Second home financing · Spain
Financing a second home in Spain.
A second home is a lifestyle decision, but the funding structure has long-term balance-sheet consequences. We help you choose it deliberately.
In short
A second home in Spain can be funded with cash, a Spanish mortgage, a portfolio-backed facility or a hybrid. Many private clients prefer a hybrid so their investments remain invested and liquidity is preserved for running costs, renovation and other opportunities.
Questions to answer first
- How long will you hold the property?
- Will it be rented when you are not using it?
- In which currency is your wealth and income?
- How much liquidity do you want to keep outside property?
- Is renovation likely after purchase?
Running costs to plan for
Beyond the purchase, second homes carry ongoing costs: community fees, local property tax (IBI), non-resident income tax where applicable, insurance, maintenance, utilities and, for villas, garden and pool care. Your tax adviser should confirm your position.
Last updated 21 October 2026. Reviewed by Marbella Property Advisory.
Illustrative example
Portfolio-backed facility at c. 70% LTV
- Eligible investment portfolio
- €1,000,000
- Illustrative portfolio-backed facility
- €700,000
- Illustrative loan-to-value
- 70%
Portfolio-backed lending may be illustrated at up to approximately 70% loan-to-value where suitable. Actual lending value depends on portfolio composition, concentration, volatility, liquidity, currency, jurisdiction and lender approval.
Illustrative example
Financing 100% of the acquisition
A buyer could potentially finance the full acquisition, including the property price and associated transaction costs, by combining traditional property finance, portfolio-backed lending and available liquidity.
- Property price
- €2,000,000
- Taxes, legal, notary and acquisition costs
- €200,000
- Total acquisition requirement
- €2,200,000
- Traditional mortgage 50% of property price
- €1,000,000
- Portfolio-backed facility e.g. c. 70% of an eligible portfolio of c. €1.7m
- €1,200,000
- Total funded
- €2,200,000
- Cash sale of investments required
- €0
Financing examples are illustrative and do not constitute an offer of credit. Availability depends on the client profile, collateral, property, jurisdiction and lender approval.
Risks
What to understand before borrowing
- Interest applies, usually variable and linked to a reference rate.
- Approval is case-by-case and depends on the borrower, the portfolio, the lender, the property and the jurisdiction.
- Market declines reduce collateral value; additional collateral or repayment may be required.
- In a severe decline, the lender may sell pledged assets.
- Currency risk applies where the loan and assets are in different currencies.
- Leverage should be structured responsibly, with buffers below the maximum lending value.
DA Wealth Solutions
Property is only one part of the balance sheet.
Suitable clients may wish to keep portfolios invested, preserve liquidity, review asset allocation and overall leverage, and stress-test financing structures. That work is carried out by DA Wealth Solutions, a separate wealth and investment advisory business.
Marbella Property Advisory provides property advisory services and does not provide regulated investment advice.
FAQ
Questions buyers ask
What is portfolio-backed property financing?
A loan or credit facility secured on an eligible investment portfolio rather than on the property. The portfolio is pledged as collateral and can remain invested. It is also called Lombard lending or securities-backed lending.
How much can I borrow against a portfolio?
As an illustration, an eligible €1,000,000 portfolio might support a facility of around €700,000 (c. 70% loan-to-value). Actual lending value depends on portfolio composition, concentration, volatility, liquidity, currency, jurisdiction and lender approval.
Can financing cover taxes and purchase costs?
Depending on the structure, yes. A portfolio-backed facility can also be used toward transfer taxes, legal fees, notary, registration, valuation and other acquisition expenses, which is how 100% of the total acquisition can potentially be financed.
Does Marbella Property Advisory provide investment advice?
No. Marbella Property Advisory is a property advisory business. Investment and wealth advice, where relevant, is provided separately by DA Wealth Solutions or by your own bank or adviser.
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