Mortgages for Non-Residents in Spain

Buying a property in Spain as a foreigner is completely possible—even if you’re not a resident. However, getting a mortgage as a non-resident comes with specific conditions that you should understand before starting the process.

At Paramount Homes, we’ve created this practical guide to help you discover your options, understand the requirements, and follow the right steps to secure your mortgage smoothly.

1. Who Is Considered a Non-Resident in Spain?

You are considered a non-resident if:

• You spend fewer than 183 days per year in Spain.
• Your tax residency is in another country.

This includes foreigners looking to buy a second home, a holiday property, or an investment property.

2. Typical Conditions for Non-Resident Mortgages

Spanish banks usually apply different criteria for non-residents:

• Maximum financing: between 60% and 70% of the purchase price or valuation (whichever is lower).
• Maximum term: typically 20 to 25 years.
• Interest rates: slightly higher than for residents, though still competitive internationally.
• Currency: usually in euros, though some banks offer foreign currency mortgages.

📌 Example: For a property worth €400,000, a non-resident might secure financing of around €240,000 (60%) and cover €160,000 plus additional costs (10–15%).

3. Requirements for Foreign Buyers

Banks will request documentation to prove your financial stability and tax compliance:

• Passport or NIE.
• Proof of income (payslips, employment contract, or tax returns).
• Recent bank statements.
• Credit report from your country of residence.
• Reservation or purchase contract for the property.

4. Banks That Offer Non-Resident Mortgages

Several Spanish banks provide mortgage products tailored for international buyers:

• Banco Sabadell
• CaixaBank
• BBVA
• Bankinter

Some international banks with branches in Spain also offer non-resident financing.

5. Key Steps to Get a Mortgage in Spain

• Define a realistic budget: expect to provide 30–40% of the funds yourself for the down payment + costs.
• Compare mortgage offers: evaluate interest rates, fees, and mandatory insurance.
• Request pre-approval: strengthens your position when making an offer.
• Obtain an official valuation: required by the bank to confirm the property’s value.
• Sign at the notary: the mortgage is formalized along with the purchase deed.

Frequently Asked Questions (FAQs)

Can a non-resident finance 100% of the purchase price?
No. The maximum is usually 70% for foreign buyers, so you’ll need to provide capital yourself.

What minimum income do I need to prove?
It depends on the bank, but generally your monthly mortgage payment must not exceed 30–35% of your net income.

Can I take the mortgage in another currency?
Some banks allow this, but most recommend taking it in euros to avoid exchange rate risks.