Getting a Mortgage in Mallorca as a Foreigner: Complete Guide 2026

Buying property in Mallorca is a dream shared by thousands of British and international buyers every year. But unless you are paying cash, you will need a Spanish mortgage — and the process for non-residents is quite different from what you may be used to back home. This guide walks you through every step, from the documents you need to the banks most willing to lend to foreigners, so you can approach your purchase with confidence.

Can Foreigners Get a Mortgage in Spain?

Yes, absolutely. Spanish banks actively lend to non-resident foreign buyers, and Mallorca’s strong property market makes it an attractive proposition for lenders. However, the terms differ from those offered to Spanish residents. The key differences are:

• Lower loan-to-value (LTV): Non-residents can typically borrow 60–70% of the purchase price or valuation (whichever is lower), compared to 80% for residents. This means you will need a deposit of 30–40% of the property price.
• Shorter maximum terms: Most banks cap non-resident mortgages at 20–25 years, versus 30 years for residents.
• Slightly higher interest rates: Non-resident rates carry a small premium, typically 0.2–0.5% above resident rates.
• Stricter affordability checks: Banks will scrutinise your income from abroad more carefully and may require additional documentation.

None of these are deal-breakers — they simply mean you need to plan ahead and have your paperwork in order before you start viewing properties.

Essential Documents You Will Need

The NIE (Número de Identidad de Extranjero)

The NIE is your foreign identification number in Spain, and it is required for virtually every financial and legal transaction. You cannot open a bank account, sign a mortgage, or complete a property purchase without one. You can apply for an NIE at:

• The Spanish Consulate in your home country (recommended — do this before you travel)
• The National Police station (Comisaría de Policía) in Palma or other towns in Mallorca

The process takes anywhere from a few days (in Spain) to several weeks (via a consulate). Many buyers appoint a local lawyer or gestoría to handle the application on their behalf with a power of attorney.

Documents Required by Spanish Banks

While exact requirements vary between lenders, you should prepare the following:

• Valid passport (and NIE certificate)
• Proof of income: Last 2–3 years’ P60s or tax returns (SA302 for self-employed UK buyers), plus your last 3 months’ payslips
• Employment contract or letter from your employer confirming your role and salary
• Bank statements: Last 6–12 months from your main current account, showing regular income and your savings
• Credit report: Some banks request a credit report from your home country (Experian, Equifax, or TransUnion for UK buyers)
• Existing debts: Details of any outstanding mortgages, loans, or credit card balances
• Property details: Once you have found a property, the nota simple (land registry extract) and a copy of the sales contract or reservation agreement

All documents not in Spanish will need to be officially translated by a sworn translator (traductor jurado). Some banks accept English documents initially for pre-approval but will require translations before completion.

Best Banks for Foreign Buyers in Mallorca (2026)

Not all Spanish banks are equally willing or experienced when it comes to foreign mortgages. The following have established international departments and a strong track record with British and other non-resident buyers:

Banco Sabadell

Sabadell has one of the most active international mortgage departments in Spain. They offer dedicated English-speaking advisers in their Mallorca branches, competitive rates for non-residents, and a relatively smooth application process. They are particularly well-regarded for their flexibility with self-employed applicants.

CaixaBank

As Spain’s largest retail bank, CaixaBank has significant resources and a well-established international division. Their rates are competitive, and they offer both fixed and variable products to non-residents. The application process can be slightly more bureaucratic, but their branch network across Mallorca is unmatched.

Santander

Santander’s UK presence (through the former Abbey National) gives them a strong understanding of the British market. They offer competitive LTV ratios — sometimes stretching to 70% for well-qualified applicants — and their international mortgage team is experienced with cross-border transactions.

Bankinter

Bankinter tends to offer some of the most competitive interest rates in the market, particularly on fixed-rate products. They are a good option for higher-value properties and applicants with strong financial profiles. Their service is efficient, though their branch network is smaller than the big three.

UCI (Unión de Créditos Inmobiliarios)

UCI is a specialist mortgage lender (a joint venture between Santander and BNP Paribas) that focuses on foreign buyers. They can be more flexible with non-standard income situations, though their rates tend to be slightly higher to reflect this flexibility.

Interest Rates: Fixed vs Variable in 2026

Spanish mortgage rates have stabilised following the European Central Bank’s rate adjustments in 2024–2025. Here is what you can expect as a non-resident buyer in early 2026:

Type	Non-Resident Rate	Resident Rate (for comparison)
Fixed rate (15–20 years)	2.8% – 3.8%	2.5% – 3.3%
Variable rate (Euribor + spread)	Euribor + 1.2% – 1.8%	Euribor + 0.8% – 1.3%
Mixed (fixed 5–10 yrs, then variable)	2.5% – 3.2% (fixed period)	2.2% – 2.8% (fixed period)

Which should you choose? Fixed rates give you certainty — your monthly payment will not change regardless of what happens to the Euribor. Variable rates are currently cheaper but carry the risk of future rate rises. Mixed products offer a middle ground: stability for the first 5–10 years, then a switch to variable. For buyers earning in GBP, a fixed rate is often the safer choice, as you are already exposed to currency fluctuation risk.

Step-by-Step: From Pre-Approval to Completion

Step 1: Get Your Finances in Order (2–4 weeks before viewing)

Gather all the documents listed above. Speak to a mortgage broker to understand your budget and get a pre-approval or agreement in principle. This is not binding but tells you how much a bank is likely to lend, which is essential for knowing your price range.

Step 2: Obtain Your NIE

Apply through the Spanish Consulate or upon arrival in Mallorca. Your lawyer or gestoría can handle this with a power of attorney if you prefer.

