Advantages of a Spanish Mortgage vs. Home-Country Financing
Choosing a Spanish mortgage can offer financial benefits when buying your dream home in Spain
Buying a property in Spain is an exciting venture, and how you finance it can have significant implications. You generally have two options:
Take out a Spanish mortgage (using the Spanish property as collateral)
Leverage your home-country property (for example, remortgaging your house at home to fund the purchase).
Below we outline the key advantages of financing in Spain with a local mortgage, and highlight the drawbacks of using a home-country loan for your Spanish home purchase. We cover critical factors like interest rates, currency risk, tax implications, and more.
Financing Your Spanish Property: Should You Take a Spanish Mortgage?
If you’re buying a home in Spain, you generally have two main financing options:
Take a Spanish mortgage using the property in Spain as collateral.
Borrow against your home-country property (e.g., in Sweden, Netherland, or the UK).
This guide highlights the advantages and disadvantages of each — particularly for European buyers — to help you make an informed decision.
Benefits of a Spanish Mortgage
Euro loan = no currency mismatch. Your loan and asset are both in euros, protecting you from exchange rate risk.
Better tax efficiency in Spain. Mortgage debt reduces your taxable base for Spanish wealth and inheritance taxes. If you rent out the property, interest can be deductible.
Preserves your home-country property. You don’t risk your primary residence or reduce your borrowing power at home.
Spanish banks conduct legal due diligence. Helps ensure the property is registered and free from issues.
Admin made simple. All in euros, with Spanish bank support for insurance, accounts, etc.
Risks of Borrowing in Your Home Country
Currency risk. A SEK/NOK/GBP loan to finance a EUR asset exposes you to currency swings.
Higher risk to personal property. Your main residence is used as collateral — even for a foreign purchase.
No tax benefits in Spain. Your mortgage won’t reduce Spanish wealth tax or be deductible from Spanish rental income.
Lack of legal/local support. Domestic banks don’t assist with Spanish legal checks or processes.
Extra complexity and cost. Forex transfers, hidden fees, and admin across two countries.
For most buyers, a Spanish mortgage is the smarter and safer route. It aligns your financing with your asset, unlocks local tax and legal advantages, and protects your home-country property. Talk to our team to see what solution fits your profile – we’re here to guide you every step of the way.
If you’re ready to begin your journey, apply for a Spanish mortgage here: