Yes. Foreigners can obtain a mortgage in Spain, including buyers who live outside Spain.
Spanish banks offer mortgage financing to international buyers, although the conditions and amount available will depend on factors such as the buyer’s financial circumstances, country of residence and the property being purchased.
At Fuster & Associates, we assist international clients with the legal aspects of buying property in Spain, including purchases involving mortgage financing. With extensive experience assisting foreign buyers, our team helps clients understand the legal process and the documentation involved when purchasing a property in Spain.
Can non-residents get a mortgage in Spain?
Non-resident buyers can apply for financing with Spanish banks, even when their income, employment and assets are located abroad. However, the bank will need to assess their financial situation and may request additional documentation from their country of residence.
Being a non-resident does not prevent you from applying for a Spanish mortgage.
The fact that you are a foreigner or non-resident does not automatically mean that your application will be accepted or rejected. Spanish banks assess mortgage applications individually based on the applicant’s ability to repay the loan.
What does the bank look at?
Before approving a mortgage, the bank will assess your solvency and ability to repay the loan.
This can include:
- Your regular income and employment situation
- Existing loans and financial commitments
- Savings and assets
- Your credit history
- The value and characteristics of the property
The bank will also normally require an official valuation of the property before determining the amount it is prepared to lend.
For non-residents, proving income from abroad may require additional documentation, particularly when documents are issued in another language or jurisdiction.
How much money do you need?
A mortgage will not normally cover all the costs associated with buying a property.
Buyers should have sufficient funds to cover the part of the purchase price that is not financed by the bank, as well as the taxes and other costs associated with the purchase.
The amount a bank is willing to lend varies between applications. It can depend on whether you are resident or non-resident, your financial profile, the property and the bank’s own lending criteria.
For this reason, it is advisable to establish your potential borrowing capacity before choosing a property.
What documents do foreigners need?
The exact requirements vary between banks, but international buyers may be asked for documents such as:
- Passport or identification
- Proof of employment and income
- Bank statements
- Evidence of savings and assets
- Information about existing loans
- Tax documentation
- Credit history
Documents issued outside Spain may need to be translated or otherwise formalised before they can be accepted by the bank.
What is the mortgage process in Spain?
Once you have identified a property and submitted your application, the bank will assess your financial situation and the property.
If the application progresses, the bank will provide the required pre-contractual information, including the European Standardised Information Sheet (FEIN) and the Standardised Warnings Sheet (FiAE), which highlights important aspects and risks associated with the mortgage.
The mortgage is then formalised before a Spanish notary. When the purchase is also being financed, the mortgage and property purchase need to be coordinated as part of the completion process.
What should international buyers consider?
Getting mortgage approval is only one part of purchasing property in Spain.
Before signing a purchase agreement, international buyers should understand the total cost of the transaction, the taxes applicable to the property and their own circumstances, and any legal conditions attached to the purchase.
It is also important to carry out the appropriate legal checks on the property before completion.
At Fuster & Associates, we assist international clients throughout the legal side of their property purchase in Spain, helping them navigate the process from the initial legal checks through to completion.
Contact Fuster & Associates if you are considering buying property in Spain with mortgage financing.
We want to help you navigate all the legal complexities that come with your home buying in Spain, but this article is legal information and should not be seen as legal advice.
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