Remortgage and equity release in Spain: borrowing against a property you own outright
If you sell a property in Spain in order to buy another one, you pay tax and estate agent’s commission, and forgo the capital gain you would otherwise have realised. It’s also possible to do this without selling your existing property. The disadvantages of taking out a mortgage against a property are: ongoing interest payments and a concentration risk, as both properties are tied to the same market.
Remortgage in Spain: how much of the tasación can you borrow, and how many lenders do it?
Yes, a remortgage in Spain on a property you own outright is possible, up to around 50% of the tasación, provided the property is free of encumbrances. At least two of 15 to 20 lenders do it, because most Spanish banks decline: the market is built around purchases. The funds must demonstrably go into the next property in Spain.
What is inside:
- Loan-to-value · up to 50 % of the tasación
- Requirement · the existing property is free of charges
- Use of funds · documented, into the next property in Spain
- Lenders writing this · at least 2 of 15–20 approached (Perini Market Check, as at 08.10.2026)
Open the PDF directly — no form · Release capital from a Spanish property — and buy again (PDF)
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.
Equity release Spain — why does the branch say no?
The Spanish mortgage market is built around acquisition, and releasing capital on a property you already own does not fit that grid. Somebody would have to assess it by hand, and the branch has no mandate to.
- Can a non-resident borrow against a paid-off property? Most Spanish banks decline — the market is built around purchases. It is possible where the property is free of charges, up to around 50% of the tasación. The Spanish banks.
- Only a valuation, no price — so the margin is larger: On a purchase a price confirms the value; on an existing property there is only a valuation, so the safety margin is larger.
- Do I have to sell first? No. Selling to buy costs tax, commission and future appreciation; releasing capital leaves the property where it is. Minimum around €300,000, and the age-75 rule applies. What we charge.
- Can I get a remortgage in Spain on a property I already own outright? Yes, provided it is free of encumbrances — a remortgage in Spain then registers a charge for up to 50 per cent of the tasación, releasing capital for the next purchase.
It is worth the effort because the alternative is expensive: selling in order to buy costs tax, commission and the future growth you would have kept. Two limits matter.
First, the funds must demonstrably go into the next property in Spain; this is not a general-purpose loan.
Second, supply is thin — Spanish banks currently offer almost no refinancing to non-residents, and many lenders withdrew from this business after 2007. What the branch tends to offer instead is a consumer loan on entirely different terms, which is worth identifying before you sign anything.
It is also worth checking early whether your property is registered free of charges in practice as well as on paper, since old entries surface late.
The Spanish mortgage market is built around acquisition. The standard hipoteca funds a transaction: contract, price, valuation, payment to the seller. It is standardised, and lending decisions are largely automated.
Releasing capital on a property you already own does not fit that grid. Somebody would have to assess it by hand — and the branch has no mandate to. For residents it is already the exception; for non-residents, some lenders refuse outright because enforcement abroad would be difficult.
How narrow the market is, competitors say themselves. A Spanish broker states publicly that remortgaging in Spain is offered by exactly one lender, that banks are not currently providing refinancing for non-residents, that raising finance on a property you already own requires it to be free of liens, and that the funds may not leave Spain because the banks control their use (retrieved 14 July 2026). Since 2007 many lenders have withdrawn from refinancing altogether.
The "no" you get is usually a statement about the institution, not about your case.
Of the 30+ lenders approached, two write loans against unencumbered existing property.
What does your property have to bring?
The property has to be unencumbered or carry a small residual balance that is redeemed, sit in a marketable location, and the capital must be tied to a property in Spain. Affordability has to hold for two loans.
- Unencumbered — or the balance is redeemed (Property): The 50 per cent is calculated on the unencumbered property. A small residual balance is not an obstacle: it is redeemed as part of the new financing — it only reduces the capital released.
- Marketability (Location): A lender that might have to enforce wants buyers. Liquid, internationally sought-after markets carry this; thin markets are where it fails.
- Documented use of funds (Purpose): The capital is tied to a property in Spain, evidenced — purchase, renovation or new build; the funds may not leave the country. Free use is not part of this structure — anyone promising that means something else.
- Suited to: Gifts within Spain as well.
- Not suited to: Refinancing a running Spanish mortgage — that is a different transaction.
- Two loans, not one (Standing): You end up servicing two facilities. Affordability has to hold for both — including a year in which one property sits empty.
- The valuation is the reference, not what you once paid: The amount depends on the current valuation. Buying cheaply years ago works in your favour; buying at the top does not.
- Ownership is unambiguous: Multiple owners, inherited co-ownership or an unregistered extension delay or prevent registration of the new charge.
- Register and cadastre agree: An unregistered extension reduces the valuable substance — and therefore the loan — even though the space exists.
- Council tax, community charges and utilities are up to date: Outstanding community costs attach to the property and surface at the valuation at the latest.
Equity release Spain: what is the sequence and timeline through to drawdown?
