgages
                          • Catalonia, +15% to 4711 mortgages
          The top region in terms of amounts of mortgages issued (Annual)
                          • Castilla – La Mancha, 115m€, +32%
                          • Aragon, 97m€, +31%
                          • Galicia, 104m€, +21%

        • The Spanish mortgage rates situation for October 2020

                          • Average mortgage has an interest rate of 2.47%
                          • The lowest rate ever was 2.44% reached in Nov 2020!
                          • The average mortgage duration is 25 years
                          • 51.1% have variable interest rates
                          • 48.9% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.19%,
                          • The average rate for fixed-rate mortgages is 2.85%,
                          • The average amount issued per mortgage is €134,900: an increase of 4.6% vs last year.
                          • 28,248 mortgages were issued -5.9% vs last year.
                          • 3,8 € Bn of mortgages issued for housing in October 2020, -1.6% vs last year.

           

          The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
                          • Castilla y Leon, +28% to 1226 mortgages
                          • La Rioja, +26% to 179 mortgages
                          • Navarra, +21% to 332 mortgages
          The top region in terms of amounts of mortgages issued (Annual)
                          • Extremadura, 40m€, +29%
                          • Aragon, 93m€, +23%
                          • Asturias, 46m€, +19%

        • The Spanish mortgage rates situation for September 2020

                          • Average mortgage has an interest rate of 2.44%
                          • The lowest rate ever was 2.44% reached in Nov 2019!
                          • The average mortgage duration is 24 years
                          • 51.5% have variable interest rates
                          • 48.5% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.12%,
                          • The average rate for fixed-rate mortgages is 2.84%,
                          • The average amount issued per mortgage is €135,035: a decrease of 1% vs last year.
                          • 26,878 mortgages were issued 18.4% vs last year.
                          • 3,6 € Bn of mortgages issued for housing in September 2020, +17.2% vs last year.

           

          The top 3 regions with the biggest increases for the number of mortgages issued:
                          • Madrid, +66% to 5,077 mortgages
                          • Balearic Islands, +63% to 823 mortgages
                          • Catalonia, +42.4% to 3,968 mortgages
          The top region in terms of amounts of mortgages issued
                          • Extremadura, 51m€, +220%
                          • La Rioja, 13m€, +106%
                          • Cantabria, 39m€, +106%
                          • Asturias, 55m€, +105%

        • The Spanish mortgage rates situation for August 2020

                          • Average mortgage has an interest rate of 2.49% (vs 2.54% last month)
                          • The lowest rate ever was 2.47% reached in Nov 2019!
                          • The average mortgage duration is 24 years
                          • 50.6% have variable interest rates
                          • 49.4% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.18%,
                          • The average rate for fixed-rate mortgages is 2.87%,
                          • The average amount issued per mortgage is €134,700: an increase of 4% vs last year.
                          • 19,825 mortgages were issued -3% vs last year.
                          • 3,7 € Bn of mortgages issued for housing in August 2020, +0.5% vs last year.

           

          The top 3 regions with the biggest increases for the number of mortgages issued:
                          • Navarra, +32% to 286 mortgages
                          • Castilla – La Mancha, +15% to 981 mortgages
                          • Cantabria, +12% to 279 mortgages
          The top region in terms of amounts of mortgages issued
                          • La Rioja, 15m€, +145%
                          • Canarias, 126m€, +91%
                          • Castilla – La Mancha, 94m€, +49%
                          • Extremadura, 33m€, +34%

          1. The Spanish mortgage rates situation for July 2020

                            • Average mortgage has an interest rate of 2.54% (vs 2.49% last month)
                            • The lowest rate ever was 2.47% reached in Nov 2019!
                            • The average mortgage duration is 23 years
                            • 47.5% have variable interest rates
                            • 52.5% have fixed interest rates
                            • The average rate for variable rate mortgages is 2.27%,
                            • The average rate for fixed-rate mortgages is 2.86%,
                            • The average amount issued per mortgage is €132,346: an increase of 8.9% vs last year.
                            • 26,014 mortgages were issued -23% vs last year.
                            • 3,4 € Bn of mortgages issued for housing in July 2020, -16% vs last year.

             

            The top 3 regions with the biggest increases for the number of mortgages issued:
                            • La Rioja, +51% to 202 mortgages
                            • Canarias, +45% to 1,221 mortgages
                            • Valencian community, +31% to 3,341 mortgages
            The top region in terms of amounts of mortgages issued
                            • Basque Country, 282m€, +33%

          The Spanish mortgage rates situation for June 2020

                          • Average mortgage has an interest rate of 2.5% (vs 2.49% last month)
                          • The lowest rate ever was 2.47% reached in Nov 2019!
                          • The average mortgage duration is 23 years
                          • 54% have variable interest rates
                          • 46% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.11%,
                          • The average rate for fixed-rate mortgages is 2.96%,
                          • The average amount issued per mortgage is €131,670: an increase of 7.5% vs last year.
                          • 26,748 mortgages were issued -13% vs last year.
                          • 3,5 € Bn of mortgages issued for housing in June 2020, -6% vs last year.

           

          The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
                          • Basque Country, +129% to 2,811 mortgages
                          • Extremadura, +79% to 562 mortgages
                          • Murcia, +59% to 798 mortgages

           

          The top regions in terms of amounts of mortgages issued are (change vs 1 year ago):
                          • Basque Country, 366m€, +95%
                          • Extremadura, 45m€, +85%
                          • Murcia, 68m€, +57%

           

          The Spanish mortgage rates situation in May 2020

          Best mortgage conditions in Spain?

                          • Average mortgage has an interest rate of 2.49% (vs 2.48% last month)
                          • The lowest rate ever was 2.47% reached in Nov 2019!
                          • The average mortgage duration is 23 years
                          • 50.5% have variable interest rates
                          • 49.5% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.11%,
                          • The average rate for fixed-rate mortgages is 3%,
                          • The average amount issued per mortgage is €127,145: an increase of 3.2% vs last year.
                          • 25,538 mortgages were issued -27% vs last year.
                          • 3.2 € Bn of mortgages issued for housing in May 2020, -29% vs last year.

           

          The top regions with the biggest increases for the number of mortgages issued are (monthly changes):
                          • Andalusia, +6.8% to 5,580 mortgages
                          • Basque Country, +6.5% to 1,221 mortgages
                          • Galicia, +6.4% to 820 mortgages

           

          The top region in terms of amounts of mortgages issued are (change vs 1 year ago):
                          • Murcia, 56.8 M€, +22%

           

          The Spanish mortgage rates situation in April 2020

          Best mortgage conditions in Spain?
                          • Average mortgage has an interest rate of 2.48% (vs 2.56% last month)
                          • The lowest rate ever was 2.47% reached in Nov 2019!
                          • The average mortgage duration is 24 years
                          • 48.4% have variable interest rates
                          • 51.6% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.13%,
                          • The average rate for fixed-rate mortgages is 2.86%,
                          • The average amount issued per mortgage is €125,300: an decrease of 1.2% vs last year.
                          • 23,840 mortgages were issued -18% vs last year.
                          • 3 € Bn of mortgages issued for housing in April 2020, -19% vs last year.

           

          The 3 regions with the biggest decreases for the number of mortgages issued are (monthly changes):
                          • Andalusia, +6.8% to 5,580 mortgages
                          • Basque Country, +6.5% to 1,221 mortgages
                          • Galicia, +6.4% to 820 mortgages

           

          The top region in terms of amounts of mortgages issued are (change vs 1 year ago):
                          • Murcia, 56.8 M€, +22%

           

          The Spanish mortgage rates situation in March 2020

          Best mortgage conditions in Spain?
                          • Average mortgage has an interest rate of 2.56%
                          • The lowest rate ever is 2.47% reached in November 2019!
                          • The average mortgage duration is 23 years
                          • 47% have variable interest rates
                          • 53% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.21%,
                          • The average rate for fixed-rate mortgages is 2.92%,
                          • The average amount issued per mortgage is €127,888: an increase of 1.6% vs last year.
                          • 26,382 mortgages were issued -15% vs last year.
                          • 3.4 € Bn of mortgages issued for housing in March 2020, -13% vs last year.

           

          The top region with the biggest increases for the number of mortgages issued are (monthly changes):
                          • La Rioja, +44% to 254 mortgages

           

          The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
                          • Aragon, 93 M€, +48%
                          • Asturias, 57 M€, +24%
                          • Cantabria, 34M€, +8%

           

           

          The Spanish mortgage rates situation in February 2020

          Best mortgage conditions in Spain?
                          • Average mortgage has an interest rate of 2.64% (vs 2.55% last month)
                          • The lowest rate ever is 2.47% reached in November 2019!
                          • The average mortgage duration is 23 years
                          • 62% have variable interest rates
                          • 37% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.47%
                          • The average rate for fixed-rate mortgages is 3.02%

           

          The 3 regions with the biggest decreases for the number of mortgages issued are (monthly changes):
                          • Navarre, -45% to 373 mortgages
                          • Asturias, -38% to 694 mortgages
                          • Canary Islands, -31% to 1.035 mortgages

           

          The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
                          • Catalonia, 2.378 M€, +200%
                          • Andalusia, 1.109 M€, +57%
                          • Aragon, +30%

           

          The Spanish mortgage rates situation in January 2020

          Best mortgage conditions in Spain?
                          • Average mortgage has an interest rate of 2.55% (vs 2.53% last month)
                          • The lowest rate ever is 2.47% reached in November 2019!
                          • The average mortgage duration is 22 years
                          • 58% have variable interest rates
                          • 42% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.22%
                          • The average rate for fixed-rate mortgages is 3.05%
          The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
                          • Balearic Islands, +144% to 1.494 mortgages
                          • Asturias, +134% to 1.120 mortgages
                          • Castilla y Leon, +111% to 1.884 mortgages

           

          The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
                          • La Roja, 20 M€, +84%
                          • Navarre, 71 M€, +75%
                          • Balearic Islands, +74%

           

          The Spanish mortgage rates situation in December 2019

          Best mortgage conditions in Spain?
                          • Average mortgage has an interest rate of 2.53% (vs 2.47% last month)
                          • The average mortgage rate decreased by 5% vs 1 year ago
                          • The lowest rate ever is 2.47% reached in November 2019!
                          • The average mortgage duration is 23 years
                          • 56% have variable interest rates
                          • 44% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.2%, 9.1% less than 1 year ago
                          • The average rate for fixed-rate mortgages is 3.06%, 2.6% more than 1 year ago
          The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
                          • Castilla – La Mancha, +97% to 1.952 mortgages
                          • Canary Islands, +55% to 1.824 mortgages
                          • Madrid, +23% to 6.787 mortgages

           

          The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
                          • Castilla – La Mancha, 143 M€, +137%
                          • Madrid, 1.114 M€, +57%
                          • Canary Islands, +54%

           

          The Spanish mortgage rates situation in November 2019

          Best mortgage conditions in Spain?
                          • Average mortgage has an interest rate of 2.47% (vs 2.5% last month)
                          • The average mortgage rate decreased by 6.1% vs 1 year ago
                          • The lowest rate ever is the current rate 2.47%!
                          • The average mortgage duration is 24 years
                          • 57.3% have variable interest rates
                          • 42.7% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.15%, 12.1% less than 1 year ago
                          • The average rate for fixed-rate mortgages is 3.01%, 0.3% more than 1 year ago
                          • The average amount issued per mortgage is €129,800: a decrease of 2.1% vs last year.
                          • 29,416 mortgages were issued -0.5% vs last year.
                          • 3.8 € Bn of mortgages issued for housing in October 2019, -0.9% vs last year.

           

          The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):

          All the regions noticed a month on month decrease

          Here are the most noticeable regions:

                          • Extremadura, +26.4% to 526 mortgages
                          • Cantabria, +13.6% to 376 mortgages
                          • Valencia Community, +12.8% to 3614 mortgages

           

          The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
                          • Extremadura, 48 M€, +72%
                          • Balearic Islands, 200 M€, +37%
                          • Cantabria, 43 M€, +36%

           

          The Spanish mortgage rates situation in October 2019

          Best mortgage conditions in Spain?
                          • Average mortgage has an interest rate of 2.50% (vs 2.51% last month)
                          • The average mortgage rate decreased by 5% vs 1 year ago
                          • The lowest rate ever is the current rate 2.50%!
                          • The average mortgage duration is 24 years
                          • 54.7% have variable interest rates
                          • 45.3% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.09%, 11.2% less than 1 year ago
                          • The average rate for fixed-rate mortgages is 3.02%, 1.4% less than 1 year ago
                          • The average amount issued per mortgage is €129,000: a decrease of 2.1% vs last year.
                          • 29,691 mortgages were issued -1.1% vs last year.
                          • 3.8 € Bn of mortgages issued for housing in September 2019, -1.1% vs last year.

           

          The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):

          All the regions noticed a month on month decrease

          Here are the most noticeable regions:

                          • La Rioja, +127% to 186 mortgages
                          • Extremadura, +92% to 416 mortgages
                          • Cantabria, +80% to 331 mortgages

           

          The top 5 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
                          • Madrid, 936 M€, -12%
                          • Catalonia, 788 M€, -12%
                          • Andalusia, 660 M€, +8%
                          • Valencia Community, 327 M€, +20%
                          • Basque Country, 235 M€, +20%

           

          The Spanish mortgage rates situation in September 2019

                          • Average mortgage has an interest rate of 2.51% (vs 2.55% last month)
                          • The average mortgage rate decreased by 3% vs 1 year ago
                          • The lowest rate ever is the current rate 2.51%!
                          • The average mortgage duration is 24 years
                          • 63.4% have variable interest rates
                          • 36.6% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.13%, 9.3% less than 1 year ago
                          • The average rate for fixed-rate mortgages is 3.16%, 2.5% less than 1 year ago
                          • The average amount issued per mortgage is €135,452: a increase of 5.3% vs last year.
                          • 22,488 mortgages were issued -29.9% vs last year.
                          • 3 € Bn of mortgages issued for housing in August 2019, -29.9% vs last year.

           

          The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
                          • Navarre, +50% to 328 mortgages
                          • Madrid, +47% to 4,708 mortgages
                          • Castilla La Mancha, +26% to 897 mortgages

           

          The top 5 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
                          • Madrid, 936 M€, -27%
                          • Catalonia, 545 M€, -28%
                          • Andalusia, 463 M€, -29%
                          • Valencian Community, 255 M€, -29%
                          • Basque Country, 203 M€, -21%

           

          The Spanish mortgage rates situation in August 2019

                            • Average mortgage has an interest rate of 2.55% (vs 2.56% last month)
                            • The average mortgage rate decreased by 3% vs 1 year ago
                            • The lowest rate ever is the current rate 2.55!
                            • The average mortgage duration is 23 years
                            • 60.7% have variable interest rates
                            • 39.3% have fixed interest rates
                            • The average rate for variable rate mortgages is 2.21%, 3.2% less than 1 year ago
                            • The average rate for fixed-rate mortgages is 3.18%, 1.5% more than 1 year ago
                            • 20,385 mortgages were issued -29.9% vs last year.
                            • The average amount issued per mortgage is €128,501: a increase of 5% vs last year.
                            • 2,6 € Bn of mortgages issued for housing in August 2019, -29.9% vs last year.

           

          The top 3 regions with the biggest decreases for the number of mortgages issued are (monthly changes):

           

                          • La Rioja, -72% to 74 mortgages
                          • Extremadura, -57% to 279 mortgages
                          • Castilla La Mancha, -53% to 714 mortgages

           

          The top 3 regions with the biggest decreases in terms of amounts of mortgages issued are (yearly change):
                          • La Rioja, -65% to 6m issued
                          • Extremadura, -56% to 23m issued
                          • Canariasa, -45% to 66m issued

           

          The Spanish mortgage rates situation in July 2019

                          • Average mortgage has an interest rate of 2.56% (vs 2.57% last month)
                          • The average mortgage rate decreased by 1.2% vs 1 year ago
                          • The lowest rate ever is the current rate 2.56!
                          • The average mortgage duration is 23 years
                          • 58.1% have variable interest rates
                          • 41.9% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.14%, 7.3% less than 1 year ago,
                          • The average rate for fixed-rate mortgages is 3.16%, 2.8% less than 1 year ago,
                          • The average amount issued per mortgage is €121,414: a decrease of 2,5% vs last year.
                          • 33,344 mortgages were issued +13.1% vs last year.
                          • 6,3 € Bn of mortgages issued for housing in July 2019, +15.2% vs last year.

