Mortgages in Spain: how to finance your purchase as a Nordic buyer
Jens NorströmReviewed by María González, lawyerJuly 202613 min
Buying on the Costa del Sol isn't only about finding the right property — getting the financing right matters just as much. As a Swedish or Finnish buyer you have full rights to own property in Spain, and you can finance the purchase in several ways: with a Spanish mortgage, by extending the loan on your home back home, or with a combination. This guide covers how much you can borrow, what the rate and costs actually are in 2026, what documents the bank wants to see, and — something few sites take seriously — how the tax treatment differs for you as a Swedish versus a Finnish buyer.
Can you borrow in Spain as a Nordic buyer?
Yes. As an EU citizen you have the same right to own and mortgage property in Spain as a Spaniard — there are no nationality-based restrictions.
The difference from Sweden and Finland isn't whether you can borrow, but the terms: Spanish banks lend a lower share of the price to someone not resident in Spain (non-resident), require more documentation, and a larger cash deposit.
Two routes to finance — and the common combination
Spanish mortgage. A Spanish bank takes security in the Spanish property. The rate is set on Spanish terms. Upside: you don't tie up capital at home and keep your home-country property unmortgaged.
Extend the loan at home. You raise the loan on your property in Sweden or Finland (that property as security) and pay the Spanish home in cash. Upside: simpler process, often a lower rate, and you avoid the Spanish bank's non-resident deposit requirement. Requires available borrowing headroom at home.
A Nordic bank lending against the Spanish property. As a rule Nordic banks do not take a foreign property as security — foreign housing markets are harder for them to assess. The exception is the larger banks with their own operations in Spain; they can in some cases lend against the Spanish property, in euros (which also removes the currency risk). Which banks offer this, and on what terms, changes over time — check the current position with your own bank.
The most common setup
So there are three routes: a Spanish mortgage, an extended loan at home, or a Nordic bank lending against the Spanish property via its international operation. Many buyers combine — part from home (low rate, possible interest deduction) and the rest via a Spanish mortgage — to more easily meet the Spanish bank's loan-to-value limit. Which suits you depends on your borrowing headroom at home, currency risk, and how much capital you want to tie up; compare terms before you choose.
How much can you borrow — and how much cash is needed?
As a non-resident you normally borrow 60–70 % of the property's value (LTV). That means a cash deposit of 30–40 % — considerably more than the ~15 % common in Sweden and Finland.
On top come the purchase costs (taxes, notary, registration, lawyer) of about 10–13 % of the price. Expect 40–55 % of the total budget to be covered from your own funds if you take a Spanish mortgage.
The term for non-residents is typically 20–25 years, and many banks want the loan repaid by age 70–75, which shortens the term for older borrowers.
Worked example — resale property €300,000
At 65 % LTV the loan is €195,000 and the deposit €105,000. Add purchase costs of ~11 % (€33,000). Total own funds: about €138,000 — just under half the price. The figures are typical for a non-resident on the Costa del Sol (July 2026); always ask the bank for a written example for your own case.
The rate: fixed, variable or mixed
Fixed rate keeps the monthly payment the same for the whole term and is the most popular model (over 70 % of new Spanish mortgages in 2025). For a non-resident, fixed rates in July 2026 are typically around ~3.2–4.5 % depending on bank, loan size, term and add-on products. It removes the uncertainty around Euribor.
Variable rate = 12-month Euribor plus the bank's margin (for non-residents usually +1.0–1.8 %), reviewed once a year. In July 2026 the 12-month Euribor was around 2.7 %, giving an effective variable rate of roughly 3.7–4.5 %+. If Euribor rises, your payment rises.
Mixed rate is fixed for the first 5–10 years, then variable — a middle path.
As a non-resident you typically pay 0.25–0.75 percentage points more than a comparable resident borrower, because the bank effectively has only the Spanish property as security. (All rate figures as of July 2026 — rates move, check the current position before deciding.)
The currency risk you can't ignore
If your income is in SEK but your loan is in EUR, the exchange rate affects your real cost — a weaker krona makes the euro loan more expensive in kronor. Factor this in when choosing between a Spanish mortgage and borrowing at home in your own currency.
