Getting a mortgage in Spain as a non-resident
Getting a mortgage in Spain as a non-resident
By Home Kare · 8 min read · Buyer’s Guide
Getting a mortgage in Spain as a non-resident is entirely possible, and plenty of owners at Hacienda del Álamo have done it. The rules are a little different from those for residents, though. Banks lend less, ask for more paperwork and take longer to say yes. This guide explains what to expect, what to prepare and where the surprises usually are.
How a mortgage in Spain for non-residents works
A Spanish bank will lend to you even if you live abroad. What changes is how much risk it is willing to take. Your income is earned in another country and often in another currency, so the bank protects itself by lending a smaller share of the price.
As a rough guide, residents can usually borrow up to 80% of the property’s value. With a mortgage in Spain for non-residents, the figure is typically between 60% and 70%. These are approximate market ranges, and each bank sets its own limits depending on your profile.
How much you will need upfront
That lower loan-to-value is the number that shapes your budget. If the bank lends 65%, you need the other 35% from your own savings. On top of that come the purchase taxes and fees, which add roughly 10% to 13% of the price on a resale property in the Region of Murcia.
In practice, many buyers plan for around 45% to 50% of the price in cash. It sounds like a lot, but it is better to know it before the viewing trip than after it.
Fixed, variable or mixed
Spanish banks offer three types of rate. A fixed rate keeps the same payment for the whole term. A variable rate follows the Euribor and changes with it. A mixed rate starts fixed for a few years and then becomes variable.
For a mortgage in Spain for non-residents, many buyers prefer a fixed rate. Your income is already exposed to currency changes, so a predictable payment removes one variable from the equation.
What the bank will ask you for
The paperwork is the slowest part of the process. Having it ready from the start can save weeks. These are the documents most banks request:
- Your passport and your NIE, the Spanish tax identification number for foreigners
- Proof of income: recent payslips or, if self-employed, your last tax returns
- Your last six to twelve months of bank statements
- A credit report from your home country
- Details of any other loans or mortgages you already have
- A Spanish bank account, from which the monthly payments will be taken
Documents in other languages often need an official translation. Ask the bank early which ones it will accept as they are.
The valuation
Before approving the loan, the bank sends an approved valuer to the property. The loan is calculated on the valuation or the purchase price, whichever is lower. If the valuation comes in under the price you agreed, the gap comes out of your pocket.
The steps, from offer to keys
A mortgage in Spain for non-residents follows the same legal process as any other home loan. Spain’s mortgage law, Law 5/2019 on real estate credit, sets out several protections that apply to you too.
- Pre-approval. You share your documents and the bank tells you roughly how much it would lend. It is not binding, but it tells you your real budget.
- Reservation and private contract. You reserve the property and sign the private purchase contract, usually with a deposit. Make sure it includes a clause in case the mortgage is refused.
- Valuation and binding offer. The bank values the property and issues the binding offer, a standard document called the FEIN.
- Ten days to review. By law, you must have the loan documents at least ten days before signing. During that time you meet the notary, free of charge, to go through the terms.
- Completion. You sign the deed and the mortgage at the notary on the same day, and you get the keys.
The Bank of Spain’s customer portal explains each of these documents in plain language, and it is worth a read before your first meeting with a bank.
Costs that come with the loan
Since 2019, the bank pays most of the costs of setting up the mortgage: the notary fees for the loan, the land registry, the processing agent and the stamp duty on the mortgage deed. You normally pay for the valuation, which costs a few hundred euros.
Watch for the extra products. Banks often offer a lower rate if you take out their life insurance, home insurance or a pension plan. These offers are legal and sometimes worth it, but compare the total cost, not just the rate.
Once the loan is running, the monthly payment joins the other running costs of the property. We list them all in our guide to what it actually costs to own at Hacienda del Álamo.
Common mistakes
Signing the private contract without a mortgage clause. If the bank says no, you could lose your deposit. A good contract protects you from that.
Underestimating the cash needed. Lower borrowing plus purchase taxes means more savings upfront than most buyers expect.
Starting the paperwork late. Translations, credit reports and an NIE take time. Begin while you are still choosing the property.
Forgetting the currency. If you earn in pounds or another currency, a weaker exchange rate makes every euro payment more expensive. Some buyers move part of the funds early to fix the cost.
Is a mortgage in Spain for non-residents worth it?
For many buyers, yes. It keeps part of your savings available, and the interest you pay can be lower than the return on that money elsewhere. For others, paying cash is simpler and faster, especially with a smaller property.
What matters is knowing the numbers before you start. If you are planning a visit, our guide to your property viewing trip covers what to check on the ground. And if you plan to spend long periods here, read about the 90/180 day rule too.
Thinking about buying at Hacienda del Álamo? We can help you understand how much you can borrow before you fall in love with a property. Take a look at the properties for sale and get in touch with us. We will put you in contact with lenders who work with non-residents.
Figures in this guide are approximate and for general information only. Each bank applies its own criteria, and conditions change over time. Always confirm the terms with your lender and an independent adviser before signing.