Yes, it is possible, but not automatic. Some foreign banks, particularly French, Belgian, Dutch, or German, may agree to finance a property located in Spain, especially if the buyer maintains income, accounts, or assets in their home country.
European banks are allowed to grant loans for properties located in another member state, thanks to the free movement of capital within the European Union.
However, this type of loan remains more complex to set up, because:
The foreign bank cannot always take a mortgage directly on a property located in Spain.
It will often require a guarantee in your home country (another property, blocked savings, personal surety, etc.).
Processing times are longer because each application is assessed individually.
Buying property in Spain requires choosing between a French or Spanish loan.
Advantages of financing through a foreign bank
Using a foreign bank to buy in Spain offers several advantages depending on your profile.
Established banking relationship
- If you already have a good relationship with your bank (in France, Belgium, etc.), it knows your profile, income, and history. This facilitates the evaluation of your application and can improve your loan conditions.
Familiar legal framework
Signing a loan contract in your own language, under legislation you understand, provides additional comfort and security. It also avoids sometimes complex administrative procedures of the Spanish system.
Competitive rates
Interest rates offered by some foreign banks can be more favorable than those available locally, especially for borrowers with a strong financial profile.
Simplified financial management
If you still reside in your home country, keeping your income, current account, and mortgage with the same bank can simplify monitoring your payments and managing your budget.
Limitations and drawbacks to anticipate
Although attractive, this option has several constraints to consider before proceeding.
Guarantee difficult to arrange
Foreign banks cannot always take a mortgage on a Spanish property. They will therefore require an alternative guarantee: a property in your home country, pledged savings, or a larger personal contribution.
Often a high down payment
In most cases, the foreign bank finances 60 to 70% of the property value, meaning you will need to provide 30 to 40% of personal funds, or even more.
Currency exchange and transfer fees
If your bank’s currency is not the euro (for example, if you are Swiss or British), you will need to account for exchange fees and potential currency fluctuations.
Longer administrative procedures
Processing a cross-border mortgage often takes more time: translations, notarized documents, legal validation… patience is required.
Alternatives: using a Spanish bank or an international broker
For many buyers, the simplest solution is still to go through a Spanish bank, especially if you are purchasing directly on site.
Major banks such as CaixaBank, BBVA, Sabadell, Santander, or Bankinter have specific offers for European foreign buyers, often with French-speaking advisors.
Another option is to use an international mortgage broker. These professionals work with banks in multiple countries and can help you get the best rate depending on your profile and the property. They know local regulations and simplify the process.
How to properly prepare your application
Before approaching a foreign bank, make sure to gather all necessary documents:
Your last three pay slips and employment contract.
Your recent tax returns.
Bank statements for the last six months.
Proof of your personal contribution.
Documents related to the Spanish property (sale agreement, cadastral reference, etc.).
Also, check the applicable taxation in Spain (capital gains tax, property tax, notary fees), as it differs from your home country.
Conclusion: an interesting option, but to approach carefully
Buying a property in Spain through a foreign bank is entirely possible and can even be advantageous, especially if you have a solid application and strong guarantees in your home country.
However, this solution is more technical and slower than a local mortgage. It is more suitable for wealthy profiles, experienced investors, or those who value the security of a familiar banking framework.
For others, a local mortgage in Spain, possibly with the support of an international broker, is often simpler and faster.
In any case, it is recommended to compare multiple offers, anticipate hidden costs, and seek professional assistance before signing anything.