How to get a mortgage in Spain for foreigners and non-residents?
Foreigners can get mortgages to purchase property in Spain, but securing a mortgage as a foreigner or non-resident involves a well-structured process tailored to meet specific legal and financial requirements. Generally, banks in Spain have different requirements for foreigners than they do for citizens and residents.
Foreigners and non-residents will need a minimum of 30% of the property’s total cost as a deposit and may need to provide evidence of a regular and consistent income and additional documents such as proof of income, work contracts, and tax returns.
Understanding the lending conditions for foreigners and non-residents is crucial. Below are the essential steps and considerations to successfully obtain a mortgage in Spain.
Mortgages in Spain for non-residents (foreigners).
Non-residents in Spain may be eligible for mortgages, but the terms and conditions of the loan may vary from lender to lender. Spanish banks typically finance up to 70% of the property’s purchase price for non-residents. This means buyers need to provide a down payment of at least 30%. The terms of these mortgages usually span from 5 to 30 years, with interest rates offered in fixed, variable, or mixed options.
Applicants must provide proof of income, such as payslips or tax returns, recent bank statements, and details of existing debts. Additionally, a Spanish bank account is often required, and obtaining an NIE (Número de Identificación de Extranjero), a foreigner identification number, is mandatory.
Mortgages for overseas property in Spain (US, EU citizens)
There are a variety of mortgage providers in Spain that provide mortgages for overseas property. These mortgages are typically offered to non-residents, and they may require that you provide some form of proof of income or other financial information.
Some of Spain’s most common mortgage providers include: Banco Santander, Banco de Sabadell, BBVA, and CaixaBank. It is essential to research each lender thoroughly before applying for a mortgage and to compare the interest rates, terms, and conditions.
Hiring a local solicitor can significantly streamline the process. They ensure compliance with Spanish laws, manage the legal paperwork, and clarify additional costs, such as property taxes, notary fees, and registration fees, which can add up to 10-15% of the purchase price. A solicitor also helps in understanding the intricacies of the Spanish real estate market.
Spanish mortgage for UK resident
Unfortunately, at the moment it is not possible for a UK resident to obtain a Spanish mortgage. This is due to the fact that Spanish banks and lenders have specific criteria for who they will lend, and after Brexit UK residents are not eligible to apply. That being said, it is possible for a UK resident to purchase a property in Spain and obtain financing from a UK-based lender.
Mortgage for foreigners – Process & Paperwork
In Spain, the process of obtaining a mortgage is similar to that in other countries. Applicants must provide a valid form of identification, such as a passport or Spanish ID, proof of income and employment history, and evidence of sufficient funds or income to cover the cost of the mortgage.
Additionally, a copy of the current deed of the property must be submitted. The bank or lender will then conduct a valuation of the property and decide if the loan is suitable.
When accepted, the applicant must pay an initial deposit, usually around 20-30% of the purchase price. The bank will also require the applicant to pay a fee for processing the mortgage application. The applicant must then sign the mortgage deed, which outlines all of the terms and conditions of the mortgage.
This document must be signed in the presence of a notary and two witnesses. The notary will certify the deed and the witnesses will sign to confirm that the applicant understands the terms and conditions outlined in the document. Once the mortgage deed has been signed and accepted, the bank will send the funds to the seller or developer and the purchase can be completed.
Spanish mortgage rates
The current average mortgage rate in Spain is lower than the average mortgage rate in the United States. A Mortgage for foreigners or non-residents might vary. Consult us for more information and the most recent rates.
Spanish mortgage calculator
A good credit score and financial stability enhances the likelihood of mortgage approval. Researching different banks and mortgage products is highly recommended to identify the best interest rates and terms. There are a variety of Spanish mortgage calculators available online. Some of the more popular ones are:
- Mortgage Calculator Spain: This calculator is provided by the Spanish government and is easy to use. It allows users to quickly calculate their monthly payments and the total cost of a mortgage loan.
- Caixa Bank Mortgage Calculator: This calculator is provided by Caixa Bank and is designed to help users calculate their monthly payments and the total cost of a mortgage loan.
- BBVA Mortgage Calculator: This calculator is provided by the Spanish bank BBVA and is designed to help users calculate their monthly payments and the total cost of a mortgage loan.
- Banco Santander Mortgage Calculator: This calculator is provided by Banco Santander and is designed to help users calculate their monthly payments and the total cost of a mortgage loan.
By far the best way to calculate your monthly payments and make sure you are able to get your mortgage in Spain, contact our local real estate agents, they will put you in contact a the best professionals in the sector.
While obtaining a mortgage in Spain as a foreigner or non-resident requires meticulous planning and adherence to specific requirements, being well-prepared and informed can facilitate a smooth and successful acquisition of a Spanish property. By understanding the process, organizing necessary documentation, and seeking professional advice, buyers can effectively navigate the Spanish mortgage landscape. The easiest way to know the current situation is by contacting us.
For nearly two decades, LuxuryForSale.Properties Marbella has been the go-to choice for those looking to purchase luxury properties in one of the most sought-after locations on the planet. Our company has established itself as a market leader in the exclusive high-end and ultra-high-end luxury real estate sector, catering to a discerning clientele of international buyers.