How much does bridging finance cost in Spain?
Spanish bridging typically costs 0.7–0.9% per month in interest, plus an arrangement fee of 2%–5% dependent on project scenario, with valuation, legal and notary costs on top. On a twelve-month facility, all-in cost usually lands somewhere between 12% and 17% of the amount borrowed.
- Interest can be retained, rolled up or serviced monthly.
- Exit fees are not always charged but must be checked in the term sheet.
- Legal, notary and land registry costs are payable in addition.
- Shorter terms and stronger exits materially reduce total cost.
Key takeaways
- Spanish bridging rates typically run 0.75%–1.25% per month depending on LTV, asset and sponsor.
- Arrangement fees are usually 2%–5% of gross facility, dependent on project scenario; exit fees 0%–1%.
- Legal, valuation and notary costs add roughly 1.5%–2.5% of the facility in one-off cash costs.
- Total 12-month all-in cost of capital typically lands between 13% and 20% APR-equivalent.
- Retained interest reduces monthly cash-flow strain but increases headline LTV consumption.
Headline interest rates
Spanish bridging is priced on a monthly basis. In 2026 the market clears roughly as follows — for a clean, well-secured first-charge case with a credible exit inside 12 months:
- Prime residential, ≤55% LTV: 0.75%–0.90% per month.
- Residential, 55–65% LTV: 0.90%–1.10% per month.
- Commercial or mixed-use: 1.00%–1.25% per month.
- Second charge or complex title: 1.25%–1.75% per month.
Pricing improves materially on facilities above €3m, on prime Costa del Sol, Madrid and Barcelona assets, and where the sponsor has verifiable liquidity behind the exit.
The full fee stack
- Arrangement fee: 2%–5% of the gross facility, dependent on project scenario. Larger or more complex project finance sits at the upper end.
- Exit fee: 0%–1% on redemption (frequently negotiated to nil on shorter facilities).
- Valuation (tasación): €1,500–€6,000+ depending on asset value and complexity.
- Legal fees: lender legals typically €4,000–€12,000; the borrower pays their own separately.
- Notary and Registry: roughly 0.5%–1.0% of the loan, plus AJD (stamp duty) which varies by region (typically 1.2%–1.5% of the loan amount).
- Intermediary fee: quoted transparently by the arranging intermediary — usually 1%–1.5%.
Serviced vs retained vs rolled interest
Spanish lenders will typically offer three ways to handle interest:
- Serviced: paid monthly from external cashflow. Preserves LTV headroom but requires proven income.
- Retained: deducted from the loan at drawdown for the full term. Simplest cash-flow, but consumes LTV.
- Rolled: accrues and compounds monthly, paid at redemption. Used where LTV supports it and the exit is time-certain.
Worked examples
Example 1 — €500k, 12 months, residential, 60% LTV, retained interest
- Interest: 1.0% pcm × 12 = 12% (€60,000).
- Arrangement 2% (€10,000) + exit 1% (€5,000).
- Legals/valuation/notary/AJD ≈ €12,000.
- All-in cost of capital: ~€87,000 (≈17.4% of drawn amount).
Example 2 — €2m, 12 months, prime Marbella villa, 55% LTV, serviced
- Interest: 0.85% pcm × 12 = 10.2% (€204,000, serviced monthly).
- Arrangement 1.75% (€35,000) + no exit fee.
- Legals/valuation/notary/AJD ≈ €38,000.
- All-in cost of capital: ~€277,000 (≈13.9%).
Example 3 — €5m, 18 months, mixed-use Madrid, 60% LTV, rolled
- Interest: ~1.0% pcm compounded over 18 months ≈ 19.6% (€980,000).
- Arrangement 1.5% (€75,000) + exit 0.5% (€25,000).
- Legals/valuation/notary/AJD ≈ €85,000.
- All-in cost of capital: ~€1.165m (≈23.3% over 18 months, ~15.5% annualised).
What actually moves the price
- Exit certainty: a signed sales contract or approved term-loan offer materially compresses pricing.
- Asset liquidity: prime coastal and capital-city assets attract lower rates than rural or specialist stock.
- Sponsor liquidity: verifiable global liquidity behind the case is treated as soft credit enhancement.
- Charge position: first charge is the norm; second charge attracts a meaningful premium.
- Facility size: larger loans (€3m+) benefit from a competitive private-debt market.
Frequently asked
Questions from readers
Are Spanish bridging rates quoted monthly or annually?
Almost always monthly. Multiply by 12 for a rough annual figure, but note that fees and interest treatment (retained vs rolled vs serviced) shift the true APR-equivalent significantly.
Is there VAT (IVA) on the interest?
Interest on financial services is generally VAT-exempt in Spain. Intermediary fees and some ancillary services can attract IVA — always confirm on the term sheet.
How does AJD stamp duty affect bridging cost?
AJD (Actos Jurídicos Documentados) is a regional stamp duty on the loan deed, typically 1.2%–1.5% of the loan amount. It is a real cash cost paid at notary and should be included in any total-cost comparison.
Can arrangement fees be added to the loan?
Yes. Most lenders will capitalise the arrangement fee within the gross facility, provided total LTV remains inside policy.
What's the cheapest way to structure a Spanish bridge?
Serviced interest on a prime first-charge asset at ≤55% LTV, with a signed exit (sale or refinance offer) and a facility size above €3m — this combination attracts the sharpest pricing in the market.
Do I pay interest on any period after early redemption?
Most Spanish bridging facilities include a 3–6 month minimum interest period. Beyond that, early redemption is typically penalty-free — always check the redemption schedule on the term sheet.