Costs around the loan itself
The big relief came in 2019: stamp duty on the mortgage (AJD) shifted from the buyer to the bank. It used to be a substantial cost (0.5–2 % of the loan) — now the bank pays it.
What remains for you as borrower is mainly the tasación (property valuation), about €250–600, and a possible opening fee (apertura). Many banks have dropped the opening fee to stay competitive, but it varies.
Banks often package a lower rate against add-on products (home and life insurance, a card, direct debit). Always calculate the total cost, not just the rate — and get it in writing.
Documents the Spanish bank requires (non-resident)
The documentation is more extensive than you're used to at home. Standard: a valid passport and NIE number, the last few years' tax returns, current payslips or equivalent, employment or business proof, and account history.
The bank runs an anti-money-laundering check and wants to see where the deposit comes from — sale of a previous home, savings, and so on. Have the evidence ready early; it's usually what slows the process.
The process step by step
- Pre-approvalContact a bank (Spanish and/or at home) early and get a preliminary loan promise before you bid. In Spain there are no finance-conditional offers — a "no" from the bank is not grounds to withdraw from the purchase.
- Application & FEINYou submit the documentation and the bank produces a standardised European information sheet (FEIN) and a binding offer (oferta vinculante) with all terms.
- Valuation (tasación)The bank orders an independent valuation. Lending is calculated on the lower of purchase price and valuation.
- Reflection periodUnder Spanish mortgage law you have at least ten days to review the terms before signing — use them.
- Notary & disbursementLoan and purchase are signed before a notary, the bank disburses, and the charge is registered at the property registry.
Tax differs for Swedish and Finnish buyers
Sweden: As long as you're taxable in Sweden, you keep the interest deduction — 30 % of interest expense in the capital income category (a lower share above the threshold). It applies to interest whether the loan is Spanish or an extended loan at home. If you move permanently to Spain and deregister, the deduction ends.
Finland: Here the difference is large. The mortgage interest deduction for an owner-occupied home was abolished entirely from the start of 2023 and is not returning. A Finnish buyer borrowing to live in the home gets no deduction. But: if you borrow for an income-producing purpose — e.g. a property you rent out (tulonhankkimislaina) — the interest is still fully deductible against capital income.
When renting out (both): As an EU/EEA owner you deduct the loan interest against the Spanish rental income and are taxed at 19 % on the net via Modelo 210 — with full deductibility.
The Sweden–Spain tax treaty (in force since 1976, with later protocols) allocates taxing rights and prevents double taxation. Finland has a corresponding treaty with Spain.
In short
Swedish buyer: interest deduction kept as long as you're taxable in Sweden. Finnish buyer: no deduction for an own home, but a deduction if the property is rented out. The detail depends on your situation — confirm with an adviser in your home country.
Common mistakes to avoid
Calculating the rate but forgetting the deposit. The real threshold for a non-resident is the 30–40 % deposit plus purchase costs — not the rate level.
Not arranging pre-approval. Without a loan promise before you bid, you risk a purchase you can't finance.
Comparing only the rate. Add-on products and fees can eat a low rate. Always compare the APR (TAE), not just the nominal rate (TIN).
Missing the currency risk. A loan in EUR with income in SEK/EUR imbalance can change the calculation considerably.
Assuming the same deductions as at home. See the tax section — the rules differ between Sweden and Finland.
Yes, no nationality barrier as an EU citizen. Terms are stricter for non-residents: lower LTV, more documentation.
Normally 60–70 % of value as a non-resident, so a 30–40 % deposit plus purchase costs.
Depends on your situation. Borrowing at home is often simpler and cheaper if you have headroom; a Spanish mortgage doesn't tie up capital at home. Many combine.
Fixed for a non-resident is typically around 3.2–4.5 % in July 2026; variable = 12-month Euribor (~2.7 % in July 2026) plus a 1.0–1.8 % margin. Rates move — check the current position.
Mainly the valuation (tasación, ~€250–600) and a possible opening fee. Stamp duty (AJD) has been paid by the bank since 2019.
Swedish buyer: yes, as long as you're taxable in Sweden. Finnish buyer: no for an own home, yes if the property is rented out.
A few weeks from a complete application to disbursement; the documentation usually sets the pace.
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