           

          The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):

          For a first time since long, all the regions suffer a month on month negative growth. The one with the smallest decreases are

                          • La Rioja, +79.3% to 269 mortgages
                          • Castilla La Mancha, +44% to 1,508 mortgages
                          • Asturias, +37% to 671 mortgages

           

          The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
                          • Extremadura, +45.9% to 652 mortgages
                          • Castilla La Mancha, +38% to 1,508 mortgages
                          • Castilla y Leon, +33.9% to 1,430 mortgages

           

          The Spanish mortgage rates situation in June 2019

                          • Average mortgage has an interest rate of 2.57% (vs 2.62% last month)
                          • The average mortgage rate decreased by 3% vs 1 year ago
                          • The lowest rate ever is 2.57!
                          • The average mortgage duration is 24 years
                          • 55.5% have variable interest rates
                          • 44.5% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.29%, 6.1% less than 1 year ago,
                          • The average rate for fixed-rate mortgages is 3.01%, 1.3% less than 1 year ago,
                          • The average amount issued per mortgage is €119,964: a increase of 3,7% vs last year.
                          • 29,900 mortgages were issued -2.5% vs last year.
                          • 3,6 € Bn of mortgages issued for housing in May 2019, -6.1% vs last year.
          The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):

          For a first time since long, all the regions suffer a month on month negative growth. The one with the smallest decreases are

                          • Region of Murcia, -2.6% to 824 mortgages
                          • Community of Navarra, -4.5% to 383 mortgages
                          • Basque country, -5.2% to 1,703 mortgages

           

          The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
                          • Community of Valencia, +16.9% to 3,748 mortgages
                          • Region of Murcia, +12% to 824 mortgages
                          • Basque country, +9.3% to 1,703 mortgages

           

           

          The Spanish mortgage rates situation in May 2019

                          • Average mortgage has an interest rate of 2.59% (same as last month)
                          • The average mortgage rate decreased by 2.9% vs 1 year ago
                          • The lowest rate ever is 2.57!
                          • The average mortgage duration is 24 years
                          • 56.8% have variable interest rates
                          • 43.2% have fixed interest rates (+6.7% vs last year)
                          • The average rate for variable rate mortgages is 2.3%, 5.1% less than 1 year ago,
                          • The average rate for fixed-rate mortgages is 3.09%, 1.8% less than 1 year ago,
                          • The average amount issued per mortgage is €124,700: a increase of 3.9% vs last year.
                          • 29,032 mortgages were issued -0.1% vs last year.
                          • 3.6 € Bn of mortgages issued for housing in April 2019, +0.6% vs last year.
          The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
                          • Community of Navarra, +45.3% to 510 mortgages
                          • Aragon, +19.7% to 814 mortgages
                          • Asturias, +11.9% to 556 mortgages

           

           

          The Spanish mortgage rates situation in March 2019

                          • Average mortgage has an interest rate of 2.62% (same as last month)
                          • The average mortgage rate decreased by 2.3% vs 1 year ago
                          • The lowest rate ever is 2.57!
                          • The average mortgage duration is 24 years
                          • 58.1% have variable interest rates
                          • 41.9% have fixed interest rates (+24.5% vs last year)
                          • The average rate for variable rate mortgages is 2.34%, 2.7% less than 1 year ago,
                          • The average rate for fixed-rate mortgages is 3.11%, 1.6% more than 1 year ago,
                          • The average amount issued per mortgage is €125,341: a increase of 3.9% vs last year.
                          • 30,716 mortgages were issued + 9.2% vs last year.
                          • 3.8 € Bn of mortgages issued for housing in March 2019, +20.3% vs last year.
          The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
                          • The Balearic Islands, +47% to 1,159 mortgages
                          • Andalusia, +17% to 6,069 mortgages
                          • Extremadura, +14% to 503 mortgages

           

          The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
                          • The Balearic Islands, +49% to 1,159 mortgages
                          • Extremadura, +36% to 503 mortgages
                          • Murcia, +31% to 503 mortgages

           

           

          The Spanish mortgage rates situation in February 2019

                          • Average mortgage has an interest rate of 2.62% (vs 2.57% last month)
                          • The average mortgage rate decreased by 1.1% vs 1 year ago
                          • The current rate: 2.62% is close to the lowest rate ever of 2.57!
                          • The average mortgage duration is 23 years
                          • 58.2% have variable interest rates
                          • 41.8% have fixed interest rates (+17.4% vs last year)
                          • The average rate for variable rate mortgages is 2.37%, 4% less than 1 year ago,
                          • The average rate for fixed-rate mortgages is 3.05%, 0.4% more than 1 year ago,
                          • The average amount issued per mortgage is €123,911: a increase of 2.9% vs last year.
                          • 31.018 mortgages were issued + 9.2% vs last year.
                          • 3.8 € Bn of mortgages issued for housing in February 2019, +12.3% vs last year.
          The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):

          After a seasonally slower December, January looks even stronger vs December:

                          • Asturias, +24.9% to 728 mortgages
                          • Catalonia, +8.4% to 5.448 mortgages
                          • Pais Vasco, + 2.9% to 1.713 mortgages

           

          The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
                          • Asturias, +56% to 728 mortgages
                          • Castilla – La Mancha, +43% to 1.321 mortgages
                          • La Rioja, + 39% to 241 mortgages

           

          The 6 regions with the biggest growth on the full year 2018

                          • The Valencian Community, +15.7% to 38.004 mortgages
                          • The Community of Madrid, +14.9% to 65.503 mortgages
                          • Castilla – La Mancha, +14.8% to 12.501 mortgages
                          • La Rioja, +13.5% to 2.332 mortgages
                          • The Community of Navarre, +13.4% to 4.615 mortgages
                          • Catalonia, +13% to 57.477 mortgages
                          • Extremadura, +12.3% to 5.550 mortgages

           

          The 4 most active regions in 2018

          No surprises, we keep the same regions as the most active ones in terms of transactions:

                          • The Community of Madrid, 65.503 mortgages with a growth of 14.9%
                          • The Andalusia, 65.431 mortgages with a growth of 8.6%
                          • Catalonia, 57.477 mortgages with a growth of 14.9%
                          • The Valencian Community, 38.004 mortgages with a growth of 15.7%

           

           

          The Spanish mortgage rates situation in January 2019

                          • Average mortgage has an interest rate of 2.57% (vs 2.62% last month)
                          • The average mortgage rate decreased by 4.3% vs 1 year ago
                          • The current rate: 2.57% is the lowest rate ever!
                          • The average mortgage duration is 22 years
                          • 62.8% have variable interest rates
                          • 37.2% have fixed interest rates (+9.1% vs last year)
                          • The average rate for variable rate mortgages is 2.32%, 8% less than 1 year ago,
                          • The average rate for fixed-rate mortgages is 3.09%, 1.6% more than 1 year ago,
                          • The average amount issued per mortgage is €121,036: a decrease of -0.7% vs last year.
                          • 36.832 mortgages were issued + 22.5% vs last year.
                          • 4.4 € Bn of mortgages issued in January 2019, +21.6% vs last year.

           

          The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):

          After a seasonally slower December, January looks even stronger vs December:

                          • Madrid Community, +168% to 10.478 mortgages
                          • Castilla – La Mancha, +101% to 1.485 mortgages
                          • Extremadura, + 76% to 542 mortgages

           

          The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
                          • Madrid Community, +105% to 10.478 mortgages
                          • Castilla – La Mancha, +25% to 1.485 mortgages
                          • Aragón, + 17% to 910 mortgages

           

          The Spanish mortgage rates situation in December 2018

                          • Average mortgage has an interest rate of 2.62% (vs 2.61% last month)
                          • The average mortgage rate decreased by 3.9% vs 1 year ago
                          • The lowest rate ever is 2.57%!
                          • The average mortgage duration is 24 years
                          • 58.6% have variable interest rates
                          • 41.4% have fixed interest rates (+9.1% vs last year)
                          • The average rate for variable rate mortgages is 2.42%, 4.7% less than 1 year ago,
                          • The average rate for fixed-rate mortgages is 2.98%, 4.8% less than 1 year ago,
                          • The average amount issued per mortgage is €126,394: an increased of 9.4% vs last year.
                          • 20.933 mortgages were issued + 0.9% vs last year.
                          • 2.6 € Bn of mortgages issued in December 2018, +10.4% vs last year.

           

          The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):

          All the regions had a negative growth. Of course December is well known for being less busy all over the world.

           

          The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
                          • The Basque Country, +20.1% to 1.333 mortgages
                          • The Valencian Community, +17.3% to 2.456 mortgages
                          • Catalonia, +12% to 3.390 mortgages

           

          The Spanish mortgage rates situation in November 2018

                          • Average mortgage has an interest rate of 2.61% (vs 2.57% last month)
                          • The average mortgage rate decreased by 5.7% vs 1 year ago
                          • The lowest rate ever is 2.57%!
                          • The average mortgage duration is 23 years
                          • 64% have variable interest rates
                          • 36% have fixed interest rates (+25.9% vs last year)
                          • The average rate for variable rate mortgages is 2.42%, 0.7% less than 1 year ago,
                          • The average rate for fixed-rate mortgages is 3.07%, 14.1% less than 1 year ago,
                          • The average amount issued per mortgage is €130,651: an increased of 5.5% vs last year.
                          • 28.835 mortgages were issued + 14.2% vs last year.
                          • 5.6 € Bn of mortgages issued in November 2018, +13.7% vs last year.

           

          The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
                          • The Canary Islands, +39.4% to 1.299 mortgages
                          • The Balearic Islands, +17.8% to 899 mortgages
                          • Asturies, +4.7% to 532 mortgages

           

          The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
                          • The Canary Islands, +28.6% to 1.299 mortgages
                          • Catalonia, +25% to 5.363 mortgages
                          • The Valencian Community, +24.4% to 3.178 mortgages

           

          The Spanish mortgage rates situation in October 2018

                          • Average mortgage has an interest rate of 2.57% (vs 2.59% last month)
                          • The average mortgage rate decreased by 4.3% vs 1 year ago
                          • The lowest rate ever is 2.57%! YES, the current rate!
                          • The average mortgage duration is 24 years
                          • 60.4% have variable interest rates
                          • 39.6% have fixed interest rates (+25.9% vs last year)
                          • The average rate for variable rate mortgages is 2.43%, 2.9% less than 1 year ago,
                          • The average rate for fixed-rate mortgages is 2.99%, 3.7% less than 1 year ago,
                          • The average amount issued per mortgage is €126,926: an increased of 4.6% vs last year.
                          • 30.356 mortgages were issued + 20.4% vs last year.
                          • 5.8 € Bn of mortgages issued in October 2018, +13.9% vs last year.
          The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
                          • Navarra Community, +21.6% to 472 mortgages
                          • Catalonia, +10.7% to 5.808 mortgages
                          • Castilla y Leon, +4.8% to 1.153 mortgages
          The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
                          • Navarra Community, +53.7% to 472 mortgages
                          • Catalonia, +40.7% to 5.808 mortgages
                          • Aragon, +36.8% to 729 mortgages

           

          The Spanish mortgage rates situation in September 2018

                          • Average mortgage has an interest rate of 2.59% (vs 2.62% last month)
                          • The average mortgage rate decreased by 8.3% vs 1 year ago
                          • The lowest rate ever is 2.59%!
                          • The average mortgage duration is 24 years
                          • 59.9% have variable interest rates
                          • 40.1% have fixed interest rates (+16.7% vs last year)
                          • The average rate for variable rate mortgages is 2.36%, 10.8% less than 1 year ago,
                          • The average rate for fixed-rate mortgages is 3.02%, 5.9% less than 1 year ago,
                          • The average amount issued per mortgage is €127,732: an increased of 4.1% vs last year.
                          • 32.457 mortgages were issued + 9.5% vs last year.
                          • 6.6 € Bn of mortgages issued in September 2018, +10% vs last year.
          The top 4 regions with the biggest growth for the number of mortgages issued are (monthly changes):
                          • Valencian Community, +32.5% to 3.863 mortgages
                          • Madrid, +30.6% to 6.530 mortgages
                          • Murcia, +21.5% to 866 mortgages
                          • Catalonia, +18.4% to 5.246 mortgages
          The top 4 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
                          • La Rioja, +123%
                          • Extremadura, +54%
                          • The community of Navarre, +37%
                          • Madrid, +28%

           

          The Spanish mortgage rates situation in August 2018

                          • Average mortgage has an interest rate of 2.62% (vs 2.59% last month)
                          • The average mortgage rate decreased by 4.3% vs 1 year ago
                          • The lowest rate ever is 2.59%!
                          • The average mortgage duration is 24 years
                          • 59.8% have variable interest rates
                          • 40.2% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.43%, 5.5% less than 1 year ago,
                          • The average rate for fixed-rate mortgages is 2.99%, 3.1% less than 1 year ago,
                          • The average amount issued per mortgage stands at €122,424, an increased of 9.8% vs last year.
                          • 28.755 mortgages were issued + 6.8% vs last year.
                          • 5.4 € Bn of mortgages issued in August 2018, +11% vs last year.

           

          The top 4 regions with the biggest growth for the number of mortgages issued are:
                          • Extremadura, +31% to 604 mortgages
                          • The Canary Islands, +19,6% to 1.396 mortgages
                          • Cantabria, +16,4% to 326 mortgages
                          • Madrid, +13,9% to 5.000 mortgages

           

          The top 4 regions with the biggest growth in terms of amounts of mortgages issued are:
                          • Extremadura, +61%
                          • Madrid, +29%
                          • Andalusia, +28%
                          • Basque country, +24%

           

          The Spanish mortgage rates situation in July 2018

                          • Average mortgage has an interest rate of 2.59% (vs 2.63% last month)
                          • Average mortgage rate decreased by 6.3% vs 1 year ago
                          • The lowest rate ever is 2.59%! YES, the current rate reached this month!
                          • Mortgage duration is 22 years
                          • 62.3% have variable interest rates
                          • 37.7% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.32%, 7.3% less than 1 year ago,
                          • The average rate for fixed-rate mortgages is 3.07%, 5.7% less than 1 year ago,
                          • The average amount issued per mortgage stands at €125,120, an increased of 2.1% vs last year.
                          • 29.287 mortgages were issued + 14.6% vs last year.
                          • 3.6 € Bn of mortgages issued in July 2018, +17% vs last year.

           

          The top 4 regions with the biggest growth for the number of mortgages issued:
                          • Extremadura, +38.9% to 457 mortgages.
                          • The Valencian Community, +28.1% to 3.276 mortgages
                          • La Rioja, +28.1% to 283 mortgages
                          • Madrid, +27,5% to 5.713 mortgages

           

          The top 4 regions with the biggest growth in terms of amounts of mortgages issued:
                          • La Rioja, +77.3%
                          • The region of Murcia, +43%
                          • Cantabria, +39.8%
                          • The Valencian Community, +39%

           

          The Spanish mortgage rates situation in June 2018

                          • Average mortgage has an interest rate of 2.63%
                          • Average mortgage rate decreased by 6.8% vs 1 year ago
                          • The lowest rate ever is 2.62% reached in March 2018
                          • Mortgage duration is 23 years
                          • 62.9% have variable interest rates
                          • 37.1% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.19%, 11.3% less than 1 year ago,
                          • The average rate for fixed-rate mortgages is 3.25%, 0.5% more than 1 year ago,
                          • The average amount issued per mortgage stands at €123,896, an increased of 5.1% vs last year.
                          • 30.600 mortgages were issued + 3.9% vs last year.

           

          The top 3 regions with the biggest mortgages growth:
                          • Madrid, +23,2% to 6.399 mortgages,
                          • Aragon, +10.6% to 957 mortgages,
                          • Extremadura, +18.4% to 616 mortgages.

           

          The Spanish mortgage rates situation in May 2018

                          • Average mortgage has an interest rate of 2.63%
                          • Average mortgage rate decreased by 4.3% vs 1 year ago
                          • The lowest rate ever was 2.62% in March 2018
                          • Mortgage duration is 22 years
                          • 61.9% have variable interest rates
                          • 38.1% have fixed interest rates
                          • The average rate for variable rate mortgages is 2.4%, 9.8% less than 1 year ago,
                          • The average rate for fixed-rate mortgages is 3.12%, 6.6% more than 1 year ago,
                          • The average amount issued per mortgage stands at €117,044, an increased of 2.8% vs last year.
                          • 31.166 mortgages were issued + 7.3% vs last year.

           

          While the top 4 regions in terms of annual growth were:
                          • The Canary Islands, +70,9% to 1.984 mortgages,
                          • Extremadura, +18.5% to 570 mortgages,
                          • Pais Vasco, +18.4% to 1.783 mortgages,
                          • Navarra, +17.3% to 441 mortgages

           
          Check the Spanish report from the INE.

          Looking for a mortgage or a local expert in Alicante, Malaga, Valencia, Madrid, Barcelona,…? Ask us directly!

          Stéphane

          Senior analyst and strategist at HTBIS

          Check the full HTBIS team here

     

     

The post What are the best Spanish mortgage rates? June 2025 update appeared first on How to buy in Spain.

