International mortgage: Spanish bank or German bank — which is better?
Many foreign buyers ask: should I choose a Spanish or a German bank? A direct comparison of the key criteria.
Which route is faster for a Spanish property: a Spanish or a German bank?
For a Spanish property, the Spanish bank is usually the faster and more direct route: processing takes 3 days to 4 weeks, against 6 to 12 weeks at a German bank. It lends against the property itself and needs no German second collateral, which German banks often require.
What it covers:
- German bank · direct up to 56 % in Spain and Portugal
- Spanish and Portuguese banks · up to 70 % and up to 80 %
- German property · up to 80 % of the lending value, also as a second charge
- Special routes · equity release, new build in stages, private lender
Open the PDF directly — no form · Financing routes Spain and Portugal (PDF)
Which bank suits your situation?
It depends on your situation. The Spanish bank is usually faster, needs no German second collateral and secures against the property itself, while the German bank often requires second collateral and is rarely cheaper.
- Spanish or German bank — which is faster? 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. The Spanish banks.
- Some German banks require a German property as extra security: Some German banks require a German property (ideally unencumbered) as additional security — which ties up the home. Spanish banks don't. The Spanish banks.
- Spanish mortgage: do I have to choose? No. If you can mortgage a German property, there's a third route — no Spanish bank review, up to 80% of its lending value. Equity from your home property.
International mortgage: which bank — Spanish or German — finances my Spanish property? For an international mortgage on 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.
Most German banks do not finance a foreign property against the property itself; through one German bank we finance directly up to 56 % of the purchase price.
Otherwise German banks come into play when you release equity from your German property, unencumbered or as a second charge, 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 and 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.
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.
The key differences at a glance
A Spanish bank processes faster, in 3 days to 4 weeks, and lends against the property itself. A German bank offers a contract in German but takes 6 to 12 weeks and often requires second collateral.
- Pros & cons — Spanish bank (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 - Pros & cons — German bank (German bank): + Contract in German, a familiar point of contact
+ No language barrier
− Rates currently no lower than in Spain (Spanish fixed rates from 2.75% with bonificación)
− Longer processing time (6–12 weeks)
− Often requires second collateral (a German property)
− Few banks offer foreign financing at all - Representative example: Advertising a rate obliges us to show what it means in figures. Here it is — calculated with the bonificación, the rate most deals actually close at.
What the discount requires, what it is worth and what applies without it is set out below. Loan amount: €200,000. Loan-to-value: 70 %. Term: 20 years, fully amortising loan. Fixed borrowing rate: 3.30 % (with bonificación). Monthly payment: €1,139.47.
APR (TAE): 3.37 % — excluding the running costs of the bundled products (bank-dependent). Total amount payable: €273,472. Assumptions: Valuation (tasación) €400, no arrangement fee (comisión de apertura 0 %).
The borrowing rate shown applies with the bonificación; it requires two to four bundled products, depending on the bank, whose running costs are not included in the APR. Without the bonificación the rate is 4.30 % → payment €1,243.81, APR 4.41 %.
The discount is therefore worth about €1,252 a year. It requires two to four, depending on the bank, bundled products (typically: bank account, term life cover, buildings insurance, alarm system). The bundled products carry running costs that can partly or fully offset the rate discount.
Whether the bonificación pays off depends on what those products cost in your case — we calculate that against the discount before you sign.
Rates as at 21 September 2026. Source: Perini’s own bank survey (as at September 2026); 12-month Euríbor: Banco de España / EMMI.
Not an offer and not a financing commitment — the rate you are actually granted depends on the bank, the property and your file.
Which bank, and when?
A pure Spanish property with no German collateral calls for a Spanish bank, a premium property from €500,000 for an international private bank, and a very strong credit profile with a wish for a German-law contract can justify a German bank.
- A pure Spanish property with no German collateral: a Spanish bank — the German bank will often demand second collateral. A premium property from €500,000: 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 we can often give a concrete recommendation.
The nine financing routes for Spain and Portugal at a glance
Alone or combined. Which route is cheaper in your case, we work out with you.
Spanish bank — How much: up to 70 % of the lower of purchase price and tasación; Security and condition: the property in Spain.
Portuguese bank — How much: up to 80 % of the lower of purchase price and avaliação; Security and condition: the property in Portugal.
German bank direct — How much: up to 56 % of the purchase price; Security and condition: the property in Spain or Portugal; contract with a German bank.
Borrowing against German property — How much: up to 80 % of the lending value; Security and condition: land charge in Germany, unencumbered or as a second charge; the property abroad stays unencumbered.
Spanish bank plus German top-up — How much: up to 70 % in Spain, the rest up to 80 % of the lending value in Germany; Security and condition: both properties; the German one also as a second charge.
Unencumbered property in a euro country — How much: usually up to 50 % of the valuation, from around €500,000; Security and condition: debt-free property; the capital may go to another euro country.
Borrowing against a Spanish property — How much: usually up to 50 % of the tasación, from around €300,000; Security and condition: unencumbered, or the remaining loan is paid off; use in Spain.
New build in stages — How much: the stage payments during construction; Security and condition: only a few lenders pay each stage to the developer.
Private lender — How much: from €500,000; Security and condition: when no bank will lend; considerably more expensive than a bank.
All figures are guidance from our brokerage practice, not a commitment. Whether a case works depends on the property, the valuation and your credit profile.
All financing routes for Spain and Portugal as a PDF: The nine routes at a glance: how much they finance, what security they need and when each one makes sense. Free, by email.
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.
Strong rights if the check is faulty (Germany): 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.
Mandatory check, weaker borrower remedies (Spain): 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.
In short: how much you get is decided by loan-to-value, costs and term — not by the faulty-check remedies. What your income can actually carry we work out concretely: Mortgage readiness check. The full comparison with a worked example is in the blog: Mortgage in Spain vs. Germany — the real reason. And why the route via your own estate agent often costs more than an independent comparison is shown in The hidden broker mark-up on your mortgage.
Frequently asked questions
Which is the largest Spanish bank?
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 2.75–3.45% with bonificación, or 3.75–4.45% without (as at 21.09.2026, 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 4.0% effective for a ten-year term (best terms, 60% loan-to-value; as at 21.09.2026), 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. Through one German bank with business in Spain we finance directly up to 56 % of the purchase price, also for Portugal.
Does the 56 % through the German bank also apply in Mallorca?
Yes. It applies to properties in Spain, including Mallorca, and in Portugal. The remaining 44 % and the purchase costs of 10–13 % come from equity or from borrowing against your German property, up to 80 % of its lending value, also as a second charge.
Is Deutsche Bank España the same as a German bank?
No. Deutsche Bank España is a Spanish bank and lends to non-residents like the other Spanish lenders, up to 70 %; it is one of the seven lenders particularly active for non-residents in our list of Spanish banks. The 56 % applies to financing through a bank in Germany.
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
We compare banks in Spain, Portugal and Germany for your specific situation and find the right solution — with no upfront cost.
Related pages
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Buy a house in Spain with capital raised against an unencumbered German property — from one desk. The obstacle is not the value; it is the loan purpose.
Spanish mortgage plus German top-up: how does the combination work?
Spanish mortgage plus German top-up: 70 % LTV from the Spanish bank, the remainder and purchase costs secured against your German property.
Equity release in Spain: how much paid-off property does your next purchase need?
Equity release in Spain and Portugal: ten model calculations — full purchase price financed, own funds needed only for the costs.
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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.