Spanish Mortgages

Global individuals need simple international mortgage solutions.

The Spanish property market draws international buyers who want to buy a property in a temperate climate set in beautiful landscapes to use as either a second home, a retirement property, or a holiday home as part of a lifestyle choice. Spain offers a rich culture, deeply set in history and tradition. Outside of the main cities, the slow pace of life attracts city-dwellers seeking a more relaxed pace of life in a warm climate. Spanish property market activity slowed down during the pandemic. Still, since the emergence of remote working, more buyers are looking for a Spanish property as a second home to retreat to several times a year.

Spain’s Mainland Cities

We offer international mortgages for luxury properties in metropolitan areas in mainland Spain including Madrid City, Barcelona and Marbella. Spanish cities were negatively impacted by the 2008 financial crisis, with the property market taking longer than expected to recover. However, the main cities of Madrid and Barcelona began to recover again in 2014.

Image of Spanish Mortgages infographic.

The Balearic Islands: A Real Estate Haven

The Balearic Islands is an archipelago situated in the Mediterranean Sea off the east coast of Spain, offering a wealth of opportunities for buyers seeking property in the natural coastline to provide respite from busy metropoles. If an investor is looking for certainty, the Balearic Islands offer implicit confidence. Not only is the location exceptionally desirable, but it has also proven to be robust, and it’s a haven for buy to let owners who want the comfort of a reliable rental income. In terms of property prices, these islands are on a par with London. The property market on the Balearic Islands has been steadily growing for the last ten years.

There is a growing demand for international mortgage finance, primarily driven by a high demand for luxury holiday rentals presenting buy to let opportunities. Furthermore, these islands all have large expat communities making the transition easy for those looking to relocate or invest in a second home. 


The largest island in the Balearics, Mallorca, plays host to the archipelago capital, Palma. Mallorca controls two small islands off its coast, Cabrera to the south-east and Dragonera to the West. Mallorca has seen a sharp increase in property prices over the last five years. During the pandemic, local property market activity took a bit of a ‘siesta’. However, property prices remain unchanged, and the price is always the highest indicator of property market wealth. 


Menorca is rich in culture. Like Mallorca, Menorca also benefits from a continuous stream of tourism, mainly from sun-seeking nations including the UK, Germany and Switzerland. Coastal destinations such as Punta Prima and Cala en Bosc are popular with families. In the last two years, the property prices on the island have risen due to demand from international buyers seeking holiday homes. The areas of Binibeca, Es Grau and Sa Mesquida are particularly sought after. Urban areas such as Mahon and Ciutadella have been targeted to develop townhouses valued at £1 million+.


Ibiza’s property market is largely made up of foreign investors seeking a luxury second home. Ibiza comprises five municipalities, including Santa Eulalia del Rio, San José de Sa Talaia, San Antonio de Portmany, San Joan de Labritja and the city of Ibiza itself. One of the most notable factors in the market’s resilience throughout the pandemic was Ibiza’s luxury property sector that enjoyed a surge in interest from foreign buyers of second homes since 2007, mainly from the U.K. and Europe. Since 2020 U.S. interest in the Ibizan market has been growing and is set to continue in this trajectory. 

Financing Property in the Balearics

To finance a property in this area, you will need an initial deposit of approximately 10% and this is non-refundable if the buyer pulls out. Balearic Island mortgages typically offer up to 60-70% of the purchase price or property value. To carry out any financial transactions in the Balearic Islands, you need an NIE (Foreigner Identity Number) obtained from the local authorities in the area. Also, be aware that for holiday homes that are not your main residence and not rented out, there is a “notional rental income” tax. This tax usually relates to income tax bands; 19% for E.U. residents and 24% for non-EU countries. 

Competitive Mortgage Rates

Spain’s domestic lending scene tends to offer less competitive mortgages for non-residents. National banks also avoid taking risks, especially in cases that involve luxury properties and overseas investors. However, with our network of niche lenders, you can still procure a strong mortgage deal that makes use of all your assets. Securing an international mortgage with a U.K. lender is most certainly a viable option. 

Tax Planning for Spanish Property

Tax planning is a vital part of the buying process, especially in Spain, where the tax system can be complicated to navigate for non-residents. Income, capital gains and wealth tax apply for residents of Spain on worldwide income and assets. Planning to cover charges is vital as you do not want to be surprised by any extra fees that could derail your investment plan. Charges relating to Spanish property purchases cost around 10% of the property price. There is a wealth tax in the Balearic Islands, starting at 0.2%, charged on worldwide assets for residents and non-residents. There is a national tax-free allowance of €700,000. You are deemed as a resident of Spain under Spanish tax residency rules if you spend more than 183 days in the country over the course of a calendar year. 

Letting Out Spanish Property

Recently, regulations surrounding renting out property in Spain have become more stringent. In Ibiza, for example, rental values vary between €2,200 and €8,300 per square metre. If you rent out your Spanish property, be aware that Spanish income tax is applicable.

Equity Release Options

Equity release allows anybody aged 55 and over to release equity from a residential property without making monthly payments. Unlock the value of your home and release it as cash, which you can use for any purpose without having to move home. We offer equity release options with 50% of assets under management.

Why Large Mortgage Loans?

Our mortgage advisors can speak a multitude of languages, including Spanish, which is essential for impactful communication. Large Mortgage Loans is on hand to assist clients 24/7. We work across multiple jurisdictions, enabling us to provide flexible solutions for clients living overseas. 

If you are considering purchasing or remortgaging a property abroad, one of our mortgage advisors can guide you through the buying process step by step. We ensure that you receive a customised mortgage deal to suit your individual needs and unique requirements. 

To find out how Large Mortgage Loans can help you with your international mortgage requirements, call an expert now or get in touch.

Your home or property may be repossessed if you do not keep up repayments on your mortgage.

The Financial Conduct Authority does not regulate some aspects of buy to let mortgages.


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Specialists in creating innovative and bespoke funding solutions for complex situations for High Net Worth Clients.

Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Changes in the exchange rate may increase the sterling equivalent of your debt. You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing any other debts against your home. is a trading name of Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London, E14 9QD authorised and regulated by the Financial Conduct Authority (FCA). Our FCA registration number is 302228 and can be viewed by visiting the FCA website: The FCA does not regulate tax advice or some aspects of commercial, buy to let, overseas mortgages, bridging finance, finance and asset lending. Ltd is a licensed credit broker, and not a lender. Ltd Registered in England and Wales No: 5070990 Registered Address: As above. The guidance and advice contained within the website are subject to the UK regulatory regime and is primarily targeted at UK customers. Calls may be recorded for training and monitoring.
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