Non Resident Spanish Mortgages – Investing in Spanish property has long been an attractive prospect and if you are a non-resident wishing to purchase your dream home with a mortgage, then researching & understanding the process, along with your eligibility, and lender requirements is key.
In this guide, we’ll explore the Spanish mortgage market for non-residents, the application process, and how it differs for buyers from the EU, UK, USA, Canada, and non-Euro countries.
The Market for Non Resident Spanish Mortgages
Spain remains one of Europe’s most desirable property markets, with increasing interest from foreign investors. Non-resident buyers—defined as individuals who spend less than 183 days per year in Spain and do not pay Spanish income tax—can access mortgages, but typically under different conditions than residents.
Key Market Considerations:
- Loan-to-Value (LTV): Non-residents can typically borrow up to 70% of the property value, whereas residents may access up to 80%.
- Interest Rates: Spanish mortgage rates for non-residents vary, but fixed and variable rate options are available. Rates for non-residents are often slightly higher than those for Spanish residents.
- Repayment Terms: Mortgages for non-residents usually have terms of 20-25 years, though some lenders may offer up to 30 years.
- Currency Risks: Non-Euro buyers need to consider fluctuations in exchange rates, as mortgage repayments will be in euros.
How to Apply for Non Resident Spanish Mortgages
1. Find a Suitable Lender
Many banks and international lenders offer non resident Spanish mortgages, but conditions vary. Working with a mortgage broker like EMAC can help you secure the best deal tailored to your situation.
2. Prepare Required Documentation
In order to assess your eligibility for non resident Spanish Mortgages lenders require various documents which will include:
- Proof of income (salary slips, tax returns, company accounts for self-employed buyers)
- Bank statements (typically last 3-6 months)
- Copy of passport or national ID
- Spanish NIE Number (Foreigner’s Identification Number)
- Property valuation report
- Debt-to-income ratio assessment (lenders prefer a ratio under 35-40%)
3. Obtain a Mortgage Pre-Approval
This step helps determine your borrowing power and makes property negotiations smoother.
4. Choose the Right Mortgage Type
- Fixed-rate mortgages offer stability with a set interest rate.
- Variable-rate mortgages are tied to the Euribor rate and may fluctuate.
- Mixed mortgages combine fixed and variable elements.
5. Sign the Mortgage Agreement and Property Deed
Once your Non Resident Spanish Mortgage is approved, the contract is signed before a Spanish notary, and the property purchase is completed.
Mortgage Considerations for Different Nationalities
EU Citizens
Buyers from EU countries usually benefit from a simplified application processes, given the shared regulatory framework within the European Union. Many Spanish banks are more comfortable lending to EU residents due to economic stability and ease of financial checks.
UK Buyers
Since Brexit, UK citizens face slightly stricter lending criteria but still enjoy relatively good access to Spanish mortgages. Both Fixed and variable rates are available for a term of around 25-30 years with a max LTV of 70%.
USA & Canada Buyers
Buyers from the USA and Canada can obtain Spanish mortgages, but they face additional checks due to compliance with international financial regulations. US Buyers might need to provide extra documentation, and there might be some limited availability on mortgage products for North American Buyers, The LTV might also require a higher deposit requirement.
Non-Euro Countries
Buyers from non-Euro countries may face additional currency exchange risks and stricter compliance requirements. You may need to verify your overseas income sources and in some cases higher interest rates may apply. You might also find that the LTV will be around 60%.
Taxes & Fees for Non Resident Spanish Mortgages
Always when securing non resident Spanish mortgages, buyers should also factor in the additional costs involved, on top of the property purchase price:
- Property Transfer Tax (ITP) – Typically, 6-10% (resale properties)
- VAT (IVA) & Stamp Duty (AJD) – Around 10-12% (new-builds)
- Notary & Registry Fees – 1-2% of property value
- Mortgage Arrangement Fees – 1-2% of loan amount
- Legal Fees – Around 1%
Key Reasons to Use a Broker Instead of Direct with the Bank
Finding non resident Spanish mortgages is one thing but actually getting approved for it is another and many applications are simply rejected because information is missing or it’s not structured properly.
This is where a broker can be really useful, and instead of sending off your application to every bank out there, they will find the most suitable ones for you, and your needs + they will fully check the application before it’s sent.
They will build you a strong profile, talk with the banks on your behalf, submit applications to lenders matching your requirements and stay with you throughout the process, from start to finish.
Why Choose EMAC for Your Non-Resident Spanish Mortgage?
Navigating the Spanish mortgage market can be complex for international buyers. EMAC specializes in securing Non Resident Spanish Mortgages, providing expert guidance on lenders, financing options, and the application process. Whether you’re buying a holiday home or an investment property, our team ensures you get the best mortgage deal tailored to your needs.
EMAC don’t just help with Mainland Spain, they can also offer key advice for anyone looking in the Canary Islands and the Balearic Islands.
Key Benefits of Choosing EMAC:
- Access to leading lenders and options offering non-resident mortgages.
- Expert guidance on required documentation and legal requirements.
- Assistance in obtaining the best interest rates and mortgage terms.
- Tailored advice for buyers from the EU, UK, USA, Canada, and non-Euro countries.
Final Thoughts
Buying property in Spain as a non-resident is a fantastic investment opportunity, but securing a mortgage requires careful planning. By understanding the market conditions, eligibility requirements, and working with experts like EMAC, you can make your dream of owning a home in Spain a reality.
Ready to explore your Non Resident Spanish Mortgages options? Contact EMAC today for expert advice and find the best mortgage solution for your Spanish property purchase.
