Spanish Mortgages for non residents, by nationality

Non resident Mortgages in Spain are available. Foreigners buying in Spain and applying for a Spanish mortgage, can expect up to 70% loan to value. However criteria for non EU citizens and expats to obtain a mortgage in Spain, can be affected by where the applicant is a tax resident. Also the currency in which they earn their incomes.

When granted a Spanish mortgage, terms and conditions will be the same, no matter where you reside. Access to a mortgage in Spain, and loan to values, along with the term of the the Spanish mortgage can however be affected.

Want to know how your country of residency might affect a non resident mortgages in Spain. Before making a commitment get the facts. Speak with our team of advisers today

Obtain mortgage to buy property in Spain

Spanish Mortgages for European Residents

Foreign applicants living in most European countries, wanting non resident mortgages in Spain, can expect to gain 70% loan to value. Spanish Banks do offer expats, Spanish mortgages. Even when the Country sits outside the EU. However the fiscal situation and currency of earnings can affect the Spanish mortgage application. Due to regulation changes, currency of earnings has an impact.

  • Spanish Banks see residents from the key areas within the EU as strong applicants for a mortgage in Spain
  • Their loan books indicate Spanish Mortgage holders from Germany, Scandinavian countries, Sweden, Denmark and Norway and France are robust
  • The fiscal strength and stability of these countries is a positive
  • Likewise clear paperwork. Therefore the Banks can ascertain easily the strength of the Spanish mortgage application
  • For risk reasons this is a major factor in the lenders desire to lend
  • Some Banks in Spain will offer preferential rates to applicants from Germany and Scandinavia. This is because of the historic positive experiences
Mortgages in Spain for fiscal paradise applicants

Applicants from Fiscal paradises

Some European countries are considered fiscal paradises by the lenders. Obtaining a mortgage in Spain, in these cases is more difficult. Mainly due to compliance issues or lack of official documentation.

  • Countries affected include Gibraltar, Malta, Monaco
  • Applicants for a mortgage in Spain, who are expats of these countries, may find lending facilities for a Spanish mortgage are more limited
  • Applicants from other fiscal paradises outside Europe may experience further difficulties raising funds in Spain
  • Applicants from non tax paying jurisdictions and paid in certain currencies may be precluded from borrowing in Spain
  • Legal ability to pursue assets in event of a default is considered by the Spanish Bank

Before searching for a property contact us to see if your country of residency will affect your ability to obtain a mortgage in Spain.

To work out general repayment levels use our Spanish mortgage calculator

Calculating Spanish mortgage costs

Mortgages in Spain for US Citizens

Applicants who are US citizens looking to raise a Spanish mortgage, are welcomed by most Banks. The Dollar is a currency most Spanish Banks trade in. US citizens applying for a mortgage to buy a Spanish overseas property, can in general expect to be treated in the same way as Europeans.

  • Loan to values and access to fixed rates might be limited, due to earnings not being in Euros
  • Availability of Credit files, clear tax system, along with robust English work contracts, make risk assessment easier
  • Yearly accounts for self employed, allow the lenders to assess the risk for the mortgage in Spain. As documents are clear and understood
  • US citizens are also not seen as compliance issue
  • Source of deposits and incomes are easy to check under money laundering rules
  • Loan to values might be limited to 60%
  • Subject to the fiscal strength of the applicant, clients with a high quality fiscal situation are able to obtain the full 70%

Visit our partner website for real estate abroad optimized for US citizens with a wide selection of property in Spain, Portugal, Italy, Greece and elsewhere in Europe.

Spanish mortgages for residents of Middle East and UAE

Since the 2019 regulation changes, it has become more difficult for some non residents to obtain a loan in Spain. This is mainly due to the currency of their earnings. Those living in countries with well traded currencies will have less problems. GBP and the US dollar are considered more positively.

  • Applicants from the Middle East, also UAE expats will have limited access to borrowings
  • Due to the ability of the individual to able to prove incomes via tax returns, also the currency of earnings
  • Those employed by large multi national companies will find it easier to gain a non resident mortgage in Spain
  • Loans between 50% to 60% can be achieved for those living and working in the Middle East
  • Most Middle East countries now have some form of credit file. This is a key underwriting tool, when assessing a non resident mortgage application
  • Mortgage applicants from non tax paying jurisdictions can expect to have to provide many months of bank statements. To substantiate income levels

Hong Kong, Australian/New Zealanders, and Singapore, Spanish mortgage applicants

Spanish Mortgage applicants for residents of these countries, will be able to access some Spanish Banks for lending. Much of the documentation required reflects closely the formats seen in Europe. Loan to values may be limited. Not all Spanish Banks will consider an application.

  • Nationals with no previous link to Europe, may find lending harder to achieve
  • Loan to values will not exceed 60%
  • Employees of major multi nationals are accepted
  • Currency of earnings may affect access to certain lenders
  • Obtaining expert assistance to make an application for a mortgage in Spain is advisable. Most importantly using an experienced broker increases the chance of success

To check how your country of residency will affect your borrowing requirements contact us today

China, Russia, Indian and African, non resident loans in Spain

Applicants from all these countries will find it difficult to gain a mortgage in Spain. With expert help from an experienced broker like IMS, its not impossible. Expats working for multi nationals in the Oil and Gas industry may be able to get some level of lending.

  • The key issue for Russian and Chinese residents is usually compliance
  • Therefore the difficulties in moving money, opening bank accounts and meeting money laundering regulations
  • Due to high level due diligence obligations, some Banks in Spain choose not to deal with applications from some countries and their residents
  • Generally speaking 50% loan to value will be maximum. However if the applicant is employed by a well known company there are possibilities, that this could be higher

Acceptable countries for Spanish Banks can change regularly. Before committing to a purchase in Spain, find out the facts. Contact our expert advisers today.

Spanish nationals working outside Spain

Whether a resident, or a non resident mortgage is granted, depends entirely on where taxes are being paid. This means that Spanish passport holders, working elsewhere in the world, will be offered non resident terms and conditions. Rather than resident ones.

  • Because of the clear link to Spain most applicants will not experience difficulties in gaining a 70% loan
  • It is not possible to gain the 80% achievable, if income taxes are paid in Spain
  • Applications from Spanish nationals who are non resident in Spain, may be affected by country they live in
  • Also currency of earnings
  • Family links in Spain will be deemed as a positive
  • Spanish nationals moving back to Spain will have access to resident loans. Subject to a permanent work contract

For expert advice and guidance contact us today