Getting a mortgage in Spain as a non-resident.

November 6, 2023 | Blog, Home & Relocation

Considering relocating to Spain and securing a mortgage for your new home? Although not a rule, it’s worth noting that Spanish banks often favour applications from married couples because of their combined financial stability. Here, Homevest explores the key requirements, bank options for non-residents, and tips to guide your decision.


Should I get a mortgage in Spain? Here’s what you need to know

If you’re thinking about getting a mortgage as a non-resident, it’s essential to assess your financial situation, the mortgage terms available and your long-term objectives.

Iván Bellod, Lawyer and Managing Director at Hoteland, has three helpful tips for those considering a mortgage for buying property in Spain:

  1. Long-term savings. A mortgage is an opportunity to invest in a jointly owned asset while taking advantage of favourable financial conditions. It’s a great way to make your money work for you, unlike renting where payments don’t build equity.

  2. Payment flexibility. This flexibility suits couples facing financial shifts, allowing them to upgrade homes or refinance for better rates.

  3. Negotiation leverage. Some sellers are more open to negotiation with buyers intending to use the property as a family home rather than an investment. This can provide negotiating leverage, potentially allowing access to 70% LTV instead of the usual 50% offered.

 

Getting a mortgage in Spain as a non-resident.

 

What are the main requirements for a mortgage in Spain?

When applying for a Spanish mortgage, one of the most important aspects is the bank’s evaluation to assess your financial health and capacity to repay the loan.

Spanish banks typically offer loans covering up to 70% of the property’s value, requiring a 30% cash deposit, and 4-11% for taxes and fees, depending on the property’s location. 

The NIE, a mandatory tax number for all financial activities in Spain, is an integral part of the mortgage application process and is easily obtainable from the Spanish consulate in your home country.

Best mortgages for non-residents in Spain

Among the top choices for non-resident buyers in Spain are CaixaBank, Sabadell, Santander, Unicaja, Cajasur, BBVA, and UCI. These banks provide mortgages to foreign applicants.

 

banks provide mortgages to foreign applicants

 

If you’re looking for mortgage options, Homevest can connect you with the top banks in Spain to receive and compare multiple mortgage offers.

“Getting the best deal in Spain will require some negotiation. The best way to secure multiple offers is by having most of the property purchase done before speaking to the banks. Even just paying the initial reservation fee will ensure the bank prioritizes your case”, says Erik Edin, co-founder and CEO of Homevest.

Homevest simplifies obtaining a mortgage in a foreign country by gathering your documents in one place.

Current mortgage rates in Spain

Being informed about mortgage rates is always a good idea. Negotiating is common, and that’s where Homevest steps in to ensure you secure the best deal. 

Homevest evaluated the bank’s offers for its clients, calculating effective interest rates. The effective interest rate approximates the annualized interest rate of a loan offer, considering the loan duration and initial promotional interest rate periods.

This analysis simplifies the comparison of fixed, variable, and mixed rate options.

Bank Lowest offer Highest offer
Caixabank 3.64% 5.90%
Sabadell 3.96% 7.12%
Cajasur 5.77% 5.85%
Unicaja 5.19% 5.19%
UCI 5.41% 5.41%
Santander 6.10% 6.10%

Based on data collected by Homevest September – October 2023

 

Mortgage offers in Spain


“The property-buying process can be complex, but having the support of knowledgeable professionals, like Homevest, who can simplify and guide you through procedures abroad, is invaluable”, says Sandra, a resident from France who bought a property in Madrid to relocate.

She secured a competitive interest rate: 1.8% for the first year, followed by 1.2% + Euribor, with no extra commissions or early repayment clauses.

Required documents for a mortgage in Spain

When applying for a mortgage with a co-applicant or alone, you’ll need to prepare the following documents:

  • Passport or ID
  • NIE Number
  • Proof of income: recent pay slips (usually the last three months) and tax forms for the last two years
  • Employment contract
  • Credit report from your home country
  • Bank statements from the last six months

 

 

Key takeaways

To provide a quick recap and ensure you’re prepared for this journey, here are the key points to remember:

  • Spanish banks typically favour married couples for mortgage applications due to combined financial stability.
  • Essential requirements for a mortgage in Spain include the bank’s evaluation, NIE number, and necessary documentation.
  • Top Spanish banks like CaixaBank, Sabadell, Santander, Unicaja, Cajasur, BBVA, and UCI offer mortgage options for non-resident foreign buyers.
  • Homevest provides a digital platform to simplify the mortgage process and connect buyers with top Spanish banks.

 

Find up-to-date information and tailored advice on Mortgages in Spain on the Homevest website.

Read more home and relocation recommendations on the MumAbroad.com blog.

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