How to get a mortgage in Spain as a non-resident

How much a Spanish bank lends to a non-resident

Banks lend less to people who do not live in Spain because it is harder for them to check income and, if payments stop, to recover the debt in another country. That is why a mortgage for a non-resident is more cautious than one for a resident.

The percentage is based on the lower of the valuation and the purchase price. If the valuation comes in low, the loan falls with it.

Documents for a non-resident mortgage in Spain

• Passport and NIE.
• Recent payslips or, if self-employed, your last two tax returns.
• 3 to 6 months of bank statements.
• A credit report from your country, where one exists.
• The reservation or purchase contract for the home.
• Certified translations of any documents not in Spanish or English.

How to apply, step by step

1. Ask two or three banks for a pre-approval based on your income.
2. Choose a home and sign the reservation.
3. The bank orders a valuation, which you pay for (€300-600).
4. You receive the FEIN, the binding offer with all the terms.
5. After at least 10 days, you sign at the notary, who explains the contract in a free preliminary meeting.

With a new build, get pre-approval early but sign the mortgage at the end, when the home is finished. That way you pay no interest during construction.

Currency, insurance and mortgage costs for non-residents

If you earn in another currency, the exchange rate matters as much as the interest rate. A 5% move in the pound or krona makes your payment dearer or cheaper by the same proportion.

• Consider paying part of the deposit with a forward currency contract to fix the rate.
• The bank may ask for life insurance; you do not have to take it with them, although it sometimes improves the rate.
• Valuation: €300-600, which you pay even if you do not sign in the end.
• Arrangement fee: many banks no longer charge one; ask beforehand.

Fixed, variable or mixed, and how to pay less

Most non-residents choose a fixed rate so they do not depend on Euribor or exchange rates. If you earn in pounds, kronor or dollars, remember your payment in euros can rise even with a fixed rate.

Negotiate the add-ons: insurance, direct debits and cards. They lower the rate but cost money every year. Compare the full cost using the APR (TAE), not just the nominal rate.

If you are looking for a home where the mortgage fits comfortably, see entry options such as Laguna Nova in Mijas or Etherna Homes in Estepona. And review all the taxes on the purchase first.