]]> https://howtobuyinspain.com/en/buy-property-in-spain/spanish-mortgage-rates/spanish-mortgage-rates-2025/feed/ 1 What are the best Spanish mortgage rates? June 2025 update - Explore Spanish mortgage rates in 2025, analyzing trends, lender options, and market insights to make informed property financing decisions. Best mortgage rate in Spain,Buy to let,Buy to let Spain,Financing,Mortgage,Spanish mortgage rates,Spanish mortgage rates 2025,Spanish mortgage rates 2025 predictions,Spanish mortgage rates 2026,Spanish mortgage rates 2026 predictions,spanish mortgage rates for non residents,Spanish mortgage rates history,Spanish mortgage rates history graph,Spanish mortgage rates Get the best mortgage rate <em><a href="https://howtobuyinspain.com/en/home/?lang=enen/mortgage-in-spanish/" target="_blank" rel="noopener noreferrer">Get the best mortgage rate in Spain</a></em> Your Mortage calculator Your Mortgage calculator Spanish mortgage rates were on huge sale (1) How to get the best rates as a non-resident. How to get the best rates as a non-resident. Spanish Mortgage Loan To Value Ratios in 2025 **Caption:** Average Spanish mortgage loan-to-value ratio stands at 64% in 2025, recovering from recent dips but still below 2019 peaks. Data shows banks' willingness to finance property purchases has stabilized after pandemic-era fluctuations. [Source: Instituto Nacional de Estadística] Spanish Mortgage with LTV Ratios higher than 80% in 2025 Spanish banks show remarkable lending restraint in 2025, with just 8.6% of mortgages financing above 80% of property value—down sharply from 15% in 2020. This conservative approach protects both the banking sector and homebuyers from overleveraging in Spain's robust but carefully regulated property market. [Source: Instituto Nacional de Estadística] Spanish Bank Financing Costs_ 10-Year Bond Yields vs. Euribor Rates (2020-2025) Spanish Bank Financing Costs_ 10-Year Bond Yields vs. Euribor Rates (2020-2025) Average size of mortgages issued in Spain – April 2025 Line graph showing the average size of a mortgage in Spain from 01/2019 to 05/2023, peaking sharply in early 2020 and ending at €152,000—an important trend for those tracking Spanish mortgage rates for non-residents. Number of Mortgages issued in Spain between 2015 and 2024 Spanish mortgage activity showed robust 11% growth in 2024, with 423,741 new loans issued against 636,909 property sales. While still below the 2022 peak, the upward trend and 67% mortgage utilization rate suggest renewed confidence in Spain's real estate financing market after the 2023 contraction. Split between Variable & Fixed mortgage in Spain in 2025 (2) Spanish mortgages rates as of April 2025 FI Spanish mortgages rates as of April 2025 FI Spanish Mortgage length_ 25 Years is the standard Term in 2025 Spanish mortgage durations have steadily lengthened since 2020, reaching an average of 25 years in 2025. While shorter than the 30-year standard in some countries, this represents a gradual extension of loan terms in Spain's property market, potentially helping buyers manage monthly payments despite rising property values. [Source: Instituto Nacional de Estadística] Nice walking street in Spain Stéphane co-founder of HTBIS How do I choose between fixed and variable rates for a mortgage on my Spanish property? https://howtobuyinspain.com/en/buy-property-in-spain/spanish-mortgage-rates/fixed-variable-mortage-rate-spain/ https://howtobuyinspain.com/en/buy-property-in-spain/spanish-mortgage-rates/fixed-variable-mortage-rate-spain/#respond Tue, 20 May 2025 04:01:47 +0000 https://howtobuyinspain.com/?p=22409   Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten   How do I choose between fixed and variable rates for a mortgage?     Should I take a mortgage with fixed or variable

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Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten

 

How do I choose between fixed and variable rates for a mortgage?

 
 

  1. Should I take a mortgage with fixed or variable rates?

     
    Fixed-rate mortgages and variable-rate mortgages are the two main categories of mortgages you can pick. Of course, there are many other possibilities between the two.
     

  2. Why would you take a fixed-rate mortgage?

     
    A Fixed rate mortgage has the advantage that whatever the market conditions will do in the future, it will remain the same. To get that advantage, you will on average pay a higher rate than on a variable-rate mortgage, for instance, as of May 2025, mortgages with variable rates are issued at rates of 2.9% while those with fixed rates are issued with 3.0% for an average length of 24 years.

    As we are writing, May 2025, Inflation rate has stabilized in Spain: the level as of May 2025 is 2.5%.

     

  3. Why would you take a mortgage with a variable rate?

     
    It could be because it is less expensive and because you don’t see inflation or rates going higher or because you are comfortable financially and can face higher rates. Another reason for variable rates to be lower is that for the banks issuing them, it matches their sources of funds (saving’s accounts).
     
    So, to sum up, if you want safety, take a fixed-rate mortgage. If you see inflation spiking or interest rates going higher (in general due to a strong economy) you could as well go for a fixed-rate mortgages. Of course, the longer your mortgage is the higher your risk will be.
    Don’t hesitate to ask to your Spanish mortgage broker a pricing with both and compare both offers.
     

  4. May 2025 update

     
    After the dramatic changes seen in recent years, the mortgage market has stabilized significantly. While in 2021-2022 we saw a sharp increase in fixed-rate mortgages due to inflation concerns, the trend has now moderated as of May 2025. Currently, 64% of mortgages are issued with fixed rates, a slight decrease from the 75% peak we saw in late 2021. This reflects increased confidence in economic stability and normalized inflation expectations.

    Check the evolution of the percentage of mortgages with fixed and with variable rates

     

  5. Are fixed mortgage rates less expensive than variable mortgage rates?

     
    As of May 2025, the gap between fixed and variable mortgage rates has narrowed significantly. Fixed rates are currently averaging 3.0%, while variable rates average 2.9%, making the difference minimal at just under 0.4 percentage points. This is a dramatic change from the 0.5-0.7 percentage point gap we saw during the high inflation period of 2021-2022.

    Check the evolution of the mortgage rates (average, fixed and variable )over the last year

     

  6. Our other resources on “Spanish mortgage rates”

     

 
Looking for a mortgage or a local expert in Alicante, Malaga, Valencia, Madrid, Barcelona,…? Ask us directly!
 

Are you looking for a property lawyer in Spain? Follow the link and get one of our local lawyers. Looking for another real estate expert in Spain: Mortgage, Insurance, Survey of property, Property hunting, …? Contact one of our 100+ local partners!
 

Stéphane, Senior analyst and strategist at HTBIS

Stéphane, with over 20 years of experience in real estate, finance, and entrepreneurship, is the co-founder of www.howtobuyinspain.com. With an extensive network of local partners in Spain, his deep commitment to the real estate sector, strong analytical skills, and a problem-solving mentality have fueled his success. Constantly eager to learn and passionate about teaching, Stéphane believes in the power of knowledge-sharing to master any subject.

Check the entire HTBIS team here

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]]> https://howtobuyinspain.com/en/buy-property-in-spain/spanish-mortgage-rates/fixed-variable-mortage-rate-spain/feed/ 0 Stéphane co-founder of HTBIS What is the real cost of buying a Property in Spain in 2025? https://howtobuyinspain.com/en/buy-property-in-spain/cost-of-buying-your-spanish-property/ https://howtobuyinspain.com/en/buy-property-in-spain/cost-of-buying-your-spanish-property/#respond Sat, 15 Feb 2025 08:16:15 +0000 https://howtobuyinspain.com/?p=3530 Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten     Congratulations, you found your Spanish dream property! What is the cost of buying a property in Spain? First question is: Is it a

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]]> Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten

 

 

Congratulations, you found your Spanish dream property!

What is the cost of buying a property in Spain?

First question is:

  • Is it a new-build property?
  • Is it a resale?

Depending on your answer the cost will be slightly different but a good rule of thumb is 14%.

 

 

  1. The cost of buying a New-build property in Spain: +/- 14%

    • VAT =10%
    • Property registration fees = 1.5%
    • Lawyer between 1 and 2%:
    • Other costs: Notary, stamps,…

     

    The cost of buying a newbuild property in Spain

    The cost of buying a new build property in Spain

     

     

  2. The cost of buying a Resale property in Spain: will be between 10 and 14%

    • Transfer Tax = 6 to 10% at the general tax rate (but you have reduced rates in certain cases). This amount depends on which Spanish region this property is located.
    • Property registration fees = 1.5%
    • Lawyer between 1 and 2%
    • Other costs: Notary, stamps,…

     

    The cost of buying a resale property in Spain

    The cost of buying a resale property in Spain

    Don’t miss What is the legal due diligence for your Spanish property?

    Do you need a property lawyer or a tax advisor to assist you in Spain? Find a Spanish property lawyer in our network.

     

  3. Other costs to take into account

    • Banking costs: Usually a percentage of the amount wired + cost of holding an account
      • This could be very important if you don’t have a Euro account and need to convert your currency like Pound, Dolar, Yuan, Shekel, Ruble,… up to 3%
      • Our Tip: You have companies specialized in wiring funds internationally working with segregated accounts at the major international banks:

     

    1. You can lock a currency level

    => you will know the commission BEFORE wiring the money

    => you will know the level at which you will convert your currency in Euros BEFORE wiring the money

    => you will know the exact amount you need to wire in your local currency BEFORE wiring the funds

    2. You wire the money in your currency

    3. The company will wire the money in Euros in Spain on your Spanish account (Don’t forget your NIE, read our earlier paper on that) , your lawyer account,…

     

     

    • Mortgage costs:
      • Bank valuation of the property = +/- 750€
      • Mortgage deed = +/- 750€

 

If you want to check the monthly cost of your mortgage, or what is your purchasing power for a Spanish property, check our ultimate mortgage calculator!

Related Your definitive guide to your Spanish mortgage. How to get the best rates?

Do you want to find the best Spanish mortgage rates? Fill this quick form and ask our partner for a quote

 

  • Real Estate agent fee: Here is the good news you were waiting for: the seller is paying this one 😉 in general.

Before buying, you want to know what is the annual cost of owning a property in Spain? Read our paper on this subject.

All those information are from reliable sources. We advise you to check those with your fiscal and legal agent in order to get all those costs up to date and adjusted to your specific situation.

 

Is the cost of living in Spain higher than in your home country?

 

Have a look at our detailed article and study on the subject.

If you are living in UK, here is our dedicated article: Cost of living in Spain vs UK.

 

Have a look at our detailed property buyers guides custom made for any nationality

Here are our FREE pdf property buyers’ guides written for all the foreign nationalities looking to buy in Spain: Click on your country flag, you will find your pdf report at the end of each article. Get most of our tips there.

 

Do you want to start searching immediately?

 

Discover the best new build projects in Spain available right now
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Don’t know where to buy? Start with our general article: Everything you ever wanted to know about the top 20 Spanish real estate markets

 

1. Best Professionals 2. Follow up 3. Competitive pricing 4. Partners 5. Qualitative Check

Get your insights right to your mailbox? Register for our newsletter!

 

Our Tip: Don’t forget all our checklists before buying your property:

Our reports on how to buy a property in Spain

Finally, if you want more, check our very useful infographic: The 9 legal steps to your Spanish property

 

Infographic the 8 steps to your spanish property

 

FAQ on the Cost of buying a property in Spain

Is buying property in Spain a good idea?

Spain is the number one country in Europe for holidays. It is 10% cheaper than Europe. Of course real estate is cheap as well and you have 320 days of sun. Read our article: 10+ reasons for buying a property in Spain.

How much is property purchase tax in Spain?

The cost of buying a property in Spain is between 10 and 15% depending on if it is a resale or a new build and where the property is located. Read our article for more on that.

Can I get residency in Spain if I buy a house?

In order to get residency in Spain, there are certain conditions attached to it (income, activity, nationality,...) So if you want to live in Spain and work in Spain, check with a lawyer. The Golden Visa could be the way to go as well. Read our article on that.

Do I need a Spanish bank account to buy a property in Spain?

The obvious answer is yes. You want to finance a property in Spain, you will have taxes, utilities, ... Get it right away. In order to open your bank account, you will need a NIE, see our news on that.

 

Looking for a property lawyer in Spain? Follow the link and get one of our local lawyer.

Looking for another real estate expert in Spain: Mortgage, Insurance, Survey of property, Property hunting, …? Ask us directly one of our 100+ local partner!

 

 

 

 

 

 

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

 

 

The post What is the real cost of buying a Property in Spain in 2025? appeared first on How to buy in Spain.

]]> https://howtobuyinspain.com/en/buy-property-in-spain/cost-of-buying-your-spanish-property/feed/ 0 Costs of buying a newbuild property in Spain Costs of buying a resale property in Spain Get the best Euro rate Mortgage in Spain Cost of living for worldwide cities gbunitedkingdomflag_111699 degermanyflag_111762 nlnetherlandsflag_111906 Russia China Sweden Morocco Italy Belgium Belgium France Romania 5 Reasons to work with our experts in Spain 1. Best Professionals 2. Follow up 3. Competitive pricing 4. Partners 5. Qualitative Check Our reports on how to buy a property in Spain Infographic the 8 legal steps to your spanish property The 9 steps to your Spanish property Stéphane co-founder of HTBIS Mortgage rates comparison in Europe https://howtobuyinspain.com/en/buy-property-in-spain/spanish-mortgage-rates/mortgage-rates-comparison-europe/ https://howtobuyinspain.com/en/buy-property-in-spain/spanish-mortgage-rates/mortgage-rates-comparison-europe/#respond Mon, 27 Jan 2025 15:59:06 +0000 https://howtobuyinspain.com/?p=49919   Click on any flag to get an automatic translation from Google Translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten   European Mortgage comparison Guide 2025: Complete analysis of Rates This mortgage comparison guide incorporates insights from our two latest video analyses: “European Mortgage

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Click on any flag to get an automatic translation from Google Translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten

 


European Mortgage comparison Guide 2025: Complete analysis of Rates

This mortgage comparison guide incorporates insights from our two latest video analyses: “European Mortgage Rates at Lowest Levels in January 2025” and “Spanish Mortgage Rates for Non-Residents.” For detailed video explanations, we recommend watching both comprehensive analyses.

Data Source: All mortgage rates and financial data in this mortgage comparison are sourced from the European Central Bank’s official statistics. The figures presented are the latest available data as of January 2025, representing November 2024 measurements.

  1. European Mortgage Rate comparison

     

    Comparing Mortgage Rates across Europe

    Our mortgage comparison reveals significant variations across European markets in 2025. Current data shows a remarkable spread in rates, from lows of 3.04% in Spain to highs of 3.94% in Ireland. This mortgage rate comparison helps investors identify the most advantageous markets for property investment.

    Quick Mortgage Rate comparison

    Country Current Rate Compared to EU Average (3.44%)
    Spain 3.04% -0.40%
    France 3.17% -0.27%
    Belgium 3.19% -0.25%
    Italy 3.23% -0.21%
    Portugal 3.29% -0.15%
    Finland 3.31% -0.13%
    Luxembourg 3.69% +0.25%
    Netherlands 3.71% +0.27%
    Ireland 3.94% +0.50%

    Key factors in Mortgage comparison

    When comparing mortgages across European markets, consider these essential elements:

    • Interest Rate Types and Spreads
    • Down Payment Requirements
    • Lending Criteria for Non-Residents
    • Insurance Requirements
    • Tax Implications

    Key European Property Investment markets

    The mortgage markets across European countries show significant variation in rates and lending practices. The EU average currently stands at 3.44%, but individual countries demonstrate notable differences that reflect their local economic conditions, regulatory frameworks, and cultural approaches to property ownership.

    Mortgage Rates in Germany: Market analysis and trends

    The German mortgage market is characterized by its stability and conservative lending practices. With current rates at 3.59%, German lenders emphasize long-term security and robust risk assessment. The market is highly regulated, with a strong preference for fixed-rate mortgages that typically require down payments of 20-30%. A unique feature of the German market is the “Forward Darlehen” system, which allows borrowers to lock in rates up to five years in advance of their mortgage start date.

     

    German mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, as of November 2024, Spanish mortgage rates are cheaper by 0.55% than German mortgage rates. This is very good news for real estate buyers in Spain. In November 2024, German mortgage rates were sold at 3.59%.

     

    Mortgage Rates in France: current conditions and requirements

    French mortgage lending, offering competitive rates at 3.17%, combines strong borrower protections with structured application processes. This rate, notably below the European average, makes French mortgages particularly attractive for international investors. The French system is notable for its mandatory life insurance requirements and maximum debt ratio restrictions of 35%. First-time buyers can benefit from the “Prêt à taux zéro” program, which provides zero-interest loans under specific conditions.