With a complete file the whole process runs between three days and four weeks to approval. What lengthens it is rarely the bank: foreign documents, source-of-funds evidence, income in a foreign currency, self-employment and missing property papers are the delays we see again and again.
| Step | What happens | Realistic duration |
|---|---|---|
| 1 · Financial statement and pre-assessment | size up the limit from valuation and income | 2 to 5 days |
| 2 · Confirm the absence of charges | Nota Simple, cadastral check, community costs | 3 to 10 days |
| 3 · Approach at least two of 15 to 20 institutions | only lenders that write unencumbered existing property for non-residents | in parallel, not one by one |
| 4 · Commission the valuation | it sets the limit, not what you once paid | 5 to 10 working days |
| 5 · Submit evidence of use | particulars, reservation or preliminary contract for the new purchase | alongside the valuation |
| 6 · Approval | limit, fixed-rate period and payment route are settled | up to 10 days with a complete file |
| 7 · FEIN with the notary | the binding offer has to be lodged | at least 10 days before the deed |
| 8 · Two notary appointments | briefing with its record, then the mortgage deed | at least 11 days after approval |
| 9 · Registration at the Registro | only then is the charge validly created | days to weeks |
| 10 · Drawdown and use of funds | the bank monitors that the capital stays in Spain | with, or straight after, registration |
Where do cases like this fall over when releasing capital from a Spanish property?
An unregistered extension: A conservatory, a converted basement, an extended terrace: what the register does not show does not count towards the valuation, even though it was built and paid for.
Missing the window after a new-build purchase: Waiting too long after paying in full makes you the owner of a paid-off property rather than a buyer arranging finance: as a rule up to 50 % of the valuation instead of up to 70 %, with the use of funds tied.
Third-party property, minimum size, age rule: what applies?
A third party's property can also be used — the practical case being parents helping out with their paid-off finca. The loan then goes to the owner: they are on the title and their property secures their share. In practice this usually means several separate loans rather than one large one, and anyone named as a borrower must hold at least 10 per cent of the title to the property concerned.
The release loan should be at least around €300,000, and processing takes anywhere from a few days to several weeks. The age rule applies here as with any Spanish mortgage: repaid by 75 — with two borrowers, the younger borrower's age counts.
What else will you be offered — and what is it?
Search this topic and you will quickly meet providers promising money against your property within 72 hours. That is capital privado — private capital. It is fast, it is available, and it costs a multiple. For a short bridge that can be right — we arrange private lenders from €500,000 where the bank route is out.
What is described here is different: a bank, at bank pricing, with bank scrutiny and the pace that comes with it. The difference does not show on drawdown day. It shows over the term.
Concentration risk. Two properties in the same market, both charged. The property is no longer free. You give up the debt-free backbone deliberately. That is a decision, not a formality. 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.
Buying a new-build villa in Son Gual without touching liquid assets
Financed across two Spanish properties — the existing villa stays in the family
A Bavarian business family owns an unencumbered villa in Santa Ponsa and wants a new-build villa in Son Gual as their future home. The securities portfolio and company holdings are to remain untouched.
Existing villa Santa Ponsa · tasación — Amount: €5,000,000; Note: free of charges. New-build villa Son Gual · purchase price — Amount: €4,200,000. Purchase costs (approx. 12 %) — Amount: €504,000. Total investment — Amount: €4,704,000. New-build mortgage (70 % of the price) — Amount: €2,940,000; Note: secured on the new villa.
Remaining requirement (equity share + costs) — Amount: €1,764,000. Charge on the existing villa — Amount: €1,764,000; Note: = 35.3 % of the tasación.
50 % would have been possible — €2,500,000. Only what the purchase needs is drawn. The headroom stays.
And the other side of it: Total debt €4,704,000, secured on both properties. The villa that was free of charges is now collateral — that is the price of not selling it.
Note: This worked example is based on typical financing constellations from our practice. All amounts, persons and property data are anonymised or illustrative. It is not a customer testimonial. Every financing is assessed individually against personal standing, the property valuation (tasación) and the lender's own criteria.
Region: Property finance in Mallorca
Release capital from a Spanish property — and buy again — the guide as a PDF: How the structure works, what breaks it, which documents the lender wants to see and in which order to proceed. Free, by email, no upfront cost.
One constellation calculated through: which assumptions and figures apply to the worked example, releasing capital on the Costa Blanca and buying again?
Assumptions, all our own: an unencumbered resale apartment on the Costa Blanca (Comunitat Valenciana) with a valuation of €600,000. A second resale apartment in the same region is bought for €260,000. Term 20 years. Not an offer and not a commitment — a calculation showing what the headroom gives and what the purchase needs.
| Item | Amount | Where the figure comes from |
|---|---|---|
| Lending headroom, 50 % of the valuation | €300,000 | the normal case for non-residents in this structure |
| Purchase costs in total | €29,400 | 11.3 % — inside the 10 to 13 % band |
| Actually drawn against the existing property | €289,400 | 48.2 % of the valuation — only what the purchase needs |
| Liquid funds required | €0 | the existing property is neither sold nor touched |
| Total debt | €289,400 | secured on the previously unencumbered property |
Borrow against an existing property and buy another — Spain — the guide as a PDF
How the structure is set up, what can make it fail, which documents the bank wants to see and in what order you proceed. Free of charge, by email, with no upfront costs.
