For many people dreaming of owning a home on the Costa Blanca, financing is one of the biggest questions. During recent weeks, several articles and social media posts have suggested that getting a mortgage in Spain has become significantly easier, with claims that banks now offer up to 70% financing and allow higher debt-to-income ratios.
While these statements contain some truth, the reality is more nuanced.
The good news is that foreign buyers can absolutely obtain a mortgage from Spanish banks. However, the commonly mentioned 60–70% financing level is not a brand-new nationwide rule introduced in 2026. Instead, it has long been the standard range offered by many Spanish lenders to non-resident buyers, with the exact conditions depending on the applicant’s financial profile and the property itself.
If you’re planning to buy property on the Costa Blanca this year, here’s everything you should know.
Can Foreigners Get a Mortgage in Spain?
Yes.
Whether you are an EU citizen, British, Swiss, American or from another country, Spanish banks regularly provide mortgages to non-residents purchasing property in Spain.
However, non-resident buyers are generally considered a slightly higher lending risk than Spanish residents. Because of this, lending conditions are usually more conservative.
Typical differences include:
- Spanish residents may finance up to around 80% of a property’s value.
- Non-residents generally receive between 60% and 70%.
- Documentation requirements are stricter.
- Income verification is more detailed.
Approval always depends on your financial situation, employment stability, existing debts and the property you intend to purchase.
Has Anything Changed in 2026?
This is probably the question many buyers are asking after seeing recent headlines.
The answer is:
Not really—at least not at national level.
There has been no major Spanish law increasing mortgage financing from 50% to 70%.
Instead, what appears to have happened is that some mortgage brokers and partner banks have updated their own lending policies or marketing messages.
Across Spain, non-resident buyers have typically been able to obtain mortgages covering around 60–70% of the purchase price or the official bank valuation (whichever is lower) for several years.
How Much Can You Borrow?
Every bank is different, but these figures provide a realistic guide for 2026.
Spanish Residents
- Up to approximately 80% financing
- Sometimes higher for special cases
Non-Residents
- Usually 60–70%
- Occasionally higher for exceptionally strong applicants
- Luxury properties often receive lower financing percentages
Remember that banks normally calculate the mortgage using the lower of:
- the agreed purchase price
- the official bank valuation (tasación)
If the valuation comes in below the purchase price, you’ll need to cover the difference yourself.
How Much Deposit Will You Need?
A common misconception is that having a 30% deposit is enough.
In reality, you should budget for:
- 30–40% deposit
- approximately 10–12% for taxes and purchase costs
- legal fees
- notary fees
- land registry
- valuation costs
As a result, many foreign buyers should expect to have around 40–50% of the property’s purchase price available in cash before starting the buying process.
Income Requirements
Spanish banks are primarily interested in one thing:
Can you comfortably afford the mortgage?
Most lenders assess:
- stable employment
- regular income
- existing debts
- credit history
- disposable monthly income
Many banks also work with a debt-to-income ratio of around 35%, meaning your total monthly loan repayments should generally not exceed roughly one-third of your net monthly income.
Unlike some recent social media claims, there is no universal Spanish law requiring exactly €48,000 annual income. Individual banks or mortgage brokers may apply their own minimum income policies, but these are not nationwide legal requirements.
Documents You’ll Usually Need
Although requirements vary, most banks request:
- Passport
- NIE number
- Proof of address
- Employment contract
- Recent payslips
- Tax returns (or equivalent)
- Bank statements
- Credit information
- Proof of available deposit
Self-employed applicants are normally asked to provide additional financial documentation.
Fixed or Variable Mortgage?
Spanish banks continue offering both options.
Fixed-rate mortgages
Ideal if you want predictable monthly payments.
Variable-rate mortgages
Usually linked to Euribor and may become cheaper—or more expensive—depending on future interest rate movements.
Many international buyers prefer fixed-rate mortgages because they offer greater certainty over long-term costs.
What’s Happening in the Spanish Mortgage Market?
Although lending rules haven’t changed dramatically, Spain’s property market certainly has.
House prices continue rising across many regions, including the Costa Blanca, driven by strong demand and limited housing supply.
Mortgage lending has also increased, prompting regulators and the Bank of Spain to closely monitor lending standards—particularly higher loan-to-value mortgages. However, no sweeping national restrictions have been introduced so far.
Buying on the Costa Blanca
The Costa Blanca remains one of Spain’s most popular destinations for international property buyers.
Whether you’re looking for:
- a holiday apartment
- a retirement home
- an investment property
- or a permanent relocation
it’s important to arrange your finances before beginning property viewings.
Obtaining mortgage pre-approval can strengthen your negotiating position and make the buying process significantly smoother.
Myth vs Reality
Myth:
Banks have suddenly increased financing from 50% to 70%.
Reality: Many Spanish banks have already been offering around 60–70% financing for non-residents for several years. The exact percentage depends on the lender, the applicant and the property.
Myth:
Everyone now qualifies more easily.
Reality: Banks still carry out detailed affordability checks, credit assessments and income verification before approving any mortgage.
Myth:
A 30% deposit is enough.
Reality: Most buyers also need additional funds to cover taxes, legal fees and purchase costs, meaning around 40–50% of the purchase price should usually be available in cash.
Key Takeaways for Foreign Buyers
Financing a property purchase in Spain remains very achievable for foreign buyers in 2026.
While recent online discussions may give the impression that the rules have changed dramatically, the reality is that Spanish banks continue to follow largely the same lending principles seen in recent years.
The key to a successful purchase is careful preparation: understand your budget, gather the necessary documentation, obtain mortgage advice early and make sure you have sufficient funds not only for the deposit but also for taxes and purchasing costs.
With proper planning, buying your dream home on the Costa Blanca can still be a straightforward and rewarding experience.
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