     

    French mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, French mortgages are a little bit more expensive than Spanish mortgage rates in November 2024. They trade at 3.17%

     

    Mortgage Rates in the Netherlands: system overview and benefits

    The Dutch mortgage market, currently with rates at 3.71%, stands out for its innovative approach to lending and strong focus on sustainability. Despite rates being slightly above the European average, the system offers various mortgage types and relatively high mortgage-to-income ratios. A distinctive feature is the National Mortgage Guarantee scheme, which provides additional security for both lenders and borrowers.

     

    Dutch mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, Spanish mortgage rates and Dutch mortgages are more expensive than Spanish mortgage rates by 0.67%. In November 2024, Dutch mortgage rates were sold at 3.71%.

     

    Mortgage Rates in Belgium: market features and opportunities

    Belgium’s mortgage market, with current rates at 3.19%, positions itself competitively within Europe. This rate, significantly below the EU average, combines with strong consumer protections and stable lending practices. The Belgian approach emphasizes income stability and typically requires a 20% down payment, while offering various tax advantages for property owners.

     

    Belgian mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, Spanish mortgage rates and Belgian mortgage rates are close to each other in November 2024. As of November 2024, Belgian mortgage rates were issued at 3.19%, 0.15% higher than Spanish mortgages.

     

    Mortgage Rates in Ireland: market conditions and lending practices

    The Irish mortgage market currently shows rates of 3.94%, positioning it above the European average. Despite higher rates, Ireland offers robust first-time buyer programs and clear regulatory frameworks. Key features include strict Central Bank lending rules, comprehensive buyer protection measures, and increasing availability of long-term fixed rates.

     

    Irish mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, Irish mortgages are much more expensive than Spanish mortgages. As you will surely know, the Irish real estate market rebounded strongly and is one of the hottest markets in Europe even with those higher rates. In November 2024, Irish mortgage rates were trading at 3.94%, 0.9% higher than Spanish mortgage rates.

     

    Mortgage Rates in Italy: southern European perspective

    Italy’s mortgage market presents competitive rates at 3.23%, making it an attractive option for property investors. The Italian system combines traditional lending practices with modern financial products, offering both fixed and variable rate options. The market is particularly appealing for vacation home buyers and those interested in historical property renovation.

     

    Italian mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, Italian mortgages are much more expensive than Spanish mortgages. In November 2024, Italian mortgage rates were trading at 3.23%, 0.19% higher than Spanish mortgage rates.

     

    Mortgage Rates in Luxembourg: financial center insights

    Luxembourg’s mortgage market, with rates at 3.69%, reflects its position as a major financial center. Despite rates above the EU average, the market benefits from strong international banking presence and sophisticated financial products. The country’s high property values are offset by competitive lending terms and strong legal protections for buyers.

     

    Luxembourg mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, Luxembourg mortgages are much more expensive than Spanish mortgages. In November 2024, Italian mortgage rates were trading at 3.69%, 0.65% higher than Spanish mortgage rates. As you know probably, the Luxembourg real estate market has a very high valuation and we could see this as banks being prudent or instructed by the European Central Bank to be prudent.

     

    Mortgage Rates in Portugal: Mediterranean market analysis

    Portugal offers attractive mortgage rates at 3.29%, positioning itself competitively within the southern European market. The Portuguese system provides particular advantages for non-resident buyers, with specific programs designed to attract international investment. The market combines affordable property prices with accessible financing options.

     

    Portuguese mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, Portuguese mortgages are much more expensive than Spanish mortgages. In November 2024, Portuguese mortgage rates were trading at 3.29%, 0.25% higher than Spanish mortgage rates. The Portuguese real estate market had a nice run too and we could see some caution from Portuguese banks.

     

    Mortgage Rates in Finland: Nordic market perspective

    Finland’s mortgage market, with rates at 3.31%, demonstrates the stability characteristic of Nordic financial systems. The Finnish approach emphasizes transparency and efficiency in lending processes, with strong digital integration and streamlined application procedures. The market offers particular advantages for energy-efficient properties and new constructions.

     

    Finnish mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, Spanish mortgage rates since March 2022 are cheaper than mortgages in Finland, as of November 2024, they are cheaper by 0.27%. This is very good news for real estate buyers in Spain. In November 2024, Finnish mortgage rates were sold at 3.31%.

     

    Want to learn more about European Mortgage Rates?

    Watch our comprehensive video analysis “European Mortgage Rates at Lowest Levels in January 2025” to discover:

    • Detailed monthly changes in rates across all European countries

      • Bar chart titled "European mortgage rates averages" showcasing declines in most countries, highlighted by downward green arrows, except for Germany which shows a slight rise. This visualization offers a clear mortgage rates comparison in Europe.

    • Five-year historical trends and patterns
    • Impact of inflation on current rates

      • Graph showing European inflation trends from January to December 2024, with a peak in the middle of the year; inflation at 2.4% in December. This trend offers insight into mortgage rates comparison across Europe

    • Financing conditions across different regions

      • Line graph titled "Financing rates stay elevated - December 2024 data," highlights 10-year yields at 3.1%, Euribor 1-month at 3%, and Euribor 12-months at 2.4%. Ideal for a mortgage rates comparison in Europe as we look ahead to projections into 2025.

    • Expert predictions for the coming months

     
    Would you like to watch this video in your language? Click at the bottom right of the video on “cc” to get subtitles in your language.
     

     

    #SpanishMortgage #PropertyInSpain #NonResidentMortgage #SpanishProperty #InvestInSpain #SpanishRealEstate #MortgageAdvice #ForeignBuyer

     

  2. Professional support framework

     

    Success in the Spanish mortgage market often depends on accessing professional support services. This includes legal assistance during the property purchase process, financial advisors for mortgage comparison and tax planning, and property services professionals for market analysis and valuation expertise.

     

Conclusion

 

The European mortgage market offers diverse opportunities for property investors, with Spain emerging as a particularly attractive option in 2025. Our video analyses demonstrate that while each country presents unique characteristics and requirements, Spain’s combination of competitive rates, stable banking sector, and strong property market fundamentals makes it especially appealing for foreign buyers.

For more detailed information and regular updates on European mortgage rates and Spanish property investment opportunities, we recommend subscribing to our video channel. Our comprehensive analyses are updated monthly with the latest market data and expert insights.

 



Stéphane
Senior analyst and strategist at HTBIS

Stéphane, with over 20 years of experience in real estate, finance and entrepreneurship, is the co-founder of www.howtobuyinspain.com. With an extensive network of local partners in Spain, his deep commitment to the real estate sector combined with strong analytical skills and a problem-solving mentality have fueled his success. Constantly eager to learn and passionate about teaching, Stéphane believes in the power of knowledge sharing to master any subject.

Check the full HTBIS team here

 

Mortgage comparison in Europe FAQ

Are mortgage rates in Spain higher than in other European countries?

No, Spain currently offers some of the lowest mortgage rates in Europe. As of November 2024, Spanish mortgage rates stand at 3.04%, significantly below the European average of 3.44%. This makes Spain one of the most competitive markets for property financing in Europe, with rates lower than most major European economies.

What makes Spanish mortgage rates competitive compared to other European countries?

Spanish mortgage rates are competitive due to six key factors: 1) Strong GDP growth leading European rankings, 2) Unemployment at lowest levels since 2007, 3) Lower dependence on energy prices than other European countries, 4) Inflation rates below European average (under 3%), 5) Conservative real estate market without overleveraging, and 6) Strong banking regulations ensuring sector stability.

How do Spanish mortgage rates compare with specific European countries like France or Italy?

Spain's current mortgage rate of 3.04% is highly competitive compared to other major European markets: France (3.17%), Belgium (3.19%), Italy (3.23%), Portugal (3.29%), Finland (3.31%), Luxembourg (3.69%), Netherlands (3.71%), and Ireland (3.94%). This positions Spain as having the most attractive mortgage rates among major European economies.

Can foreign investors benefit from Spain's mortgage rates when buying property?

Yes, foreign investors can benefit from Spain's competitive mortgage rates, though they typically receive slightly higher rates than residents. Non-resident buyers can still secure favorable terms by meeting key requirements: maintaining a debt-to-income ratio below 35%, providing a larger down payment (30-40%), and choosing properties in high-demand areas with strong resale potential. The combination of low rates, stable economy, and average property prices under €2,000 per square meter makes Spain particularly attractive for international investors.

 

Easy downloadables charts on mortgage rates evolution in Europe

Graph comparing mortgage financing rates in Spain to European average mortgage rates from January 2000 to January 2025, analyzing if Spanish mortgage rates are expensive.Line graph comparing Spain average mortgage rates, European average mortgage rates, and their difference from January 2005 to approximately January 2020, illustrating whether Spanish mortgage rates are expensive.Chart comparing whether Spanish mortgage rates are expensive versus various European countries from January 2000 to January 2024.Graph comparing Portuguese and questioning if Spanish mortgage rates are expensive over time, with data sourced from the European Central Bank.A line graph comparing mortgage rates between Luxembourg and Spain from January 2000 to January 2020, highlighting whether Spanish mortgage rates are expensive in comparison. Data sourced from the European Central Bank.Graph comparing mortgage rates over time in Spain, Italy, and the European average with the difference between Spanish and Italian rates highlighted to analyze if Spanish mortgage rates are expensive.Comparison of Irish and Spanish mortgage rates over time with European average and ECB rate reference, including whether Spanish mortgage rates are expensive.Comparison of French and Spanish mortgage rates with the European average over two decades, assessing if Spanish mortgage rates are expensive.Comparison graph of whether Spanish mortgage rates are expensive versus Finnish rates against the European average from January 2000 to approximately 2021.Comparative line graph displaying Spain average mortgage rates versus European average, with an overlay of their differential to answer "Are Spanish mortgage rates expensive?", spanning from January 2000 to January 2020.Line graph comparing mortgage rates in Belgium and Spain from 2000 to 2020, highlighting the average rates for each country and the difference between them, with a focus on whether Spanish mortgage rates are cheaper or notComparison chart of mortgage rates for 1 to 5 years fixed terms between Spain and Europe from 2000 to 2020, indicating whether Spanish mortgage rates are expensive.Line graph comparing Spanish average mortgage rates to European average mortgage rates for 5 to 10 years fixed rates, along with their difference, spanning from January 2000 to January 2020, illustratingComparison chart of 10-year fixed-rate mortgage financing between Spain and Europe over two decades, highlighting if Spanish mortgage rates are expensive with a differential line.

Bar chart comparing data for various mortgage rates for different European countries, with Ireland highest at 3.94. Includes Belgium, Netherlands, Finland, Germany, Italy, Portugal, Luxembourg, the EU logo "HTBIS," and notably showcases Spanish mortgage rates alongside Spain's performance.

Bar chart comparing data for various mortgage rates for different European countries, with Ireland highest at 3.94. Includes Belgium, Netherlands, Finland, Germany, Italy, Portugal, Luxembourg, the EU logo “HTBIS,” and notably showcases Spanish mortgage rates alongside Spain’s performance.


The post Mortgage rates comparison in Europe appeared first on How to buy in Spain.

]]> https://howtobuyinspain.com/en/buy-property-in-spain/spanish-mortgage-rates/mortgage-rates-comparison-europe/feed/ 0 Monthly trend evolution on Spanish mortgage rates in Europe European inflation levels Financing rates for mortgages rates Stéphane co-founder of HTBIS Mortgage financing Spain vs Europe _ comparison for variable rates mortgages March 2024 Mortgage financing Spain vs Europe _ comparison of all mortgages March 2024 Mortgage financing Spain vs European countries _ comparison of all mortgages March 2024 Portuguese vs Spanish mortgage rates comparison March 2024 Luxembourg vs Spanish mortgage rates comparison March 2024 Italian vs Spanish mortgage rates comparison March 2024 Irish vs Spanish mortgage rates comparison March 2024 French vs Spanish mortgage rates comparison March 2024 Finnish vs Spanish mortgage rates comparison March 2024 Dutch vs Spanish mortgage rates comparison March 2024 Belgian vs Spanish mortgage rates comparison March 2024 Mortgage financing Spain vs Europe _ comparison for 1 to 5 years fixed rates mortgages March 2024 Mortgage financing Spain vs Europe _ comparison for 5 to 10 years fixed rates mortgages March 2024 Mortgage financing Spain vs Europe _ comparison for 10 years fixed rates mortgages March 2024 Mortgage rates levels in Europe Nov 2024 Bar chart comparing data for various mortgage rates for different European countries, with Ireland highest at 3.94. Includes Belgium, Netherlands, Finland, Germany, Italy, Portugal, Luxembourg, the EU logo "HTBIS," and notably showcases Spanish mortgage rates alongside Spain's performance. Mortgage rates in Spain for non residents: April 2025 update https://howtobuyinspain.com/en/buy-property-in-spain/spanish-mortgage-rates/mortgages-spain-non-residents/ https://howtobuyinspain.com/en/buy-property-in-spain/spanish-mortgage-rates/mortgages-spain-non-residents/#respond Tue, 21 Jan 2025 17:58:13 +0000 https://howtobuyinspain.com/?p=41309 Click on any flag to get an automatic translation from Google Translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten Mortgage rates for non-residents: Spain’s position in the European landscape Here is our update of January 2025 with the last available data (November 2024) on Spanish

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Mortgage rates for non-residents: Spain’s position in the European landscape

Here is our update of January 2025 with the last available data (November 2024) on Spanish mortgage rates for non-residents from the European Central Bank

One question we get from our customers nearly daily is: How expensive are the mortgage rates in Spain vs other European countries?

So, we were due to do some work on that and here is the result. At the same time, we took the opportunity to increase our databases, and this article will be updated later. Please note that all the charts are interactive and, whenever we update our database, the charts will be updated.

Thanks to our network of local partners, we get the best mortgage rates in Spain if you want to finance your home in Spain. Take 30 seconds to fill this quick form to get the best Spanish mortgage rates as a non-resident.

  1. Mortgage rates in Spain for non-residents: our 2-minute video

    Would you like to watch this video in your language? Click on the bottom right of the video on “cc” to get subtitles in your language.

     

  2. Navigating the Mortgage process as a non-resident in Spain

    While many international buyers prefer to purchase their Spanish second home outright with cash, this approach might not always be the most strategic. Even if you have the means for an all-cash transaction, considering a mortgage could unlock a suite of financial benefits. From diversifying your investments and increasing liquidity to optimizing tax efficiencies, the advantages are compelling. Intrigued? We invite you to journey with us through the upcoming sections, where we’ll unveil the nuanced benefits of leveraging a mortgage for your property in Spain—a decision that could redefine your financial strategy.

    Securing a mortgage in Spain as a non-resident is a feasible endeavour, though it does come with its unique set of challenges and considerations. Given that the majority of your assets are likely situated outside of Spain, Spanish banks will meticulously evaluate both your personal financial profile and the property in question to mitigate their risk exposure. Generally speaking, the terms offered to non-residents may be more conservative compared to those available to residents. This often translates to less favourable interest rates, stricter borrowing criteria, and a reduced loan-to-value ratio, meaning you might need to provide a larger down payment. Additionally, the process might involve more comprehensive documentation and a longer evaluation period to thoroughly assess the viability of extending credit under these circumstances. Understanding these nuances and preparing accordingly can smooth the path to acquiring your Spanish property.


    Get a free mortgage quote service for spanish properties with a coastal town backdrop.

  3. Comparing Spanish Mortgage rates with European averages

     

    Spanish vs. European Real Estate financing

    Thanks to the detailed database of the European Central Bank that we could import, we could run a thorough analysis of mortgage conditions for all the European countries vs Spain. Before jumping on detailed statistics on different mortgage solutions we looked at general conditions for mortgage rates both in Europe and in Spain.
    All Mortgages issued in Spain in November 2024 had an average interest rate of 3.04%  (vs 3.1% in January 2023) while all mortgages issued in Europe had an average interest rate of  3.44%  for the same period (vs 3.19% in Spain in January 2023).

    The chart below clearly demonstrates a strong correlation between Spanish mortgage rates and their European counterparts. Both datasets, meticulously compiled by the European Central Bank, serve to monitor financial trends across the region. Historically, from November 2014 to April 2022, Spanish mortgage rates were consistently higher than the European average, marking a more expensive borrowing climate within Spain. During this timeframe, the average Spanish mortgage rate stood at 2.02%, in contrast to the slightly lower European rate of 1.87%, indicating a notable 0.15% disparity that disadvantaged both the Spanish property market and prospective homeowners.

    Spanish mortgage rates are cheaper than European ones

    A new trend started in 2022

    However, the trend reversed post-April 2022, as Spanish mortgage rates began to align with or dip below the European average. As of November 2024, the most recent data point at the time of this analysis, the average mortgage rate in Spain had settled at 3.04%, marginally below the European average of 3.44%.