Securing a loan against property without selling it: This way, you retain ownership: Securing a loan against the property separates your capital requirements from the need to sell: A new mortgage is registered against the unencumbered property, and you retain ownership of the property. Anyone who sells pays tax and commission and forfeits any future capital gains. The capital released must be used in Spain and evidence of this must be provided.
Disadvantages of taking out a mortgage on a property: interest and concentration risk: The disadvantages are the ongoing interest payments and a concentration risk, as both properties are tied to the same market. There are new costs for the notary, land registry and valuation, and the property becomes subject to enforcement in the event of late payment, just as with any other mortgage.
Releasing capital from a Spanish property: 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. 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
Can a non-resident raise capital against a paid-off Spanish property?
Yes, it is possible — but with at least two out of 15 to 20 banks approached, and only under specific conditions: The property must be free of encumbrances (or the remaining debt must be paid off as part of the new financing), the loan-to-value ratio is generally up to 50 % of the tasación, and the funds must be used in Spain and this must be proven — usually for the purchase of another property.
The Spanish mortgage market is geared towards purchases; releasing equity on existing properties is the exception, and in the case of non-residents, some banks refuse to lend due to the difficulties involved in enforcing repayment abroad.
Why 50 per cent and not 70 as on a purchase?
On a purchase a price confirms the value — somebody is paying it right now. On an existing property there is only a valuation. The safety margin is correspondingly larger.
Must the property be free of charges?
Generally speaking, yes. A rough rule of thumb for this type of loan is that if less than around 70–80 % of the original mortgage has been repaid, an application is rarely approved — so your case falls within the viable range. The remaining balance will be paid off as part of the new financing; the 50 % will then be calculated based on the unencumbered portion. The smaller the remaining balance, the more of the released capital you’ll have left.
Can my parents' property be used as security instead?
Yes. A third party's property can secure the loan. The owner then takes out the loan themselves — they're the one on the title and liable with their property for their share. In practice this usually results in several separate loans, and anyone named as borrower needs to hold at least 10 per cent of the title on the relevant property.
Is there a minimum amount — and how long does it take?
The capital-release loan should be at least around €300,000. Processing takes anywhere from a few days to several weeks depending on the case. The usual age rule applies too: repaid by age 75 — with two borrowers, the younger one's age counts.
Do I have to sell my existing property?
That's exactly the point: no. The usual route — sell to be able to buy — costs tax, commission and the future appreciation you'd otherwise have kept. Releasing capital against it leaves the existing property exactly where it is.
Borrowing against a paid-off property: what disadvantages and costs arise?
The disadvantages are the ongoing interest and a concentration risk, because both properties depend on the same market. On top come renewed notary, land register and valuer costs.
My Spanish bank says this is not possible. Is that true?
For that bank it is probably true. Most banks finance only purchases and refuse to release capital for non-residents. That is a statement about the institution, not about the market.
At least two lenders say yes here. The others do not.
Send us the key facts of the existing property and the planned purchase. We will tell you whether the chain holds — before you file an application anywhere.
Related pages
equity release with the capital used elsewhere in the EU
Spanish property equity release for non-residents: debt-free property in a European country, as a rule up to 50 % of the valuation, from €1.5 million.
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all three structures
Special financing in Spain: stage payments during construction, capital from a paid-off Spanish property, German security, equity raised at home.
Mortgage calculator
Monthly payment, loan and purchase costs by region straight away; total cost and equity needed by email.
Equity release in Spain: how much paid-off property does your next purchase need?
The remainder is covered by releasing capital on the paid-off property. Against that property lenders go to 50 per cent of the appraised value.
Buy a house in Spain with German property as security: how much can you raise?
It simply has no interest in what becomes of it in Spain — and the Spanish side cannot see the German one. This route requires a property in Germany.
Equity release or remortgage
The full comparison: part-sale, lifetime annuity, borrowing against the property.
Private mortgage lender in Spain: when is it the right route?
Private mortgage lender in Spain: capital privado when no bank will write the case. Arranged from €500,000 — after testing the bank route, not instead of it.
Property Financing in Mallorca
Buying an apartment or a house in Mallorca: Palma, Andratx, Santa Ponsa, Alcúdia. Property financing in Mallorca up to 70 % for non-residents.
Mortgaging a property in Mallorca: €6 million for a further purchase
Sample calculation: Villa valued at €12 million, 50 % loan-to-value ratio, interest-only.
Lombard loan for property in Spain
Borrow against a securities portfolio, rate Euribor plus margin, from €1.5 million.
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.