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Mortgage in Spain for US citizens
US citizens face two complications when buying in Spain: FATCA reporting (a bank may decline American clients) and US reporting of your own (FBAR, Form 8938). Banks publish up to 70% financing for non-residents (60% at Banca March with income in dollars). This guide covers exactly what American buyers need.
Run the numbers for your purchase
Use the non-resident mortgage calculator: enter your income (converted to euros), savings, age and target Spanish region. It applies the 70% maximum LTV and your region's purchase taxes.
FATCA: what every American buyer must know
The Foreign Account Tax Compliance Act (FATCA) is US legislation requiring foreign banks worldwide to report accounts held by US persons (citizens, green card holders, certain residents) to the IRS. Spain and the US signed an Inter-Governmental Agreement (Model 1 IGA) on 14 May 2013 — Spanish banks report your account data to the Spanish Tax Agency, which passes it to the IRS.
What this means for you:
- When you open a Spanish bank account, the bank will ask you to certify that you are a US person — usually on IRS Form W-9 (Request for Taxpayer Identification Number) or its own self-certification form
- Your Spanish bank reports the account balance and income each year, via the Spanish Tax Agency, to the IRS
- A bank may decline to open accounts for US persons because of this obligation — ask the bank before applying whether it opens accounts for US persons
- You still have to report your foreign accounts yourself (FBAR, Form 8938): the bank's report does not replace yours, and the IRS can impose penalties if you don't
Before you apply: ask the bank that will grant your mortgage whether it accepts US persons. Banks usually ask you to open an account with them to pay the mortgage.
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US tax obligations: FBAR, Form 8938, treaty
Owning Spanish property as a US person triggers multiple US reporting obligations beyond the Spanish ones:
📄 FBAR (FinCEN 114)
Report all foreign accounts if their combined value exceeds $10,000 at any time during the year. Filed online by April 15 (automatic extension to October 15). Civil penalties for not filing are adjusted every year for inflation, and criminal penalties may apply (IRS). Includes your Spanish current and savings accounts.
📋 Form 8938
Statement of Specified Foreign Financial Assets. Filed with your Form 1040. Thresholds if you live in the US: $50,000 at year-end or $75,000 at any time (single); $100,000 / $150,000 (married filing jointly). Living abroad: $200,000 / $300,000 (single) and $400,000 / $600,000 (joint). Penalty: up to $10,000 for failing to file, plus $10,000 for every 30 days after an IRS notice (maximum $60,000), and a 40% penalty on tax understatements tied to undisclosed assets (IRS).
🏛️ Spain-USA Treaty
Treaty (1990, amended by the protocol signed on 14 January 2013 and in force since 27 November 2019) prevents double taxation. Real estate income: Spain can tax it. Pensions: the treaty treats private pensions, government pensions and Social Security differently — check your case. Capital gains on Spanish property: Spain taxes them; the US gives a foreign tax credit for Spanish tax paid.
⚠️ PFIC trap
If you become Spanish tax resident and hold Spanish/EU mutual funds (UCITS) or ETFs, they may be Passive Foreign Investment Companies (PFIC) for US tax purposes, with a harsher tax treatment and their own reporting (Form 8621). Ask a US tax adviser before buying non-US funds.
Recommendation: consult both a Spanish gestor (for ITP/IRNR) and a US CPA familiar with FATCA/FBAR/8938 before signing. Mistakes here are expensive.
Documents from the US
Income (employed)
- Recent Form 1040 (federal tax returns)
- W-2 forms
- Recent pay stubs
- Employment letter (HR)
Income (self-employed)
- Recent Form 1040 + Schedule C
- 1099 forms (any)
- Business bank statements
- CPA-prepared P&L if available
Retiree income
- Social Security award letter
- 401k/IRA statements
- Pension provider statements
- Form 1099-R if drawing
Personal + property
- Valid US passport
- NIE (Spanish foreign ID)
- US proof of address (utility bill)
- Mortgage statement on US home if any
- Recent US bank statements
Translations + apostille: documents not in Spanish need a sworn translation by a sworn translator appointed by Spain's Ministry of Foreign Affairs. For public documents a bank may also ask for an apostille: state documents are apostilled by the Secretary of State office of the issuing state, federal documents (e.g. IRS) by the US Department of State's Office of Authentications. Fees and processing times are set by each office; check them before you start.
