Mortgages for non-residents in Mallorca: how much banks lend, requirements and costs
How much a Spanish bank lends to non-residents, which documents you need, how much of your own money to set aside and how the process works.
In this article
Non-residents can get a mortgage from a Spanish bank to buy a home in Mallorca, but they are usually lent 60% to 70% of the property’s value – less than residents. The rest of the price, plus purchase taxes and costs of roughly another 10% to 12% in the Balearics, comes from your own funds. This guide explains how much of your own money you need, which documents banks ask for and how the mortgage fits into the purchase timeline.
Many of our buyers arrive with their financing already planned; others find out late that the Spanish bank won’t lend as much as they expected. It’s worth settling before you sign the deposit contract.
How much will a bank lend a non-resident?
For the bank, you are non-resident if your tax residence is outside Spain, whatever your nationality. In practice:
- Usual loan-to-value: 60% to 70%, based on the lower of the purchase price and the bank’s valuation (tasación).
- Residents: can often get up to 80% on their main home.
- Term: up to 25 or 30 years depending on the bank; many also set a maximum age at the end of the loan.
- Interest rate: fixed, variable (linked to Euribor) or mixed. Rates move with the market, so compare current offers when you apply.
- Currency: in practice, always euros.
If the valuation comes in below the agreed price, the bank applies its percentage to the valuation and you cover the difference. That’s why a realistic price matters from the start.
How much of your own money do you need?
A simple rule: plan to put in 40% to 50% of the price from savings. An example with a €400,000 resale home:
| Item | Approximate amount |
|---|---|
| Mortgage (70% of €400,000) | €280,000 |
| Rest of the price | €120,000 |
| Transfer tax ITP (8% up to €400,000) | €32,000 |
| Notary and registry for the purchase, valuation, gestoría, translations | €4,000 to €8,000 |
| Own funds needed | €156,000 to €160,000 (39–40% of the price) |
If the bank lends only 60%, the own funds rise to around €200,000. ITP bands and all purchase costs are covered in our guide to buying a house in Mallorca.
Documents banks ask for
Each bank has its own list, but you’ll almost always need:
- Passport and NIE.
- Recent payslips or, if self-employed, accounts for the last two or three years.
- Your latest tax returns from your home country.
- Recent bank statements.
- A credit report from your home country.
- Employment contract or employer’s letter.
- Details of any existing mortgages: repayments and balance.
- For the property: deposit or reservation contract and nota simple.
Foreign documents usually need translating into Spanish, sometimes by a sworn translator. You’ll also need a Spanish bank account for the repayments – open it early.
Mortgage costs: what you pay and what the bank pays
Since Spain’s 2019 mortgage law (Ley 5/2019), the split is clear:
| Cost | Who pays |
|---|---|
| Valuation (tasación) | Buyer |
| Notary for the mortgage deed, registry, gestoría and stamp duty (AJD) | Bank |
| Copies of the deed you request | Buyer |
| Arrangement fee, if any | Buyer (negotiable) |
| Buildings insurance (compulsory); life insurance and other products (optional, even if they lower the rate) | Buyer |
How the mortgage fits into the purchase timeline
- Before you search: ask one or two banks or a mortgage broker for a preliminary assessment, so you know what’s realistic.
- When you choose a home: before signing the deposit contract, confirm with the bank that it will lend on that property (type, legal status, permits). Rustic fincas and homes with unlicensed extensions can complicate financing.
- Deposit contract with enough time: allow for valuation and approval, usually four to eight weeks.
- Binding offer: the bank gives you the European Standardised Information Sheet (FEIN) at least ten calendar days before signing.
- Prior visit to the notary: the law requires you to see the notary before signing so they can explain the mortgage and check you understand it. If you can’t travel, you can sign through a power of attorney, but discuss it early with the bank and the notary.
- Completion: purchase and mortgage are signed on the same day at the same notary.
What about borrowing at home?
Some buyers prefer to borrow in their home country, for example secured on a property they own there. It can be simpler if you already have a relationship with your bank, and the Mallorca purchase then works like a cash purchase. Compare both routes: total cost, term and whether you’d rather hold the debt in Spain or at home.
Common mistakes
- Signing the deposit contract without financing in place. If the bank says no, you could lose the deposit; if you depend on the mortgage, negotiate this in the contract.
- Counting on 80%. Non-residents almost never get it.
- Forgetting the purchase taxes. The bank doesn’t finance them.
- Leaving the Spanish account and translations until the end. They are the most common cause of delays.
How we can help
We work with the main banks in the area and can help you secure better terms for your mortgage: we put you in touch with the bank that best fits your profile, support you in the negotiation, coordinate the deposit contract deadlines with the bank, provide the property documents the bank needs for the valuation and go with you to the notary. And if you’re just starting out, we’ll help you find a home in Portocolom and the south-east that fits your real budget.
Frequently asked questions
Can a non-resident foreigner get a mortgage in Spain?
Yes. Spanish banks lend to non-residents, usually 60–70% of the property’s value.
How much money do I need to buy with a mortgage as a non-resident?
40% to 50% of the price, including the part the bank doesn’t lend and the purchase taxes and costs.
Who pays the notary for the mortgage?
The bank, since Ley 5/2019. You pay for the valuation and any copies you request.
How long does approval take?
Four to eight weeks once you’ve chosen a property, plus the ten days required by law before signing.
This article is for general information and is up to date as of October 2026. Terms depend on each bank and your profile.
