Dreaming of a sunny retreat in Spain? Whether it’s a beach apartment in Málaga or a countryside villa in Mallorca, non-residents can get a mortgage for a second home or holiday property in Spain. This article explains the process, requirements, and key legal and financial points to consider.
🏡 What Is a Second Home Mortgage in Spain?
A second home (or vivienda secundaria) is a property used:
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As a vacation home
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For personal/family use
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For occasional rental (if legally permitted)
📌 It differs from a primary residence and is treated differently by banks when offering mortgage terms to non-residents.
✅ Who Can Apply?
Any non-resident can apply for a second home mortgage, including:
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EU and UK citizens
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US, Canadian, Latin American, Australian nationals
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Salaried workers or retirees with foreign income
📌 You’ll need to prove income stability and meet Spain’s legal conditions for property ownership.
🏦 Mortgage Conditions for Second Homes
| Criteria | Typical Terms |
|---|---|
| Loan-to-Value (LTV) | 60–70% (sometimes lower for rural or luxury homes) |
| Minimum Deposit | 30–40% of the property price |
| Term | 5–25 years |
| Interest Rate | Fixed: 3.5–4.5%, Variable: Euribor + 1.5–2.5% |
| Usage Restrictions | Must not be listed as primary residence in Spain |
📄 Documents You’ll Need
Prepare the following to apply for a second home mortgage:
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Valid passport or national ID
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Spanish NIE
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Proof of income (payslips, pension, business income)
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Tax returns (1–2 years)
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Foreign bank statements
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Spanish property information (Nota Simple, valuation)
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Credit report from your home country
📌 Most banks require certified translations and apostilles on foreign documents.
🏘️ Where Do Buyers Usually Purchase Second Homes?
Top areas for non-resident second home purchases include:
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Costa del Sol (Málaga, Marbella)
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Balearic Islands (Mallorca, Ibiza)
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Costa Blanca (Alicante, Jávea)
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Barcelona & surroundings
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Valencia
Each region has unique property laws and licensing rules — especially for rentals.
💰 Can You Rent Out the Property?
Yes — but:
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Check if the local municipality allows tourist rentals
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You may need a rental license (VUT)
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Income is taxable in Spain even if you’re a non-resident
📌 Renting out your second home without proper registration can lead to fines.
⚖️ Legal and Tax Considerations
When financing a second home, you’ll need to account for:
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Non-resident income tax (IRNR)
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Wealth tax if total property/assets exceed certain thresholds
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Annual property tax (IBI)
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Tourism tax in some regions (e.g., Balearics, Catalonia)
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Property insurance (required by the bank)
🛑 Risks to Avoid
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❌ Assuming rental income will cover your mortgage
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❌ Skipping legal checks on property status (urban planning, licenses)
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❌ Choosing a bank that doesn’t specialize in non-resident mortgages
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❌ Ignoring double taxation or reporting obligations in your home country
⚠️ Common Mistake: No Power of Attorney
If you’re abroad during signing or property visits, delays can occur. A Spanish power of attorney lets your lawyer:
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Open your Spanish bank account
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Apply for NIE
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Review and sign the mortgage deed
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Sign the property title deed on your behalf
❓ FAQs
Can I get a second home mortgage without living in Spain?
Yes — many buyers purchase second homes remotely with legal support.
Do I need to pay extra taxes as a foreigner?
Yes — including non-resident income tax and potential wealth tax, depending on property value.
Can I finance a rural home or finca?
Yes — but banks are more cautious and may require a higher deposit.
🤝 How We Help
At Borderless Lawyers, we specialize in helping foreigners:
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Finance second homes in Spain
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Navigate complex tax rules
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Secure mortgage approval and legal safety
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Complete transactions from abroad via power of attorney
👉 Schedule a consultation to explore your holiday home options with expert legal guidance.