How to Get a Mortgage as a Foreigner in Gran Canaria, Spain?
Buying property in Gran Canaria as a foreigner is an exciting opportunity—but it does require some preparation, especially when it comes to financing your purchase. Here's what you need to know about getting a mortgage in Spain as a non-resident or expat.
Can Foreigners Get a Mortgage in Spain?
Yes! Foreigners can apply for mortgages from Spanish banks, including well-known institutions like Banco Santander, CaixaBank, and BBVA. In fact, many Spanish banks offer special mortgage products for non-residents.
Key Things to Consider:
1. Residency Status
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Residents (living in Spain for more than 183 days/year) often qualify for better terms—higher loan amounts and lower interest rates.
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Non-residents can still get mortgages but may be limited to around 60–70% of the property's value (Loan-to-Value, or LTV).
2. Documentation Needed:
Be prepared to provide:
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Valid passport or national ID
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Spanish NIE number (Número de Identidad de Extranjero)
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Proof of income (last 3–6 months of payslips or tax returns)
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Recent bank statements
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Employment contract or company documents if self-employed
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Credit report from your home country
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Existing debt information
All documents must be officially translated into Spanish and may need to be legalized (apostilled).
3. Down Payment
Expect to put down at least 30–40% of the property price if you're a non-resident, plus around 10-15% extra for:
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Taxes
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Notary and registry fees
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Legal and mortgage setup fees
4. Interest Rates
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Spanish banks usually offer both fixed and variable-rate mortgages.
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Non-resident rates are typically slightly higher than for residents, but still competitive (starting around 3.5–4.5% depending on terms and applicant profile).
5. Mortgage Terms
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Most mortgage terms range from 5 to 30 years.
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Some banks may impose a maximum age limit at the end of the mortgage term (e.g., you must be under 75 at the time of final repayment).
6. Currency Risk
If your income is not in euros, be aware of potential currency exchange risks over time.
7. Using a Mortgage Calculator
Before applying, use an online calculator to get an estimate of your monthly payments. Banco Santander and la Caixa Bank for example offer a simple, user-friendly tool:
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Just enter:
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Property price
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Amount you want to borrow
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Term (in years)
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Fixed or variable rate option
Step-by-Step: How to Apply for a Mortgage in Gran Canaria
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Get your NIE number (can be done through a Spanish consulate or we can help you in Gran Canaria as well).
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Open a Spanish bank account.
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Research mortgage options or use a mortgage broker with experience in international clients.
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Collect all documents and translate them if needed.
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Apply for pre-approval (optional but recommended).
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Sign a mortgage offer and formalize it at the notary once you’ve found a property.
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Register the property in your name and complete the transaction.
How is everything now in 2025?
Mortgage Landscape for Foreigners in Gran Canaria (2025)
1. Golden Visa Program Terminated
As of April 3, 2025, Spain officially ended its Golden Visa program, which previously allowed non-EU nationals to obtain residency through property investments of €500,000 or more. This move aims to regulate the housing market and prioritize local affordability. Consequently, non-EU buyers no longer have a direct route to residency via property investment .
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2. Proposed Tax Increases for Non-EU Buyers
Spanish Prime Minister Pedro Sánchez has proposed a tax increase of up to 100% on property acquisitions by non-EU citizens who are not residents. While this measure is still under discussion and not yet law, if implemented, it would significantly raise the cost of purchasing property for non-EU foreigners .
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3. Mortgage Conditions for Non-Residents
For non-residents, obtaining a mortgage in Spain remains possible but with certain conditions:
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Loan-to-Value (LTV) Ratio: Typically, banks offer up to 60–70% of the property's value, requiring a larger down payment.
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Documentation: Expect to provide proof of income, credit history, and other financial documents.
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Interest Rates: Interest rates have been gradually decreasing, with some banks offering rates under 4% for certain LTV ratios.
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4. Visa Alternatives for Non-EU Nationals
With the end of the Golden Visa program, non-EU nationals seeking residency in Spain through property investment must consider other visa options:
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Non-Lucrative Visa: Allows residency without working in Spain. The financial requirements have been adjusted, with a minimum annual income of €32,000 for the primary applicant and €8,000 for each dependent .
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Digital Nomad Visa: Suitable for remote workers, requiring proof of employment and a minimum income threshold.