Non-resident mortgage in Spain: the complete guide

Buying a home in Spain while living abroad is completely possible, and a mortgage can make it much easier. But Spanish banks look at non-residents in their own way, and knowing that from the start saves you time and trouble. This guide explains how it works, based on my day-to-day work with lenders, notaries and international buyers.

Can a non-resident get a mortgage in Spain?

Yes. Spanish banks lend to non-residents every day. What changes is how they assess you: they look closely at your income, your country of tax residence, your credit history and the property itself. Each bank has its own criteria, so choosing the right lender for your profile matters as much as the interest rate.

How much will the bank lend?

As a guide, non-residents can usually borrow up to 75% of the purchase price. The exact percentage depends on your profile, the bank and the property.

The loan term can usually run until you are 75, and in some cases until 80.

How much of your own funds do you need?

Plan on around 30% of the purchase price, plus 8–13% for taxes and buying costs, depending on the province. In total, roughly 38–43% of the price, which can come from savings or from equity released on another property.

In the Canary Islands, buying costs are at the lower end of that range, which is one of the reasons many international buyers choose the islands.

Which income is accepted?

Banks accept:

• —Employment income (salary, bonuses, commissions)
• —Self-employment income (salary, dividends)
• —Rental income
• —Pensions
• —Investment income

They do not count child maintenance or social security benefits as income.

If you are self-employed or a business owner, the analysis is more detailed. I will ask for your last three tax returns, and we will have a short video call before I price the options.

Fixed, variable or mixed?

All three are available to non-residents:

• —Fixed: the same payment for the whole term. Predictable.
• —Variable: linked to the Euribor, so the payment moves with the market.
• —Mixed: fixed for the first years, then variable.

The right choice depends on your plans, your income and how comfortable you are with changes in your payment. Through Mortgage Direct I compare offers from more than 20 lenders to find the one that fits.

What you need before applying

• —NIE: the Spanish identification number for foreigners. You need it to buy.
• —A lawyer: strongly recommended to check the property and the contract.
• —A power of attorney: useful if you won’t be in Spain for every step.
• —A currency partner: if your income is in another currency, to avoid losing money on the exchange.

We review all of this together in the initial assessment.

The process, step by step

1. —Affordability Check. You complete a short online form and accept the data-protection terms.
2. —Preliminary study, at no cost to you. I study your profile and price the mortgage options.
3. —Your choice. If you want to go ahead, you choose your preferred options and send the rest of your documents.
4. —Application to the banks. I send your file with a detailed report to the selected lenders. They usually answer in 7–14 days.
5. —Approval and valuation. Once approved, the property is valued and the bank issues its binding offer (FEIN).
6. —Notary. After the legal cooling-off period, you sign at the notary.

How long does it take?

As a guide: about 20 days for the viability study, around a week from the valuation visit to the report, and about 10 days for the final approval of the risk department.

By law, you then have a cooling-off period of at least 10–11 days after signing the FEIN (14 days in Catalonia). Before the deeds, you sign an “acta” at the notary confirming you understand the conditions; the deeds are signed at least 24 hours later.

Do you need to be in Spain?

No. Our interview takes place by video call and the whole process can be done remotely. You would only need to come to sign the transparency act and, the next day, the purchase deeds. Even that can be avoided by giving power of attorney to your lawyer or someone you trust.

A tip before you start looking

Get your profile pre-approved before you start viewing properties. You will know your real personal investment, negotiate with confidence and be able to move quickly when you find the right home.

This guide is for general information. Every profile is different and the final conditions always depend on the lender. If you tell me about your plans, I will give you a first view of your options, at no cost to you and with no obligation.