Buying a holiday home in Spain: mortgage, deposit and costs

Can you buy a holiday home in Spain with a mortgage?

Yes. A mortgage for a holiday or second home in Spain is possible, but the lender assesses it alongside your existing home costs and debts. The purchase is discretionary, so underwriting and loan-to-value can be more conservative than for a resident’s main home.

If you live outside Spain, the case is also treated as non-resident. That adds country, currency and foreign-document considerations.

The 80% rule does not apply here

Many buyers assume that because their main home was financed at 80%, a holiday home will be too. It usually is not:

The percentage is calculated on the lower of purchase price and valuation. Purchase taxes and costs come on top, roughly 10–12% in Catalonia.

The reason is risk: when a household runs into difficulty, the second-home payment is the first one to stop. Lenders compensate with a lower percentage, a shorter term and stricter affordability checks.

Calculate the full cash contribution

The buyer normally needs the unfinanced part of the price plus purchase taxes and transaction costs. A second-home or non-resident scenario may require a larger deposit, so testing only a high financing percentage creates false confidence.

A €200,000 coastal apartment financed at 65% shows the scale:

That is close to half the price in your own funds, far more than most buyers estimate, and the main reason second-home purchases fall through halfway.

Use the lower of purchase price and a cautious valuation assumption when modelling. Then add a contingency for repairs, furnishing, community charges and the first year of ownership.

For Catalonia, use our purchase cost calculator as a starting point and obtain case-specific tax and legal advice.

Existing commitments remain in the calculation

Your current mortgage or rent, personal loans, cards, maintenance obligations and recurring commitments reduce affordability. The bank will compare verified net income with total ongoing debt payments and living costs. As a working reference, the new payment plus the mortgage you already have should stay within about 30–35% of net income; our guide to LTV and DTI explains how lenders calculate it.

Do not plan on maximum affordability. A second property also produces tax, insurance, maintenance, utility and community costs even when it is not being used.

Be careful with rental-income assumptions

Potential holiday-rental revenue may look attractive, but a lender may not accept a forecast as stable income. Established, declared and evidenced rental income is different from an agent’s optimistic occupancy estimate.

Local licensing and use rules also sit outside the mortgage decision. Verify them independently before treating rental activity as part of the investment case.

Property use must be accurate

Tell the lender whether the property will be a personal second home, long-term rental, holiday rental or another investment. The stated purpose should match the transaction, insurance and supporting information.

For a coastal apartment, check community charges, planned building works, occupancy or tourist-use restrictions and any property issues with your legal adviser. Financing approval is not a substitute for property due diligence.

Resident versus non-resident buyers

A Spanish resident buying a second home and an overseas buyer purchasing the same property can receive different terms. Residence, income currency and access to credit information affect the lender’s view.

UK and US buyers can obtain Spanish mortgages, but should expect a fuller document request and allow time for the NIE, translations or certifications where required. See our non-resident mortgage page.

Lenders differ more here than anywhere else

For a main home, most lenders behave similarly. For a second home they do not: each has its own policy, percentage and appetite for a given area, and two lenders can be ten points apart on financing for the same buyer and property. Some profiles, such as permanent public-sector employees, can also obtain noticeably better terms from certain lenders.

That is why presenting one well-prepared file to several lenders at the same time is where the value lies, and it is the work of a credit intermediary registered with the Bank of Spain (RCG Finance, no. E760).

Compare the mortgage in context

Compare fixed, variable or mixed rates, term, fees, insurance, linked products, early-repayment conditions and total repayment. Also decide how long you expect to own the property; the cheapest option over thirty years may not be cheapest over your realistic holding period.

Checklist before buying a second home

• I have modelled 60–70% financing, not 80%.
• I have counted taxes and costs separately from the deposit.
• I have added the new payment to the mortgage I already have.
• I have assumed a 20–25 year term, not 30.
• I am not relying on rental income to make the numbers work.
• My lawyer will review any financing condition in the deposit agreement before I sign.

If the property is in Salou, Cambrils or elsewhere on the coast, our Salou buying guide adds the local detail.

RCG Finance is based in Salou and supports Costa Daurada and wider Spanish purchase cases in English. Request a free initial assessment before the transaction timetable is fixed.