Step 3: Open a Spanish Bank Account

You will need a Spanish current account to pay the mortgage and associated costs. Most banks require you to visit a branch in person with your passport and NIE, though some now offer remote account opening for existing mortgage applicants.

Step 4: Find Your Property and Make an Offer

Once your offer is accepted, you will typically sign a contrato de arras (deposit contract) and pay a deposit of 10% of the purchase price. This is held in escrow and is forfeitable if you pull out without a valid reason — so ensure your mortgage pre-approval is solid before committing.

Step 5: Formal Mortgage Application

Submit your full application with all supporting documents. The bank will commission an independent property valuation (tasación), which typically costs €300–€600 and takes 1–2 weeks.

Step 6: Mortgage Offer (Oferta Vinculante)

Once approved, the bank issues a binding offer detailing the loan amount, interest rate, term, and all fees. Spanish law requires you to receive this at least 10 days before signing, so you have time to review it with your lawyer. You will also have a mandatory meeting with the notary to ensure you understand the terms — this is a consumer protection measure introduced in 2019.

Step 7: Completion at the Notary

The mortgage deed (escritura de hipoteca) and the purchase deed (escritura de compraventa) are signed at the notary on the same day. Funds are transferred, you receive the keys, and the property is yours. The entire process from offer acceptance to completion typically takes 6–10 weeks.

The Role of a Mortgage Broker (and Why Ours is Free)

A mortgage broker compares offers from multiple banks on your behalf, negotiates better rates, and handles the paperwork. For foreign buyers navigating an unfamiliar system in a different language, this is enormously valuable.

Here is what a good broker does for you:

• Compares the entire market: Instead of approaching banks one by one, your broker knows which lenders offer the best terms for your specific situation.
• Negotiates on your behalf: Brokers have established relationships with bank managers and can often secure rates below the advertised standard.
• Handles the paperwork: From document submission to chasing the bank for updates, your broker manages the process so you do not have to.
• Speaks your language: A broker experienced with British buyers understands both systems and can bridge any communication gaps.

How is it free? Our mortgage broker service is paid by the bank upon completion — a standard commission arrangement in Spain. You pay nothing for the broker’s services, and the rate you receive is no different (often better) than if you approached the bank directly. There is genuinely no catch.

Common Mistakes British Buyers Make

1. Underestimating the Total Costs

On top of the purchase price, expect to pay 10–13% in taxes, fees, and associated costs. If you budget only for the deposit and purchase price, you will come up short. See our complete cost breakdown guide for the full picture.

2. Not Getting Pre-Approved Before Viewing

Without a pre-approval, you risk falling in love with a property you cannot afford, or losing it to a buyer who can move faster because their financing is already arranged.

3. Using a UK Solicitor Instead of a Spanish Lawyer

Spanish property law is fundamentally different from English law. You need a Spanish abogado who specialises in property transactions, ideally one who also speaks English. A UK solicitor simply cannot perform the necessary checks on the nota simple, planning permissions, debts attached to the property, or community obligations.

4. Ignoring Currency Risk

If you earn in pounds and pay a mortgage in euros, exchange rate movements can significantly affect your monthly cost. A 10% move in GBP/EUR (which is not unusual over a year) could add hundreds of pounds to your annual mortgage payments. Consider using a currency specialist to lock in rates or set up a forward contract.

5. Not Accounting for Spanish Banking Practices

Spanish banks often require you to take out home insurance (compulsory) and may offer incentives — or conditions — linked to life insurance, direct debit of bills, or pension products. Understand what is mandatory and what is optional before signing.

Post-Brexit Changes for UK Buyers

Since Brexit took full effect, British buyers are treated as third-country nationals rather than EU citizens. In practical terms for mortgages, the impact has been moderate but real:

• 90-day rule: UK nationals can only stay in the Schengen area for 90 days in any 180-day period without a visa. This does not affect your ability to buy property or get a mortgage, but it limits how long you can stay in your Mallorca home without a residence visa.
• Golden Visa changes: Spain’s Golden Visa programme (residency through property investment of €500,000+) was discontinued for new real estate applications in April 2025. If you purchased before that date, existing visas remain valid for renewal. New applicants must now explore alternative residency routes such as the non-lucrative visa or the digital nomad visa.
• Non-lucrative visa: The most common route for retirees and those with passive income. Requires proof of sufficient funds (approximately €28,800 per year for the main applicant in 2026) and private health insurance. It does not permit you to work in Spain.
• Mortgage availability: Spanish banks continue to lend to UK buyers without any additional restrictions compared to other non-EU nationals. Your passport nationality is less important than your income, deposit, and creditworthiness.
• Tax implications: UK buyers who are non-resident in Spain pay a 24% flat rate on rental income (previously 19% for EU residents). This is an important consideration if you plan to let your Mallorca property. The UK–Spain double taxation treaty remains in force, so you will not be taxed twice on the same income, but the higher Spanish rate applies.

How Long Does the Whole Process Take?

From your first enquiry to collecting the keys, a typical timeline looks like this:

• Pre-approval: 1–2 weeks (can be started remotely)
• NIE application: 1–4 weeks depending on method
• Property search and offer: Variable (days to months)
• Deposit contract to completion: 6–10 weeks
• Total from pre-approval to keys: Typically 2–4 months

The most common cause of delays is missing or incomplete documentation. Having everything prepared before you start will save you weeks.

Ready to Take the Next Step?

Getting a mortgage in Mallorca as a foreign buyer is entirely achievable with the right preparation and advice. The process may feel unfamiliar at first, but thousands of British buyers complete it successfully every year.