Yes, you can get a Spanish mortgage on a new build property as a non-resident, whether you’re buying a completed home or an off-plan development. The mortgage criteria are broadly similar to those for resale properties, but the buying process follows a different timeline because construction may still be ongoing. Most non-resident buyers can typically borrow up to 60–70% of the property’s value, subject to affordability and the lender’s criteria. By understanding how the process works and preparing your finances early, buying a new build property in Spain can be a straightforward and rewarding experience.
An Exciting Milestone
Buying a brand-new property in Spain is an exciting milestone. Whether you’re searching for a modern apartment on the Costa del Sol, a luxury villa in Mallorca or a contemporary home in Tenerife, new build developments continue to attract buyers from across the globe.
Many overseas purchasers are drawn to newly built homes because they offer the latest designs, improved energy efficiency and the opportunity to move into a property that has never been lived in before.
However, one of the most common questions we hear at The Spanish Mortgage Centre is:
“Can I get a Spanish mortgage on a new build property if I don’t live in Spain?”
The answer is yes—but the mortgage process is slightly different from buying a resale property.
Understanding those differences before you reserve a property can help you budget correctly, avoid unnecessary delays and move forward with confidence.
If you’re new to buying property in Spain, we also recommend reading our Non-Resident Spanish Mortgages: A Complete Guide for International Buyers, which explains the overall mortgage process in more detail.
What Is a New Build Property?
A new build property is a home that has recently been constructed by a developer or is still under construction.
This includes:
- Newly completed apartments
- Detached villas
- Townhouses
- Luxury developments
- Off-plan properties purchased before completion
Many new developments also include communal swimming pools, landscaped gardens, gyms, underground parking and energy-efficient features that appeal to international buyers.
Unlike older resale properties, new builds are designed to meet modern building regulations and often require very little maintenance during the first few years of ownership.
Can Non-Residents Get a Spanish Mortgage on a New Build Property?
Yes – non residents can get a Spanish mortgage on a New Build Property subject to their situation.
Spanish banks regularly lend to non-residents purchasing new build properties throughout Mainland Spain, the Balearic Islands and the Canary Islands.
Whether you’re buying as:
- A holiday home
- A future retirement property
- A buy-to-let investment
- A second home
there are mortgage options available, provided you meet the lender’s affordability requirements.
The fact that the property is newly built does not usually make obtaining a mortgage more difficult.
Instead, lenders focus on factors such as:
- Your income
- Existing financial commitments
- Employment status
- Available deposit
- Credit history
- Overall affordability
If you’d like to understand how Spanish lenders calculate affordability, our guide How Much Can You Borrow in Spain as a Non-Resident? explains the process in more detail.
How Does a Spanish Mortgage on a New Build Property Work?
One of the biggest differences between buying a resale property and buying a new build is the timeline.
With an existing property, the purchase and mortgage usually progress together.
With a new build—particularly an off-plan purchase—you may reserve the property many months before construction is complete.
A typical buying journey looks like this:
| Stage | What Happens |
|---|---|
| Reserve the property | Pay a reservation fee to secure your chosen home. |
| Sign the private purchase contract | Agree the purchase terms with the developer. |
| Construction period | Make any agreed stage payments while the property is being built. |
| Mortgage preparation | Your financial documents are reviewed and the lender assesses your application. |
| Property completion | Final mortgage approval is completed once the property is ready. |
| Completion at the notary | Mortgage funds are released and ownership officially transfers. |
Because of this longer timeline, it’s important to start discussing your mortgage options early rather than waiting until construction has finished.
How Much Can You Borrow?
For most non-resident buyers, Spanish lenders will typically lend between 60% and 70% loan-to-value (LTV).
This means you’ll usually need to provide a deposit of around 30% to 40%, plus enough funds to cover taxes and purchasing costs.
Here’s an example:
| Purchase Price | Mortgage (70%) | Buyer Deposit | Estimated Additional Costs* |
|---|---|---|---|
| €300,000 | €210,000 | €90,000 | Approx. €30,000–€40,000 |
| €500,000 | €350,000 | €150,000 | Approx. €50,000–€65,000 |
| €750,000 | €525,000 | €225,000 | Approx. €75,000–€95,000 |
*Costs vary depending on the region and property.
Understanding your borrowing capacity before you begin viewing developments can save considerable time and help you focus on properties within your budget.
Why Buyers Choose New Build Properties in Spain
New build homes continue to grow in popularity with overseas buyers, and it’s easy to see why.
Some of the biggest attractions include:
- Contemporary architecture
- Open-plan living
- High energy efficiency
- Lower maintenance costs
- Modern kitchens and bathrooms
- Developer guarantees
- Excellent communal facilities
- Strong long-term appeal
Many developments also include features such as rooftop terraces, wellness facilities, coworking spaces and smart home technology that aren’t always found in older properties.