    This shift represents a significant 0.40% advantage, benefiting both the Spanish real estate market and its investors: Spaniards and foreigners, and reflects a notable improvement in the affordability and attractiveness of Spanish mortgages relative to the broader European landscape.

    Now that we analyzed all the mortgages issued in both Europe and Spain, it is time to compare rates for different mortgage solutions. As you know mortgage rates are separated in two big categories:

    • fixed rates mortgages, mostly mortgages that will keep the same rate over the full mortgage length, usually between 10 and 25 years,
    • variable rates mortgages, mortgages that will change rates over the life of the mortgage (monthly, yearly, or every five years)

    In the following analysis, we will delve further into the nuances of four distinct mortgage categories: variable-rate mortgages, fixed-rate mortgages with terms of 1-5 years, those spanning 5-10 years, and fixed-rate mortgages with a term of 10 years. Notably, variable-rate and 10-year fixed-rate mortgages stand out as the most popular choices among individuals financing their home purchases, both across Europe and specifically within Spain. This comparison aims to illuminate the characteristics and trends that define each category, providing a comprehensive overview of the Spanish mortgage landscape.

    Here are all the evolutions and a quick analysis for each:

    Variable Mortgage rates: Spain vs Europe showdown

    As you can see on the chart, Spanish mortgage rates since April 2022 were nearly always cheaper than mortgages in Europe, as of November 2024, they are cheaper by 0.40%.

     

    1-5 years fixed Mortgage rates face-off: Spain vs Europe

     

    As you can see on the chart, Spanish mortgage rates with fixed rates between 1 and 5 years are one of the only Spanish mortgage rates for which you will pay more than in other European countries, on average, as of November 2024, you will pay 0.21% more.

     

    5-10 years fixed Mortgage Rates: Spain vs Europe head-to-head

    As you can see on the chart, fixed Spanish mortgage rates (5 to 10 years) were nearly always more expensive in Spain than in other European countries. Interestingly, as of November 2024, Spanish mortgage rates trade close to the European average, i.e. no more premium as in the past.

     

    10-Year fixed Mortgage rates in Spain versus Europe

    As you can see on the chart, Spanish mortgage rates since March 2022 are cheaper than mortgages in other European countries, as of November 2024, they are cheaper by 0.36%. This is very good news for real estate buyers in Spain.

    At the end of this article, we provide a precise comparison between mortgages issued in different European countries and Spain, have a look at where your home country is!

    Read more on the subject: What are the best Spanish mortgage rates?

  4. Key factors behind the advantageous Spanish Mortgage rates

    Thanks to our detailed update, now you know that the Spanish mortgage market is experiencing a confluence of positive factors that set it apart from other European counterparts:

    • Spanish property values remain attractively priced when juxtaposed with other European real estate markets, presenting a compelling value proposition and a lower risk for lending banks, just contrary to what we had in 2008,
    • The Spanish economy exhibits resilience and robustness, outpacing the broader European economic performance, which instils confidence in both domestic and international investors,
    • The impact of energy price fluctuations has been mitigated effectively in Spain since the escalation of geopolitical tensions in Ukraine, contributing to a more stable cost of living and operating environment,
    • Spain’s inflation has consistently been lower than the European average, preserving purchasing power and contributing to the overall economic stability,
    • The Spanish real estate sector is characterized by its prudence and lack of speculative excess, evident in the modest percentage of transactions involving mortgages (66%) and the conservative loan-to-value ratio averaging 60%. This reflects a healthy level of leverage and risk appetite in the market.
    • The strength of the general economy in Spain suggests that Spanish banks are in a sound financial position, enabling them to offer attractive financing options without resorting to aggressive lending practices. This financial stability is likely to support continued favourable mortgage rates.

    These elements collectively create a conducive environment for the advantageous spread in Spanish mortgage rates, underscoring the market’s resilience and appeal to a broad spectrum of investors. Additionally, the prudent regulatory framework and proactive fiscal policies may further bolster the market’s attractiveness, potentially leading to sustained growth and stability in the Spanish real estate sector.

     

    Why Spanish mortgage rates are less expensive than in other European countries?

    Why Spanish mortgage rates are less expensive than in other European countries?

  5. What are the advantages of obtaining a Mortgage in Spain as a non-resident?

     

    Increase the return on your Spanish property investment

    The main advantage of buying a property in Spain, is that current real estate levels are not crazy if you compare those to other European countries.
    Read more on the subject: What return will you make on your Spanish property?

    Even with current mortgage rates, getting a mortgage is easier than getting a loan for something else as a person as the bank has the property as collateral. So, while we always encourage our customers to manage risks and don’t overleverage, getting a mortgage before buying a property is in our mind a wise way to diversify your financial assets.
    Last but not least, but depending on your home country, real estate assets could be less taxed than other financial assets.

    Diversify your investments

    By taking a mortgage, you can decrease your risks by keeping some funds for other investments.

    Potential tax benefits and how to maximize them

    Buying a property with a mortgage can give you some real tax benefits if you put your property on the rental market afterwards as a “Buy to let” or an investment property. Ask our tax advisors for more on that.

    Advantages of Spanish mortgage rates for UK residents

    In the mortgage landscape, UK banks are known to promote variable-rate mortgages, nudging customers towards options that fluctuate with the market, despite the inherent uncertainty in future repayments. Meanwhile, Spanish banks are more accommodating of fixed-rate mortgages, offering borrowers the chance to lock in a stable and predictable payment schedule throughout the loan term, contrasting with the UK’s bank-driven preference for variable rates.

    Spanish mortgage rates for US residents

    In the US mortgage market, fixed-rate mortgages are predominant, offering long-term stability with terms commonly set at 30 years, allowing homeowners to lock in rates for the duration of their loan. This contrasts with the Spanish market, where, despite a growing preference for fixed-rate options, mortgages typically have shorter terms and the market historically leaned more towards variable rates, influenced by the Euribor. Additionally, the US market is characterized by its diversity in loan products and a more developed secondary market for mortgages, which enhances liquidity and flexibility in terms and conditions, unlike Spain, where the market is more traditional and less varied in its offerings.

    Benefits for a non-resident of financing his property in Spain with a mortgage.

    Benefits for a non-resident of financing his property in Spain with a mortgage.

  6. How to get the best mortgage rate as a non-resident in Spain?

     

    Have the best customer profile for the Spanish bank

    Here are some insights into what constitutes an attractive customer profile for securing a mortgage:

    • Employment and stability: Ideal candidates are employed with a stable and substantial income.
    • Creditworthiness: A favourable credit history with minimal debts relative to income is crucial.
    • Debt management: A healthy debt-to-income ratio below 35. This means that monthly net income would be at least three times greater than debt repayments.
    • Property value: 1/ The chosen property should hold strong resale potential. 2/It should be priced appropriately within the current market. 3/It should be in a location with consistent demand.
    • Geographic consideration: Applicants from OECD countries are often preferred due to stringent anti-money laundering regulations across Europe. Being an EU resident simplifies the process further.
    • Maximum loan amounts for non-residents: Spanish banks would like to keep that under control

     

    Don’t take a too big mortgage compared to the property value

    As a non-resident, you’re eligible to secure a mortgage for your second home or investment property. Given that your assets are not located in Spain, banks will require guarantees and generally cap the loan-to-value (LTV) ratio at 70%. The LTV ratio represents the portion of the property’s pre-tax value that can be financed through a mortgage. This percentage serves as a general guideline. Feel free to request a complimentary consultation from our mortgage broker, who is well-versed in the process and familiar with Spanish banks that are favourable towards foreign clients. The lower this ratio is, the lower the risk for the bank and the better rate for your mortgage.

    How to get the best rates as a non-resident.

    How to get the best rates as a non-resident.

  7. Useful considerations for your Spanish mortgage as a non-resident

     

    Processing time for Mortgage applications

    On average, mortgages are processed quickly but keep in mind, that you need to prepare a full file so the bank can establish your credit profile. Our partner will work on that with you. Don’t worry.

    Higher interest rates and reduced loan amounts for non-residents

    In general, foreigners will get slightly less good conditions than Spaniards for their mortgages. This is normal as foreigners don’t have all their financial assets and incomes based in Spain. With a good credit profile and a reasonable loan to value, our customers get nice quotes.

    NIE number for non-residents

    Acquiring an NIE number is a fundamental step for non-residents looking to navigate the property and mortgage landscape in Spain. This identifier serves as your tax identification number. It is essential for a variety of legal and financial transactions, including the purchase of property and the application for a mortgage. Fortunately, obtaining an NIE is a straightforward process. Your legal representative can handle on your behalf, should time constraints be an issue. For a detailed guide on acquiring your NIE and its importance, we invite you to explore our comprehensive article: Your Spanish NIE number, and how to get it..

    Useful considerations for a non-resident to get a Spanish mortgage

    Useful considerations for a non-resident to get a Spanish mortgage

  8. Comparing Mortgage rates in Spain vs. selected European countries

    Before checking the evolutions of the mortgage conditions between Spain and a few countries, let’s have a look at what is the current situation as of November 2024. Here is the evolution of the different European markets sorted alphabetically, as a reminder, Spanish mortgage rates and European mortgage rates were at 3.04% and 3.44% respectively as of the end of November 2024.

    European mortgage rates November 2024 leaderboard

     

    • Belgian mortgage rates are issued with a 3.19% rate on average in November 2024
    • Dutch mortgage rates are issued with a 3.71% rate on average in November 2024
    • Finnish mortgage rates are issued with a 3.31% rate on average in November 2024
    • French mortgage rates are issued with a 3.17% rate on average in November 2024
    • German mortgage rates are issued with a 3.59% rate on average in November 2024
    • Irish mortgage rates are issued with a 3.94% rate on average in November 2024
    • Italian mortgage rates are issued with a 3.69% rate on average in November 2024
    • Luxembourg’s mortgage rates are issued with a 3.29% rate on average in November 2024
    • Portuguese mortgage rates are issued with a 3.04% rate on average in November 2024

    Here is the same information presented in a column chart:

     

    Belgian mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, Spanish mortgage rates and Belgian mortgage rates are close to each other in November 2024. As of November 2024, Belgian mortgage rates were issued at 3.19%, 0.15% higher than Spanish mortgages.

     

    Dutch mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, Spanish mortgage rates and Dutch mortgages are more expensive than Spanish mortgage rates by 0.67%. In November 2024, Dutch mortgage rates were sold at 3.71%.

     

    Finnish mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, Spanish mortgage rates since March 2022 are cheaper than mortgages in Finland, as of November 2024, they are cheaper by 0.27%. This is very good news for real estate buyers in Spain. In November 2024, Finnish mortgage rates were sold at 3.31%.

     

    French mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, French mortgages are little bit more expensive than Spanish mortgage rates in November 2024. They trade at 3.17%

     

    German mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, as of November 2024, Spanish mortgage rates are cheaper by 0.55% than German mortgage rates. This is very good news for real estate buyers in Spain. In November 2024, German mortgage rates were sold at 3.59%.

     

    Irish mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, Irish mortgages are much more expensive than Spanish mortgages. As you will surely know, the Irish real estate market rebounded strongly and is one of the hottest markets in Europe even with those higher rates. In November 2024, Irish mortgage rates were trading at 3.94%, 0.9% higher than Spanish mortgage rates.

     

    Italian mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, Italian mortgages are much more expensive than Spanish mortgages. In November 2024, Italian mortgage rates were trading at 3.23%, 0.19% higher than Spanish mortgage rates.

     

    Luxembourg mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, Luxembourg mortgages are much more expensive than Spanish mortgages. In November 2024, Italian mortgage rates were trading at 3.69%, 0.65% higher than Spanish mortgage rates. As you know probably, the Luxembourg real estate market has a very high valuation and we could see this as banks being prudent or instructed by the European Central Bank to be prudent.

     

    Portuguese mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

    As you can see on the chart, Portuguese mortgages are much more expensive than Spanish mortgages. In November 2024, Portuguese mortgage rates were trading at 3.29%, 0.25% higher than Spanish mortgage rates. The Portuguese real estate market had a nice run too and we could see some caution from Portuguese banks.

     

  9. Further readings

     

     

Looking for a mortgage or a local expert in Alicante, Malaga, Valencia, Madrid, Barcelona,…? Ask us directly!

 



Stéphane
Senior analyst and strategist at HTBIS

Stéphane, with over 20 years of experience in real estate, finance and entrepreneurship, is the co-founder of www.howtobuyinspain.com. With an extensive network of local partners in Spain, his deep commitment to the real estate sector combined with strong analytical skills and a problem-solving mentality have fueled his success. Constantly eager to learn and passionate about teaching, Stéphane believes in the power of knowledge sharing to master any subject.

Check the full HTBIS team here

 

Are Spanish mortgage rates more expensive? FAQ

Are mortgage rates in Spain higher than in other European countries?

As of November 2024, the average mortgage rate in Spain was 3.7%, slightly below the European average of 3.87%. This indicates a competitive edge for Spain in terms of borrowing costs.

What makes Spanish mortgage rates competitive compared to other European countries?

Factors such as robust Spanish economic performance, controlled energy prices, low inflation rates, conservative real estate market leverage, and strong banking sector contribute to the favorable mortgage rates in Spain.

How do Spanish mortgage rates compare with specific European countries like France or Italy?

In November 2024, Spanish mortgage rates were lower than many European countries, including Italy (3.98%) and slightly higher than France (3.59%), making Spain an attractive market for real estate investment.

Can foreign investors benefit from Spain's mortgage rates when buying property?

Yes, foreign investors can take advantage of Spain's competitive mortgage rates, which, combined with the country's stable economy and attractive property prices, make it an ideal location for real estate investment.

 

Downloadable Charts

Line graph comparing mortgage rates in Belgium and Spain from 2000 to 2020, highlighting the average rates for each country and the difference between them, with a focus on whether Spanish mortgage rates are cheaper or notComparative line graph displaying Spain average mortgage rates versus European average, with an overlay of their differential to answer "Are Spanish mortgage rates expensive?", spanning from January 2000 to January 2020.Comparison graph of whether Spanish mortgage rates are expensive versus Finnish rates against the European average from January 2000 to approximately 2021.Comparison of French and Spanish mortgage rates with the European average over two decades, assessing if Spanish mortgage rates are expensive.Comparison of Irish and Spanish mortgage rates over time with European average and ECB rate reference, including whether Spanish mortgage rates are expensive.Graph comparing mortgage rates over time in Spain, Italy, and the European average with the difference between Spanish and Italian rates highlighted to analyze if Spanish mortgage rates are expensive.A line graph comparing mortgage rates between Luxembourg and Spain from January 2000 to January 2020, highlighting whether Spanish mortgage rates are expensive in comparison. Data sourced from the European Central Bank.Bar chart comparing November 2024 mortgage costs for various European countries, indicating Spain one of the lowest mortgage rate in Europe Line graph comparing Spain average mortgage rates, European average mortgage rates, and their difference from January 2005 to approximately January 2020, illustrating whether Spanish mortgage rates are expensive.Graph comparing mortgage financing rates in Spain to European average mortgage rates from January 2000 to November 2025, analyzing if Spanish mortgage rates are expensive.Comparison chart of 10-year fixed-rate mortgage financing between Spain and Europe over two decades, highlighting if Spanish mortgage rates are expensive with a differential line.Comparison chart of mortgage rates for 1 to 5 years fixed terms between Spain and Europe from 2000 to 2020, indicating whether Spanish mortgage rates are expensive.Line graph comparing Spanish average mortgage rates to European average mortgage rates for 5 to 10 years fixed rates, along with their difference, spanning from January 2000 to January 2020, illustrating

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]]> https://howtobuyinspain.com/en/buy-property-in-spain/spanish-mortgage-rates/mortgages-spain-non-residents/feed/ 0 Mortgage quote for your Spanish property Why Spanish mortgage rates are less expensive than in other European countries. Why Spanish mortgage rates are less expensive than in other European countries. Benefits for a non-resident of financing your property in Spain with a mortgage. Benefits for a non-resident of financing your property in Spain with a mortgage. How to get the best rates as a non-resident. How to get the best rates as a non-resident. Useful considerations for a non-resident to get a Spanish mortgage Useful considerations for a non-resident to get a Spanish mortgage Stéphane co-founder of HTBIS Belgian vs Spanish mortgage rates comparison March 2024 Dutch vs Spanish mortgage rates comparison March 2024 Finnish vs Spanish mortgage rates comparison March 2024 French vs Spanish mortgage rates comparison March 2024 Irish vs Spanish mortgage rates comparison March 2024 Italian vs Spanish mortgage rates comparison March 2024 Luxembourg vs Spanish mortgage rates comparison March 2024 Mortgage averages in Europe as of January 2024 Mortgage financing Spain vs Europe _ comparison of all mortgages March 2024 Mortgage financing Spain vs Europe _ comparison for variable rates mortgages March 2024 Mortgage financing Spain vs Europe _ comparison for 10 years fixed rates mortgages March 2024 Mortgage financing Spain vs Europe _ comparison for 1 to 5 years fixed rates mortgages March 2024 Mortgage financing Spain vs Europe _ comparison for 5 to 10 years fixed rates mortgages March 2024 Are bank repossessions in Spain an attractive investment opportunity? https://howtobuyinspain.com/en/buy-property-in-spain/bank-repossessions-spain/bank-repossessions-spain-as-investment/ https://howtobuyinspain.com/en/buy-property-in-spain/bank-repossessions-spain/bank-repossessions-spain-as-investment/#respond Tue, 21 May 2024 06:42:45 +0000 https://howtobuyinspain.com/?p=22570 Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten     Is it too late to invest in bank repossessions properties in Spain? Less hassle and a nice return?   Many of our readers

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]]> Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten

 

 

Is it too late to invest in bank repossessions properties in Spain?

