Mortgages in Spain for Non Residents

lucia lagunas reyes - Our Mortgages in Spain for Non Residents lawyer expert

Non-European citizens will usuallyGetting a mortgage in Spain as a foreigner requires overcoming all kinds of bureaucratic hurdles. But no worries, mortgages in Spain for non residents can be attained if you check off the steps on the list as you go.

The Spanish property market has many eccentricities so it is worth doing some research before buying a house in Spain. You’ll also need to be clear about all of the taxes and expenses you will have to pay when seeking mortgages for non residents. Taxes and fees vary depending on whether you buy your property through a notary, estate agent, or solicitor of your choice.

Our team of lawyers will help you find the best mortgage for your home in Spain. Contact us if you need the best mortgage in Spain for non-residents.

mortgages in Spain for non residents

Taking A Closer Look At Spanish Properties

Many websites and online portals list thousands of properties options at any given time. It’s also worth taking a look at any available repossessed property that Spanish banks are offering since they might be willing to lend you up to 100% of the property value.

If you are considering buying a property in Spain, now is the time to do so, as the price of selling is increasing. Real estate agents offer a wealth of information about the region, they are bilingual and will be a great asset to those seeking mortgages for non residents, in addition to being helpful with your property search.

Seek Professional Guidance To Explain and Assist With All Requirements

mortgages in Spain for expats

When you opt to have guided assistance from professionals toward obtaining mortgages in Spain for non residents, your transaction will go a lot smoother.

To start, whether you’re looking at variable rates or fixed rates in regards to all types of mortgages, selecting from a varying collective of interest rates, in particular any advantages and disadvantages, is your choice. But keep in mind that fixed rate mortgage rates help lenders offset some of the risks associated with lending to those who are not fiscal residents in Spain.

Also, if you have all of the cash upfront, you will still (in most cases) need a mortgage lender to finance a Spanish property. Mortgages are generally offered at 70% of the purchase value. Spanish Mortgages from Spanish banks are more likely to give a lower LTV than local residences.

Extra Costs To Be Aware Of When Making A Purchase

Spanish banks that offer mortgages to non residents include, Banco Santander Central Hispano, Banco Bilbao Vizcaya Argentaria (BBVA), and CaixaBank.

You will end up paying anywhere between 10%-15% of the value of your purchase in Spanish taxes and fees when using a Spanish mortgage lender. However, there are other banks such as Chase and IMS that have international banking institutions where you can also secure your mortgage.

Do you want to live in Spain?

Our law firm has more than 15 years of experience.

Contact Us Now!

There is much more to consider, including being prepared to pay for the property’s appraisal acquiring a Spanish translator who has no affiliation with the lending company. obtaining mortgages in Spain for non residents will make for a smoother transition if you are informed in advance.

In this post we explained the main Pitfalls of buying a property in Spain.

Taxes And Fees Associated With Your Spanish Purchase

mortgages for non residents

Once you have made an offer for the property of your choice, the seller will have an estate agent. Upon acceptance of the offer, the buyer and the seller sign a preliminary contract (contrato privado or compraventa) in which the buyer makes a down payment of 10% of the purchase price.

After buying a property, you will have to pay several taxes, which can increase the purchase costs. All of this should be detailed and summarized with a notary.

The 1% of the property price is a small amount you must pay to make an offer to the seller of the property. If the seller accepts the offer, you will have to pay a pre-sale contract amounting to 10% of this property price. When buying a resold property, the buyer must also pay the property transfer tax.

Also, depending on whether you buy a new property from a developer or a resale property, you will pay VAT, stamp duty, and land transfer tax. In addition, you must also pay the local IBI (state tax) on the property from the IRNR each year which is a direct tax benefit obtained on Spanish territory by a person who is not a citizen or a resident of Spain when the property is empty.

If you rent out your property because you are not resident in Spain, you will also pay the non-resident rental tax. You can get more information about buying to let in Spain

The purchase of the property is carried out by a notary who transfers the property by entering it into the public register (registro de la propiedad). Once the notary establishes that all documentation is in order, the taxes on the property become due.

