The Trustee

Can Foreigners Get a Mortgage in Spain? What Every Buyer Should Know

Can I get a mortgage as a non-resident in Spain? - this is one of the most common questions we hear from potential investors - whether they’re EU nationals from Sweden or the Netherlands, or non-EU citizens from the US or the UK. The answer is a resounding yes, you can! Spain’s banking industry is well-equipped to accommodate foreign buyers, thanks to its large expat community. Major institutions like BBVA, La Caixa, and Santander offer a variety of mortgage products tailored to both residents and non-residents, making property ownership in Spain more accessible than you might think.

Yes, non-residents can obtain a mortgage in Spain! The Spanish banking system is well-prepared to work with foreign buyers, offering various mortgage products to both residents and non-residents. However, each bank has its own set of requirements and terms, so understanding the process is crucial.

What Do You Need to Apply for a Mortgage in Spain as a Foreigner?

While requirements may vary by bank, here are the key documents typically needed:

NIE (Foreigner’s Identification Number or Número de identidad de extranjero in Spanish): Essential for any legal or financial transaction in Spain.
Proof of Income: Documents such as employment contracts, pay slips, and recent tax forms.
Tax Returns and Credit Report: A record of your financial history from your home country.

Good news: If your documents are in English, most Spanish banks will accept them without translation. For other languages, you’ll need a sworn translation or an English version provided by your employer or local authorities.

How Much Financing Can You Expect?

Non-residents in Spain can typically access mortgages covering up to 70% of the property’s purchase price. This makes financing an attractive option, especially given the current favorable mortgage rates.

According to the Bank of Spain and the Spanish Mortgage Association, the average interest rate for new mortgages in October 2024 was 3.423%, the lowest rate since January 2023. This provides an excellent opportunity for foreign buyers to secure financing on favorable terms.

Is Life Insurance Required?

While life insurance isn’t mandatory, many Spanish banks offer incentives such as discounted interest rates when you bundle your mortgage with additional products like home or life insurance. These optional add-ons could save you money over the term of your mortgage while providing extra peace of mind.

With competitive interest rates and accessible mortgage options for non-residents, Spain offers a welcoming financial environment for foreign investors. At UTRUST, we specialize in helping EU and non-EU buyers seamlessly navigate the mortgage application process.

Contact us at info@utrust.es for a complimentary consultation to explore a tailored tax and real estate investment strategy that meets your unique needs.