This guide walks through every step in order, fact-checked to current Spanish regulations and lender practice as of September 2026. If you are financing a purchase in Andalusia, this is the process you are walking into.
Before you start: what you need in place
Before you even look at properties seriously, three things need to be sorted.
NIE number. Your Número de Identificación de Extranjero is the foreign identification number required for every legal and financial transaction in Spain. You cannot sign a purchase contract, open a bank account, or apply for a mortgage without one. Get it before you start viewing properties.
Spanish bank account. Mortgage payments in Spain must go through a Spanish bank account. Most lenders require you to open an account with them as a condition of the mortgage. Do this early in the process.
A realistic budget. As a non-resident buyer in Spain, banks will typically lend you between 60% and 70% of the lower of the purchase price or the official valuation, not 80%, which is the limit for residents. That means you need a minimum deposit of 30% to 40% of the purchase price. On top of that, buying costs in Andalusia run to around 10% to 13% of the purchase price, covering transfer tax, notary fees, land registry, and legal fees. Total cash required before you start: typically 40% to 50% of the purchase price. Banks will also cap your total monthly debt commitments, including the new mortgage, at 35% of your net monthly income.
With those three things in place, here is the process step by step.
Step 1: Find the property and sign the reservation agreement
Once you have found a property, the first step is to take it off the market. This is done with a reservation agreement (contrato de reserva), which typically involves a fee of between €3,000 and €6,000 paid to the seller or the agency. This fee is usually non-refundable if you decide not to proceed, but it prevents the seller from accepting other offers while you carry out due diligence and start the mortgage process.
At this stage, your lawyer should request a nota simple, the property registry extract, to confirm ownership, check for any outstanding debts or charges on the property, and verify the property description matches what you are buying.
Do not skip this step or rush it. Problems identified at nota simple stage are far cheaper to deal with than problems identified at signing.
Step 2: Sign the deposit contract (arras)
The arras contract is a formal deposit agreement governed by Article 1454 of the Spanish Civil Code. You pay typically 10% of the agreed purchase price. The contract locks both parties into the deal under clear conditions: if you back out, you lose your deposit. If the seller backs out, they must pay you double what you paid.
The arras contract should include the agreed purchase price, the completion date, and the conditions under which either party can withdraw. Your lawyer should review this before you sign.
This is also the stage at which you commit to a purchase price in writing, which matters for the mortgage application and valuation that follow.
Step 3: Mortgage pre-approval and choosing your lender
With an agreed purchase price and signed arras, you apply formally for a mortgage. You can approach Spanish banks directly or use a mortgage broker registered with the Bank of Spain (intermediario de crédito inmobiliario). Brokers typically charge 0.5% to 1% of the mortgage amount but know which lenders are most receptive to non-resident profiles and can save significant time and negotiation.
Major Spanish lenders serving non-resident buyers include Santander, BBVA, CaixaBank, and Sabadell. All have non-resident mortgage products in 2026, though conditions have become more profile-dependent following tighter risk rules introduced in January 2026.
Current mortgage conditions for non-residents in Spain (September 2026):
- LTV: 60% to 70% of the lower of purchase price or valuation
- Debt-to-income ratio: maximum 35% of net monthly income
- Euribor 12 months: approximately 2.56%
- Variable rate mortgages: typically Euribor plus 0.6% to 1.5%
- Fixed rate mortgages: typically 2.9% to 4.5% depending on term and profile
- Mixed-rate mortgages (fixed for 5 to 10 years, then variable) have become more common in 2026
Loans above €500,000 face stricter conditions. Loans below €300,000 can be more expensive to arrange in terms of arrangement fees relative to loan size.
You will need to submit income documentation: payslips, tax returns, bank statements, employment contract or audited accounts if self-employed, alongside your NIE, passport, and the arras contract.
Step 4: Get the property officially valued (tasación)
Before approving the mortgage, the bank requires an official valuation carried out by a tasador homologado, a certified valuer authorised by the Bank of Spain. The bank will often suggest their own valuer, but you have the legal right to use any Bank of Spain-authorised valuation company.
The valuation fee is paid by the buyer and typically runs from €300 to €600 depending on the property size and location. This is one of the few mortgage-related costs that remains the buyer’s responsibility under the 2019 Mortgage Law, the bank pays the majority of other setup costs.
The bank will base the mortgage amount on the lower of the purchase price or the valuation. If the valuation comes in below the agreed purchase price, your borrowing capacity reduces and you need to cover the gap from your own funds. This is a situation worth discussing with your lawyer before signing the arras if you have any uncertainty about the property’s valuation.
