In short
US citizens can get a Spanish mortgage, but some lenders decline them because FATCA and the 2013 Spain–US agreement oblige Spanish banks to identify and report accounts held by US persons. Others accept them. Expect 60–70% financing, two years of US tax returns, and your own FBAR filing if foreign accounts exceed $10,000.
Can Americans buy property in Spain?
Yes. There is no general restriction on Americans buying property in Spain, and a US citizen can get a mortgage in Spain. What surprises many American buyers is that some Spanish lenders decline them before looking at income or the property. The reason is usually not credit risk. It is FATCA, the US law that turns every foreign bank with American clients into a reporting agent for the IRS.
Other lenders accept US citizens and have the processes to do it. The practical answer is to go to those lenders directly, with a complete file.
What FATCA asks of a Spanish lender
The Foreign Account Tax Compliance Act was passed as part of the US HIRE Act. According to the IRS, it requires foreign financial institutions to report on the assets held by their US account holders, or face withholding on certain US payments.
Spain implemented it through an intergovernmental agreement signed in Madrid on 14 May 2013 and published in the Spanish Official Gazette on 1 July 2014. Under that agreement:
- Spanish financial institutions must identify accounts held by US persons, including US citizens living outside the United States;
- they report those accounts every year to the Spanish Tax Agency, on Form 290;
- the Spanish Tax Agency exchanges that information with the IRS.
For you, this usually means a self-certification of your US tax status and your US taxpayer identification number when you open the Spanish account the mortgage will be paid from.
Why some lenders say no
A mortgage in Spain almost always comes with a current account at the same lender. For a US client, that account carries extra identification, reporting and review work every year, for as long as the relationship lasts.
Some lenders decide that the work is not worth it for a single residential mortgage, and they decline US persons as a policy. Others accept them, sometimes with conditions such as a minimum loan size, a higher deposit or residence in specific countries. Policies change, and they are rarely published.
That is why applying to lenders one by one wastes time for an American buyer. Each refusal is not a judgement on your finances; it is a policy filter. A broker who knows which lenders currently work with US clients can present the file only where it can succeed. We never name lenders in advance, because their appetite changes.
Your own reporting as a US citizen
As a US citizen you also have your own reporting duties, separate from the lender’s. Two matter most for a Spanish purchase: the FBAR, which comes from the Bank Secrecy Act and is filed with FinCEN, and Form 8938, which comes from FATCA and is filed with your tax return:
| Report | Legal basis | Who files | Threshold (IRS) |
|---|---|---|---|
| FBAR (FinCEN Form 114) | Bank Secrecy Act, filed with FinCEN | US persons with foreign financial accounts | Aggregate value above $10,000 at any time in the year |
| Form 8938, living in the US | FATCA, filed with your tax return | Unmarried | Above $50,000 at year-end or $75,000 at any time |
| Form 8938, living in the US | FATCA, filed with your tax return | Married filing jointly | Above $100,000 at year-end or $150,000 at any time |
| Form 8938, living abroad | FATCA, filed with your tax return | Unmarried | Above $200,000 at year-end or $300,000 at any time |
| Form 8938, living abroad | FATCA, filed with your tax return | Married filing jointly | Above $400,000 at year-end or $600,000 at any time |
The FBAR is filed electronically through FinCEN’s BSA E-Filing System, not with your tax return. It is due on 15 April, with an automatic extension to 15 October.
According to the IRS comparison of the two reports, real estate held directly is not reported on either form. The Spanish current account you open for the mortgage is a financial account, and money you park there before completion counts. Holding the property through a company changes the analysis. Your US tax adviser will confirm what applies to you.
Documents a Spanish lender will ask for
The exact list varies, but an American applicant should prepare:
- passport and, once issued, the NIE, the Spanish foreigner identification number;
- the last two US federal tax returns (Form 1040) with all schedules;
- W-2 forms and recent pay stubs if employed;
- for the self-employed, business returns and year-to-date figures;
- a recent credit report;
- bank and brokerage statements showing the deposit and costs;
- details of existing mortgages, car loans and other debts;
- the purchase contract or reservation for the property.
Some lenders ask for translations or an apostille on certain documents. Confirm the requirements before paying for either.
