Mortgage in Spain as an American: requirements and process

Some Americans arriving in Madrid think they can't get a mortgage because they're not Spanish. Wrong. You can get a mortgage in Spain as an American, but with specific conditions.

Who can get a mortgage

For a Spanish bank to give you a mortgage, you typically need:

• TIE (Legal residency in Spain). This is the most critical requirement. Without TIE, practically no bank will give you a mortgage. If you just arrived, wait to have TIE before looking for a mortgage.

• Tax residency in Spain (more than 183 days). If you've been here less than 183 days, some banks won't accept you. Wait to become a tax resident.

• Demonstrable income. If you work for a Spanish company, Spanish payroll. If you're freelance or remote, latest US tax returns + last 3 months of bank statements. Some banks accept, others don't.

• Credit history. If you don't have a history in Spain (obviously, if you just arrived), the bank verifies your history in the US. Some Spanish banks have agreements to verify US credit history.

• Guarantee or additional deposit. Some banks require 20-30% initial deposit instead of typical 10-15% for Spanish nationals.

How much can you borrow

Spanish banks typically offer mortgages up to 70-80% of property value for foreigners, compared to 80-90% for Spanish nationals.

Example: if you buy an apartment for €300,000.

• Spanish: can request €240,000-270,000 (80-90%)
• American: can request €210,000-240,000 (70-80%)

This means as an American, you need a larger initial deposit.

Interest rates

Interest rates in Spain (2026) are around 3.0-4.5% depending on term and type (fixed vs variable).

US comparison (April 2026): typical rates 6.5-7.5%.

Spain is significantly cheaper in interest. An American buying in Madrid with a 3.5% mortgage vs a mortgage in the US at 7% saves thousands of dollars in interest over the same term.

Example: €300,000 mortgage, 20 years.

• Spain (3.5%): monthly payment €1,347, total interest €124,000
• US (7%): monthly payment €1,995, total interest €179,000
• You save $750 monthly, $180,000 total

Term

Typical term: 20-30 years. Some banks offer up to 40 years.

In the US, 30 years is standard. In Spain, 20 years is more common but you have options.

Real process

1. You have TIE + tax residency: bank interviews you, verifies credit history.

2. You gather documentation: US tax returns (last 2 years), bank statements (last 3 months), employment contract if applicable, passport, TIE.

3. Appraisal: bank orders property appraisal (cost €300-500). You pay this.

4. Formal application: you fill out application with property details, amount requested, desired term.

5. Approval: typically 2-4 weeks if everything is correct.

6. Signing before notary: mortgage signing before notary, same day as property signing.

Banks that give mortgages to Americans

Santander: has a specific program for foreigners. Relatively flexible.

BBVA: also gives mortgages to foreigners. Good reputation with expats.

CaixaBank: possible but less flexible than Santander/BBVA.

ING: harder, less willing to work with Americans.

Recommendation: talk to 2-3 banks. Compare rates and terms. Small differences multiplied over 20+ years add up to thousands.

Additional costs

Besides the mortgage, there are costs:

• Tax advisor: €300-500 to process mortgage
• Appraisal: €300-500
• Mortgage insurance: ~0.5-1% of amount requested, paid once
• Mortgage registration: ~€150-300
• Notary: included in property costs

Total mortgage costs: €1,500-2,500. Not negligible.

Yes, but consider buying cash

If you have savings in the US and can transfer money to Spain (with proof of funds origin to avoid money laundering suspicion), buying cash has advantages:

• You don't pay interest (huge saving)
• Simpler process, no bank
• You're an unencumbered owner

If you have €300,000 in savings: do you buy cash or get a 3.5% mortgage?

Simplified calculations:

• Cash: you pay €300,000, invest €300,000 in market (5% return = €15,000 annually)
• Mortgage: you pay €90,000 initial, €210,000 mortgage at 3.5% (payment €998/month), invest €210,000 in market (5% return = €10,500 annually)

It's a complex calculation. Some prefer liquidity (buy cash). Others prefer leverage (mortgage, invest the rest).

Important: US taxes

Whichever you decide, report the Spanish property to the US.

As an American citizen, you need:

• Include the property in your Spanish tax return
• Report to the US (some Americans forget this)
• If you have Spanish bank accounts linked, report on FBAR

Don't hide. Spanish tax authority and IRS now share information automatically (FATCA agreement).

The point

Getting a mortgage in Spain as an American is viable. Rates are better than the US. Requirements are specific but manageable if you have TIE.

Buying cash vs mortgage: financial calculation. If you have the cash, consider both options.