Note
Spanish mortgage on a holiday home
Quick answer
Lenders decide how they treat a holiday home, and we found no official rule or figure. Plan the loan around income you can count on, not around rent you might earn. Ask the lender in writing whether letting the home affects the terms.
Applies toBuyers who plan to use a Spanish home for holidays and want to finance part of it.
On this page: 9 sections
§ 1A different kind of loan
A mortgage for a holiday home is the same legal product as any other, but lenders weigh it differently. The home is not where you live, your income may come from another country, and the risk of the property standing empty is higher. Each lender decides how to treat these points. This page belongs to the chapter in more on mortgages for non-residents.
§ 2What we found
We found no official statement on how lenders treat holiday homes and no figure for loan limits. We therefore do not state any. The mortgage credit law applies to loans on residential property whatever the use, and its information and notary rules protect you in the same way. The process chapter explains them.
§ 3Plan around income, not rent
Many buyers hope that the home will pay for itself by being let. Rent is uncertain. Rules on tourist lets differ by region and town, and a licence can be refused or withdrawn. The section on renting out explains the rules. A prudent plan assumes that you meet the instalments from other income, and treats rent as a bonus.
§ 4The running costs
A second home costs money when nobody is in it. The yearly property tax, the community fees if it is in a building or urbanisation, insurance, water and power, and repairs all accrue. The costs section covers the taxes. Add a figure for the rest, based on quotes you have received.
§ 5Tax on the home
A non-resident owner files a yearly return for the home even when it is not let. The costs section explains it. The rate on any rental income depends on where you live.
§ 6Currency and distance
If you earn in another currency, the instalment in euros changes with the exchange rate. Mortgage in Spain for expats discusses borrowing when your income is abroad, and the rates chapter explains the euro and the pound choice.
§ 7Exit
Ask yourself how you would sell. A holiday home in a small resort can take time to sell, and a lender will want its money back at the sale. The owning and selling section explains the process and the taxes.
§ 8Insurance and protection
A lender may ask for home insurance and sometimes life cover. Law restricts tied sales, so ask whether a product is required or only offered, and whether you may buy it elsewhere. Insurance for an empty holiday home often has conditions, such as visits or water shut-off, so read them.
§ 9More on this topic
The deposit explained explains the deposit and the cash needed beyond it and loan to value explained explains the loan-to-value ratio.
Spanish mortgage for self employed explains the questions a self-employed borrower faces and Spanish mortgage for retirees explains the questions retirees face.
Mortgage in Spain for British citizens explains borrowing as a British citizen and Mortgage in Spain for Americans explains borrowing as an American.
FAQRelated questions
Is a holiday home harder to finance?
Often lenders are more cautious, since the home is not your main residence and your income may be abroad. We found no official rule. Compare written offers and ask what the lender needs to see.
Can I count rent as income?
Lenders decide whether and how much, and many are cautious. Do not plan on rent to meet the instalments. Rules on letting also vary by region and town, and the section on renting out explains them.
Are there extra costs for a second home?
Yes. You pay local taxes, community fees, insurance, utilities and upkeep while the home is empty. Add them to the budget along with the instalments.
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
- Banco de España: La ley reguladora de los contratos de crédito inmobiliario (Boletín Económico, 1T 2019, recuadro 5) (official source, opens in a new window), Allocation of costs, early maturity, information dutiesLast 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.