Securing a mortgage in Spain from abroad: Steps & tips

It is a fact that more and more foreigners or non-residents in our country, buy a home in Spain. Among them, there are Spaniards who are working and living in another country and who, therefore, have the status of non-residents. In this case, despite having Spanish nationality, if they decided to buy a home in Spain and apply for a mortgage in Spain, as they have tax residence in another country, they would be applying for a mortgage for non-residents. Do you want to know the conditions, requirements and documents necessary to take out a mortgage in Spain as a foreigner or non-resident?

There are people who, either to invest in Real Estate, or because they want to have a second home or vacation home, are interested in buying a flat in Spain despite residing in another country. We consider a person to be a non-resident when:

  • You have not stayed in the country for more than 183 days throughout the calendar year (including sporadic absences) 
  • Does not have the main core of economic activities or interests in Spain (directly or indirectly) 

When applying for a mortgage, there are a series of specific requirements and conditions, as well as some characteristics of this type of mortgage, which we will see below.

Mortgage conditions for foreigners in Spain

Not all entities grant mortgages for non-residents in Spain, and the loans are subject to limitations and conditions. One of the entities that offers the option of granting mortgages for non-residents is

The usual way of contracting mortgages for non-residents is usually through the online channel, relying on telephone calls or by videoconference with the entity, since the majority of people who request this type of financing are not yet in Spain.

Characteristics of mortgages for non-residents

What are the repayment terms?

Regarding the amortization period, if we talk about non-residents, the maximum is usually between 20 and 25 years, being higher in the case of mortgages for residents in Spanish territory (the maximum is usually 30 years).

What is the maximum financing?

When we talk about mortgages for residents in Spain, the usual maximum financing level is usually 80% of the purchase price or appraisal value, the lower value between these two, reducing to 60% when we talk about second homes.

As for residents abroad, the maximum level that is usually financed is 60%.

Are interest rates higher?

Regarding interest rates, it will depend on each Entity. However, since it is usually financing for a second residence, the interest rates are usually a little higher than the rates applied in the financing of the habitual residence.

Mortgages granted to foreigners are usually at a fixed rate, so that the fee to be repaid by the client is constant. Another reason that explains why more fixed-rate than variable-rate mortgages are usually granted to foreigners is the fact that abroad it is more common to demand fixed-rate mortgages.

Documents to request a mortgage if you are a foreigner or reside outside of Spain

These are the usual documents that a foreigner needs to provide to apply for a mortgage:

  1. Photocopy of the NIE or passport. 
  2. The certificate that proves that you are not a resident in Spain 
  3. A work contract 
  4. The latest payslips or proof of income obtained in your country of residence 
  5. The bank statement of the last months where the payroll or usual income is entered. 
  6. The tax return 
  7. Tax residence certificate 
  8. Contract of the property to be acquired (or the deposit contract, failing that) 
  9. The last three receipts of outstanding debts, if any. 

Once the documentation has been received, the Entity will analyze the viability of the requested operation based on the documentation provided and the consultation of the solvency files of the country where the loan holder resides. If the requested financing is viable, the process of signing before a notary to formalize the purchase of a home and the contracting of the mortgage is the same as for mortgage loans granted to people residing in Spain.