For buyers planning to spend extended periods in Spain, these features can make a significant difference to everyday living.
Buying Off-Plan: What You Need to Know
Many buyers secure their dream property before construction has even finished.
Buying off-plan often provides access to the best plots within a development and sometimes allows buyers to choose finishes, flooring or kitchen options.
However, it’s important to understand how the payment schedule works.
Unlike buying a resale property, developers usually request staged payments during construction.
A typical payment structure might include:
- Reservation fee
- Deposit when contracts are exchanged
- One or more stage payments
- Final balance upon completion
Your mortgage is generally released only when the property is completed and ownership transfers.
This means buyers should ensure they have sufficient funds available to meet the staged payment schedule.
Local Insight from The Spanish Mortgage Centre
One thing we’ve noticed after helping overseas buyers for more than 21 years is that many clients initially believe they need to wait until construction is complete before speaking to a mortgage specialist.
In reality, the earlier you understand your borrowing options, the easier the buying process becomes.
Knowing your likely budget before choosing a development allows you to negotiate with confidence and avoid falling in love with properties that ultimately sit outside your comfortable borrowing range.
What Documents Will You Need?
Although every lender has its own criteria, most non-resident buyers should expect to provide:
- A valid passport
- Proof of income
- Recent payslips or company accounts
- Tax returns
- Bank statements
- Details of any existing mortgages
- Proof of deposit funds
- Identification and residency documents where required
Preparing these documents early can significantly speed up your application.
Our guide Non-Resident Spanish Mortgage Requirements – Avoid Mistakes explains what lenders look for and how to prepare your paperwork before applying.
Fixed or Variable Mortgage?
When arranging a Spanish mortgage on a new build property, you’ll usually be offered one of three mortgage types:
| Mortgage Type | Suitable For |
|---|---|
| Fixed Rate | Buyers wanting consistent monthly repayments |
| Variable Rate | Buyers comfortable with repayments changing over time |
| Mixed Rate | Buyers who want an initial fixed period before moving onto a variable rate |
There isn’t a single right answer.
The best option depends on your financial goals, income and long-term plans in Spain.
If you’d like to compare each option in more detail, our guide Fixed vs Variable Spanish Mortgages for Non-Residents explains the advantages of each mortgage type.
Things to Consider Before Buying a New Build Property
Buying a new build property offers many advantages, but it’s worth taking a little time to understand the process before committing.
Here are a few important points to keep in mind.
Construction Timelines
If you’re buying off-plan, completion may be several months away. While developers provide estimated completion dates, these can occasionally change due to factors outside their control.
Having realistic expectations helps make the buying process far less stressful.
Stage Payments
Unlike a resale purchase, you’ll usually make several payments during construction before the final completion payment.
Make sure you understand:
- When each payment is due
- How much you’ll need to contribute
- Whether funds need to be transferred internationally
- Your currency exchange strategy if buying from overseas
Mortgage Timing
Although you can begin discussing your mortgage early, the final mortgage deed is normally signed when the property is completed and ready for handover.
Working with an experienced mortgage broker ensures everything is progressing alongside the construction schedule.
Buying Costs
In addition to your deposit, remember to budget for:
- Property taxes
- Legal fees
- Notary fees
- Land Registry fees
- Mortgage-related costs where applicable
Planning for these costs from the outset helps avoid unexpected surprises later in the purchase.
Buyer Scenarios
Every buyer’s circumstances are different. Here are three examples of how a Spanish mortgage on a new build property might work.
| Buyer | Typical Goal | Mortgage Considerations |
|---|---|---|
| Holiday Home Buyer | A modern apartment for family holidays | Fixed monthly repayments may provide budgeting certainty. |
| Future Retiree | Buying several years before moving permanently | An off-plan purchase can allow time to prepare financially before relocation. |
| Property Investor | Purchasing in a high-demand area | Rental potential, affordability and long-term capital growth are often key considerations. |
Understanding your own objectives will help determine the most suitable mortgage solution.
Why Buyers Often Choose a Mortgage Before Choosing a Property
It may sound surprising, but many experienced overseas buyers arrange their mortgage planning before deciding on a specific property.
Knowing how much you can comfortably borrow allows you to:
- Search within a realistic budget
- Compare developments confidently
- Move quickly when the right property becomes available
- Avoid disappointment later in the buying process
Developers also appreciate buyers who already understand their financing, as it can make transactions smoother for everyone involved.
Local Insight from The Spanish Mortgage Centre
After more than two decades of helping overseas buyers arrange Spanish mortgages, we’ve seen one pattern repeated time and time again.
