Looking to finance a home in Ibiza? Learn how non-residents can qualify for a Spanish mortgage, avoid legal pitfalls, and secure financing remotely.
Ibiza is world-famous for its luxury lifestyle, stunning scenery, and high-value real estate. Whether you’re buying a holiday villa, a rural finca, or a modern apartment, foreigners can obtain a mortgage in Ibiza — but island-specific legal and financial rules apply. This guide explains how to qualify, what to expect from lenders, and how to secure financing safely from abroad.
🌅 Why Foreigners Invest in Ibiza
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🌍 High demand from German, Dutch, Nordic, British, and French buyers
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🛥️ Prestigious real estate in Santa Eulalia, Es Cubells, and San José
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🏖️ Second homes with long-term rental income potential
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✈️ Direct international access during most of the year
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🏘️ Gated communities and large plots available (unlike city centers)
🏦 Can Foreigners Get a Mortgage in Ibiza?
Yes. Spanish and regional banks in Ibiza offer non-resident mortgages, especially for EU buyers. That said, island valuations are strict, rural zoning is complex, and loan-to-value (LTV) tends to be lower for luxury or rustic properties.
💶 Typical Mortgage Terms in Ibiza
| Mortgage Feature | Typical Range |
|---|---|
| Loan-to-Value (LTV) | 50–65% (rarely 70%) |
| Minimum Deposit | 35–50%, especially for villas and rural plots |
| Term Length | 15–25 years |
| Interest Rate | Fixed: 3.5–4.5%, Variable: Euribor + 1.5–2% |
| Debt Ratio | 30–35% of monthly gross income |
📌 Banks often value only the legal square meters — not terraces or additions.
🧾 Required Documents for Mortgage Approval
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Valid passport
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NIE (Número de Identidad de Extranjero)
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Proof of income (salary, pension, dividends, or rental)
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3–6 months of bank statements
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Tax returns (1–2 years)
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Credit report from your home country
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Reservation or private contract for the property
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Funds proof for deposit and closing costs
📌 All foreign documents must be translated to Spanish and apostilled.
🏛️ Best Banks for Mortgages in Ibiza
| Bank | Why Choose It |
|---|---|
| CaixaBank | Strong island presence with multilingual advisors |
| Sabadell | Offers non-resident mortgage services and digital onboarding |
| Bankinter | Accepts self-employed and high-net-worth clients |
| Banca March | Specializes in Balearic islands with high-end clientele |
💡 Consider using a mortgage broker who knows the Ibiza market, especially for rural or luxury properties.
⚖️ Legal Considerations in Ibiza
Ibiza presents special legal risks for buyers, including:
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❗ Rural zoning restrictions (suelo rústico)
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🧱 Illegal extensions and outbuildings
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🏗️ Construction built without permits
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🔌 Utility disconnections on non-legalized homes
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❌ Bans on new tourist licenses in most areas
✅ A local lawyer can:
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Conduct title and zoning checks
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Review the mortgage deed and purchase contract
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Register your purchase and mortgage
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Sign all documents on your behalf via power of attorney
💸 Property & Mortgage Costs in Ibiza
| Expense Type | Typical Cost |
|---|---|
| Transfer Tax (ITP) | 8–11% (resale properties) |
| AJD (Mortgage Tax) | 0–1.5% (depends on lender/loan) |
| Notary & Registry Fees | ~1.5–2% of property price |
| Bank Arrangement Fee | 0.5–1% of mortgage amount |
📌 Some lenders waive arrangement fees for high-value mortgages.
❓ FAQs
Can I mortgage a rural finca or countryside home?
Yes — but only the legalized part of the property will be valued by the bank.
Can I apply without visiting Ibiza?
Yes — we can manage the entire process remotely, including NIE, mortgage application, and signing via power of attorney.
Do I need a Spanish income?
No — you can qualify using foreign salary, pension, or other regular income.
🤝 How We Help
At Borderless Lawyers, we guide international buyers through every step:
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NIE and bank account setup
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Mortgage pre-approval and negotiation
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Legal checks on rural land and construction legality
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Remote signing and full notary coordination
👉 Thinking of buying in Ibiza? Let us secure your mortgage and handle the process from start to finish.