Less hassle and a nice return?

 

Many of our readers told us that, yes, you get a return with “buy to let” properties in Spain but you have to manage your property and all the issues going with it, so they asked us: are you aware of any product to get “smart exposure” to the real estate market in Spain? Many others asked us, how can I invest in bank-repossessed properties in Spain?

 

We found a fund investing only in bank-repossessed properties in Spain and checked it for ourselves so that’s why we wanted to share the results of our work with you.

    1. Why did we like the fund and this opportunity?

      1. The management team has 10 years of experience and a track record
      2. Competitive edge: Thanks to their huge geolocalized database of prices’ history with properties’ characteristics: the ones they bought and sold, all the bank properties sold for the last years, all the properties sitting on the market… They have a very accurate idea of what is the “fair” price of any property when bidding for a portfolio. Appraisal work and an on-site visit will do the rest of the job.
      3. The Spanish legal system: “creates” this situation and doesn’t give a lot of choices to the Spanish banks for managing their repossessed properties while keeping a good image.
      4. It is very costly for banks to hold properties on their balance sheet: both in terms of solvency ratio and yearly costs (tax, insurance, community costs, maintenance costs,…)
      5. Opportunity should stay for many years: there are not enough players to dry up properties from the Spanish banks’ balance sheets. Do you remember, it all started in 2008!
      6. Clear investment process: this is a very data-driven and systematic investment approach with many verification steps.
      7. Allows to buy real estate on the Spanish market “at a discount”. As all properties are bought with a big discount, the risk (if any) to the real estate market prices is much lower than any real estate investment: whenever a property is sold, the discount is ‘locked” for the investor which reduces his future risk even more, should the real estate market go down at any time in the future.
      8. Last but not least, no hassle as you would have with any direct real estate investment anywhere in the world.

       

      Of course, as it is a fund, investors should check their tax situation for any investment.

      As you could guess, this kind of fund is for well-informed (and wealthy) investors able to manage and diversify their risks. This is not a recommendation to invest or any advice regarding this investment opportunity. That is why we don’t advertise the name of the company managing this fund but if you want to go further with your due diligence, you can contact them by filling out the form at the end of the report.

       

      Here is what we found out:

 

  1. A fund buying bank repossessions directly from Spanish banks

     

    The fund pursues a unique investment strategy of recurrently:

    1. Acquiring,
    2. repossessing and
    3. reselling residential properties in well-populated Spanish regions.

     

    The properties may be subject to adverse possession or “Squatters”, which is resolved by reaching an amicable financial settlement with the occupant. If this doesn’t work, the fund will start a legal procedure and this will take a maximum of 3 years to get full ownership. 90% of the time the fund will get an agreement with the current squatters.

     

    The Fund will cherry-pick properties among portfolios of occupied residential assets offered by financial institutions.

    Example of a Bank repossession in Spain in the portfolio

    Example of a Bank repossession in Spain in the portfolio

     

    An institutional manager based in Madrid

    The fund manager is active for more than 10 years in this market.

    Of course, as the fund manager is well known in Spain, they get portfolios all the time from the biggest banks in Spain.

    The assets are only offered to a select group of reputable buyers, like the institutional manager managing the fund, due to the complex nature of solving potential adverse possession situations.

     

    They told us that unique sourcing and strict discipline enables the Fund to buy at very deep discounts vs the current market price as they have to get the property back to the market (before tax expenses), but yes that’s why there is a nice margin left for the buyer, not bad!

     

    The Fund Manager will partner with the leading Spanish-occupied real estate specialist which employs a socially responsible repossession procedure based on mutual agreement Ethical conduct, compliance and strict adherence to legislation are essential.

    Financial settlement occupants are offered financial compensation in return for vacating the property voluntarily.

     

    The Luxembourg fund will reinvest in new properties continuously

    The fund has an open-ended structure, which means that it will stay open as long as the opportunity is present for the fund manager, and is full AIFM regulated and registered in Luxembourg as a “Reserved Alternative Investment Fund” (RAIF) which allows the fund to invest directly in real estate.

     

    The proceeds from sales will be redeployed to buy new portfolios.

     

    The average holding period of a property is 18 months.

     

    Win-win for all the parties involved:

    • banks can offload risk assets sooner,
    • occupants agree with the manager to relocate thanks to a mutual agreement.

     

    Target Net Return

     

    The open-ended fund was launched in 2021 and targets annual net returns of 8.5% to 11% without leverage in a stagnating housing market. Over time the fund may use limited leverage for enhancing returns to 11% -14%.

    The fund manager based in Madrid has been running these strategies since 2011, which is why they could give return targets.

    High-demand area’s

    The fund will exclusively focus on well-populated area’s which have sufficient transaction volume i.e. no rural area’s. A majority of assets will be located in major cities focused on Spanish citizens, not tourists.

     

    Buffers against capital losses

    The fund is buying at very deep discounts, so even after accounting for all costs and taxes, post-COVID real estate prices would have to decline by more than 12% to make a small capital loss, according to the manager. In addition, the Fund is spreading asset purchases over time making it less sensitive to price shocks compared to closed-end real estate funds.

    Unique proprietary technology

    Each property is appraised by a proprietary big data valuation software, which tracks key features (e.g. price, location, surface, floor, amenities,…) of 25mm references gathered over many years. Each appraisal is also supported by a dedicated team of analysts. In addition, a third party will be appointed to verify the value of the holdings.

    Strategy with a track record

    The fund manager told us that they did successfully repossessed and resold over 2,500 assets since 2011. Over 90% of historical property portfolios were eventually sold at a profit that was in line with or above the Fund’s target return.

     

    Ethical & socially responsible procedures

    Based on reaching a voluntary agreement with occupant(s). No occupant is ever threatened or evicted by any other means except those explicitly approved by banks and the law.

     

    High barriers to entry

    This is a niche strategy that is difficult to copy, banks are only willing to sell large portfolios to a legitimate buyer with national coverage who uphold strong compliance standards.

     

    Limited correlation to financial markets

    They described this strategy as an alternative investment strategy focused on existing residential real estate (no development).

     

    A specific opportunity existing only in Spain

    Due to inertia of legal procedures, the culture of ‘occupants’ and the recovery of a major real estate crisis.

    Since the Global Financial Crisis and the ensuing real estate crisis in Spain, the national and regional lenders have unwillingly become large real estate owners.

     

    Unfavourable impact on bank balances sheets

    Not only do banks lack the expertise and staff to properly manage real estate, but the assets also have an unfavourable impact on their minimum capital requirements.

     

    Many properties have sat idle on banks balance sheets for years, and in the meantime have become occupied by people that have gained unlawful entry to the property and now live in it for free.

     

    In Spain, it may take years for owners to obtain court approval to evict unauthorised occupants. In 2018 it became possible for natural persons to pursue an “express judicial procedure”, a procedure which can still take months to evict occupants out of their own homes, but this is not the case for owners that are legal entities as banks real estate funds. Despite being very slow, the Spanish judicial system eventually favours the rightful owner.

     

    Spanish banks are still offloading legacy real estate portfolios from the 2008 crisis, as well as annually foreclosing over 25 000 assets based on police data, at least 87 000 homes are subject to adverse possession, although some consultants estimate the real number closer to 100 000.

    Another example of a Spanish bank repossessed property

     

     

  2. What is the investment process?

    There are 4 steps:

    1. Appraisal

    The local partner, thanks to reputation and network, has the opportunity to bid on and cherry-pick from hundreds of assets per week from different institutional sellers.

    Each asset is appraised by proprietary software that sources data from 20 million assets This value is the market value or minimum selling target, under normal conditions.

    Each appraisal is verified by a team of professionals.

     

    2. Acquisition

    Next, they apply a strong discount on top of accounting for fees for acquisition, repossession and sale, which leaves a substantial profit margin to the fund.

    The local partner is bidding on assets all year round, negotiations with banks may take many months due to aggressive bidding (only a small share of bids are ever accepted). The Fund will never acquire portfolio’s below its ROI threshold In addition we may order a third party appraisal of all the individual assets in a portfolio.

     

    3. Repossession

    Each occupied asset is visited by a trained in-house staff member. After identifying the occupant(s), the staff member starts the negotiation.

    The selling bank has already initiated a legal eviction process, so the occupant is often more inclined to accept vacating the property rather than risk contact with law enforcement.

    If the negotiation doesn’t work (ca 10% of cases) the fund will pursue judicial track

     

    4. Sale

    The asset is cleaned, and secured (new lock, fortified doors, alarm) as well as lightly refurbished where necessary.

    The fund hires a network of local real estate agents to sell and promote the repossessed assets.

    Some assets will already be sold 4 months after purchase, 50 within 16 months and 80 within 2 years

    Another building of a Spanish bank repossession from the portfolio

     

  3. More on Bank Repossessions in Spain

    90% of adverse possession occupancies are resolved through mutual agreement (outside of court)

     

    1. Legal procedure

    Usually, a legal eviction procedure is initiated before the acquisition (by banks). In Spain however, this can be a very cumbersome process, taking up to several years. This track is nevertheless pursued to have some leverage in the negotiation process. All processes strictly comply with legal regulations and are approved by the sellers

    2. Visit Property

    Once the judicial procedure has been initiated, the occupant is notified and visited to explain the situation. Not used to this personal approach, some occupants may already leave. Most leave after negotiating compensation for foregoing a few months of rent (as they know they will otherwise be evicted at some point).

     

    3. Negotiate repossession

    More than 90 of the assets are repossessed through mutual agreement, the rest via legal procedures. Banks and funds are unable to pursue this strategy due to the risk of attracting even more occupants to all their empty assets.

    Hundred of the negotiators are proprietary staff (none outsourced), specialized in repossessing occupied assets in Spain.

     

    4. Security and refurbishment

    Once the property is vacated, it is professionally cleaned, and a fortified door, new lock and alarm system are put in place (to avoid people reoccupying) If needed, some basic painting refurbishment is done, however, the apartments are typically sold in their existing condition (at small discounts compared to fully refurbished or new apartments)

     

  4. Attractive economics

    Thanks to their sourcing and in-depth experience the Fund expects to perform above average compared to most real estate funds out there.

    • The Fund’s asset manager has developed a proprietary underwriting software including over 26 million Spanish real estate references and can make 50 000 daily valuations Parameters for valuation include surface, price, m² geolocation, cadastral reference, building, elevator/garage, time in the market, etc
    • AI algorithms are implemented in the decision-making process, however, all valuations are corroborated by at least 2 in-house analysts.
    • Target market price as calculated by in-house software valuation analysts The asset is compared to similar assets (based on the above parameters) on the market and sold within the last months, in a small radius.
    • Purchase price incl taxes and origination fees typically 35% to 40% below the target market price to account for costs and base case profit margin (per portfolio) of 25%.
    • Expected costs include annual property taxes, community fees, repossession charges, refurbishment, alarm, lock and intermediaries (real estate agents).
    • ‘Base case’ profit margin is expected to earn 25% to 27% base case on the total investment (cost transfer tax/stamp duty) at SPV level over 2 to 3 years.
    • Target market price as calculated by in-house software valuation analysts The asset is compared to similar assets (based on the above parameters) on the market and sold within the last months, in a small radius.
    • Excess margin the asset is usually put on the market for 150 of the target price (or 230 of investment) and lowered every 2 to 4 weeks.
    • Historically 90 of all portfolios repossessed by the Fund’s asset manager were sold above base case ROIs (and aggregated target prices).

     

    Of course, don’t underestimate potential risks for any (real estate) investment.

    Most of the time, even if bank repossessions are occupied in Spain, they are in a good state.

     

  5. Here are some of the risks we identified with the fund strategy

    • Liquidity: Repossessing some assets in the portfolio may take longer than expected, thereby depressing IRR’s.
    • COVID 19 fallout (or further crisis): Increasing public debt and unemployment may negatively impact demand for low-income housing.
    • Valuation risk: Risk of overpaying for certain portfolio assets or the condition of the asset appears to be worse than assumed.
    • Reputation: Repossessing assets subject to adverse possession is a delicate matter Unfair evictions may lead to reputational damage for anyone involved.
    • Refurbishment: Although the assets are expected to be in subpar condition, some assets may be in a poorer state than expected.

     

  6. Do you want to know more?

    Ask for more due diligence from the manager by sending your contact details directly to the manager. As you understood our disclaimer at the start of this article, every investor is responsible for his own risks and HTBIS does not promote or advise to invest in any specific product. We accept to put you in direct contact with the fund manager by filling this form so we don’t make any advertising for the company. Don’t hesitate to tell them that you read it on HTBIS, they will surely answer your questions with even more details as they did with us. That is how we create value for our readers.

[contact-form-7]

If you want to find a bank property, here is where you should start: Register to our exclusive Spanish bank properties listings and read: Where are the Spanish bank properties for sale?

Remember, the risks are higher if you buy a bank property from a bank. In Spain, furthermore, we would always advise you to work with a lawyer when you buy a property. He will make sure everything is fine. We developed privileged relationships with local lawyers very active with foreigners, don’t hesitate to ask us for a real estate lawyer anywhere in Spain from our network in a specific region. A technical survey of your Spanish property is strongly advised as it is a bank property.

 

 

Before buying in any region, have a quick look at all our research on the top 20 Spanish Cities: Everything you ever wanted to know about the top 20 Spanish Cities real estate markets

 

Looking for an expert in Spain: Lawyer, Architect, Property Hunter, Mortgage? Ask us directly!

Stéphane

Senior Analyst and Strategist at HTBIS

Check the full HTBIS team here

Our FAQ on Bank repossessions in Spain

Is it safe to buy a bank repossession in Spain?

Buying a bank repossession in Spain is difficult as it requires some expertise: valuation, legal, and most of the time the property is occupied by squatters.

How long does it take to repossess a house in Spain?

The law in Spain protects squatters and even more if the owner is a Spanish company.

Can you buy a repossessed house from the bank?

Yes, of course anyone can buy a bank property but pay attention, it is not that easy.

How does bank repossession work?

In Spain, it is a very cumbersome process that takes up to several years. But 3 years should be a maximum.

 

 

 

 

The post Are bank repossessions in Spain an attractive investment opportunity? appeared first on How to buy in Spain.

]]> https://howtobuyinspain.com/en/buy-property-in-spain/bank-repossessions-spain/bank-repossessions-spain-as-investment/feed/ 0 Bank Repossessions Spain 2 Bank Repossessions Spain 4 Bank Repossessions Spain Bank Repossessions Spain 3 Sign up to get bank properties in Spain Find your Lawyer in Spain Our full review of the top 20 Spanish real estate markets Stéphane co-founder of HTBIS What is the real cost of owning your Spanish property in 2023? https://howtobuyinspain.com/en/buy-property-in-spain/real-cost-owning-spanish-property/ https://howtobuyinspain.com/en/buy-property-in-spain/real-cost-owning-spanish-property/#respond Tue, 30 May 2023 07:01:24 +0000 https://howtobuyinspain.com/?p=3624 Translate this page:   What is the real cost of owning your Spanish property as a non-resident?   Congratulation for your purchase, now let’s check the annual costs of owning your property. You’ll have those divided into five different groups: Taxes, Insurance, Utilities (Electricity, Water, Gaz, Television, Internet, Telephone), the

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What is the real cost of owning your Spanish property as a non-resident?

 

Congratulation for your purchase, now let’s check the annual costs of owning your property.

You’ll have those divided into five different groups: Taxes, Insurance, Utilities (Electricity, Water, Gaz, Television, Internet, Telephone), the charges of your own property and eventually Community Charges.

Let’s have a look at a concrete example: a two bedroom apartment in Barcelona of 100 m2 with a market price in 2022 of 440.000€ and a “valor Catastral” of 100,000€. We assume a rental value of 18.000€.

