Mortgage for Self-Build in Spain
How It Works and What You Need to Know

Building your dream home in Spain is an exciting journey, but securing financing for a self-build mortgage can be complex, especially for non-residents. Unlike a standard mortgage for a completed property, a self-build mortgage is structured in phases, with funds released progressively as construction progresses.
If you are considering a self-build project in Spain, this guide will walk you through how self-build mortgages work, the requirements, and how Mortgage in Spain Mortgage Broker can help you navigate the process smoothly.
How Does a Self-Build Mortgage Work in Spain?
A self-build mortgage is a type of construction loan that provides financing for building a property from scratch. Instead of receiving the full loan amount upfront, the bank releases funds in stages based on the progress of the construction, verified through periodic valuations.
Stages of a Self-Build Mortgage in Spain
- Initial Release – 50% of the Purchase Price of the Land
- Once you have purchased the land, the bank will release an initial 50% of the land purchase price.
- If the land is already fully paid, this amount will be included in the total mortgage and can be used to start construction.
- Progress-Based Disbursements
- As construction progresses, the bank will release additional funds based on an agreed construction schedule.
- These payments are made following interim valuations, conducted by an official appraiser who verifies that the construction milestones have been met.
- Final Payment – 15% Released Upon Completion
- The last 15% of the loan is released once the final construction certificate (Escritura de Fin de Obra) is issued.
- This ensures that all necessary approvals and permits are in place before the full loan amount is provided.
Key Considerations When Applying for a Self-Build Mortgage in Spain
Choosing a Reliable Construction Company
Spanish banks require that you work with a professional, licensed, and experienced construction company. A detailed contract, including construction plans, timeline, and budget, will be required as part of your mortgage application.
Urban Planning Regulations & Land Classification
Before purchasing land, it is essential to check the local urban planning regulations:
- Urban land (Suelo Urbano) – Generally easier to finance, but some banks still impose restrictions unless the construction project exceeds €150,000.
- Rural land (Suelo Rústico) – Financing for self-build projects on rural land is much more restrictive. In most cases, banks will only consider financing if the construction budget exceeds €400,000, ensuring the project is of high value and meets strict planning regulations.
Always consult with a lawyer to verify that the land complies with local zoning laws and that the necessary building permits are in place before applying for a mortgage.
Self-Build Mortgage Requirements for Non-Residents
Spanish banks apply strict lending criteria for self-build mortgages, particularly for non-residents. Here are the key requirements:
1. Loan-to-Value (LTV) Ratio
- Maximum 70% of the total project cost (including land purchase and construction expenses).
- You must provide at least 30% in personal funds, plus additional costs like taxes and fees.
2. Debt-to-Income Ratio (DTI)
- Your total monthly debt payments (including the new mortgage) must not exceed 35% of your net income.
- Banks only consider current income, meaning they do not accept future rental income projections.
3. Employment & Financial Stability
- A stable job or proven income source is crucial.
- Most banks prefer clients with permanent contracts (for employed applicants) or consistent business income (for self-employed applicants).
4. Required Documents
- Architectural plans and construction budget
- Building permit from the local town hall
- Land ownership certificate
- Proof of personal savings (to cover your 30% deposit)
- Recent tax returns & bank statements
- Employment contract or proof of business income
Understanding the Project Valuation
The valuation (tasación) of a self-build project is a crucial step in the mortgage approval process. The appraisal verifies that:
✅ The estimated value of the finished property is at least equal to the total sum of the land price and the construction cost.
✅ The project follows market standards to ensure a viable investment for the bank.
Banks will only finance projects where the completed property's value is aligned with the investment, minimizing their risk.
Exclusive Agreements for Self-Build & Real Estate Investment Financing
At Mortgage in Spain Mortgage Broker, we have special agreements with banks that specialize in self-build mortgages, ensuring you access the best financing options for your project.
Additionally, if you are considering building a property to sell (real estate development), we can connect you with specialized short-term financing companies that offer tailored solutions for real estate investment projects. Whether you are a developer or an individual looking to finance a construction project for resale, we have agreements with lenders that provide flexible short-term financing solutions.
Why Work with Mortgage in Spain Mortgage Broker?
Navigating the complex mortgage process for a self-build project in Spain requires expert guidance. At Mortgage in Spain Mortgage Broker, we provide:
✔️ Access to the Best Mortgage Deals – We work with multiple Spanish banks to find the best financing options for your project.
✔️ End-to-End Support – From checking land regulations to coordinating with architects, appraisers, and banks, we handle the entire process.
✔️ Faster Approval & Better Conditions – Our strong relationships with banks allow us to negotiate the best terms, ensuring a smoother approval process.
✔️ Zero Fees for Our Clients – Our services are paid by the bank, meaning you never receive an invoice from us.
✔️ Legal & Technical Assistance – We can connect you with trusted real estate lawyers, architects, and construction companies.
✔️ Specialized Short-Term Financing for Developers – If you plan to build to sell, we have partnerships with lenders offering short-term financing for real estate investments.
Whether you are at the planning stage or ready to apply for your self-build mortgage in Spain, contact us today for expert advice and assistance!
📩 Get in touch now to start building your dream home in Spain





















