Financing in Spain
A complete and transparent overview of mortgages for international buyers
Financing a property purchase in Spain differs significantly from Sweden and other Nordic countries. Banks apply stricter assessments, require more documentation and evaluate your finances globally. This appendix provides a clear and practical overview of the process.
How Spanish banks assess mortgage applications
Banks evaluate your entire financial situation, including:
total income
existing loans in Sweden and internationally
monthly expenses and liabilities
employment structure
savings and liquidity
residency status (resident or non-resident)
property type, price and location
The core metric is DTI – Debt-to-Income Ratio, which determines borrowing capacity.
General bank guideline:
You may use a maximum of 30–35% of your net income for all loans combined (Sweden + Spain).
How much can international buyers borrow?
Non-residents:
Up to 70% of the lower of purchase price or bank valuation.
Residents:
Up to 80%.
The bank’s valuation (tasación) determines the loan base. If the valuation is lower than the purchase price, the loan is calculated on the valuation amount.
Required documentation
Two years of tax returns
Salary slips for 6–12 months
Bank statements for 6–12 months
Detailed information on Swedish loans
Credit report (UC, Schufa, Experian)
Passport and NIE
For business owners: financial statements, annual reports and financial history
Additional documentation requests are common and part of the normal process.
Interest rates and conditions
Typical levels:
Variable rate: Euribor + 1.5–2.5%
Fixed rate: 3–4.5%
Conditions depend on:
risk profile
loan-to-value ratio
use of the bank’s insurance products
opening a local account and direct debit arrangements
Valuation (Tasación)
The bank orders the valuation through a certified surveyor.
The valuation determines the maximum loan amount.
It is common for valuations to differ from the purchase price, often slightly lower
Mortgage timeline
Pre-approval: 1–2 weeks
Document collection: 1–3 weeks
Valuation: 5–10 days
Final approval: 1–3 weeks
Loan release: Completion day
Total process: 4–8 weeks.
Mortgage example – Annual gross income 500,000 SEK
Assumptions:
500,000 SEK/year ≈ 41,666 SEK/month
Net income ≈ 29,000 SEK/month
DTI limit:
29,000 × 0.35 ≈ 10,150 SEK/month (maximum for all loans)
Scenario 1 – No Swedish loans
Mortgage capacity in Spain: approx. 300,000–350,000 EUR
Scenario 2 – Swedish loans 6,000 SEK/month
Remaining capacity: approx. 80,000–100,000 EUR
Scenario 3 – Moderate Swedish debt
Mortgage capacity: approx. 150,000–220,000 EUR
These figures reflect realistic calculations used by Spanish banks.
Common pitfalls – and how Auriga avoids them
Private Purchase Contract signed before mortgage approval
Valuation lower than purchase price
DTI exceeded due to Swedish loans
Missing NIE
Incomplete documentation
Last-minute bank requirements
Auriga coordinates the entire process to ensure correct sequencing and smooth execution.
Auriga’s role throughout the financing process
We assist you in:
understanding your financial position
calculating realistic borrowing capacity
managing documentation and applications
selecting appropriate banks
interpreting valuations and offers
maintaining timelines toward completion
Financing can feel complex, but with proper structure it becomes secure and predictable.