 

  1. Taxes

    If you want to have a detailed view from our experts on this subject, have a look at our article: What taxes do you have to pay on your Spanish property?

    Here is a quick summary:

    a. Local Tax: IBI, “Impuesto sobre Bienes Inmuebles“:

    What is it? A local tax on any Spanish property.

    Who has to pay for it? Any owner of a Spanish property, local or foreigner.

    How do you know? You’ll get a letter after June of any year but some local authorities don’t send it. You owe this tax

    Who is the beneficiary? The tax is payable to your local Town Hall. Those are for infrastructure, waste collection,…

    If you pay too late, you will have to pay a penalty.

    Where can I pay it? Your local Town Hall, a few of them are available online.

    Our tip: A few of them allow domiciliation of payment: very easy, they will take the amount from your account every year. A very good solution if you are living abroad. Make sure your account balance is sufficient: some banks would refuse to pay or would charge you a high interest if the account would fall into negative territory.

    How is the Tax Calculated? The IBI is based on the “Valor Catastral“. The “Valor Cadastral” can be legally adjusted if needed by any Town Hall.

    Our tip: by working with a lawyer, he will make sure that the previous owner paid for it, if it is not the case, you’ll have to pay for him!

    What if your property is empty? You owe the tax!

    Our tip: After buying a property, register your property with the Town Hall within two months. Take all the official documents with you. Most of the time, your lawyer will do this for you.

    If you forgot it, your local town hall could recoup the amounts due for the last 5 years + penalties… So, now you know!

    The IBI for the apartment in Barcelona is under 0.6% of the “Valor Catastral“: i.e. 360€

     

     

    b. State Tax: You are renting it. You are not renting it… Modelo 210 – Form 210

    A. You are renting out your apartment => Quarterly filling, before the 15th of the month following the end of the quarter.

    The State tax for the apartment in Barcelona is 19% of the “Rental Value“: i.e. 3648€ on an annual basis and 912€ on a quarterly basis.

    Our Tip: you have items that could reduce this amount, check with (y)our lawyer.

    B. Your apartment is not rented => Yearly filling

    The State tax for the apartment in Barcelona is under 0.2% of the “Valor Catastral“: i.e. 200€

    Where can you find the Spanish form 210 directly in English?

    Where can you find the official information for filing your Spanish Form 210 in English?

    Have a look at the help guide written in English by the Spanish Authorities.

    Our Tip: Pay attention, if you bought the property with someone else (spouse, kids,…), everybody needs to do one filling for the taxes!

    Our Tip: Take advantage of our network and get your filling done by someone on the ground.

     

  2. Insurance

    The insurance should be around 0.05% of the price of your property.

    The insurance for the apartment in Barcelona is under 250€.

    Our Tip: Many insurance brokers in Spain speak foreign languages. Ask a quote from our home insurance partner in Spain.

     

     

  3. Utilities

    If your apartment in Barcelona is empty, you’ll have a few charges just to have accounts open and running:

    +/- 15€ / month for water

    +/- 20€ / month for electricity

    +/- 6€ / month for gas

    For a total of 41€ / month if your apartment in Barcelona is not rented.

    If your apartment in Barcelona is rented, charges may increase up to 150€ / month. With inflation rising since 2021, you should expect those costs to increase even more in the future.

    Our Tip: If your Gas meter needs to be reopened, you’ll have to get a technician to certify that your installation standards is fine. Count about 150€ for this.

     

  4. Community Charges

    This charge depends on the property you bought:

    • Is there a lift in the building?
    • Is the property new? Does it need more or less of maintenance?
    • Are many properties empty?
    • Do you have a swimming pool?
    • How often is the property cleaned?

    For your apartment in Barcelona count between 50€ and 100€ per month.

    Our Tip: Ask for the last Assembly documents before buying. Your lawyer will do this in general. You will get a much better picture on those costs and on the costs carried on the property in the past or to be done in the future.

     

  5. Charges of your own property

     

    To sum up: 0.8% per year:

    • 0.15% Local tax,
    • 0.05% National tax(not rented ),
    • 0.05% Insurance,
    • 0.1% Utilities (empty),
    • 0.3% Community charges,
    • 0.1% Property charges

     

     

    Do you want to be sure of the cost of buying a Spanish property? Read the news we wrote on this. Last but not least another interesting paper is: cost of living in Spain vs any country in the world.

     

     

     

    All those information are from reliable sources. We advise you to check those with your fiscal and legal advisor in Spain in order to get all those costs up to date and adjusted to your specific situation. Find your Spanish property lawyer here.

     

    Do you want to start searching immediately?

    Discover the best new build projects in Spain available right now
    € 320,000
    2 beds 1 bath 61.3 m²
    € 313,000
    2 beds 2 baths 61.3 m²
    € 540,000
    3 beds 3 baths 191 m²
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    € 490,000
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    € 540,000
    3 beds 2 baths 129.2 m²
    € 530,000
    3 beds 2 baths 106.9 m²
    € 370,000
    2 beds 2 baths 88.9 m²
    € 440,000
    3 beds 2 baths 106.9 m²
    € 367,000
    3 beds 3 baths 177 m²
    € 262,000
    3 beds 2 baths 84 m²
    € 242,000
    2 beds 2 baths 72 m²
    € 277,000
    2 beds 2 baths 73 m²
    € 255,000
    3 beds 2 baths 85 m²
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    2 beds 2 baths 71 m²
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    2 beds 2 baths 80 m²
    € 280,000
    3 beds 2 baths 88 m²
    € 585,000
    3 beds 3 baths 162 m²
    € 348,000
    3 beds 2 baths 220 m²
    € 355,000
    3 beds 2 baths 100 m²
    € 385,000
    2 beds 2 baths 76 m²
    € 325,000
    3 beds 2 baths 97 m²
    € 269,000
    2 beds 2 baths 81 m²
    € 631,000
    3 beds 2 baths 123 m²
    € 345,000
    2 beds 2 baths 154 m²
    € 430,000
    3 beds 2 baths 116 m²
    € 730,000
    3 beds 2 baths 149 m²
    € 529,000
    3 beds 2 baths 133 m²
    € 319,000
    2 beds 2 baths 87 m²

     

    If you don’t know where to buy, this general article on the Spanish Real Estate market could be very useful: Everything you ever wanted to know about the top 20 Spanish real estate markets

     

    Get your insights right to your mailbox? Register for our weekly newsletter.

    This infographic could help you before buying your new property in Spain.

    Tips, Move, Spain, Buying, Property, Real Estate

    Don’t try to do it alone, you think you will save money, but you will WASTE money

 

Stéphane Senior analyst and strategist at HTBIS

Stéphane, with over 20 years of experience in real estate, finance and entrepreneurship, is the co-founder of www.howtobuyinspain.com. With an extensive network of local partners in Spain, his deep commitment to the real estate sector combined with strong analytical skills and a problem-solving mentality have fueled his success. Constantly eager to learn and passionate about teaching, Stéphane believes in the power of knowledge sharing to master any subject.

Check the full HTBIS team here

 

Our FAQ on Cost of buying a house in Spain

What are the costs of owning a property in Spain?

The quick answer is: 0.7% per year: 0.1% Local tax 0.02% National tax(not rented ) 0.05% Insurance 0.1% Utilities (empty) 0.3% Community charges 0.1% Property charges Read our article to have the details

Do I need a Spanish bank account to buy a property in Spain?

The obvious answer is yes. You want to finance a property in Spain, you will have taxes, utilities, ... Get it right away. In order to open your bank account, you will need a NIE, see our news on that.

How much tax do you pay when buying a property in Spain?

The cost of buying a resale or a new build in Spain is between 12 and 15%. Please read our full article on that subject.

Is buying property in Spain a good idea?

Spain is the top destination for holidays in Europe by far. Read our article: 10+ reasons why you should buy in Spain, for more on that

 

The post What is the real cost of owning your Spanish property in 2023? appeared first on How to buy in Spain.

]]> https://howtobuyinspain.com/en/buy-property-in-spain/real-cost-owning-spanish-property/feed/ 0 5 Reasons to work with our experts in Spain 1. Best Professionals 2. Follow up 3. Competitive pricing 4. Partners 5. Qualitative Check Our best partners deals in Spain Modelo 210 – Form 210 filling Find Insurance in Spain euro-1633170_1920 Property-Buyerss-Guides-in-Spain Cost of living for worldwide cities Our reports on how to buy a property in Spain Infographic Top 8 tips for not wasting money when you buy in Spain Don't try to do it alone, you think you will save money, but you will WASTE money Stéphane co-founder of HTBIS What return will you make on your Spanish Property in 2023? https://howtobuyinspain.com/en/buy-property-in-spain/spain-property-market-2023/ https://howtobuyinspain.com/en/buy-property-in-spain/spain-property-market-2023/#respond Sat, 01 Apr 2023 14:36:39 +0000 https://howtobuyinspain.com/?p=6093 Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten   Follow this link if you are looking for the last update on the real estate prices for the top 20 Spanish cities.   Property

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Follow this link if you are looking for the last update on the real estate prices for the top 20 Spanish cities.

 

Property investment in Spain: a very strong return of +11.2%

 

According to statistics released by the Central Bank of Spain in November 2022, the return expected on the residential Real Estate market in Spain is 11% and 8.4% if you take a mortgage – Green line on the chart. Not a bad property investment in Spain!

This performance comes from two sources:

  • gross rental yield estimated at 3,6% –Blue line on the chart– and
  • capital gain estimated at 7.6%.

Here is what we will cover in this article:

 

The Spanish real estate market has been strong since 2014 

Sure Covid came to impact the market for the last three years to the end of 2021 but since 2022 here are the main evolutions:

As a reminder those are the trends that impacted the real estate markets worldwide post Covid:

    • people are buying bigger, with more outside spaces and lights
    • people are buying outside big cities
    • foreigners are less active due to travel restrictions (but at HTBIS we could see a strong pick up in activity since the end of 2020)

 

Don’t miss our detailed quarterly report: The top 20 property markets in Spain

 


Now, we are fighting against a new “issue”… inflation. The good news is that the Spanish real estate market offers a nice hedge against inflation up to now and returns remain stron.

 

  1. Spanish real estate return is back above 10% since May 2019

     

    Of course, the uncertainty in the economy that came from Covid was noticeable in 2020 but since 2021, the market is rebounding strongly both in terms of transactions and prices. Have a look at our Spanish real estate quarterly report studying the property price evolution in all the top 20 regions of Spain for more.

     

    Have a look at our interactive chart (yes when you come back, it will be updated). As you will see, property investment in Spain was wise since 2014.

     

     

  2. Mortgage rates in Spain are rising since the start of 2022 at 2.9%

     

    Yes, inflation is back, and so interest rates are rising. As of November 2022, mortgages rates were issued at 2.9% in Spain, Red line on the chart

     

     

     

    Read our article updated every month with the current mortgage conditions, we have added many interesting statistics to follow as inflation levels: Find the best mortgage rate in Spain

    We told you since 2020 that the risk was there for inflation spiking. Now, low mortgages are a history of the past but our view is that at the current levels of mortgages rates are still low. Another interesting thing to note is that real estate buyers are taking fixed-rate mortgages to finance their real estate purchases right now. Read more on that: Fixed or variable rates mortgage?

    Have a quick look at our Spanish mortgage calculator if you want to know what is your purchasing power to buy a property in Spain:

     

    The first real positive return since the crisis of 2008 came in early 2014 … six years ago…

    As you can see on our chart, the estimated return became slightly positive for the second time since 2008 at the start of 2014. In 2010, the estimated return went slightly positive but it was not enough to compensate for the mortgage costs. The performance was much stronger in 2018 as the estimated profitability was higher than 10%. Right now, with close to 6%, the estimated profitability covers more than 3 times the current mortgage costs.

    Follow this link if you want to learn more about our partner, one of the leading Mortgage brokers in Spain.

     

  3. Real estate prices are lower than 10 years ago

     

    Are there a lot of downsides to where we are here? Check the chart of real estate price evolution before and after 2007:

     

     

  4. Spanish real estate returns have the second weakest performance in Europe on a 10-year time frame

    Have a look at the comparison of the real estate market in Spain vs other European countries on any time frame between 3 months and 10 -year time frame

     

     

    As you saw on this histogram, Spain has the weakest performance in a 10-year time frame. Click on the chart to check the performance for other period lengths.

     

  5. Spanish Real Estate has the highest yields vs many European Cities

    Discover the best new build projects in Spain available right now
    € 320,000
    2 beds 1 bath 61.3 m²
    € 313,000
    2 beds 2 baths 61.3 m²
    € 540,000
    3 beds 3 baths 191 m²
    € 520,000
    3 beds 2 baths 109 m²
    € 345,000
    2 beds 2 baths 97 m²
    € 435,000
    3 beds 2 baths 114 m²
    € 350,000
    3 beds 2 baths 106 m²
    € 273,000
    2 beds 2 baths 83 m²
    € 368,000
    3 beds 2 baths 103 m²
    € 315,000
    2 beds 2 baths 90 m²
    € 245,000
    2 beds 2 baths 83 m²
    € 335,000
    3 beds 2 baths 98 m²
    € 250,000
    2 beds 2 baths 90 m²
    € 420,000
    2 beds 2 baths 81.7 m²
    € 475,000
    3 beds 2 baths 101.9 m²
    € 490,000
    3 beds 2 baths 119.8 m²
    € 540,000
    3 beds 2 baths 129.2 m²
    € 530,000
    3 beds 2 baths 106.9 m²
    € 370,000
    2 beds 2 baths 88.9 m²
    € 440,000
    3 beds 2 baths 106.9 m²
    € 367,000
    3 beds 3 baths 177 m²
    € 262,000
    3 beds 2 baths 84 m²
    € 242,000
    2 beds 2 baths 72 m²
    € 277,000
    2 beds 2 baths 73 m²
    € 255,000
    3 beds 2 baths 85 m²
    € 220,000
    2 beds 2 baths 71 m²
    € 240,000
    2 beds 2 baths 80 m²
    € 280,000
    3 beds 2 baths 88 m²
    € 585,000
    3 beds 3 baths 162 m²
    € 348,000
    3 beds 2 baths 220 m²
    € 355,000
    3 beds 2 baths 100 m²
    € 385,000
    2 beds 2 baths 76 m²
    € 325,000
    3 beds 2 baths 97 m²
    € 269,000
    2 beds 2 baths 81 m²
    € 631,000
    3 beds 2 baths 123 m²
    € 345,000
    2 beds 2 baths 154 m²
    € 430,000
    3 beds 2 baths 116 m²
    € 730,000
    3 beds 2 baths 149 m²
    € 529,000
    3 beds 2 baths 133 m²
    € 319,000
    2 beds 2 baths 87 m²

     

    Is Spanish property a good investment? Spain is in the sweet spot for a property investment if you check the real numbers!

    If you want to know your property return for your Spanish property, you need to know a few data: your rental income before and after costs, your property prices and of course it is good to know the costs of your property including taxes. For more on that, read: the cost of owning a property in Spain and What are the taxes you have to pay on your Spanish property?

    Buy to let? Spain offers some of the best returns in Europe:

    • Madrid is in 7th place in Europe with a return of 3,9% and offers one of the best rental yields in Spain with more safety on your investment.
    • Alicante took over the second place one of the best rental yields in Europe with a return of 4,6%, not bad
    • Barcelona is the eleventh city in Europe with a yield of 2,2% according to Deloitte. Rents went down heavily in Barcelona for a few reasons, in 2020, the local authorities did introduce a cap on rents… while at the same time, the lockdown was quite strong, and a lack of demand from international businesses. We wouldn’t be surprised to see the yield come back up in the years to come.

    Check the best rental Yields for the major European Cities, Madrid, and Alicante have rental yields close to 4%.

     

     

    Barcelona and Madrid are the 5th and 8th most expensive European cities in terms of price/m²…

    Have a look at our interactive chart

     

  6. Real estate activity has strengthened since end of 2021 …post-Covid

    Close to 95.000 properties were bought by foreigners in Spain in 2021 (12 months to September 2021) and more than 545.000 by Spaniards.

     

    It looks like others agree with our conclusions…

    Check for more information on our up-to-date pages on the Spanish national real estate market (prices and activity) and on the Spanish regional real estate markets (prices and activity).

    If you want to have a deeper analysis, city per city, we would suggest reading our full report on that (click on the picture):

    The most expensive real estate markets in Spain

    Here is as well our report on the Most active cities in Spain in 2019 (in terms of transactions).

     

  7. Big uncertainty for the Spanish economic activity

    Of course, we noticed a strong rebound in early 2020,… stopped by Covid. But activity in Spain is staying stronger than in most of the other European countries. What a roller coaster!