Notaries are more often present when purchasing than when carrying out a private purchase contract or purchase obligation (contrato arras), whose fees are in addition to the purchase price, other fees, and taxes. This should be taken into account in the final price paid at the time of the transfer of the property when carried out by a notary.

Property owners in Spain have to pay three different taxes every year. Taxes and fees vary depending on where you buy your property and which notary, estate agent, or solicitor you choose.

Do you want to live in Spain?

Our law firm has more than 15 years of experience.

Contact Us Now!

Depending on the region and type of property, you should be aware that agents charge between 2% and 15% of the selling price. As an overseas buyer, you might find that you can borrow at a lower loan-to-value (LTV) than a Spanish resident, which means you need a larger deposit.

After purchasing the property, you will have to pay several taxes, which increases the purchase costs. By knowing all of this upfront, and by gathering pertinent information so you calculate all of your upfront costs, including your notary fee, will better prepare you.

However, in general, mortgages in Spain for non residents are entitled to the same mortgage conditions as Spaniards’ resident mortgages.

Taking great care to research that there are no debts or liens associated with the property is advisable since any debt or lien associated with the property that you intend to purchase will transfer to you when the deal has finalized. And once you are sure you are purchasing a property that is free and clear of obstacles you can move on to finding a lender.

Of course, there are all types of mortgages, but mortgages with fixed rates will be helpful toward you a better understanding in advance of what all of your expenditures will be. And those buyers who went with fixed interest rates will no doubt be better prepared.

Keep in mind, however, mortgage lenders don’t finalize mortgage agreements until you are in ownership of it. In the event you are not able to secure one, it should be clearly written within the purchase contract, giving you an out.

Why you Need Spain’s NIE Number, And Everything You Need To Know About It

mortgages in Spain
buy to let mortgages in spain

The first thing to do for those mortgages in Spain for non residents is to obtain a Spanish NIE number. It is advisable that you start this process early, well before you reach the contract phase.

Non-resident property buyers can apply for an NIE (foreigner identification number) through the Spanish consulate in their country, which will relieve them of having to come to Spain for a few days, having to endure a long queue, or making it through a crowded Spanish police station.

If you are unable to travel to Spain, a lawyer can help you sign an NIE number (numero identificacion de extranjero, Spanish for foreigner’s identification number) from a power of attorney acting on your behalf.

Spain’s NIE number is a unique tax I.D. number whose purpose is to track all of your personal, legal, and financial activities in Spain. It serves as a tax identification number and is required for all of your financial transactions that require the involvement of the Spanish tax office.

Do you want to live in Spain?

Our law firm has more than 15 years of experience.

Contact Us Now!

The NIE number is a mandatory requirement for all foreigners that have professional, social, or financial dealings in Spain whether you are a resident or a non-resident. It is also required that children have an NIE number.

  • Non-European citizens will usually receive an application for an NIE at the time of applying for Spanish residency
  • The Spanish National Police are who assigns this legal id number to foreign residents who don’t have Spanish citizenship. The many reasons why this is necessary are listed below. Without an NIE number, you cannot pursue legal matters in Spain.
  • The NIE application is to be submitted either while you are living or visiting Spain. The Spanish National Police stations whose NIE applications can be found online, or you can apply at the Spanish embassy in the country in which you reside.
  • It is also acceptable for a Spanish representative, such as a lawyer, family member, solicitor, or friend, can request an NIE number on your behalf.

Spanish NIE General Requirements

  • Government fee (€10.71 in 2018), which you should pay at the bank using a 790 NIE form.
  • Original passport (current and not expired) and one photocopy
  • Two small photos
  • NIE application form (EX 15 form) must be in Spanish.

Many of the Uses Needed for a Spanish NIE Number

  • Mortgages in Spain for non residents
  • Opening utility accounts
  • Opening a bank account
  • Paying Spanish taxes
  • Obtaining a Spanish driver’s license
  • Being legally employed, or becoming self-employed
  • Registering a business
  • Studying while in Spain
  • Buying or selling automobiles
  • Etc.

