Financing a purchase on the Costa Brava with a mortgage is perfectly possible, but the framework differs from France. It is best to know the rules before building your budget.
What Spanish banks offer
For a non-resident, Spanish banks generally finance 60% to 70% of the purchase price, or of the valuation if lower. Terms commonly run up to 20 or 25 years, with fixed rates or variable rates linked to Euribor. The application is based on your French income: payslips, tax assessments, bank statements, sometimes all translated.
The real figure to remember: the cash you need
With 65% financing, you need to put in 35% of the price, plus 12% to 14% in purchase costs, plus the costs of the loan itself. In total, allow around 45% to 50% of the property price in your own funds. This is what most surprises buyers used to French financing at 90% or 100%.
The alternative: financing in France
Many of our clients prefer to use their French assets: a mortgage secured on their main home, an advance on a life insurance policy, a wealth-backed loan. The advantages: a single banking contact in your language, often better terms, and above all the position of a cash buyer in Spain, which is extremely effective in negotiation.
The timetable
A Spanish mortgage easily adds four to eight weeks to the process: property valuation, binding offer (FEIN), statutory reflection period. The arras contract must include a condition linked to obtaining the financing.
Our advice: get your borrowing capacity confirmed, in France or in Spain, before viewing. A buyer with secured financing negotiates twice as well.