    Check our up-to-date tables of a few Economic indicators in Spain:

    But after this strong rebound, as everywhere in the world, we wait for the uncertainty to settle and the vaccines to allow more “normal” economic activity.

     

  8. Financial markets will be more volatile

    2018 with a year of higher volatility and negative returns in the financial markets. 2020 saw a huge spike in volatility due to Covid. Shortly after, the Central banks poured money to support economies.

    Since 2022, we expect higher volatility in financial markets due to the change of policy from central banks all over the world. As of 2023, the interest rate curve is inverted, which signals a very high probability rate of an economic recession. Of course, a big unknown is how inflation numbers will come in the next years. The good news as of mid-2023 is that energy prices came back under the levels of early 2022 when the war started in Ukraine.

     

  9. Spanish real estate outlook for 2023

    As we wrote in our article, we are moderately optimistic about the outlook for the real estate market in Spain in 2023. While we have to admit that the comeback post-Covid of the Spanish real estate market (and everywhere in the world) was quicker and stronger than we expected. If we compare it to international markets, the rise is reasonable and not speculative. So, in our mind, we don’t see a real estate bubble here. The good news for international real estate cash-buyers: it should be easier to find properties as interest rates are rising.

     

  10. How do we assist our customers to buy finding their dream homes in Spain?

     

    Whether you’re looking for a holiday home or a permanent residence, all our local partners will help you to find the perfect property in their extensive selection of properties to suit your needs and budget. With a wealth of experience and knowledge, our team of real estate professionals are dedicated to helping you find your dream property in Spain.

    But we’re not just here to help you find your perfect property. We also offer a range of services to make the buying process as smooth and hassle-free as possible. From legal advice to property management, we’ve got everything covered. Don’t hesitate to get in touch with our HTBIS team.

     

    Have a look at our interesting articles:

     

     

    Looking for a local property hunter, a local lawyer, … any expert in Spain? Ask us directly!

    Stéphane

    Senior analyst and strategist at HTBIS

    Check the full HTBIS team here

     

  11. All our charts of this article are available here in a downloadable format

     

     

    Property investment Spain

    Property investment Spain

    Calculate the return of your property investment in Spain

    Calculate the return on your property investment in Spain

    Foreigners real estate activity in Spain

    Foreigners’ real estate activity in Spain

     

    Real estate prices and transactions in Spain

    Real estate prices and transactions in Spain

 

Source: Deloitte Property Index 2020, Overview of the European Residential Market

FAQ on the subject

Is it a good time to buy property in Spain 2023?

Yes, for sure, as you can see, prices are rising since 2014 but are far from the top of 2008. Returns are healthy and not excessive while financing remain low. Read more in our paper.

Are property prices in Spain falling?

No prices are not falling anymore in Spain. Real estate prices are rising since 2014 and remain far from the top: current average price per square meter in Spain is €1662 (end September 2021).

Can I get residency in Spain if I buy a house?

It depends if you are part of EU or not and if you have enough financial means to live. If you are not from EU countries, there are solutions, have a look at our article about the golden visa.

Where should I invest in real estate in Spain?

The top three markets in Spain offer interesting opportunities, Madrid, Valencia and Barcelona. At the same time many second tier cities are strong since the last two years

 

 

 

 

 

 

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]]> https://howtobuyinspain.com/en/buy-property-in-spain/spain-property-market-2023/feed/ 0 Real estate prices in Spain to 2022 Get the best mortgage rate Get the best mortgage rate in Spain Your Mortage calculator Your Mortgage calculator Find your real estate partner in Spain The most expensive real estate markets in Spain Stéphane co-founder of HTBIS Property investment Spain European cities rental prices and rental yields per square meter European cities rental prices and rental yields per square meter Foreigners real estate activity in Spain Foreigners real estate activity in Spain Real estate prices and transactions in Spain Real estate prices and transactions in Spain The Ultimate Spanish Mortgage Guide: Learn how to apply and secure the best rates https://howtobuyinspain.com/en/buy-property-in-spain/spanish-mortgage-rates/spanish-mortgage/ https://howtobuyinspain.com/en/buy-property-in-spain/spanish-mortgage-rates/spanish-mortgage/#respond Sat, 25 Mar 2023 07:59:11 +0000 https://howtobuyinspain.com/?p=18991 Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten   Your definitive guide to your Spanish mortgage How to get the best rates? Many foreigners think that because it is a second home and

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Your definitive guide to your Spanish mortgage

How to get the best rates?

Many foreigners think that because it is a second home and that because they are not Spanish that they can’t get a mortgage. In fact you can get a mortgage but they are certain rules we will explain so that you get all our tips before applying. Thanks to those tips and our partners, you will get the best rates available on the market.

Here is the table of content of this extended article, don’t hesitate to jump directly to the desired section.

Have a quick look at our 2-minutes 30 seconds video if you prefer videos, otherwise continue reading.


 

    1. How much can you borrow for your Spanish mortgage?

      For your second residence and as a non-fiscal resident, a bank will finance no more than 70 % of the value of your property. We call this the “Loan to Value” (LTV: i.e.: the amount of mortgage you can get divided by the value of your property before tax), but this % is only for good inquiry. This means that you would need to invest at least
      45% of the property value with your own pocket.

      How did we found this percentage? 45% = 100% + 15% costs for buying the property – 70% of mortgage!

      If you go for a LTV lower than 60%, most of the time, the bank will show more flexibility. In 2016, Mortgages issued in Spain had a LTV of 64% and only 15% had a LTV higher than 80%. Have a look at our table with up to date information on Returns, mortgages and short term and long term rates on the Spanish market.

      If you read our article on bank properties for sale in Spain, you will be aware that there could be exceptions to this… if you buy a property from a bank… 😉

       

    2. What are the documents requested for a Spanish mortgage?

       

    3. What are the different steps of the application process for your Spanish Mortgage?

      1. Set-up the credit profile of the customer and fill the mortgage request (see section 2)
      2. Formal pre-approval of the mortgage by the bank risk department
      3. Sending of the mortgage offer to the customer
      4. Opening of bank account if the offer is accepted.
      5. The client must send an appraisal provision.
      6. The bank orders the valuation of the property and gets the approval of the mortgage.
      7. Sending of the official mortgage offer.
      8. The bank arranges completion with the client or legal representative in Spain.

       

    4. Which customers will get the best mortgage rates?

      You have to ask yourself this question: What is the ideal customer for a bank?The bank will take a risk, the risk of not being repaid and in this case the bank will need to take legal action to control your property and will sell it afterwards on the market. We saw what happened after the financial crisis of 2008: thousands of properties finished in the hands of the banks as owners couldn’t pay their mortgages.

      The ideal customer for a bank:

      • has good professional profile: he is employed and has a stable nice income stream,
      • has a good credit report, he has not too many debts vs his income,
      • can afford to have debts: his debt to income ratio is under 35 %, which means that his monthly net income is 3 times bigger than his monthly debts repayments,
      • the property has a good resale value:
        1. the property price is correct vs the market
        2. there is demand in the market for such a property
      • is coming from an OECD countries, as you know, with anti-laundering laws that came into effect all over Europe, it is very difficult for banks to give a loan to resident of certain countries. Of course, if you are a resident of the European Union, it will be the easiest.

       

    5. How to get the best rate on your Spanish mortgage as a foreigner?

      At howtobuyinSpain.com, you are in good hands, we work with a mortgage broker (read next item for more on that) who asks the best mortgage prices to all the Spanish banks. Depending on your profile, certain banks will be more aggressive and others won’t be.Our mortgage partner, knows that and they will go to the best bank, or will ask quotes to many Spanish banks in order to get you the best quote. They work with all the biggest Spanish banks: BBVA, Bankia, Santander,…

       

      Click on the image bellow and fill the quick form in order to get a free mortgage quote.

       

       

    6. What is a mortgage broker?

      A mortgage broker is a financial professional who is helping their clients to find a home loan.

      The role of the mortgage broker is to assist the home buyer with the application process.

      • Gather information about the client’s need regarding his home loan
      • Help to create the financial profile of the customer
      • Help to establish the customer borrowing capacity
      • Gather information from banks about mortgage conditions
      • Suggest the best borrowing options according to his profile
      • Match the customer needs with the best corresponding bank products

       

    7. Why a mortgage broker will get you the best mortgage quote?

      You don’t have to work with a mortgage broker, you can directly ask a mortgage to a bank but there are many advantages of working with a mortgage broker:

      • He has the knowledge and the expertise
      • He works with many banks
      • He knows which banks will have the best offers according to your financial profile/project
      • He knows which banks are most aggressive at a certain time
      • He knows which banks are most active in a certain region
      • He will manage the process and the paperwork
      • He will improve the odds of your mortgage request being approved if your profile is close to the “no go”
      • He knows the Spanish regulation
      • He speaks your language,… you don’t need to speak Spanish
      • One contact… many bank offers…

       

    8. What rate should you take for your mortgage? Variable or Fixed?

      There are a wide range of mortgages available

      Most of the banks provide a wide range of mortgage: variable, mixed and fixed rate. Due to the current rate environment, with short-term rates, Euribor, close to 0% and long-term rates very low, borrowers are taking the opportunity to get long-term rates at fixed prices. Before more than 90% of mortgages were issued as variable, nowadays this percentage is lower and 60% of the newly issued mortgages are issued with variable rates while 30% of newly issued mortgages are issued with fixed rates.

       

      Read or detailed article on that subject: How do I choose between fixed and variable rates for a mortgage?

       

    9. What are the current mortgages conditions in Spain?

      Check our article update monthly with the most recent mortgage interest rates in Spain.

      Updated as of November 2021

      Please note that the mortgage cost is an average. In general, foreigners will get higher rates due to the fact that their assets and incomes are not in Spain but in their home country.

      It is always interesting to check the financing conditions for banks:

      You can always find all those data up to date on our table: “Returns and mortgage rates in Spain“

       

    10. Check our ultimate mortgage calculator to price your own mortgage

      and you will be able to calculate everything for your personal project:

      • What are your monthly payments?
      • What is your mortgage schedule?
      • What is your maximum property budget?
      • How much mortgage can I afford in my Spanish home?
      • How much money do I need to buy my Spanish second home?
      • What is the minimum down payment you will need to have to buy your Spanish property?

       

      What is the cost of a €100,000 mortgage over 10 years?

      If you want to go into the details, here is a calculation example we did:As you will see, if you take a mortgage of €100.000 on 10-year with a rate of 3.5%, your monthly payment to reimburse your mortgage will be €989.

      Thanks to our Spanish mortgage rate calculator, you can change any number and calculate your monthly reimbursments depending on your own situation.

       

      Summary table of your monthly reimbursements for a €100.000 Mortgage

       

       

       

    11. What are your real estate investment returns in Spain?

      As of November 2021

       

      You can always find all those data up to date on our table: “Returns and mortgage rates in Spain” and read our last article on the subject: “What is your return on your real estate investment in Spain?“

       

    12. What is the activity on the Spanish mortgage market in 2020?

      333.721 mortgages issued in 2020

      In 2020, 333.721 mortgages were issued. This is a 7.6% decrease vs 2019. You should compare that to the number of properties sold in 2020 of 487.000, which means, in our opinion, that the market is not over leveraged. Have a quick look at the table for statistics since 2014. Yes we are far from the high leverage situation we had in 2007.

      Follow this link to read our detailed article on the mortgage activity in Spain.

       

    13. Are you buying a property in Spain as an investment?

      Buy to let?

      Our best tip: Don’t forget to take the mortgage when you buy, not after, if you want to reduce the taxes on your rental income thanks to your mortgages costs. So, taking a mortgage will increase your net yield. Of course, take only a mortgage that you could afford even if you have financial problems.

       

    14. Looking for a qualitative new build project from reliable developers?

      Discover the best new build projects in Spain available right now

      € 320,000
      2 beds 1 bath 61.3 m²
      € 313,000
      2 beds 2 baths 61.3 m²
      € 540,000
      3 beds 3 baths 191 m²
      € 520,000
      3 beds 2 baths 109 m²
      € 345,000
      2 beds 2 baths 97 m²
      € 435,000
      3 beds 2 baths 114 m²
      € 350,000
      3 beds 2 baths 106 m²
      € 273,000
      2 beds 2 baths 83 m²
      € 368,000
      3 beds 2 baths 103 m²
      € 315,000
      2 beds 2 baths 90 m²
      € 245,000
      2 beds 2 baths 83 m²
      € 335,000
      3 beds 2 baths 98 m²
      € 250,000
      2 beds 2 baths 90 m²
      € 420,000
      2 beds 2 baths 81.7 m²
      € 475,000
      3 beds 2 baths 101.9 m²
      € 490,000
      3 beds 2 baths 119.8 m²
      € 540,000
      3 beds 2 baths 129.2 m²
      € 530,000
      3 beds 2 baths 106.9 m²
      € 370,000
      2 beds 2 baths 88.9 m²
      € 440,000
      3 beds 2 baths 106.9 m²
      € 367,000
      3 beds 3 baths 177 m²
      € 262,000
      3 beds 2 baths 84 m²
      € 242,000
      2 beds 2 baths 72 m²
      € 277,000
      2 beds 2 baths 73 m²
      € 255,000
      3 beds 2 baths 85 m²
      € 220,000
      2 beds 2 baths 71 m²
      € 240,000
      2 beds 2 baths 80 m²
      € 280,000
      3 beds 2 baths 88 m²
      € 585,000
      3 beds 3 baths 162 m²
      € 348,000
      3 beds 2 baths 220 m²
      € 355,000
      3 beds 2 baths 100 m²
      € 385,000
      2 beds 2 baths 76 m²
      € 325,000
      3 beds 2 baths 97 m²
      € 269,000
      2 beds 2 baths 81 m²
      € 631,000
      3 beds 2 baths 123 m²
      € 345,000
      2 beds 2 baths 154 m²
      € 430,000
      3 beds 2 baths 116 m²
      € 730,000
      3 beds 2 baths 149 m²
      € 529,000
      3 beds 2 baths 133 m²
      € 319,000
      2 beds 2 baths 87 m²

     

    Our other resources on that subject

     

     

    Infographic the 8 steps to your spanish property

     

    FAQ on mortgages in Spain

    Can I get a Spanish mortgage?

    It is very easy to get a mortgage in Spain. What are the documents requested?

    1.Your Passport / ID for all the applicants

    2. Your NIE: “Número de identificación fiscal para extranjeros” or Foreign Resident’s Tax Number.

    3. Last 3 paychecks with the contract of employment Proof of incomes/Contract

    4. A view on your assets and debts

    5. If it’s a new building: the “Deed for new building”

    6. The private sale-purchase contract

    7. If you have a mortgage at home, land registry information on the property and the mortgage

    8. If pensioners: Official proof of annual income.

     

    Read our detailed article on that

    Can foreigners get a mortgage in Spain?

    Yes, foreigners can get a mortgage up to 70% of the Value of a property.

    How long does it take to get a Spanish mortgage?

    About 6 weeks. Although, we have to say that since the new law got into effect in August 2019, there is a new 'cooling-off' period of 10 days, so this increases a little bit the timing for getting a mortgage.

    Do I need a Spanish bank account to buy a property in Spain?

    The obvious answer is yes. You want to finance a property in Spain, you will have taxes, utilities, ... Get it right away. In order to open your bank account, you will need a NIE, see our news on that.

    How much can I borrow for a mortgage in Spain?

    For your second residence and as a non-fiscal resident, a bank will finance no more than 70 % of the value of your property. If you include 15% of costs, this means that you would need to invest at least 45% of the property value with your own pocket.

    What are the costs of buying a house in Spain?

    The cost of buying a resale or a newbuild in Spain is between 12 and 15%. Please read our full article on that subject.

    What is the interest rate in Spain?

    As of October 2019, the average mortgage has an interest rate of 2.50% (vs 2.51% last month). The lowest rate ever is the current rate 2.50%! Read our dedicated article on that subject with the last available data.

     

     

    Looking for a mortgage? A lawyer? A property hunter in Spain? Ask us directly, we have a solution within our network!

     

     

     

     

     

    Stéphane

    Senior analyst and strategist at HTBIS

    Check the full HTBIS team here

 

The post The Ultimate Spanish Mortgage Guide: Learn how to apply and secure the best rates appeared first on How to buy in Spain.

]]> https://howtobuyinspain.com/en/buy-property-in-spain/spanish-mortgage-rates/spanish-mortgage/feed/ 0 %%title%% %%page%% Learn how to buy a property in Spain with a Spanish mortgage. Our guide covers everything you need to know. Get expert advice now. Bank Properties,Foreigners,Mortgage,Spanish Mortgage Mortgage quote for your Spanish property approved-1049259_1920 Your Mortage calculator Your Mortgage calculator Infographic the 8 legal steps to your spanish property The 9 steps to your Spanish property Stéphane co-founder of HTBIS