The Spanish bank is usually faster, needs no German second collateral and secures against the property itself. The German bank often requires second collateral and is rarely cheaper.
Spanish or German bank — which one finances my Spanish property?
For a property in Spain the direct route almost always runs through a Spanish bank: it knows the local market, accepts the Spanish property as security and completes at the notary on site. German banks generally do not finance a foreign property against the property itself — they only come into play when you release equity from an unencumbered German property and bring that capital to Spain. Both routes are valid but solve different problems: the Spanish bank finances the purchase locally, while releasing equity in Germany creates equity or the standing of a cash buyer. Which bank will underwrite your case at all depends on income type, residence status and the property — not on preference. That is why we approach several lenders in parallel for each case instead of relying on a single approval — both countries from one source, with the §34i licence.
Guide · choosing a bank
Which bank suits your situation?
Many foreign buyers ask: should I choose a Spanish or a German bank for my Spanish mortgage? The honest answer: it depends on your situation. A direct comparison of the key criteria.
Comparison matrix
The key differences at a glance
Spanish bank
Pros & cons — Spanish bank
+ On the ground, knows the regional market + Faster processing (3 days to 4 weeks) + Lends against the property itself — no German second collateral needed − Language barrier (often only Spanish/English) − Possible compulsory insurance products − Typical rates 0.3–0.8% higher than in Germany
German bank
Pros & cons — German bank
+ Contract in German, a familiar point of contact + No language barrier − Rates currently no lower than in Spain (Spanish fixed rates from 2.50% with bonificación) − Longer processing time (6–12 weeks) − Often requires second collateral (a German property) − Few banks offer foreign financing at all
Recommendation by situation
Which bank, and when?
A pure Spanish property with no German collateral: a Spanish bank — the German bank will often demand second collateral.
A premium property over €1m: an international private bank — often competitive terms and a tailored solution.
Very strong credit profile, wanting a German-law contract: a German bank can be worth it — a contract in German and a familiar process, though currently not a cheaper rate.
A standard purchase of €250,000–500,000: assess both options — after a credit check I can often give a concrete recommendation.
Law & risk
Where Germany and Spain really differ
The same net income often carries less mortgage in Spain than in Germany — but the reason is not the much-quoted 35/40% rule. Both countries work from essentially the same affordability magnitude around 35% (in Spain measured against total debt service). What actually leaves you with less borrowing power in Spain is loan-to-value (non-residents 70%, on the lower of price and tasación — whereas a property purchase in Germany can be financed up to 100%), purchase costs of roughly 10–13% that no bank finances, and the age cap (age + term usually ≤ 75). The legal difference is a separate matter — it concerns your rights if the bank assesses you incorrectly, not how much you can borrow.
Germany
Strong rights if the check is faulty
Germany transposed the EU Mortgage Credit Directive (2014/17/EU) with sharp consumer rights. If the bank assesses creditworthiness incorrectly, § 505d BGB applies: the rate drops to the market rate and the borrower can exit without a prepayment penalty. A bank error is expensive for the bank.
Spain
Mandatory check, weaker borrower remedies
The solvency assessment (Ley 5/2019, LCCI, Art. 11) is mandatory too, but the consequences of getting it wrong are mostly supervisory — no automatic rate reduction, no cost-free right to exit. In a dispute the borrower's position is therefore weaker.
Banco Santander, with total assets of €836.78 billion as of 2025 — roughly 27% market share. CaixaBank ranks second (€542.43 billion), followed by BBVA, Banco de Sabadell and Bankinter. Size alone doesn't decide who finances your case best as a non-resident — the smaller specialist lenders often have friendlier terms for cross-border buyers than the biggest names. (Source: thebanks.eu, 2025 figures)
Which bank is cheaper for a Spanish mortgage?
Spanish fixed rates currently run at 2.50–3.20% with bonificación, or 3.50–4.20% without (as at 07.09.2026, Perini’s own bank survey); variable rates are Euribor (12M, currently around 2.95%) plus a margin of 0.25–0.9%. German fixed rates start at around 3.7% effective for a ten-year term (best terms, 60% loan-to-value; as at 03.09.2026), so a German bank is rarely the cheaper option today — and it often requires second collateral and takes longer. Spanish banks are faster and accept the Spanish property alone as security. Your actual rate depends on your credit profile, the property and the linked products.
Which German banks finance in Spain?
Few. DKB, Comdirect (limited), some Sparkassen with international departments. Most German house banks refuse foreign financing or require a fully secured German property as second collateral.
Which Spanish banks have non-resident programmes?
BBVA, Santander, CaixaBank, Banco Sabadell, Bankinter — all with active programmes. Terms vary widely depending on credit profile, property and region.
What is second collateral?
Some German banks require a German property (ideally unencumbered) to be registered as additional security. That complicates the purchase and ties up the German home. Spanish banks need no German second collateral.
Mortgage advice — free and without obligation
I compare banks in Spain, Portugal and Germany for your specific situation and find the right solution — with no upfront cost.
Content by Siegfried Perini — local brand representative since 2019, active in real estate since 1992, entered in the German intermediary register (§ 11a GewO) as a person directly involved in brokerage and advice. Point of contact for German-speaking buyers in Spain and Portugal. Brokerage by Olga Nikushkina, mortgage credit intermediary under §34i German Trade Regulation (GewO); in Portugal through a locally licensed intermediary.