Mortgage guides
Date published:
Last updated:
By
Harrison Downes
*Researched and regularly updated to reflect current data.*
The amount a Spanish bank will lend you as a non-resident is determined by the loan-to-value ratio, or LTV. This is the percentage of the property's value that the bank is willing to finance. For non-residents, LTV is typically capped at 60-70%, compared to 80% for Spanish residents. That difference has a significant impact on how much cash you need upfront.
On a 500,000 euro property at 65% LTV, the bank lends 325,000 euros and you provide the remaining 175,000. Add 10-15% for taxes and fees, and your total cash requirement is roughly 225,000-250,000 euros. At 70% LTV, the deposit drops to 150,000 euros. At 60%, it rises to 200,000 euros. The difference between 60% and 70% LTV on a half-million euro property is 50,000 euros in cash.
Understanding what drives LTV decisions - and how to position yourself for the best terms - can meaningfully reduce the amount of capital you need to bring to the table.
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At a glance
Non-residents can typically borrow 60-70% of a property's value (LTV)
Spanish residents can borrow up to 80%, so non-residents need a larger deposit
Your total cash requirement is the deposit (30-40%) plus buying costs (10-15%)
LTV varies by bank, borrower profile, property type, and income currency
UCI and Santander offer up to 70% LTV; ING and Bankinter typically cap at 60%
The bank lends based on whichever is lower: the purchase price or independent valuation
Higher deposits generally unlock better interest rates
What LTV means and why it matters
LTV is simply the loan amount expressed as a percentage of the property's value. If you're buying a property valued at 400,000 euros and the bank offers 65% LTV, they'll lend you 260,000 euros. You provide the remaining 140,000 euros as your deposit.
For non-residents, LTV matters more than it does for domestic buyers because the cap is lower. Where a Spanish resident might need a 20% deposit, you need 30-40%. That larger deposit requirement is the single biggest financial hurdle for most international buyers.
The reason banks apply lower LTV limits for non-residents comes down to risk. Foreign income is harder to verify than domestic income. Cross-border legal enforcement is more complex if a borrower defaults. And the property is typically a second home or investment rather than a primary residence, which banks consider a higher-risk use case. The larger deposit is the bank's way of managing that additional risk.
LTV by bank
Each bank sets its own non-resident LTV limits. These can also vary within the same bank depending on your specific profile.
Bank | Maximum non-resident LTV | Resident LTV (for comparison) |
|---|---|---|
UCI | 70% | 80% |
Santander | 70% | 80% |
CaixaBank | 60-70% | 80% |
Sabadell | 50-70% (varies by currency) | 80% |
BBVA | ~60% | 80% |
Bankinter | 60% | 80% |
ING | 60% | 80% |
UCI and Santander are the most generous at 70% LTV for non-residents. CaixaBank offers 60-70% depending on profile and property. Sabadell's range is wider - up to 70% for EUR/USD/GBP-income clients but as low as 50% for buyers earning in weaker currencies. Bankinter and ING are more conservative at 60%.
For the full rate and terms comparison across these banks, see our non-resident rate guide.
How to calculate your total cash requirement
Your total cash requirement has two components: the deposit and the buying costs.
Deposit = Property price minus the loan amount. At 70% LTV on a 500,000 euro property, your deposit is 150,000 euros. At 60% LTV, it's 200,000 euros.
Buying costs = 10-15% of the property price for taxes, notary, registry, legal fees, and mortgage-related charges. The exact percentage depends primarily on which region you're buying in (transfer tax rates vary from 6% to 13%). See our complete cost breakdown for detailed figures.
Total cash = Deposit + buying costs.
