Note
Spanish mortgage in euros or pounds
Quick answer
Most Spanish mortgages are in euros, and we found no official data on how many lenders offer other currencies. If your income is in pounds or dollars, a euro loan leaves you exposed to the exchange rate. The 2019 law lets a borrower in a foreign-currency loan convert, as its preamble describes.
Applies toBorrowers whose income is in pounds, dollars or another currency.
On this page: 10 sections
§ 1Two risks
If you borrow in euros and earn in pounds, your instalment in pounds rises when the pound weakens. If you borrow in pounds and the pound strengthens against the euro, the debt in euros rises in the same way. Either way, a mismatch between the currency of the loan and the currency of your income creates a risk that you do not control. This page belongs to the chapter in the rules on rates and repayment.
§ 2What most lenders do
Most Spanish mortgages are in euros, and lenders decide whether to lend in another currency. We found no official data on how common foreign-currency loans are for non-residents, so we make no statement. Ask each lender in writing about the currencies it offers and the terms for each.
§ 3The 2019 law
The preamble of Ley 5/2019 says the law gives a consumer with a foreign-currency loan the right to convert it into the currency in which they earn income, or into the currency of their state of residence. It also says that borrowers who are professionals may use another mechanism for the currency risk. We read the preamble but not the article, so we do not state the conditions. Your lawyer should read article 20 and your contract.
§ 4The standard sheets
The warnings sheet must flag clauses of particular risk, and a currency mismatch is among the points a consumer should read with care. If the sheet mentions a currency risk, ask the lender to explain in writing what happens if the exchange rate moves by a large amount.
§ 5Managing the risk
You can borrow in the currency of your income, if a lender offers it. You can borrow in euros and keep a reserve in euros to cover instalments for a period. You can look at hedging, such as a forward contract, which the transfers chapter explains. Each option has costs.
§ 6A test
Take the instalment and convert it at a rate much weaker than today’s for your currency. If you could still pay it, the risk is manageable. If not, borrow less.
§ 7Residence
If you move to Spain and start earning in euros, the mismatch disappears. If you stay abroad, it stays. Plan for the situation you expect over the life of the loan.
§ 8Costs of converting
Conversion and transfers cost money. The transfers chapter explains how to compare providers. The page on repaying early explains how to leave a loan.
§ 9Questions for the lender
Ask which currencies the lender offers, how the exchange rate is set for payments, what conversion costs, and what happens to the loan if you convert. Ask for the answers in writing.
§ 10More on this topic
How fixed or variable works compares fixed and variable loans and how Euribor works explains the index.
How repaying early works explains the caps, notice and information and the rules on mixed rate explains mixed-rate loans.
FAQRelated questions
Can I get a mortgage in pounds?
Some lenders may offer foreign-currency loans, but we found no official data and cannot say how many. Most Spanish loans are in euros. Ask lenders in writing, and read the warnings about currency risk with care.
What does the 2019 law say?
According to the preamble, a consumer can switch such a loan into their income currency or that of their country of residence. Only the preamble was read, so ask your lawyer to check the article.
How do I protect myself?
Keep a reserve in the currency of the loan, test the instalment against a weaker home currency, and ask about hedging. The transfers chapter explains forward contracts, which fix a rate for a future payment.
Sources
- Boletín Oficial del Estado: Ley 5/2019, de 15 de marzo, reguladora de los contratos de crédito inmobiliario (official source, opens in a new window), Articles 8, 10, 14 and 15 read; later articles not readLast checked 18 October 2026
Financial note. No rate is printed unless it comes from a dated, official publication. Capital is at risk, exchange rates move, and no lender, broker or provider is recommended here. Mortgage terms are set by each lender; ask a registered intermediary about yours.