Mortgages for non-residents in Spain: A complete guide to terms and requirements

The main conditions for mortgage lending for non-residents

Funding amount (LTV — Loan to Value)

Spanish banks tend to finance:

• 50— 70% of the estimated value of real estate for non-residents.

• In some cases, if you have a stable high income and a good credit history, you can borrow up to 80%.

Minimum loan amount

• Most banks set a minimum mortgage between 100,000 and 150,000 euros.

Interest rates

• Fixed rate: 4.5% to 6.5% per annum.

• Variable rate: tied to Euribor + 1.5-3%.

• Combined schemes are possible (for example, a fixed rate for the first 5 years followed by a transition to a floating rate).

Loan term

• The minimum term is 5 years, the maximum is 30 years.

• Most often, mortgages are issued for 20-25 years.

• The borrower's age at the time of full repayment of the debt should not exceed 70-75 years.

Requirements for the borrower

Age restrictions

• The minimum age to get a mortgage is 18

• Maximum age — determined based on the loan term, but the borrower must not be over 75 years old by the time payments are completed.

Financial stability

• The amount of monthly mortgage payments should not exceed 30-40% of the borrower's official income.

Credit history

• It is desirable that there are no delays and arrears on previous loans.

• In some cases, the bank may request an extract from the credit bureau of the borrower's country of residence.

Required documents

Spanish banks ask non-residents for a standard package of documents to consider an application:

• Foreign passport.

• NIE (Foreigner Identification Number in Spain).

• Documents proving income:

• For employees: salary certificate for the last 3—6 months.

• For entrepreneurs: 2—3 year tax returns.

• Bank statement confirming the availability of own funds and a stable financial flow.

• Credit report (if requested by the bank).

• Property documents or other assets (if any).

Additional costs when applying for a mortgage

In addition to the amount of the down payment, the borrower should take into account the additional costs associated with buying real estate and applying for a loan:

• The bank's commission for opening a loan is from 0.5% to 2% of the loan amount.

• Notary and registration fees — 1— 2% of the property value.

• Real estate insurance is mandatory, the cost depends on the type and location of the property.

• Borrower's life insurance — required by some banks.

Preferential terms and special offers

Some Spanish banks offer improved mortgage conditions in the following cases:

• Purchase of primary real estate from developers accredited by the bank.

• The presence of a high level of income and significant assets.

• Purchase of an object from the bank's loan portfolio.

Conclusion

 Mortgage lending in Spain offers ample opportunities for non-residents who want to buy property for living, recreation or investment. However, mortgage terms, interest rates, and requirements for borrowers can vary significantly from bank to bank.‍

‍To choose the optimal loan terms, it is recommended to prepare all the necessary documents in advance, analyze the offers of various banks and contact mortgage lending specialists who will help you get the most favorable conditions.

If you are interested in buying property in Spain and applying for a mortgage, contact us — our experts will help you find the best option and carry out the deal as comfortably as possible!