Here's how that works at different price points and LTV levels:
At 70% LTV
Property price | Loan amount | Deposit | Buying costs (est. 12%) | Total cash needed |
|---|---|---|---|---|
300,000 euros | 210,000 | 90,000 | 36,000 | ~126,000 euros |
500,000 euros | 350,000 | 150,000 | 60,000 | ~210,000 euros |
750,000 euros | 525,000 | 225,000 | 90,000 | ~315,000 euros |
1,000,000 euros | 700,000 | 300,000 | 120,000 | ~420,000 euros |
At 60% LTV
Property price | Loan amount | Deposit | Buying costs (est. 12%) | Total cash needed |
|---|---|---|---|---|
300,000 euros | 180,000 | 120,000 | 36,000 | ~156,000 euros |
500,000 euros | 300,000 | 200,000 | 60,000 | ~260,000 euros |
750,000 euros | 450,000 | 300,000 | 90,000 | ~390,000 euros |
1,000,000 euros | 600,000 | 400,000 | 120,000 | ~520,000 euros |
The difference between 60% and 70% LTV at the 500,000 euro level is 50,000 euros in additional cash. At 1,000,000 euros, it's 100,000 euros. Securing that extra 10% in LTV can make a material difference to what you can afford to buy.
Run your own numbers with our calculator →
What affects the LTV you'll be offered
The maximum LTV listed by each bank is exactly that - a maximum. The actual LTV offered on your application depends on several factors.
Your income level and stability
Banks assess your ability to service the debt by looking at your debt-to-income ratio. They typically want total monthly debt payments (including the proposed mortgage) to remain below 30-35% of your net monthly income. Higher income relative to the loan amount generally makes banks more comfortable offering their maximum LTV.
Stable, verifiable income from long-term employment is viewed most favourably. If you've been in the same role for 2+ years with steady or growing income, banks are more confident in their lending. Variable income, short employment history, or recent job changes may result in a more conservative LTV offer.
Your income currency
Banks view income in some currencies as higher risk than others. EUR income is considered lowest risk since there's no currency conversion needed for repayments. GBP and USD are broadly accepted at standard terms by banks that work with those currencies. Income in less widely traded currencies may result in lower LTV limits - Sabadell, for example, drops from 70% to 50% LTV for weaker currencies.
The property type and location
Banks are more comfortable lending higher LTV on standard property types in established locations. Apartments and townhouses in popular coastal or urban areas typically qualify for maximum LTV. Properties that may attract lower LTV offers include very rural locations with limited resale markets, unusual property types (fincas, rural estates, properties with land), off-plan developments where construction isn't complete, and properties with legal or planning irregularities.
Your existing debt
Every existing financial commitment reduces your borrowing capacity. Car finance, credit card balances, personal loans, student debt, and other mortgages all count. If your existing debt-to-income ratio is already elevated, the bank may reduce LTV to keep the total monthly commitment within their comfort zone.
Paying down existing debt before applying can directly increase the LTV you're offered, which in turn reduces the deposit you need.
The valuation
The bank commissions an independent property valuation (tasacion), and lends based on whichever is lower: the agreed purchase price or the valuation figure. If the valuation comes in below the purchase price, your effective LTV increases even if the bank's lending percentage stays the same.
For example: you agree to buy a property for 500,000 euros with 70% LTV. The bank was going to lend 350,000 euros. But the valuation comes in at 480,000 euros. The bank now applies 70% to the valuation, lending 336,000 euros instead of 350,000. You need an additional 14,000 euros in cash to make up the difference.
Low valuations are more common with properties in less established areas, off-plan purchases, and situations where the buyer may be paying above market rate. Your broker or lawyer can advise on whether a property's asking price is realistic before you commit.
Strategies for securing higher LTV
Choose the right bank for your profile
This is the highest-impact decision. The difference between a bank that offers you 60% and one that offers 70% is significant. A broker who knows the non-resident market can identify which bank is most likely to offer maximum LTV for your specific combination of nationality, income type, and property.
Put forward a strong financial profile
Banks assess applications holistically. A clean credit report, low existing debt, stable long-term employment, and well-organised documentation all contribute to a stronger application. None of these individually guarantee higher LTV, but together they present the complete picture that makes banks comfortable at their maximum limits.
