Overview of Non-Resident Mortgage Activity in Spain for 2023
Alicante led Spain in 2023 for mortgage applications from buyers who are not residents. The province captured 55% of these requests within the Valencian Community, which topped the national regional rankings. Many buyers aimed to acquire property for rental income, with a smaller share seeking enjoyment of a holiday home.
The year also saw a 7% rise in financing applications from foreigners to purchase property in Spain, despite mortgage rates rising faster for non-residents than for residents. A Hipoo report analyzing mortgage requests in 2023 notes that the United Kingdom accounted for 40%, Switzerland 25%, and Germany 18% of foreign applicants in that order.
The data show that 62% of requests belonged to a non-resident investor looking to acquire a home in Spain to generate rental returns, while 38% represented non-residents purchasing a second home for personal use.
In 2023, non-residents accounted for about 19.92% of total mortgage requests on the platform, with an average loan-to-value (LTV) of 65%. The maximum debt ratio observed for these clients was 30%. Average monthly net family income was around 6,500 euros, the typical mortgage amount was about 195,000 euros, and the average property price targeted for purchase was near 300,000 euros.
Regional Leadership in Mortgage Demand
About 20% of all requests aimed at acquiring a home in the Valencian Community, with Alicante leading at 55%, Valencia province at 40%, and Castellón at 5%. Catalonia ranked second overall, representing 19% of total requests, with Barcelona alone accounting for 60%, Girona 30%, Tarragona 6%, and Lleida 4%.
Andalusia held the third position with 16% of the total. Within this region, Málaga led with 67%, followed by Cádiz at 23%. Madrid held the fourth spot with 15% of the total.
The Mediterranean coastline remained the most attractive area, receiving more than half of all mortgage requests. This trend reflects a clear preference for personal use or rental investment along the coast, while interior regions tended to attract more speculative investment activity.
Mortgage Products and Financing Options
Regarding mortgage products, a key factor is the currency in which yields are received. If the lender accepts the client’s currency, a fixed-rate product is often available. If another currency is used, lenders typically offer variable-rate financing. Current rates for non-residents run about 0.5% to 1.5% higher than rates for residents.
As for the most interesting banking options, lenders such as Santander, Abanca, Bankinter, Sabadell, and Kutxabank may offer fixed rates in the roughly 3.5% to 4.5% range, while variable-rate options can span from E+0.85% to E+2%. The standard maximum mortgage term is 25 years.
These insights come from market observations and industry analysis of foreign borrowers pursuing property in Spain, highlighting how currency, loan structure, and regional demand shape available financing and pricing for non-residents.