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Guide for non-residents: how to apply for a mortgage in Spain

It is possible to apply for a mortgage in Spain as a non-tax resident, although the conditions are usually different and somewhat more restrictive compared to residents.

Basic requirements that a non-resident must meet

  • Have a valid passport or identity document.
  • Have a NIE (Foreign Identification Number). This can be obtained at a police station or through the Spanish consular office in your country of residence.
  • Certificate of tax residence, which can be requested from the tax agency in your country of residence and certifies that you do not pay taxes in Spain.
  • Employment contract, payslips for the last 3 to 6 months, and tax return for the last financial year.
  • Recent bank statement showing the movements of the account where your regular income is received.
  • Good credit history and stable financial situation.

How much do banks finance? What conditions do they apply?

  • Banks usually finance between 60% and 70% of the purchase price or appraisal value of the property, requiring the buyer to contribute 30-40% of the amount from their savings, plus associated expenses and taxes (around an additional 10%).
  • The interest rate is usually higher (on average, over 3%) than that offered to tax residents, due to the higher risk perceived by the bank.
  • The maximum age for applying is usually 75 years at the maturity of the loan, and it is necessary to prove sufficient payment capacity and job stability.

Steps to process the mortgage

  • Gather all the necessary personal, tax and employment documentation.
  • Open a bank account in Spain to facilitate the management of instalments and other payments.
  • Compare offers from different institutions and review the FEIN (European Standardised Information Sheet) provided by banks for mortgages.
  • A certified translation of the documentation may be required if it is not in Spanish.
  • Complete the sale and sign the mortgage before a notary.

This process allows foreigners and Spaniards living abroad to invest and purchase a second home in Spain, although it involves a larger down payment and higher interest rates than a standard mortgage.