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Second home as a non-resident: what banks assess
Buying a second home in Spain is one of the reasons non-residents apply for a Spanish mortgage, and banks analyse this type of transaction with its own nuances.
Buying property in Spain as a non-resident?
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How the bank approaches a second home
For the bank, a non-resident's second home is a moderate-risk transaction. It is not the primary residence (if there are financial problems, it is the first thing to stop paying), but the typical buyer tends to have a solid financial profile.
Financing, term and rate are set by each bank. Those that publish them for non-residents offer up to 60-70% over 20 to 30 years; ask for the rate in writing (FIPRE) and compare the APR.
The good news: if you can demonstrate that the property has holiday rental potential (Airbnb, Booking), some banks view this positively as potential supplementary income, although they do not count it directly.
What a square metre costs in five coastal and island areas
The starting price varies widely from one area to another. Average appraised value of open-market housing in the second quarter of 2026, according to the Spanish Ministry of Housing (MIVAU):
- •Balearic Islands: €3,980.8/m² on average across the region.
- •Province of Barcelona: €3,204.2/m².
- •Province of Malaga (Costa del Sol): €3,083.5/m².
- •Canary Islands: €2,279.4/m² on average across the region, with IGIC instead of VAT on new builds.
- •Province of Alicante (Costa Blanca): €2,020.7/m².
Taxes specific to second homes
As a non-resident owner of a second home in Spain, you will face several recurring taxes, whether you use the property or not:
The IRNR (Non-Resident Income Tax) applies even if you do not rent out the property. In that case, you are taxed on an "imputed income" of 1.1-2% of the cadastral value. If you rent it, you are taxed on the rent instead: 19% on net income if you are EU/EEA resident, 24% on gross income otherwise.
On top of this, there is the municipal IBI property tax and, if applicable, community fees and insurance. Ask the seller for the latest receipts to know what that specific property will cost you each year.
See the full guide on taxes and purchase costs for a detailed breakdown.
Can I rent the property when I am not there?
Yes, but with important caveats. Holiday rentals in Spain are regulated at the regional level, and rules vary significantly between communities.
In the Balearic Islands and Barcelona, restrictions are strict and you need a tourist licence. On the Costa del Sol or Costa Blanca, the process is smoother but still requires registration.
From a mortgage perspective, the bank does not usually place restrictions on renting. However, bear in mind that rental income is taxed in Spain through the IRNR, declared once a year on form 210.
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Frequently asked questions
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About this content
Mortgage Content Editor
Published: March 2026
Last updated: October 2026
This page is informational and editorial in nature. It explains how the described mortgage conditions typically work and what to review, without guaranteeing results or replacing a lender’s assessment.