House in Spain: Swedish banks say no, but your home can go to 80%
With a SEK 4,000,000 house and a SEK 2,000,000 loan you can borrow SEK 1,200,000 more. At 80%, amortization comes to SEK 5,333 a month.
Swedish banks almost never lend against a house in Spain, but your home in Sweden can be borrowed against up to 80% of its value. On a SEK 4,000,000 house with a SEK 2,000,000 loan, that frees SEK 1,200,000.
Nordea states plainly that Swedish banks do not offer mortgages for buying a home abroad. The usual way to fund the purchase is to borrow more against the house or flat you already own in Sweden.
Why the bank says no
A mortgage uses the home as security. A Swedish bank cannot easily take a charge over a house in Spain, and it cannot recover the debt there as it can at home. SBAB's answer is short: it cannot finance homes outside Sweden.
A few customers have other options:
- Handelsbanken lends on homes in Spain, France and Portugal through its office in Luxembourg. You must be a customer in Sweden or Norway. The loan is in euros, with a minimum of EUR 100,000.
- Swedbank can lend in euros on a home in Spain, but only to its Private Banking customers.
Option 1: borrow more on your home in Sweden
A new mortgage law has applied since 1 April 2026. The loan-to-value cap ("bolånetak") is 90% when you buy a home. When you top up an existing mortgage, though, the loan-to-value ratio ("belåningsgrad") may be at most 80% of the home's market value.
Take a house worth SEK 4,000,000 with a SEK 2,000,000 loan. The loan-to-value ratio is 50%.
| Amount | |
|---|---|
| Maximum loan at 80% | SEK 3,200,000 |
| Current loan | SEK 2,000,000 |
| Possible top-up loan | SEK 1,200,000 |
Watch the amortization. At 50% you have no amortization requirement. At 80% you must pay down at least 2% a year, which is SEK 64,000 on the whole SEK 3,200,000 loan. That is SEK 5,333 a month on top of interest.
The interest is that of a normal Swedish mortgage. Nordea's average three-month rate was 2.82% in May 2026.
At that rate, SEK 1,200,000 costs SEK 33,840 a year. Because the loan is secured on a Swedish home, you get the interest deduction ("ränteavdrag"). It is 30% of your interest up to SEK 100,000 a year.
The bank will also check that your finances can carry the larger loan.
Option 2: a Spanish mortgage
A loan in Spain comes with a lower loan-to-value ratio. Handelsbanken in Luxembourg lends 60 to 75% of the lower of the purchase price and the valuation. Its arrangement fee is EUR 3,000 plus 1.75% of the loan, and the valuation costs extra.
Example with a EUR 300,000 house and a 75% loan:
- Loan: EUR 225,000
- Arrangement fee: 3,000 + 3,938 = EUR 6,938
- Your own money: at least EUR 75,000, plus purchase costs
The loan is in euros. If your income is in Swedish currency, exchange rate moves can make the loan cheaper or dearer for you.
The Swedish Tax Agency ("Skatteverket") only allows a deduction for interest on a foreign loan in some cases. The lender must be in the EEA, or in a country that exchanges tax information with Sweden. The loan must also meet the rules on security and maximum loan-to-value.
Avoid a personal loan for the house
An unsecured personal loan can look easy. From the 2026 income year, loans without security give no interest deduction at all. Personal loan rates are also usually higher than mortgage rates.
Remember the purchase costs
The estate agency chain Fastighetsbyrån puts purchase costs in Spain at 12 to 15% of the price for a resale home. The biggest item is the transfer tax, 8 to 10% depending on region and price. On a EUR 300,000 house, that is EUR 36,000 to 45,000 you need to pay in cash.
Our FAQ has more on buying a home abroad.
Sources
- Nordea: Buying a home abroad (Swedish)
- SBAB: Can I borrow for a home abroad? (Swedish)
- Handelsbanken: Mortgages abroad (Swedish)
- Handelsbanken Luxembourg: Mortgages in Spain
- Fastighetsbyrån: Mortgages in Spain (Swedish)
- Fastighetsbyrån: Extra costs in Spain (Swedish)
- Riksdagen: Act 2026:226 on limiting mortgage credit (Swedish)
- Government: New rules on home ownership, press release (Swedish)
- Skatteverket: Deduction for interest costs (Swedish)
- Bolån Radar: Average rates
This content is general information, not financial or legal advice. Bolån Radar collects data from banks and authorities and cannot guarantee that it is complete or free of errors. Talk to your bank or an adviser before you decide.