Mortgage in Spain for Polish buyers

The Spain-Poland Double Tax Convention (signed in 1979, published in Spain’s BOE on 15 June 1982) governs cross-border taxation between both countries. No bilateral protocol has amended it, but since 1 January 2023 the OECD Multilateral Instrument (MLI) modifies it: Poland no longer exempts income from a Spanish property; it taxes it and deducts the Spanish tax paid (credit method, MLI Article 5(6) replacing Article 23.2.a).

If you remain Polish tax resident (less than 183 days/year in Spain):

• IRNR (Spanish non-resident tax): 19% on imputed income (1.1% of the cadastral value if it was revised in the previous 10 years, 2% otherwise) for every year the home is not rented — the rate for EU residents (Non-Residents’ Income Tax Law arts. 24.5 and 25.1; IRPF Law art. 85)
• If rented: 19% on net rental income; as an EU resident you can deduct expenses such as mortgage interest, IBI, community fees and repairs (art. 24.6)
• Salary for work done in Poland: taxed in Poland; ZUS and other pensions follow the treaty rule for each type of pension
• PPK, IKE / IKZE: stay under Polish rules while you are Polish tax resident; ask an adviser before moving to Spain
• Capital gains on sale: Spain taxes 19% and the buyer withholds 3% of the price on account (art. 25.2); Poland relieves double taxation under the treaty

If you become Spanish tax resident (>183 days/year):

• Worldwide income subject to Spanish IRPF, on the State scale plus your region’s scale
• Polish ZUS pension reportable in Spain with treaty relief
• Modelo 720 required if your assets abroad exceed €50k in any of its categories
• Special regime for people moving to Spain for work ("Beckham Law", art. 93 of the IRPF Law): 24% on Spanish-source income other than savings up to €600,000 (47% above), for the year you move and the next five, if you were not resident in the previous five years

Action point: pensions and investment accounts are treated differently depending on where you are tax resident. Consult a Polish doradca podatkowy familiar with cross-border situations before relocating for extended periods.

Your Spanish mortgage is in EUR. Your Polish income is in PLN, and Poland has not adopted the euro, so every move in the PLN/EUR exchange rate changes what your payment costs you in złoty.

What banks publish: up to 70% is the maximum Spanish banks publish for non-residents. With income in another currency, Banca March lends up to 60%, and Bankinter offers its fixed rate only with income or assets in euros. Ask each bank in writing how it converts your PLN income for affordability.

Ways to reduce the exposure:

• Open a EUR account in Spain and build a cushion of mortgage payments before signing
• Compare the exchange cost of your PLN→EUR transfers (margin plus fees) between providers before paying the deposit
• Show IKE/IKZE or PPK holdings as savings the bank can take into account
• Keep the payment well below the limit (35% of income) so a weaker złoty does not squeeze your budget
• Document your ZUS pension if you are retired, with the official award letter