Mortgage for a house in Spain: Spanish bank or Dutch equity?
If you buy a house in Spain and do not pay for everything from your own funds, you have roughly two routes. You take out a mortgage with a Spanish bank, or you use the equity in your home in the Netherlands. Both can work well, but the conditions, costs, and tax implications differ significantly. In this article, we compare them side by side so you can assess which route suits you best.
Route 1: a mortgage with a Spanish bank
Even as a non-resident, you can obtain a mortgage in Spain. However, Spanish banks finance less than you are used to in the Netherlands. Most banks lend non-residents a maximum of 70 percent of the lower limit of the purchase price and the appraisal value, some only 60 percent ( Rastreator ). You contribute the remainder yourself, plus additional costs of roughly 11 to 14 percent. The term is usually a maximum of 20 to 30 years.
What do you need? A NIE (your Spanish tax identification number), a Spanish bank account, proof of income such as payslips and your last income tax return, and a declaration of tax residence from the Netherlands. Documents that are not in Spanish are often translated by a sworn translator (traductor jurado).
Good to know regarding the costs: since the Mortgage Act of 2019 (Ley 5/2019), the bank pays the notary, the registry, the gestor, and the stamp duty (AJD) of the mortgage deed. You pay the valuation (tasación), any copy of the deed, and an closing fee if the bank charges one ( Banco de España ). Banks often offer a lower interest rate if you also take out life insurance or buildings insurance with them. In that case, always compare the total costs, not just the interest.
Route 2: the equity in your Dutch home
If your house in the Netherlands is worth more than your mortgage, you can increase that mortgage and use the money for your purchase in Spain. You would then be buying in Spain without a mortgage, which makes the process there simpler and faster. How much extra you can borrow depends on the value of your home, your income, and your lender's lending standards. Not every bank will increase a mortgage for the purchase of a home abroad, so check this in advance.
Pay attention to the tax aspect. In the Netherlands, mortgage interest is only deductible for your own home, your primary residence. A holiday home does not fall under this ( Taxlive ). Therefore, the additional portion of your mortgage does not count in Box 1, but as a debt in Box 3. There, it reduces your taxable assets above a threshold of €3,800 per person in 2026 ( SRA, 2026 ). You do not deduct the interest itself. Incidentally, the same applies to a Spanish mortgage: that too is a Box 3 debt in your Dutch tax return.
The two routes side by side
Spanish mortgage | Equity in Dutch home | |
|---|---|---|
Maximum loan | Usually up to 60 to 70% of the lowest of the purchase price and valuation | Depending on home value, income, and lending standards |
Own contribution | 30 to 40% plus additional costs | Only what you do not borrow extra |
Collateral | Your Spanish home | Your Dutch home |
Closing costs | Valuation and any closing commission; the bank pays the notary and the registry. | Advisory and notary fees in the Netherlands |
Taxation in the Netherlands | Box 3 debt, interest not deductible | Box 3 debt, interest not deductible |
Purchase in Spain | The bank must agree before the notary. | You buy without a mortgage, often faster. |
Which route suits you?
A Spanish mortgage is the obvious choice if you have little equity or if you do not wish to include your Dutch home. Your risk then remains with the Spanish property. However, expect a larger down payment and a longer application process, and plan this well in advance of the notary's appointment.
The equity route is often simpler if you have substantial equity and your income allows for a higher mortgage. As a buyer in Spain, you negotiate without a financing contingency, which strengthens your position. On the other hand, your Dutch home serves as collateral. A combination of both is also possible: part from equity, the rest via a Spanish bank.
Which route is most advantageous depends on your interest rate, term, and personal situation. Therefore, seek advice from an independent mortgage advisor and always compare the total costs over the entire term. Also read about what you pay on top of the purchase price and which taxes you pay as an owner .
Knowing in advance what is feasible
At Palmhouses, we connect you with mortgage advisors who know both the Spanish and the Dutch markets. This way, you know in advance what is feasible, even before you choose a home. No fine print and no ambiguities. Are you already looking around? View apartments on the Costa Blanca or houses in Torrevieja .
Unsure which financing suits you? Schedule a no-obligation video call . We are happy to help you figure it out.
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