A worked example: the cash an American buyer needs
Take a €500,000 resale home in Catalonia. The Catalan transfer tax is 10% up to €600,000:
| Item | 60% financing | 70% financing |
|---|---|---|
| Mortgage | €300,000 | €350,000 |
| Deposit you fund | €200,000 | €150,000 |
| Transfer tax (10%) | €50,000 | €50,000 |
| Notary, registry, valuation and other costs (~1.5%) | €7,500 | €7,500 |
| Cash needed | €257,500 | €207,500 |
The lender applies the percentage to the lower of price and valuation, so plan the 60% column until the valuation is in. Spanish lenders typically finance 60–70% for non-residents, and it is never guaranteed. Try your own figures in the purchase costs calculator, which covers Catalonia, the Valencian Community and Andalusia.
Income in dollars is accepted by the lenders that work with US clients, but they may apply a buffer for currency risk when they test affordability.
Where American buyers lose time
Most delays in US cases are avoidable. They tend to come from the same few places:
- Applying lender by lender. Each application that ends in a policy refusal costs time and a fresh set of documents. Find out first which lenders currently accept US persons.
- The NIE. It is needed to complete the purchase and the mortgage. Start it early, in person at a consulate or through a representative with a power of attorney.
- Signing from the United States. If you cannot travel for completion, a power of attorney can be signed at a Spanish consulate, or before a US notary with an apostille. Our partner lawyer will confirm the route, and it needs to start weeks before the signing date.
- Proof of funds. Money that moves between brokerage accounts, savings and a joint account just before the transfer will generate questions. Keep the statements for each step.
- Self-employed income. Business returns, K-1s or 1099s take longer to review than a W-2. Send a complete set on day one.
Spain and the United States also have a double taxation treaty. How rental income or a later sale is taxed in each country is a question for your tax adviser, ideally before you choose how to hold the property.
How RCG coordinates it
RCG Finance is a real-estate credit intermediary registered with the Bank of Spain under number E760. We prepare the file once, check it against current lender policies for US persons and present it only where it fits.
Around the mortgage, we coordinate:
- our partner lawyer, for the NIE, the Spanish bank account, a power of attorney if you cannot travel, and the review of the reservation and purchase contracts;
- a currency exchange partner, to convert dollars into euros and provide transfer confirmations that form part of the payment trail the lender asks for.
We do not give legal or tax advice. Your US tax adviser will confirm your FBAR and Form 8938 position, and our partner lawyer will confirm the Spanish legal steps.
What to do next
Start with the non-resident mortgage checklist to gather your tax returns, statements and credit report. Use the purchase costs calculator to size the cash, and our areas guide to compare prices and taxes along the coast.
When you are ready, our non-resident mortgage service takes your file to the lenders that work with US citizens. The general non-resident mortgage guide covers the rest of the process.
Sources and review
Prepared by the RCG Finance editorial team (RCG 2026 S.L., Bank of Spain register of credit intermediaries no. E760) and reviewed by Rafael, founder of RCG Finance and former debt and M&A advisor at KPMG and PwC, under our editorial standards. Last source review: 22 September 2026.
- IRS — Foreign Account Tax Compliance Act (FATCA)
- Spanish Official Gazette — Spain–United States FATCA agreement (BOE-A-2014-6854)
- Spanish Tax Agency — Form 290 (FATCA annual report)
- IRS — Report of Foreign Bank and Financial Accounts (FBAR)
- IRS — Comparison of Form 8938 and FBAR requirements
- Spanish Tax Agency — Spain–United States double taxation treaty
Frequently asked questions
Can a US citizen get a mortgage in Spain?
Yes. US citizens can get a Spanish mortgage, typically 60–70% of the lower of price and valuation, but not every lender accepts them: FATCA and the 2013 Spain–US agreement oblige Spanish banks to report accounts held by US persons, and some prefer not to. Start with a lender that already works with American clients and expect to provide two years of US tax returns.
Is it illegal for a Spanish bank to lend to an American?
No. FATCA creates reporting duties, not a ban. Some lenders choose not to onboard US persons because of the compliance work; others accept them. The right starting point is a lender that already works with US clients.
Do I report my Spanish property on the FBAR?
According to the IRS, real estate held directly is not reported on the FBAR or on Form 8938. The Spanish bank account you open for the mortgage is a financial account and can count towards the FBAR threshold. Your US tax adviser will confirm your position.
Will a Spanish lender use my US credit score?
It may ask for a credit report as part of the file, alongside tax returns and bank statements. How much weight it carries varies by lender; the core test is stable income against total debts.
How much deposit does an American buyer need?
Spanish lenders typically finance 60–70% of the lower of price and valuation for non-residents. Add purchase taxes and costs on top: 10% transfer tax plus about 1.5% in costs on a resale home in Catalonia up to €600,000.
