Buying a property in Spain while living in the UK, USA or another country is an exciting prospect. Whether you are dreaming of a holiday home on the Costa del Sol, a retirement property in Alicante or an investment in one of Spain’s major cities, you may not need to pay for the entire property upfront.
Spanish mortgages are available to non-residents, allowing international buyers to finance a property purchase while continuing to live and work overseas. However, the application process, deposit requirements and lending criteria can differ from those available to Spanish residents.
At Your Spanish Mortgage, we help buyers understand their financing options and navigate the Spanish mortgage process with greater confidence.
Can non-residents get a mortgage in Spain?
Yes. Many Spanish lenders consider applications from foreign nationals who do not live in Spain. You do not necessarily need Spanish residency, a Spanish salary or Spanish tax returns to qualify.
However, approval depends on several factors, including your nationality, country of residence, income, existing debts, credit history and the property you intend to purchase.
Lenders also have different policies for international applicants. A mortgage that is available to a UK resident may not necessarily be offered on the same terms to a US resident or someone living elsewhere.
This is why understanding your options before committing to a property is essential.
How much deposit do non-residents need?
One of the most important considerations is your deposit.
As a general planning guide, non-resident buyers should be prepared to contribute around 30%–40% of the property’s purchase price, although the precise amount depends on the lender, applicant and property.
For example, if you purchase a property for €300,000 and a lender offers a mortgage covering 70% of the purchase price, your mortgage would be €210,000 and your deposit would be €90,000.
You must also budget for purchase taxes, legal fees, valuation costs and other transaction expenses. These are separate from your deposit and vary according to the property and location.
Importantly, the maximum mortgage is not always calculated in the way buyers expect. Lenders may assess the purchase price against the property’s valuation and apply their lending percentage to the lower figure.
What income do Spanish banks accept?
Spanish banks can consider income earned outside Spain, provided it can be verified and meets their lending requirements.
Depending on your circumstances, accepted income may include:
- Salary from permanent employment.
- Self-employed or company income.
- Dividends and other documented business income.
- Pension income.
- Rental income and certain investment income.
Self-employed applicants may need to provide additional evidence to demonstrate that their earnings are sustainable. Applicants with income in currencies other than euros should also consider exchange-rate fluctuations when calculating affordability.
Lenders generally assess your existing financial commitments alongside your income. Credit cards, personal loans, mortgages in your home country and other regular liabilities may affect how much you can borrow.
What documents will you need?
Although requirements vary between lenders, non-resident mortgage applications commonly involve:
- Passport or other accepted identification.
- Spanish NIE, where required for the transaction.
- Recent payslips or evidence of self-employed earnings.
- Tax returns and supporting financial statements.
- Bank statements showing income, savings and deposit funds.
- Details of existing loans and mortgage commitments.
- Credit information from your country of residence, where requested.
- Details of the Spanish property you intend to purchase.
US applicants may be asked for additional documentation relating to US tax returns, financial accounts and dollar-denominated income. Some documents may need translation or formal certification.
Submitting a complete and consistent application can help reduce avoidable delays.
Can you get a fixed-rate Spanish mortgage as a non-resident?
Yes. Depending on the lender and your circumstances, non-residents may be offered fixed-rate, variable-rate or mixed-rate mortgages.
A fixed-rate mortgage provides certainty over the interest rate for the agreed fixed period, or for the full term if the product is fixed throughout. A variable-rate mortgage can change as its reference rate and applicable terms change. A mixed-rate mortgage combines an initial fixed period with a subsequent variable period.
The right option depends on your budget, plans for the property, attitude to interest-rate risk and the terms available when you apply.
Rather than choosing a mortgage based on its headline interest rate alone, compare the total cost, fees, repayment conditions and any linked products.
How does the application process work?
The process typically involves six stages:
- Initial assessment: Review your income, deposit, financial commitments and borrowing objectives.
- Mortgage options: Identify lenders and products that may fit your circumstances.
- Property search and offer: Find a suitable property and agree the purchase terms.
- Formal application and valuation: Submit the required documents and arrange the lender’s property valuation.
- Mortgage approval and legal checks: Review the lender’s offer and complete the necessary legal work.
- Completion: Sign the relevant documents and complete the property purchase through the agreed Spanish conveyancing process.
It is sensible to explore mortgage eligibility before paying a non-refundable reservation fee or entering into a binding purchase commitment.
Is it harder for non-residents to get a Spanish mortgage?
Not necessarily, but there may be fewer suitable lenders and additional documentation requirements. Your country of residence, income currency, employment structure and deposit size can all influence the options available.
A specialist broker can help you understand which lenders may consider your application and identify potential issues before you commit to a purchase.
Frequently asked questions
Can British citizens get a Spanish mortgage after Brexit?
Yes. British citizens can still apply for Spanish mortgages while living in the UK. Lending criteria and documentation requirements depend on the individual lender and applicant.
Can Americans get mortgages in Spain?
Yes. Some Spanish lenders consider applications from US citizens and US residents, subject to their policies and the applicant’s financial circumstances.
Do I need a Spanish bank account?
A Spanish account may be needed to facilitate mortgage repayments and property-related payments, depending on the lender’s requirements. Confirm the arrangements before completion.
Can I rent out a property purchased with a Spanish mortgage?
This depends on the mortgage terms, local rental regulations and the type of letting involved. Check the relevant conditions before assuming rental income will be permitted or sufficient to support the mortgage.
Start exploring your Spanish mortgage options
Buying abroad requires careful planning, particularly when arranging finance across different countries and currencies.
Your Spanish Mortgage can help you understand the potential mortgage options available for your circumstances and what you may need to prepare before purchasing.
Contact Your Spanish Mortgage to discuss your plans and take the first step towards buying a property in Spain.
Recent Comments