Many clients begin their search convinced they want one particular location because they’ve holidayed there for years.
Once they start viewing developments and discussing budgets, they often discover neighbouring towns offer larger properties, better facilities or greater long-term value while still providing the lifestyle they were looking for.
It’s one of the reasons we always encourage buyers to keep an open mind until they’ve explored all of their options.
Can You Get a Mortgage Before the Property Is Finished?
Yes—in many cases, you can start the process of getting a Spanish Mortgage on a New Build Property well before construction is complete.
Although the mortgage isn’t usually finalised until the property is ready for completion, getting started early offers several advantages.
These include:
- Understanding your borrowing capacity
- Preparing your documentation
- Identifying the most suitable lender
- Avoiding delays close to completion
- Giving yourself confidence when committing to a purchase
This is particularly valuable for off-plan developments where construction may take many months.
Why Work With The Spanish Mortgage Centre?
Arranging a Spanish mortgage on a new build property is about much more than simply finding a lender.
Different Spanish banks have different lending criteria, mortgage products and approaches to overseas buyers.
With over 21 years of experience helping non-residents purchase property across Mainland Spain, the Balearic Islands and the Canary Islands, The Spanish Mortgage Centre understands how to match buyers with lenders that best suit their individual circumstances.
We help clients:
- Understand how much they may be able to borrow
- Compare suitable mortgage products
- Prepare documentation correctly
- Navigate the mortgage process with confidence
- Communicate with lenders throughout the application
Whether you’re buying your first holiday apartment or adding another overseas property to your portfolio, our goal is to make the mortgage process as straightforward as possible.
Local Insight from The Spanish Mortgage Centre
One of the biggest misconceptions we hear is that buying a new build property is more difficult to finance than buying an existing home.
In reality, the mortgage itself is often very similar.
The biggest difference is simply the timeline.
By preparing early and understanding how the process works, most buyers find purchasing a new build property is every bit as straightforward as buying a resale home.
Final Thoughts
So, can you get a Spanish mortgage on a new build property?
For the vast majority of non-resident buyers, the answer is yes.
Whether you’re purchasing a contemporary apartment overlooking the Mediterranean, a luxury villa in Mallorca or an off-plan investment in the Canary Islands, there are mortgage solutions available to help you achieve your goals.
The key is understanding how the buying timeline differs from a resale purchase, preparing your finances early and choosing a lender that’s experienced in working with international buyers.
Taking the time to understand your borrowing options before reserving a property can make the entire experience smoother, more predictable and far more enjoyable.
If you’re considering buying a new build property in Spain and would like personalised advice, The Spanish Mortgage Centre is here to help. With more than 21 years of experience arranging non-resident Spanish mortgages, we’re happy to guide you through every stage of the process and help you find a mortgage that’s right for your circumstances.
Frequently Asked Questions
Can non-residents get a Spanish mortgage on a new build property?
Yes. Spanish banks regularly offer mortgages to non-resident buyers purchasing both completed new build homes and off-plan developments, provided they meet the lender’s affordability and lending criteria.
How much can I borrow?
Most non-resident buyers can typically borrow between 60% and 70% of the property’s value, depending on their income, financial commitments and the lender’s assessment.
Can I apply for a mortgage before construction is finished?
Yes. In many cases, it’s beneficial to begin the mortgage process early so your finances can be assessed well before the property’s completion date.
Do new build properties require a larger deposit?
The mortgage percentage is generally similar to resale properties. However, buyers should also budget for staged payments during construction as well as taxes and purchasing costs.
Are mortgage rates different for new build properties?
Generally, no. Mortgage rates are usually based on factors such as your financial profile, loan-to-value ratio and the lender’s products rather than whether the property is new or resale.
Can I choose between a fixed and variable mortgage?
Yes. Most Spanish lenders offer fixed-rate, variable-rate and sometimes mixed-rate mortgage products, allowing buyers to choose the option that best suits their financial goals.
Is buying off-plan riskier than buying a resale property?
Buying off-plan follows a different timeline, but many buyers successfully purchase new developments every year. Understanding the payment schedule and working with experienced professionals helps ensure the process runs smoothly.
Should I arrange my mortgage before choosing a property?
Many buyers benefit from understanding their borrowing capacity before beginning their property search, as it helps them focus on developments that comfortably fit their budget.
Is a mortgage broker necessary?
While not essential, many overseas buyers find that working with a specialist broker simplifies the mortgage process, provides access to multiple lenders and offers reassurance throughout the purchase.
What should I do first if I’m thinking about buying a new build property?
A good first step is to understand your borrowing options and budget. Speaking to an experienced specialist before reserving a property can help you move forward with confidence and avoid unnecessary delays later in the process.