Spanish Mortgages for non residents, by nationality

Non resident Mortgages in Spain facilities vary by nationality. Foreigners buying in Spain and applying for a Spanish mortgage, can expect up to 70% loan to value. However tax residency can affect the criteria for non EU citizens and Expats. In addition the currency of incomes may affect access to a Mortgage in Spain.

Before making an offer, understanding options and access to borrowings is crucial. Dependant on your nationailty, and residency status. Spanish Banks do not offer non resident mortgages to residents of certain countries. Lack of transparency of incomes and compliance issues can prohibit lending.

Want to know how your country of residency might affect a non resident mortgages in Spain. Before making a commitment get the facts. Speak with our team of advisers today

Obtain mortgage to buy property in Spain

Spanish Mortgages for European Residents

Foreign applicants living in most European countries, requiring non resident mortgages in Spain, will gain 70% loan to value. Spanish Banks  also offer lending facilities when the Country sits outside the EU. However fiscal situations and currency of earnings can affect the loan application. Due to regulation changes, currency of earnings has had an impact.

  • Spanish Banks consider residents within the EU as strong applicants for a mortgage in Spain
  • Banks loan books indicate that applicants from Germany, Scandinavian countries, Sweden, Denmark and Norway and France perform well
  • The fiscal strength and stability of these countries is a positive
  • Likewise clear paperwork. Therefore the Banks can ascertain easily the strength of the Spanish mortgage application
  • For underwriting purpose fiscal clarity is a major factor in the desire to lend
  • Some Banks in Spain offer preferential rates to applicants from Germany and Scandinavia. Because of historic positive experiences
Mortgages in Spain for fiscal paradise applicants

Applicants from Fiscal paradises

Some European countries are considered fiscal paradises by Spanish Banks. In this instance obtaining a mortgage in Spain, is more difficult. Mainly due to compliance issues or lack of official documentation.

  • Countries affected include Gibraltar, Malta, Monaco
  • Expat applicants who reside in these countries, may find lending facilities for a Spanish mortgage are more limited
  • Applicants from fiscal paradises outside Europe will experience further difficulties raising funds in Spain
  • Applicants living in non tax paying jurisdictions, also paid in certain currencies, may be precluded from borrowing in Spain
  • Legal ability to pursue assets outside Spain in event of a default, is a consideration for Spanish Banks

Before searching for a property contact us to see if your country of residency will affect your ability to obtain a mortgage in Spain.

To work out general repayment levels use our Spanish mortgage calculator

Calculating Spanish mortgage costs

Mortgages in Spain for US Citizens

Welcombed by Spanish Banks are US citizens applying for a Spanish mortgage. The Dollar is a currency most Spanish Banks trade in. Therefore the currency restrcitions of 2019 do not apply. US citizens applying for a mortgage to buy a Spanish overseas property, are treated the same as Europeans.

  • Limitations on loan to values and access to fixed rates are unlikley to be implemented.
  • Availability of Credit files, clear tax systems, along with robust work contracts, provide clarity for underwriters
  • Well regulated yearly accounts and tax returns for self employed, allow the lenders to readily assess the application for a mortgage in Spain
  • US citizens are not seen as compliance issue
  • Source of deposits and incomes are easy to check under money laundering rules
  • Loan to values might be limited to 60%
  • The maximum 70% loan to value is subject to the fiscal strength of the applicant. Clients with a high quality fiscal situation will not experience restrictions

Visit our partner website for real estate abroad optimized 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 regulation changes, it has become more difficult for some non residents to obtain a loan in Spain. This is mainly due to the currency of their earnings. Those living in countries with well traded currencies have less problems. GBP and the US dollar are positively considered.

  • Applicants from the Middle East, also UAE expats have limited access to borrowings
  • The ability of the individual to able to prove incomes via tax returns.In addition the currency of earnings limits access to the majority of Spanish Banks
  • Employees of large multi national companies are more likley to gain a non resident mortgage in Spain
  •  Loans between 50% to 70% are achieveable for those living and working in Saudi Arabia and the UAE
  • Many Middle East countries now have credit file facilities.This is a key underwriting tool, when assessing a non resident mortgage application

Mortgage applicants from non tax paying jurisdictions can expect to have to provide up to 12 months of bank statements. To substantiate income levels.

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

Spanish Mortgage applicants with residency of these countries, are able to access some Spanish Banks. Much of the documentation required reflects closely the formats seen in Europe. Loan to values may be limited. Not all Spanish Banks will consider an application.

  • Nationals with no previous link to Europe, may find lending harder to achieve
  • Loan to values may not exceed 60%
  • Employees of major multi nationals are considered less risk
  • Currency of earnings affects access to certain lenders

Obtaining expert assistance when making an application for a mortgage in Spain is advisable. Most importantly using an experienced broker increases chances of success

To check how your country of residency will affect your borrowing requirements contact us today

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

Applicants from all these countries will find it difficult to gain a mortgage in Spain. With expert help from an experienced broker like IMS, its not impossible. Expats working for multi nationals in the Oil and Gas industry are more likley to obtain a level of lending.

  • Key issue for Russian and Chinese residents is usually compliance
  • Therefore difficulties in moving money, opening bank accounts and meeting money laundering regulations
  • Due to high level due diligence obligations, some Banks in Spain choose not to deal with applications from certain countries
  • Maximum loan to value is nromally 50%. However applicants employed by a well known global company may achieve more

Acceptable countries for Spanish Banks can change regularly. Before committing to a purchase in Spain, find out the facts. Contact our expert advisers today.

Spanish nationals working outside Spain

Whether a resident, or a non resident mortgage is granted, depends on where taxes are bpaid. Spanish passport holders, working outside Spain, will be offered non resident terms and conditions. Rather than resident ones.

  • Because of the clear link to Spain most applicants will not experience difficulties in gaining a 70% loan
  • Because income taxes are paid outside Spain, it is not possible to gain 80% loan to value
  • Applications from Spanish nationals who are non resident in Spain, may be affected by country they live in
  • Also currency of earnings
  • Family links in Spain will be deemed as a positive
  • Spanish nationals moving back to Spain will have access to resident loans. Subject to a permanent work contract

For expert advice and guidance contact us today