Consider cross-selling
Most banks (UCI being the exception) offer better terms when you take on linked products - salary domiciliation, home insurance, payment protection insurance, and sometimes investment products. While cross-selling primarily affects the interest rate rather than LTV directly, a bank that sees you as a broader customer relationship may be more flexible on lending terms overall.
Provide a larger deposit than the minimum
This might seem counterintuitive when the goal is to borrow more, but offering a deposit above the minimum can actually improve your terms. A buyer requesting 60% LTV when the bank's maximum is 70% demonstrates lower risk and may receive a better interest rate. If your priority is the best possible rate rather than minimising your deposit, borrowing less can work in your favour.
Monthly payment examples
To give you a sense of what different LTV levels mean in practice, here are approximate monthly payments for a 500,000 euro property at a 3.3% fixed rate across different LTV levels and terms.
LTV | Loan amount | Monthly payment (20 yr) | Monthly payment (25 yr) | Monthly payment (30 yr*) |
|---|---|---|---|---|
60% | 300,000 | ~1,710 euros | ~1,490 euros | ~1,315 euros |
65% | 325,000 | ~1,855 euros | ~1,615 euros | ~1,425 euros |
70% | 350,000 | ~1,995 euros | ~1,740 euros | ~1,535 euros |
*30-year terms are only available at UCI for non-residents. Most banks cap at 20 years.
The difference between 60% and 70% LTV at these levels is roughly 285 euros per month on a 20-year term. On a 30-year term (where available), the monthly payment difference narrows to about 220 euros, but you pay significantly more in total interest.
Frequently asked questions
What's the maximum a non-resident can borrow in Spain?
Most banks cap non-resident LTV at 60-70%. UCI and Santander offer the highest at 70%. The actual amount depends on your income, existing debts, and the property valuation. There's no fixed euro cap - it's determined by the percentage of the property value.
Can I get higher than 70% LTV as a non-resident?
It's rare. 70% is the standard maximum across major Spanish banks for non-resident buyers. In exceptional circumstances - very high income relative to loan, existing banking relationship, or very strong profile - individual negotiation might yield slightly better terms, but 70% is the practical ceiling.
Does LTV affect my interest rate?
Generally, yes. Lower LTV (meaning a larger deposit) typically results in a better rate. Banks view lower LTV as lower risk, and that reduced risk is often reflected in the pricing. The effect varies by bank but can be 0.1-0.3 percentage points.
What happens if the property is valued below the purchase price?
The bank applies its LTV percentage to the lower valuation figure, reducing the loan amount. You need additional cash to cover the gap between the reduced loan and the purchase price. This is one reason to avoid overpaying for a property and to have a financial buffer beyond the minimum deposit.
Is the deposit the same as the arras payment?
No. The arras payment (typically 10% of the purchase price) is paid to the seller when you sign the contrato de arras. Your mortgage deposit is the portion of the price not covered by the loan. The arras payment forms part of the total purchase price, so it effectively counts towards your deposit, but they serve different purposes in the process.
Can I use equity from another property as my deposit?
You can't use foreign property as collateral for a Spanish mortgage. However, if you release equity from another property (through a sale or remortgage) and hold the funds in your bank account, those funds can be used as your deposit. Banks want to see the deposit money in your account for a reasonable period before application.
Next steps
Understanding your LTV and total cash requirement is the foundation of realistic property budgeting. Our free pre-check assesses your income, existing commitments, and financial profile against current bank criteria to give you a clear borrowing estimate within 48 hours.
For the full mortgage process, see our complete guide to getting a mortgage in Spain as a non-resident. For current rates by bank, see our rate comparison.
Questions? WhatsApp us or get in touch.
This content is for informational purposes only and does not constitute financial advice. Zerodown is a mortgage introducer, not a lender or financial advisor. LTV limits, rates, and terms vary by bank and individual circumstances. Always confirm current terms with your broker or lender.