Step 5: Receive the binding offer documents – FEIN and FiAE
If the valuation is satisfactory and the bank’s financial assessment of your application is positive, the bank issues two mandatory documents governed by Ley 5/2019 (the Spanish Mortgage Credit Law):
FEIN — Ficha Europea de Información Normalizada The European Standardised Information Sheet. This sets out the full loan conditions: amount, interest rate, monthly payment, total cost, APR, fees, and all mortgage terms. Under Article 11 of Ley 5/2019, the bank must deliver the FEIN at least ten calendar days before the signing date. This is a legal minimum, not a guideline.
FiAE — Ficha de Advertencias Estandarizadas The Standardised Warnings Sheet. This document flags the specific risks of the mortgage — what happens if interest rates rise, what the consequences of non-payment are, whether the mortgage has floor clauses or currency risk. It is designed to ensure you understand the risks, not just the headline terms.
Once you receive these documents, the ten-day review period begins. The bank cannot change the terms during this period. Use the time to review the documents with your lawyer and raise any questions before the next step.
Step 6: The mandatory ten-day review period
Spanish law gives you a minimum of ten calendar days from receiving the FEIN and FiAE to review the terms before you can sign anything. This period exists specifically to prevent buyers from being rushed into signing mortgage contracts without understanding them.
During these ten days, go through both documents with your lawyer. Check the interest rate structure, the total cost of the mortgage over its full term, the early repayment conditions, and the linked products the bank is offering (home insurance, life insurance). You are not legally obliged to take the bank’s insurance products, though accepting them typically unlocks a lower interest rate — usually around 0.10% reduction per product.
Since the 2019 Mortgage Law, the bank cannot charge you for linked products that you do not want. If you are offered a rate reduction in exchange for taking the bank’s life insurance, compare the cost of that insurance against what you would pay independently. Sometimes it is worth it. Sometimes it is not.
Step 7: Attend the Transparency Deed at the notary
The Transparency Deed (Acta Previa de Transparencia) is one of the most important steps in the Spanish mortgage process and one that many foreign buyers do not expect.
You attend the notary without the seller and without the bank. This appointment is specifically for you and the notary. The notary’s role here is not to witness a signing — no documents are signed at this appointment. The role is to verify three things: that you received the FEIN and FiAE, that the mandatory ten-day period has elapsed, and that you understand the mortgage conditions.
The notary will ask you a standardised questionnaire about the key terms of the mortgage. You answer the questions. If the notary is satisfied, they issue a certificate confirming that the transparency requirements have been met. Without this certificate, the mortgage cannot proceed to signing.
You have the legal right to choose your own notary. The bank cannot require you to use a specific one.
Step 8: Sign the mortgage deed and the purchase deed
Once the transparency certificate has been issued, you choose the signing date and the notary. Both the mortgage deed and the purchase deed are typically signed at the same appointment.
The seller signs the purchase deed transferring ownership to you. You sign the purchase deed accepting it. You sign the mortgage deed with the bank. The bank’s legal representative attends to sign the mortgage deed on the bank’s behalf.
Payment is made at this point. Funds must be available in your Spanish bank account before the appointment. The balance of the purchase price (the amount not covered by the mortgage) is typically paid by banker’s draft (cheque bancario) at the notary. The mortgage funds are released directly by the bank.
You leave with the keys and a signed copy of the purchase deed. You are, from this point, the owner.
Step 9: Pay the taxes and costs
After signing, the taxes due on the transaction must be settled. In Andalusia:
For resale properties: Property Transfer Tax (ITP) at 7% of the purchase price. This must be paid within 30 working days of the signing date.
For new-build properties: VAT (IVA) at 10%, plus Stamp Duty (AJD) at 1.2% of the purchase price in Andalusia.
What the bank pays since the 2019 Mortgage Law: AJD on the mortgage deed, notary fees for the mortgage deed, land registry fees for the mortgage, and gestoría fees relating to the mortgage. This was a significant change from the pre-2019 position and represents a meaningful saving for buyers.
What you pay: ITP or IVA, notary fees for the purchase deed, land registry fees for the purchase, your lawyer’s fees, and the property valuation fee paid at Step 4.
A gestoría, an administrative agency – typically handles the tax settlement and registration process on your behalf. Their fee is usually included in the bank’s mortgage costs under the 2019 rules.
Step 10: Register the property at the Land Registry
The final step is the registration of both the purchase deed and the mortgage deed at the Registro de la Propiedad (Land Registry). Until this registration is complete, you are the legal owner but the transaction is not publicly visible in the registry.
