Mortgages in Spain for non-residents: your guide to buying a property with a Spanish mortgage

Are you a non-resident looking to buy property in Spain? Whether it’s a holiday home or an investment, understanding your mortgage options as a non-resident is essential before making a purchase. This guide explains how non-residents can secure a mortgage in Spain, typical lending conditions, and tips to improve your chances of approval.

Can non-residents get mortgages in Spain?

Yes, non-residents can obtain Spanish mortgages, although the process differs from that for residents. Many Spanish banks offer mortgages specifically designed for foreign buyers, but the lending criteria and mortgage conditions vary depending on your residency status and nationality.

What are the typical mortgage rates for non-residents in Spain?

Mortgage interest rates for non-residents tend to be higher than for residents. While residents may secure rates below 1%, non-residents should expect rates starting around 2-2.5%. Most non-resident mortgages are fixed-rate and have terms capped at 20 years.

How much can non-residents borrow?

Spanish banks usually limit mortgage financing for non-residents to 60% of the property’s purchase price, compared to up to 80%, and in some cases 90% or even 100%, for residents. Some lenders might increase this to 70%, but it’s rare. This conservative approach reflects the increased risk banks associate with lending to buyers who live abroad.

Can non-residents borrow 100% of the property value?

In rare cases, non-residents can obtain mortgages covering up to 100% of the purchase price, but this generally only applies to repossessed properties sold by banks. Such mortgages often come with stricter terms and eligibility requirements.

Residency and tax status: why it matters

If you spend more than 183 days in Spain, pay taxes locally, and register as a resident, you can apply for a standard Spanish mortgage with more favourable conditions, similar to those available to Spanish citizens.

What documents do you need to apply for a Spanish mortgage as a non-resident?

Spanish lenders require extensive documentation to process mortgage applications, including:

• Proof of income and employment (work contracts, payslips)
• Tax returns from your home country
• Bank statements demonstrating proof of funds
• A credit report from your country of residence (for UK applicants, from Experian, Equifax, or TransUnion)
• Your NIE (Número de Identificación de Extranjero), which you must obtain before completing the purchase

All documents must be officially translated into Spanish, and some may require a Hague Apostille to confirm their authenticity.

How to improve your chances of getting a mortgage in Spain as a non-resident

• Maintain a good credit score in your home country
• Provide clear and comprehensive documentation
• Consider working with a mortgage broker specialising in non-resident mortgages
• Choose banks with specific mortgage products for foreigners, such as Santander or BBVA

Frequently asked questions about Spanish mortgages for non-residents

Q: Can UK nationals get mortgages in Spain after Brexit?
A: Yes, UK nationals remain eligible for Spanish mortgages. However, lending criteria and documentation requirements might differ slightly post-Brexit, so it’s important to check current rules.

Q: What is the NIE and how do I get one?
A: The NIE (Número de Identificación de Extranjero) is a foreign identification number required for property purchases in Spain. You can apply for it at a police station in Spain or at a Spanish embassy or consulate in the UK.

Q: Are there any special mortgage products for foreigners?
A: Yes, several banks offer tailored mortgage products for non-residents, with flexible conditions and competitive rates. It’s worth comparing offers from banks like Santander, BBVA, and CaixaBank.

Q: Can I use a UK mortgage broker to get a Spanish mortgage?
A: Some UK brokers specialise in international mortgages and can help you navigate Spanish mortgage options. Alternatively, Spanish mortgage brokers or advisers specialising in non-resident buyers can provide local expertise.

Q: How long does the mortgage approval process take?
A: Mortgage approval can take anywhere from 4 to 8 weeks, depending on the complexity of your application and the bank’s requirements.

Getting a mortgage in Spain as a non-resident

If you're a non-resident foreigner and want to buy a house in Spain, look no further than idealista/hipotecas. Find and compare the best mortgages in Spain for non-residents, resolve any questions about taking out a mortgage in Spain as a non-resident and find the best mortgage options tailored to your needs. Start your mortgage application today: