Madrid is one of the most stable and lucrative real estate markets in Spain — ideal for foreign professionals, investors, and second-home buyers. Even if you’re not a Spanish resident, you can apply for a non-resident mortgage in Madrid to finance your purchase. This guide explains how to qualify, which banks to approach, what terms to expect, and how to handle the legal process.
🏢 Why Foreign Buyers Are Choosing Madrid
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🌍 Major European capital with global appeal
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💼 Strong job and rental markets
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🏛️ High demand in central districts: Salamanca, Chamberí, Retiro
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📈 Long-term price stability and capital growth
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✈️ Well-connected to international destinations
🏦 Can Foreigners Get a Mortgage in Madrid?
Yes. Spanish banks regularly approve mortgages for non-residents buying in Madrid — especially for salaried professionals and pensioners with verifiable income abroad. You don’t need to live in Spain, but you must provide documentation and meet debt-to-income requirements.
💶 Typical Mortgage Conditions in Madrid for Non-Residents
| Mortgage Feature | Typical Range |
|---|---|
| Loan-to-Value (LTV) | 60–70% of the property’s purchase price |
| Down Payment | 30–40% from buyer |
| Term Length | 15–25 years |
| Interest Rate | Fixed: 3.5–4.5% / Variable: Euribor + 1.5–2% |
| Debt Ratio | Max 30–35% of monthly income |
📌 Banks are often more conservative with buy-to-let properties or luxury flats in central Madrid.
🧾 What Documents Do You Need?
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Passport and Spanish NIE (Foreigner ID)
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Proof of income: payslips, pension, or dividends
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Tax returns (1–2 years)
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Bank statements (last 3–6 months)
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Credit report from your country
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Proof of deposit funds
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Property reservation or offer contract
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For self-employed: corporate financials and accountant’s letter
📌 Documents not in Spanish must be translated and apostilled.
🏛️ Best Banks for Foreigners in Madrid
| Bank | Highlights |
|---|---|
| CaixaBank | Bilingual staff and wide coverage in central Madrid |
| Sabadell | Dedicated mortgage solutions for non-residents |
| Bankinter | Good for freelancers and entrepreneurs |
| BBVA | Accepts various income types; solid digital banking |
💡 Use a mortgage broker or lawyer to negotiate terms across multiple lenders.
⚖️ Legal Considerations in Madrid
Madrid’s real estate process is straightforward, but legal support is key for:
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Verifying that the seller owns the property and it’s free of debt
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Reviewing the mortgage contract to avoid unfair terms
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Signing at the notary (in-person or via power of attorney)
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Ensuring all taxes and registration are properly filed
Hiring a bilingual Spanish lawyer is highly recommended if you’re buying from abroad.
💸 Taxes and Costs for Non-Resident Mortgages in Madrid
| Cost Type | Estimated Cost |
|---|---|
| Property Transfer Tax (ITP) | 6–10% (standard: 6% resale, 10% new build) |
| Mortgage Tax (AJD) | 0–1.5% (often reduced or covered by banks) |
| Notary + Registry Fees | 1.5–2% of purchase price |
| Bank Arrangement Fee | ~1% of mortgage amount |
📌 Madrid’s ITP is lower than many other regions, making it attractive for high-value deals.
❓ FAQs
Can I get a mortgage for a rental investment in Madrid?
Yes, but banks may offer lower LTVs and want proof of your ability to manage the property remotely.
Can I apply for a mortgage from abroad?
Absolutely. Pre-approvals and most paperwork can be handled remotely — especially if you use a lawyer and power of attorney.
Do I need to open a Spanish bank account?
Yes. The mortgage and monthly payments must go through a Spanish account in your name.
🤝 How We Help
At Borderless Lawyers, we assist non-resident buyers in Madrid with:
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NIE applications and account opening
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Mortgage pre-approval and term negotiation
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Full legal due diligence and contract review
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Remote closing via power of attorney
👉 Want to buy property in Madrid with financing? Let us handle your mortgage — legally, securely, and remotely.