Buy a house in Spain with German property as security: how I can get a mortgage abroad and how much equity release you can get

How much equity can you actually release for the purchase in Spain?

The German property is mortgaged up to 80 % of its mortgageable value, and the Spanish purchase is handled by the same provider. Unlike with a standard form of raising capital, the Spanish element is taken into account from the outset.

• Does the German property have to be free of encumbrances? It is simplest if it is, but an existing encumbrance does not rule it out — the existing mortgage and the new loan combined must remain within the bank’s lending limit.
• Can I use the capital to buy a property in Spain? Yes, this is the classic scenario: the German property serves as security (land charge), the capital finances the purchase in Spain — and the Spanish property remains unencumbered.
• Isn’t a Spanish mortgage cheaper? Sometimes. That’s why we weigh up both options — German capital raising, Spanish financing or a combination — rather than just promoting one.
• Not intended for: Buyers who do not own property in Germany — in that case, the process involves a Spanish bank.
• Not intended for: Short-term liquidity not related to property — this is not the right loan for that.
• Not intended for: Capital privado: private capital in Spain is quickly available and comes at a high price.
• Not intended for: Partial sale or conversion of the German property into an annuity — a different product, different consequences.

Can I use my German property as security for a loan to buy a property abroad? Yes — a property in Germany that is free of encumbrances can be used as security for a loan to buy a property abroad for up to 80 % of the mortgageable value, and the funds can be used as you wish.

The real benefit lies not in the interest rate, but in the position it puts you in in Spain: the Spanish property remains unencumbered, you are seen as a cash buyer and can negotiate accordingly — without any financing conditions, without tasación risk, and without having to wait for a Spanish loan approval.

The catch lies in the division of responsibilities. The German bank provides the capital but is not interested in what happens to it in Spain; the Spanish side, for its part, does not see the German security at all.

Both parts must be synchronised, as the Spanish private contract and the German land charge do not run at the same pace. This bracket is precisely the case in point — both legs from a single source, under §34i GewO.

The solution: The German property is mortgaged up to 80 % of its mortgageable value, and the Spanish purchase is handled by the same provider: §34i GewO for the German side. Distinction: Not to be confused with ordinary capital raising. The product itself is well known; the difference lies in the fact that the Spanish element is taken into account from the outset.

Why is this a Perini case?

Unspectacular and decisive: this structure has two legs, and most providers have one. A German broker completes the capital raising and hands you back to yourself. A Spanish agent knows the property but not the German lender, its lending values or its purpose rules.

We hold both legs: § 34i GewO for mortgage credit intermediation in Germany (register no. D-W-132-ZUCB-95), in Portugal the transaction runs through a locally licensed intermediary, and a presence on the ground since 2019.

Sequence. The German approval belongs before the Spanish reservation, not after. Evidence. The planned purchase is the purpose that carries the loan. Document it before it is demanded. Tax. Whether holding and charging the German property is wise is for your tax adviser.

The NIE is applied for or an appointment is booked: One to two days in Spain, several weeks to months through a consulate in Germany — the largest avoidable delay in the whole process.

We supply the financing side and flag where the question lands. It is not a commitment. All figures are orientation from our brokerage practice — not a commitment and not a guaranteed condition.

Whether a case works depends on the property, the valuation and your standing: subject to credit assessment, case by case, no legal entitlement.

For buyers from Austria and Switzerland: The Spanish side of this structure does not change with your place of residence: Spanish banks treat non-residents the same, whether they are registered in Germany, Austria or Switzerland. Two points shift all the same.

The security stays in your home country. A property is always mortgaged where it is located — a property in Vienna or Zurich is lent against by an institution licensed there, not by a German bank. Our licence under § 34i GewO covers mortgage credit intermediation in Germany. To borrow against an Austrian or Swiss property you therefore need a partner on the ground; we build the Spanish side on top of it and coordinate the sequence and the timeline.

Income in Swiss francs counts differently. If you earn in CHF and borrow in euros, Spanish banks apply a safety discount to the eligible income and often a lending limit below the cap usual for non-residents. It becomes plannable through euro capital that is in place before the first payment — not through hoping for a favourable exchange rate on the payment date.

German property as security, purchase in Spain: where do cases like this fall over?

The order gets reversed: Arras contract first, bank second: 10 % of the price is tied up before anyone has checked whether the structure holds. Without a condición suspensiva that money is lost on a refusal.

• Treating purchase costs as financeable: Banks finance the purchase price, not the costs around it. At 70 % lending and costs of 10 to 13 % you need 40 to 43 % of the price in own funds.
• Overlooking the ten-day rule: FEIN, briefing appointment, second notary appointment: those eleven days are fixed while the arras deadline runs.
• Budgeting AJD as a buyer cost: On the mortgage deed the lender has been liable for AJD since 10 November 2018 (Real Decreto-ley 17/2018, confirmed by Ley 5/2019). As a buyer you pay AJD only on a new build, and there on the purchase deed.

German property as security, purchase on the Costa Blanca: which assumptions apply to the worked example?

Assumptions, all our own: a resale apartment on the Costa Blanca (Comunitat Valenciana), purchase price €400,000, valuation equal to the price. In Germany an unencumbered property with a lending value of €500,000. Term 20 years. Not an offer and not a commitment — a calculation that shows where the money comes from.

German property as security: what do we take on — and what do we charge?

We take on the pre-check, the selection of lenders, the documents, the contract check and support up to the notary; our fee is 1 % of the loan actually arranged. A check before you sign. You hear whether the structure holds before the preliminary contract — not after the deposit has left your account.

• A selection of lenders, not a branch visit. We work with 15 to 20 institutions and approach at least two of them per case: major Spanish banks, regional cajas, non-resident specialists and international lenders. For the German tranche, German banks come in as well. What counts is who writes the structure, not who calls it conceivable (Perini Market Check, as at 08.10.2026).
• Documents in bankable form. We sort them, have them translated and file them — with a complete file, processing runs from 3 days to 4 weeks.
• Contract check. The arras contract and the payment schedule are reviewed before they bind you.
• Support up to the notary. Two appointments, the ten-day FEIN period, the registry entry — the order of events is half the battle.

Our fee is 1 % of the loan actually arranged — not of the purchase price — falls due only if the financing completes, and carries no Spanish VAT. If no financing materialises you pay nothing: no advance payment, no handling charge. If the loan ends up smaller than planned, the fee shrinks with it.

Frequently asked questions