Non-resident mortgages in Spain: Germans lead, banks lend 62% and the Costa del Sol calls for more savings

A non-resident mortgage in Spain covers 62% of the property's value on average: that is the actual loan-to-value of the mortgages signed by non-resident buyers in the second quarter of 2026, according to data from the mortgage broker idealista/hipotecas. Germans apply for the most finance, with 15.6% of non-resident applications, followed by Britons (10.6%) and the Swiss (9.6%), and Andalusia is the second most popular destination for that demand. For anyone thinking of buying on the Costa del Sol, the practical takeaway is simple: the bank puts up six out of every ten euros, and the rest, together with the purchase costs, has to come from your own savings.

Non-residents remain a niche within the mortgage market: they account for 3% of the applications handled by the broker and also 3% of signed mortgages. But it is a niche with considerably more purchasing power than average and behaviour that is very different from that of local buyers, which is worth understanding before applying for finance from abroad.

Which foreigners apply for the most mortgages in Spain?

Germany is top again and has widened its lead: almost one in six non-residents applying for a mortgage in Spain is German. The United Kingdom holds second place despite being outside the European Union, and Switzerland is gaining ground fast, climbing to third. France, the Netherlands, the United States, Ireland, Belgium, Sweden and Italy complete the list.

In terms of income, the Swiss have the most comfortable profile, with more than €9,300 a month per household, followed by Americans (€8,514) and Britons (€6,977). At the other end of the scale are Italian applicants, with €5,249. On average, a non-resident household applying for a mortgage earns €6,779 a month, twice the national average of €3,385, and is looking for a home worth around €265,000, 28% more expensive than the average across all applicants in Spain.

Where do non-residents applying for a mortgage want to buy?

The Mediterranean coast accounts for two out of every three applications. The Valencia region leads with 32.3%, Andalusia is second with 19.9% and Catalonia third with 14%. Far behind come Madrid (6.5%), the Canary Islands (6.3%), the Balearic Islands (5.8%) and Murcia (5.4%). It is the exact opposite of the local buyer's map, where mortgage demand is concentrated in Madrid and Barcelona.

Within Andalusia, the province of Malaga is the great magnet for international buyers: we have already reported on this blog that foreigners account for 37% of home sales in Málaga.

On the Costa del Sol, Marbella is the municipality with the most homes for sale in our catalogue, followed by Estepona.

How much will a bank lend to a non-resident?

Less than to a resident. For a main home, Spanish banks usually lend up to 80% of the value; for a non-resident buyer, the norm is between 60% and 70%. This quarter's figures confirm it: non-residents asked for 68% of the value on average, down from 71% to 75% in previous quarters, and the mortgages that were actually signed covered 62%. Only 12.8% of completed deals had a loan-to-value of between 70% and 80%.

The reason is the risk the lender perceives: income earned outside Spain, credit histories it cannot check in Spanish registers and, often, a second home rather than a main residence. The bank offsets that uncertainty by asking for a bigger deposit.

What kind of non-resident actually gets the mortgage?

The comparison between those who apply for a mortgage and those who go on to sign one is the most revealing part of the data. The average non-resident applicant is 44 and is looking at a home worth around €265,000. The one who signs is younger, earns considerably more and buys a considerably more expensive home.

Source: idealista/hipotecas, non-resident data for the second quarter of 2026.

The households that sign earn €10,320 a month on average, 52% more than those who apply, and buy homes worth around €403,000, the highest figure since the broker started its series in 2022. The average loan is around €235,000, up 15% on a year earlier. In short, the mortgage goes mainly to those who earn more and put more savings on the table. And the fact that repayments stay at around 23% or 24% of income shows that lenders are being cautious with this profile.

Fixed or variable mortgage if you are a non-resident?

Among non-residents the answer is almost unanimous: 85% of signed mortgages were fixed-rate, 15% mixed and none variable. It makes sense. With the Euribor above 3% in September, as we analysed a few days ago, a fixed repayment removes the risk of rate rises for the entire life of the loan.

For many foreign buyers there is a second reason: they are paid in another currency. A Briton earning in pounds, a Swiss buyer paid in francs or an American paid in dollars already carries exchange-rate risk every month when paying the instalment in euros, and a variable rate would add a second risk on top. A mixed mortgage, with a cheaper initial fixed period, is the alternative for those who expect to pay down the loan or sell before the variable phase begins.

How much savings do you need to buy on the Costa del Sol with a non-resident mortgage?

This is where the national average falls short. The home financed by non-residents in Spain costs around €403,000, but on the Costa del Sol the median asking price is €650,000, according to our September market report, based on 8,810 active listings. 62% of that €650,000 is exactly €403,000: here the bank would lend what the average non-resident's entire home costs across Spain.

The table applies the average 62% loan-to-value to the median prices of the main municipalities. The savings needed add up the 38% deposit and purchase costs of around 10% of the price, a prudent estimate for a resale home in Andalusia: 7% property transfer tax plus notary, land registry, administrative and valuation fees.

These are median asking prices from our catalogue, not completion prices, so they should be read as an order of magnitude. For new builds the figure goes up, because instead of transfer tax you pay 10% VAT plus 1.2% stamp duty. And the range between municipalities is wide: in Manilva the savings needed are less than half those in Marbella, a difference worth bearing in mind when setting your budget.

What paperwork does a Spanish bank ask a non-resident for?

Each lender has its own list, but the basics are almost always the same. It is worth having them ready before you start looking at properties, because it speeds up approval and lets you negotiate with a binding offer in hand.

• NIE, the foreigner identity number: it is essential both to buy and to sign the mortgage.
• Recent proof of income, your employment contract or, if you are self-employed, your latest tax returns in your home country.
• A credit report from your country of residence, such as a SCHUFA report in Germany.
• Bank statements showing the savings for the deposit and the purchase costs.
• A Spanish bank account from which the monthly instalment will be paid.
• Sworn translations of any documents not in Spanish, if the lender requires them.

With your paperwork ready, compare offers from several lenders: each bank has its own policy towards non-residents, and the difference between one offer and another can lie as much in the interest rate as in the percentage financed. It is the same logic we explained when comparing a mortgage broker with your usual bank.

Conclusion: savings first, property second

The data confirm that foreign buyers are still backing the Spanish coast with mortgage finance, but also that banks lend around 60% of the price and choose carefully whom they lend to. On the Costa del Sol, where prices are clearly above the national average, the sums should start with the savings you have available rather than with the home you like. If you are considering buying here with a mortgage from abroad, EVS PROPERTY GROUP can help you set a realistic budget and find the property that fits it.

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