Yes — but not secured directly against the Spanish property. Estonian banks typically lend against debt-free property you already own in Estonia, up to 70–80% of its value. The other route is a Spanish bank mortgage for non-residents, covering 60–70% of the valuation. Either way you need roughly 30–40% of the purchase price in your own funds, because a further 10–14% in taxes and fees is added on top.
Many people have already successfully bought a holiday home in Spain with the help of an Estonian bank — here's how.
If you own property in Estonia that's largely or fully paid off, financing a Spanish holiday home works essentially the same as a normal Estonian home loan — the only difference is that your existing property serves as the collateral instead of the new purchase. The process, requirements and paperwork are the same ones you already know from your bank's home loan.
Estonian banks generally won't lend directly against a Spanish property as collateral — but that's not an obstacle if you use your Estonian property as collateral instead. Below we also explain the other routes, including a Spanish bank mortgage.
Several Estonian banks (LHV, for example, markets this directly) will lend against your Estonian property — usually one that's largely paid off — for up to roughly 70–80% of its value, and you use the funds for the Spanish purchase. This is essentially an investment or equity loan, not a standard purpose-tied home loan.
Spanish banks also issue mortgages to non-residents. Typically up to 60–70% of the property's appraised value is financed — the rest (down payment plus the taxes and fees that come with the purchase, together often around 30–40% of the price) needs to come from your own funds.
Part of the price from a loan secured by Estonian property, part from your own funds, sometimes a smaller part from a Spanish mortgage too. Combining sources helps keep any single loan's size and risk smaller.
Neither route is harder than a normal home loan application in Estonia, but each has its own prerequisites worth knowing early.
If you own property in Estonia that's largely or fully paid off, this is usually the simplest and fastest route — the process and requirements resemble a normal home loan or equity loan application. The main prerequisite is having enough collateral value already; without it, this route doesn't work.
Without Estonian collateral, this is the main option. First you'll need a NIE number and a Spanish bank account — we help arrange both through partners. Spanish banks give their branches fairly free rein in setting terms, so it helps to work with a loan consultant or agent who already has bank contacts — this speeds things up considerably (application to notary usually takes a couple of months, often faster with an experienced intermediary).
On top of the purchase price, Spain typically adds around 10–14% in taxes and fees (taxes, notary, land registry, legal fees). If you use a loan, insuring the collateral property for the whole loan term is also required.
Every situation is different. Tell us your starting point, and we'll help point you to the right contacts — with our partner banks, notaries and lawyers.