Hipoteca (Mortgage) — Spanish Property Glossary

A hipoteca is a mortgage (secured property loan) in Spain. Spanish banks offer mortgages to both residents and non-residents, though terms differ. Residents can typically borrow up to 80% of the appraised value (tasacion), while non-residents are usually limited to 60% to 70%. Mortgage types include fixed-rate, variable-rate (linked to the Euribor index), and mixed products. Since the 2019 Mortgage Law, the bank pays most mortgage setup costs and the borrower only pays the tasacion fee. Typical variable-rate mortgages are priced at Euribor plus 0.8% to 1.5%, while fixed rates have ranged from 2.5% to 4% depending on market conditions. Mortgage terms can extend up to 25 to 30 years, with the loan generally needing to be repaid before the borrower turns 75. To apply, you will need proof of income, tax returns, bank statements, an employment contract or business accounts, and a property valuation. The bank will also check your credit history in Spain and possibly in your home country. Getting a mortgage pre-approval before property hunting gives you a clear budget and strengthens your negotiating position.