Complete guide for buying on the Costa del Sol
Schedule your consultationBuying a property on the Costa del Sol is a dream for many. Often, a Spanish mortgage is required.
Although the process may seem similar to other countries, there are key differences: maximum financing, stricter documentation requirements, and different tax rules. In this guide from VIVI Real Estate, you will learn step by step:
Spanish banks are cautious, especially with foreign buyers. They consider:
Fixed salary or pension provides more security than variable income.
Current mortgages, personal loans, credit cards and leases count as obligations.
Mortgages usually must be fully repaid before the age of 75.
BKR registration or international credit reports affect approval.
Monthly payments generally cannot exceed 30-35% of net income, including existing obligations.
Typically up to 70% of the purchase price or the appraised value, whichever is lower. The remaining 30% must come from your own funds.
Plus purchase costs (taxes, notary, registration, lawyer), usually 10-15%, which cannot be financed.
Move the sliders and see an indicative financing picture in seconds.
Indicative only. Final terms depend on the bank and your profile.
From first budget check to a complete application.
Calculate your maximum borrowing capacity before viewing properties.
One bank or several, with or without a mortgage advisor.
Personal and financial paperwork, prepared completely.
The bank assesses your income, obligations and credit history.
VIVI Real Estate guides you through the entire process.
Before viewing properties, calculate your maximum borrowing capacity through a bank or advisor to avoid disappointments.
Passport, NIE/BSN, address, contact details, marital status, children, occupation or pension certificate.
Payslips, tax returns, BKR report, bank statements, existing mortgage details.
Preparing and submitting complete documentation is often the most time-consuming part of the application.
| Aspect | Spain | Other countries |
|---|---|---|
| Maximum financing | 70% | 100% |
| Term | 20-25 years (sometimes 30) | 30 years standard |
| Age limit | Paid off before 75 | No legal limit |
| Interest types | Variable (Euribor + margin), short fixed options | Wider choice of fixed rates |
| Purchase costs | 10-15% | 4-6% |
| Tax-deductible interest | Limited | Yes, for main residence |
| Income norms | 30-35% net income | Nibud or local guidelines |
| Application process | Extensive documentation, translations/legalization | Standardized |
| National guarantee | Not available | NHG possible |
Large branch network, experience with foreigners.
Strong digital solutions.
Multilingual support.
Flexible for foreign buyers.
Competitive interest rates.
More personal service, regionally strong.
Spanish banks are very restrictive; mortgages are rarely granted.
Higher interest rates and lower financing.
Financing via a foreign bank, private lending, or establishing a Spanish subsidiary to purchase.
ITP for existing properties, IVA + AJD for new builds.
Private vs. S.L.: different tax implications for rental and investment.
19% for EU non-residents, 25% corporate tax for S.L.
Depends on the region.
Capital gains tax + municipal plusvalía.
Typically up to 70% of the purchase price or the appraised value, whichever is lower. The remaining 30% must come from your own funds.
No. Purchase costs (taxes, notary, registration, lawyer) are usually 10-15% of the price and cannot be financed.
Mortgages usually must be fully repaid before the age of 75.
It is not required, but an advisor helps you avoid mistakes and missing documentation, and gives access to multiple banks and their conditions. VIVI Real Estate works with experienced advisors specialized in international clients.
Spanish banks are very restrictive with foreign BVs and mortgages are rarely granted. A Spanish S.L. is possible, but with commercial terms, higher interest rates and lower financing.
Personal information (passport, NIE/BSN, address, contact details, marital status, children, occupation or pension certificate) and financial information (payslips, tax returns, BKR report, bank statements, existing mortgage details).
Contact VIVI Real Estate. We will guide you through the entire process.
Personal guidance · Experienced with international buyers
Marian Kadur