Banks offering non-resident mortgages
These banks say on their own websites that they offer mortgages to non-residents (checked in September 2026). BBVA, ING and Openbank say their mortgages are for residents only. Ask each bank whether it can serve you in English.
CaixaBank (HolaBank)
HolaBank: up to 70% and 20 years; online application from 15 Western European countries, the US and Canada. Publishes its non-resident rates. Source: CaixaBank (HolaBank)'s website
Bankinter
Up to 60% (second home), 25 years. Fixed, variable, mixed, dual and foreign-currency. Fixed rate only with income or assets in euros. Personalised offer. Source: Bankinter's website
Banca March
Up to 70% (60% with income in another currency), 20 years. Plus mortgages: income of €4,000/month and a minimum loan of €100,000. Its online channel Avantio is for residents only. Source: Banca March's website
UCI
Up to 70%, 30 years (fixed). Fixed, mixed or variable. Website and service in Spanish and English. Source: UCI's website
Banco Santander
No published LTV or term. Non-resident mortgage aimed at second homes, with a dedicated manager and a multilingual website. Source: Banco Santander's website
Banco Sabadell
No published LTV or term. Non-resident mortgage: terms through a specialist. Source: Banco Sabadell's website
Common pitfalls for American buyers
⚠️ Forgetting FBAR
Once your foreign accounts together exceed $10,000 at any time in the year (a single deposit for the purchase can do it), you must file the FBAR by April 15 (automatic extension to October 15). Civil penalties apply if you don't.
⚠️ Approaching banks that decline US persons
A bank may decline US persons because of FATCA. Ask each bank whether it accepts US clients before you send any documents.
⚠️ Not declaring on Form 8938
Filed with your 1040 — easy to forget if your CPA is not familiar with Spanish accounts. Up to $10,000 for failing to file, up to $60,000 after IRS notices, plus 40% on related understatements.
⚠️ Buying via LLC
A property owned by a non-resident company can trigger Spain's special annual levy of 3% of the cadastral value unless an exemption applies (art. 40 of the Non-Residents Income Tax Act), besides corporate compliance. Get Spanish tax advice before buying through a company.
⚠️ PFIC trap with Spanish funds
Once you're Spanish tax resident, Spanish or EU funds (UCITS/ETFs) may be PFICs for the IRS. Ask a US tax adviser before you invest.
⚠️ Underestimating timeline
Apostilles and the NIE take time that depends on each office. Start both before you look for a property, so paperwork doesn't cost you the house.
Frequently asked questions
Can US citizens buy property in Spain with a Spanish mortgage?
What is FATCA and how does it affect my Spanish mortgage?
Do I need to file FBAR + Form 8938 for my Spanish mortgage?
How does the Spain-USA double tax treaty work?
What documents do I need from the US?
Can I get a mortgage if my income is in USD?
Which Spanish banks offer mortgages to US buyers?
Sources: legislation and treaties cited
- →BOE — Ley 5/2019, reguladora de los contratos de crédito inmobiliario (LCCI)
- →BOE — Real Decreto Legislativo 5/2004, texto refundido de la Ley del IRNR (no residentes)
- →Spain's Ministry of Finance — double tax treaties in force and their BOE publication
- →BOE — Spain-USA Double Tax Convention signed in Madrid on 22 February 1990
- →BOE — Protocol of 14 January 2013 amending the Spain-USA convention, in force since 27 November 2019
- →IRS — Comparison of Form 8938 and FBAR requirements (thresholds, deadlines and penalties)
About this content
Mortgage Content Editor
Published: May 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.