Rental mortgage in Spain

We are often asked whether a rental mortgage in Spain is possible with a Spanish bank. This refers to a mortgage that allows you to rent out the property and where the (expected) rental income is included to pay future mortgage payments. Pedro explains how it works:

Does a rental mortgage exist in Spain?

The short answer is: no. Spanish banks know of no rental mortgage that where future income covers fixed expenses.

The long answer is: although Spanish banks do not offer this, there are alternatives which you could potentially look at. We discuss your options below:

Mortgage through a Spanish bank

If you want to apply for a (rental) mortgage with a Spanish bank, you should consider the following:

• You are going to have a mortgage in person and not based on (expected) rental income. You can think of this as a mortgage you take out for a property for yourself in the Netherlands or Belgium.
• So there is no possibility of including future income for your mortgage (even in case of a B&B etc.). Your mortgage will always be determined on your recent personal financial history. So you should also have sufficient savings and monthly space for your purchase.
• The Spanish bank will have no further requirements on whether or not you will rent out your property. This one looks purely at whether you can pay the mortgage.
• However, letting is regulated by the municipality where you buy the property. It issues a rental licence based on availability. It is possible that a municipality does not do this. You should always check with the seller and estate agent beforehand.

Spanish banks will not demand a self-housing obligation from their mortgage customers. In Spain, these rules come from the municipalities and autonomous regions.

Alternatives to a rental mortgage in Spain

Would you still like a mortgage based on professional rental? Then you can consider the following options:

• Purchasing with a Spanish SL (Spanish version of a Dutch BV). So you set up a Spanish company that purchases and rents professionally. Often, this option is only advantageous or suitable for multiple properties or even apartment complexes (buy-to-let constructions). For occasional properties, this is not often profitable.
• Commercial financing for your Spanish home. This is currently still a limited option. Often, this financing is through funding platforms with considerably higher interest rates (starting from 6.5%). Also, these often require a substantiated business plan and minimum amounts.
• Calculate your Using excess value for a Spanish purchase. Not all lenders in the Netherlands allow you to use this for an investment abroad! You have a number of options here to deploy this smartly, Pedro is happy to help you with the possibilities.

Need help choosing a rental mortgage in Spain?

We are happy to help you in the purchase and rental process. Pedro assists in choosing between the types of financing and has a handy tool to help you calculates potential rental yield. You'll find it on the holapedro platform, but you can also get started by visiting Chat with Pedro!

Or else just start with your maximum mortgage calculation. Then you will at least have an insight into that!

Calculate your maximum mortgage in Spain

Would you like to know how much you can borrow in Spain? Through HolaPedro, you do a customised calculation via AI to find out your maximum financing. We test you on all possible variables and you will receive a smart mortgage simulation. That way, you'll know your mortgage options in Spain within 20 minutes!

Start mortgage calculation

Or rather first consult with Pedro?

What is the maximum amount I can borrow in Spain?