Spanish Mortgages for non residents, by nationality

Non-resident mortgage facilities in Spain vary by nationality. Foreigners buying in Spain and applying for a mortgage can typically expect up to 70% loan-to-value. However, tax residency status can affect the criteria applied to non-EU citizens and expats, and the currency you earn in may also impact your access to a mortgage.

Before making an offer, it’s crucial to understand your options and borrowing capacity, based on your nationality and residency status. Spanish banks don’t offer non-resident mortgages to residents of certain countries, and a lack of income transparency or compliance issues can also prevent lending.

Want to know how your country of residency might affect a non-resident mortgage in Spain? Get the facts before making a commitment — speak with us today.

Spanish Mortgages for European Residents

Foreign applicants living in most European countries, applying for a non-resident mortgage in Spain, can typically expect up to 70% loan-to-value. Spanish banks also offer lending facilities to applicants based outside the EU, though fiscal circumstances and currency of earnings can affect the application — and regulatory changes have made currency of earnings an increasingly significant factor.

• Spanish banks generally view EU residents as strong applicants for a mortgage in Spain.
• Lending data shows that applicants from Germany, France, and Scandinavian countries such as Sweden, Denmark, and Norway tend to perform particularly well.
• The fiscal strength and stability of these countries works in applicants’ favour.
• Clear, well-documented paperwork also helps, allowing banks to easily assess the strength of an application.
• From an underwriting perspective, fiscal clarity is a major factor in a bank’s willingness to lend.

Some Spanish banks offer preferential rates to applicants from Germany and Scandinavia, based on a strong track record of positive lending experience.

Applicants from Fiscal paradises

Some European countries are treated by Spanish banks as fiscal paradises, which can make obtaining a mortgage in Spain considerably more difficult — mainly due to compliance issues or a lack of official documentation.

• Countries affected include Gibraltar, Malta, and Monaco.
• Expat applicants residing in these countries may find lending facilities more limited. From 50% to 60% loan to value.
• Applicants from fiscal paradises outside Europe can face even greater difficulty raising funds in Spain.
• Applicants living in non-tax-paying jurisdictions, or earning in certain currencies, may be precluded from borrowing altogether.
• A bank’s legal ability to pursue assets outside Spain in the event of default is also a key consideration.

Before you start searching for a property, contact us to check whether your country of residency could affect your ability to obtain a mortgage in Spain.

To work out general repayment levels, use our Spanish mortgage calculator

Mortgages in Spain for US Citizens

US citizens applying for a mortgage in Spain are well received by Spanish banks. The dollar is a currency most Spanish banks are comfortable trading in, so the currency restrictions introduced in 2019 don’t apply — US citizens buying a Spanish property are generally treated the same as Europeans.

• Limitations on loan-to-value and access to fixed rates are unlikely to apply.
• The availability of credit files, clear tax systems, and robust employment contracts all provide clarity for underwriters.
• Well-regulated annual accounts and tax returns for self-employed applicants allow lenders to readily assess the application.
• US citizens aren’t seen as a compliance concern.
• Source of deposits and income is straightforward to verify under money laundering regulations.
• Obtaining 70% loan-to-value depends on the fiscal strength of the applicant — clients with a strong financial profile shouldn’t face restrictions.

Visit our partner website for real estate abroad, optimised for US citizens, with a wide selection of property in Spain, Portugal, Italy, Greece, and elsewhere in Europe.

Spanish mortgages for residents of Middle East and UAE

Since the 2019 regulatory changes, it’s become more difficult for some non-residents to secure a loan in Spain — largely due to the currency they earn in. Applicants from countries with well-traded currencies tend to face fewer problems, with GBP and USD viewed positively by lenders.

• Applicants from the Middle East, including UAE-based expats, generally have more limited access to borrowing.
• The ability to prove income through tax returns, along with the currency of earnings, restricts access to the majority of Spanish banks.
• Employees of large multinational companies are more likely to secure a non-resident mortgage.
• Loans of between 50% and 70% loan-to-value are achievable for those living and working in Saudi Arabia and the UAE.
• Many Middle Eastern countries now offer credit file facilities, which are a key underwriting tool when assessing a non-resident mortgage application.

Applicants from non-tax-paying jurisdictions can typically expect to provide up to 12 months of bank statements, to substantiate their income levels.

Hong Kong, Australian/New Zealanders, and Singapore, Spanish mortgage applicants

Mortgage applicants residing in these countries can still access some Spanish banks, and much of the required documentation closely mirrors what’s seen in European applications. That said, loan-to-value may be limited, and not all Spanish banks will consider these applications.

• Nationals with no previous link to Europe may find lending harder to secure.
• Loan-to-value may be capped at 60%.
• Employees of major multinational companies are generally viewed as lower risk.
• Currency of earnings can restrict access to certain lenders.

It’s advisable to seek expert assistance when applying for a mortgage in Spain — working with an experienced broker significantly improves your chances of success.

To check how your country of residency might affect your borrowing options, contact us today.

China, Russia, Indian and African, non resident loans in Spain

Applicants from these countries will generally find it difficult to secure a mortgage in Spain — though with expert help from an experienced broker like IMS, it isn’t impossible. Expats working for multinationals in the oil and gas sector tend to have a better chance of obtaining a level of lending.

• For Russian and Chinese residents, the key issue is usually compliance.
• This often translates into difficulties moving money, opening bank accounts, and meeting money laundering regulations.
• Given the high level of due diligence required, some banks in Spain choose not to accept applications from certain countries at all.
• Maximum loan-to-value is normally around 50%, though applicants employed by a well-known global company may be able to achieve more.

The list of acceptable countries for Spanish banks can change regularly, so before committing to a purchase, it’s worth getting the facts. Contact our expert advisers today.

Spanish nationals working outside Spain

Whether resident or non-resident mortgage terms apply depends on where taxes are paid. Spanish passport holders working outside Spain will be offered non-resident terms and conditions, rather than resident ones.

• Given the clear link to Spain, most applicants shouldn’t experience difficulty securing a 70% loan.
• Because income tax is paid outside Spain, an 80% loan-to-value isn’t achievable in these cases.
• Applications from Spanish nationals living outside Spain can still be affected by their country of residence, as well as the currency they earn in.
• Family links in Spain are viewed positively.

Spanish nationals moving back to Spain will have access to resident mortgage terms, subject to holding a permanent work contract, that is outside any probationary period. Allowing for the possibility of 80% loan to value.

For first time buyers under the age of 35 years, this could be extended to 90% loan to value.

For expert advice and guidance, contact us today