Banks normally issue a mortgage based on the same country as the asset is located, so it can be difficult for a non-Spanish-resident to arrange a mortgage from a home-country bank. Spanish banks however are accustomed to foreigners needing funds to purchase property in Spain, subject to some extra requirements compared to Spanish residents.
Interest rates
Spanish mortgages are often based on Euribor (the prevailing interbank loan rate) plus a percentage. This added percentage is lower for residents (around 1%) and rising to 2-3% for non-residents. A lower interest rate can usually be achieved by a non-resident via contracting extra products with the bank, for example home insurance, pension etc.
Financed amount
Non-residents in Spain can usually only get upto 60% of the property price, whereas residents can have 80% or more. Working age is also a contributing factor.
Repayment period
Usually this can only be a upto a maximum of 20 years for non-residents, whereas Spanish residents can get upto 30 years.
There are several different documents you’ll need if you want to take out a mortgage in Spain. These include:
- A copy of your country’s identity documentation.
- Your NIE (Foreign Identification Number), which you need to apply for if you’re doing any financial transactions within Spain.
- The tax residence certificate of the country in which you currently live. You have to ask the tax agency in your country.
- A copy of your employment contract and your latest pay slips. Banks usually ask for the last three payslips, but you might need to provide more.
- Your income statement of the last year. Bank statements of the last six months, in which your income, your expenses and the collection of any debt appears.
- Information about your current assets. For example, if you own other homes, you will have to present the certificate of ownership issued by the Property Registry of the corresponding country.
- Your credit report reflecting your debt repayments. You may have to ask the central bank of your country of residence for this.
Keep in mind, all documents written in another language other than Spanish will have to be translated by a sworn translator.
For specific post-Brexit questions you may have, our page on the subject might be of use.
If you are interested in transfering funds to Spain from a non-euro currency, we at MPM are working in partnership with Currencies-4-You to protect our clients from volatile fluctuations in the currency markets. Contact them for currency transfer solutions.
