Non-Resident Mortgage Guide
How to Get a Spanish Mortgage as a Non-Resident
Complete guide to Spanish mortgages for non-residents. Learn about LTV limits, documents required, and how to improve your approval chances.
Can Non-Residents Get a Mortgage in Spain?
Yes, non-residents can absolutely get a mortgage in Spain. Spanish banks actively lend to foreign buyers, particularly in popular coastal areas like the Costa Blanca and Costa del Sol. However, the conditions differ significantly from those offered to residents.
Many buyers assume that financing a Spanish property as a foreigner is either impossible or prohibitively complex. This is not true. With proper preparation and realistic expectations, securing a non-resident mortgage is a well-established process.
Key Differences: Resident vs Non-Resident
Non-Residents
Spanish Residents
The lower LTV for non-residents reflects the additional risk banks perceive when lending to borrowers whose income, assets, and credit history are outside Spain. This is standard practice and should not discourage you from pursuing financing.
Typical Mortgage Terms for Non-Residents
Spanish banks offer both fixed and variable rate mortgages to non-residents. Fixed rates provide payment certainty and are popular with buyers who want predictable costs. Variable rates are tied to Euribor and may start lower but carry interest rate risk.
Most banks require the mortgage to be repaid before you reach age 70-75. This affects maximum loan duration, particularly for buyers over 50.
Documents Required
Identification
Valid passport and NIE (Spanish tax number). The NIE is essential for all property transactions in Spain.
Income Proof
Last 3-6 months payslips, employment contract, or 2-3 years tax returns if self-employed.
Bank Statements
6-12 months of statements showing income deposits and existing financial commitments.
Credit Report
Credit history from your home country. Some banks request this directly; others ask you to provide it.
Most documents need official Spanish translation. Your mortgage broker or lawyer can advise which require certified translation versus simple translation.
The Application Process
Pre-Approval
Submit documents to the bank or broker. Receive an indicative offer showing maximum loan amount and estimated terms. This typically takes 1-2 weeks.
Property Valuation
Once you have a property in mind, the bank orders an independent valuation. The loan is based on the lower of purchase price or valuation.
Formal Offer (FEIN)
The bank issues a binding offer document called FEIN. You must receive this at least 10 days before signing to review all terms.
Completion
Sign the mortgage deed at the notary alongside the property purchase. Funds transfer to the seller and keys are handed over.
Costs Involved
Beyond your deposit, budget for these mortgage-related costs:
- Valuation fee: €300-€600 depending on property value
- Arrangement fees: Some banks charge 0.5-1% of loan amount
- Notary and registration: Costs for the mortgage deed itself
Recent legislation means banks now cover most mortgage taxes, but always confirm total costs in writing before proceeding.
Use our mortgage calculator to estimate monthly payments, and our buying costs calculator for total purchase expenses.
Common Reasons Applications Are Rejected
Documentation Issues
Financial Issues
How to Improve Your Chances
Start preparing 3-6 months before you plan to buy. Keep bank statements clean with regular income deposits and avoid large unexplained transactions. Pay down existing debts to improve your debt-to-income ratio.
Consider working with a mortgage broker who specialises in non-resident lending. They understand which banks are most receptive to foreign buyers and can match your profile to the right lender.
Get pre-approval before making an offer. This demonstrates you are a serious buyer and helps negotiations with sellers.
Frequently Asked Questions
Every buyer's situation is different. Your income type, home country, age, and the property you're buying all affect which lenders will consider your application and what terms they'll offer.
If you're unsure whether you qualify or want guidance on preparing your application, our Expert Panel can provide personalised advice based on your specific circumstances.
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