Your NIE Card

  • Your NIE number is a permanent form of identification. They were once used temporarily for three months in some areas within Spain, but that is no longer the case.
  • You must have Spanish residency in order to exchange your foreign driver’s license, in addition to having an NIE number.
  • You should carry your NIE certificate with you, in addition to your passport, if the need arises that to file a police report.

It is not required to open a bank account when mortgages in Spain for non residents, but a Spanish bank account makes it easier to pay your taxes and expenses. The only indispensable condition for buying a home in Spain is the NIE (foreigner ID number), which replaced the TIE (Tarjeta de Identidad de Extranjero) after Brexit.

More Of What You Should Know

calculate your mortgage in Spain for non resident
fixed rate mortgages in spain

Be aware that there are two types of property in Spain, the main difference of which is due to the taxes to be paid on the purchase. All state expenditure and taxes associated with mortgages in Spain for non residents.

Although it is not mandatory, there are several lenders that require you to have life insurance sufficient to pay off any loan balances. All Spanish residents, on the other hand, must have property insurance.

If you make an investment with a minimum of EU500,000, without financing, you qualify for a Golden Visa. This Visa will allow you to reside in Spain and to travel throughout the EU.

Property prices in Spain have fallen by 31.3% since the start of the crisis, and while the current Spanish economy is starting to grow, house prices have continued to fall thereby proving fatal for Spanish mortgages.

This has encouraged investment in Spain and an increasing number of foreign citizens have chosen to buy property in the country which has been encouraged by the government.

Things You Should Look Out For

While you should expect to have a straightforward experience when attempting to purchase property and secure a mortgage in Spain, you should remain vigilant for anyone who may seek to take advantage of any language barriers. Although meaning may get lost in translation, in many cases, if you are a non resident of Spain you should seek out professional listings from authenticated sources.

For example, advertising and signage that reads: 100% mortgage Spain, could be an indicator that this lender is geared more toward an English-speaking client who knows little Spanish, but it isn’t their primary language. Their intention may be above board, and they may very well be a reputable and legitimate lending source, but “buyer beware” is advisable, as is doing your due diligence toward researching the professional resources you will need to help you make a successful purchase.

Other indicators to look out for in advertisements signage could include, but is not limited to, mortgage Spain for foreigners, mortgage to buy in Spain, and, buy to let mortgage Spain.

Do you want to live in Spain?

Our law firm has more than 15 years of experience.

Contact Us Now!

So, again, having the right professionals to assist you with relevant procedures, purchasing contracts, and submitting all of the relevant documentation toward purchasing a property will be well worth it. Your purchasing experience should be an easy and fulfilling accomplishment by the time the ink dries on the contract.

But, if you have ever asked yourself, can I get a mortgage in Spain, the answer is a resounding yes. Spanish mortgages for non residents are just a few procedures away. And in no time at all, you can start enjoying your Spanish property for many years to come.

6 thoughts on “Mortgages in Spain for Non Residents

  1. Jules |

    Hola. Sabadell offered me a mortgage offer but the extra costs seem very high. Why, for example, do they charge ten percent (purchase operation) of the sale amount of the apartment? Ten percent seems high.

    1. Anna - Lawyer of My Spain Visa |


      One of our lawyers will contact you to answer your questions about Mortgages in Spain for Non Residents.


  2. steve |

    great information. we have just been offered a mortgage through Sabadell but it is a variable, they say they do not offer fixed rate mortgages to non residents? Is this true, has something changed?


    1. Anna - Lawyer of My Spain Visa |


      One of our lawyers will contact you to answer your questions about mortgages in Spain for non residents.


  3. Kevin |

    I want to buy a property in Spain, can you help me to find the best mortgage for non-residents in Spain?

    1. Anna |


      One of our lawyers will contact you to answer your questions about mortgages in spain for non residents.


Write a Reply or Comment

Your email address will not be published. Required fields are marked *