The gestoría handles the registration process. Timeline is typically two to four weeks from the signing date, though it can take longer in areas with high transaction volumes.
Once registered, you will receive a certified copy of the purchase deed — the escritura — confirming you as the registered owner. The mortgage is also registered against the property at this point.
Keep the escritura in a safe place. You will need it for any future sale, mortgage, inheritance, or legal transaction involving the property.
What foreign buyers should watch in 2026
A few points worth flagging specifically for non-resident buyers in the current market.
Spain reinforced its mortgage consumer protection framework in 2026. All credit providers offering mortgages in Spain now require formal authorisation from the Bank of Spain. Borrowers have stronger rights to move their mortgage to a new bank without heavy penalties, and early repayment fees remain capped under Spanish law.
The mandatory ten-day review period is a legal floor, not a suggestion. Do not let anyone – broker, agent, or bank – pressure you into signing before it has elapsed. It is there to protect you.
Property valuations coming in below purchase price is a more common situation in the current market than it was two years ago, particularly for rural and inland properties in Andalusia. If you are buying in the Axarquía, discuss the valuation risk with your lawyer before you commit to an arras price you cannot bridge from your own funds.
Always use a qualified Spanish property lawyer independent of your mortgage broker and independent of your agent. The lawyer is the one protecting your interests. The broker is placing your mortgage. The agent is selling you a property. Those are three different jobs.
Need help with a purchase in Andalusia?
I cover the full eastern Costa del Sol and the Axarquía. If you are at the early stage of thinking about buying in this area, the mortgage process is one of the first practical conversations worth having — before you start viewing properties, not after you have found one you want.
Read our complete guide to mortgages in Spain for foreign buyers or our full buying guide for Andalusia.
If you have a specific question, send me a message on WhatsApp.
WhatsApp: +34 711 032 640
This article is for general guidance only and does not constitute financial or legal advice. Mortgage conditions, tax rates, and regulatory requirements can change. Always work with a qualified Spanish mortgage broker and an independent Spanish property lawyer for advice specific to your situation.
Agne My WhatsApp: +34 711 032 640
Frequently asked questions
How much deposit do I need as a foreign buyer for a Spanish mortgage in 2026? As a non-resident, Spanish banks typically lend 60% to 70% of the lower of the purchase price or official valuation. That means a minimum deposit of 30% to 40% of the purchase price. On top of that, you need to cover buying costs of around 10% to 13% in Andalusia – taxes, notary, registry, and legal fees. Total cash required is typically 40% to 50% of the purchase price before any other costs.
What is the FEIN and why does it matter? The FEIN (Ficha Europea de Información Normalizada) is the European Standardised Information Sheet that your bank must issue before you can sign a mortgage in Spain. It sets out all the loan conditions — amount, rate, monthly payment, total cost, and fees. Under Ley 5/2019, the bank must deliver it at least ten calendar days before the signing date. This ten-day period is legally mandatory and cannot be shortened.
What is the Transparency Deed and do I really have to attend? Yes, attendance is mandatory. The Transparency Deed (Acta Previa de Transparencia) is a notary appointment — without the seller and without the bank – where the notary confirms you have received and understood the mortgage documents. The notary asks you a standardised questionnaire. Without the resulting certificate, the mortgage cannot be signed. You have the right to choose your own notary for this appointment.
Who pays the stamp duty on a Spanish mortgage? Since the 2019 Mortgage Law (Ley 5/2019), the bank pays the Stamp Duty (AJD) on the mortgage deed, along with the notary and land registry fees for the mortgage. The buyer pays the transfer tax (ITP) or VAT on the property itself, notary fees for the purchase deed, land registry fees for the purchase, and the property valuation fee.
Can I get a Spanish mortgage if I am self-employed? Yes, but it requires more documentation. Spanish banks will typically want at least two years of audited accounts, tax returns (your most recent Modelo 100 or equivalent in your home country), and six months of business bank statements. Lenders take a conservative view of declared income for self-employed applicants. A mortgage broker who works regularly with non-resident buyers is strongly recommended for self-employed applications.
How long does the Spanish mortgage and purchase process take from start to finish? From signing the arras to completing at the notary, the typical timeline is six to ten weeks, assuming the mortgage application is straightforward and the valuation proceeds quickly. The mandatory ten-day review period alone accounts for some of this. Land Registry registration after signing adds another two to four weeks. Budget for eight to twelve weeks from arras to being a registered owner.
