Mortgages for Foreigners in Spain

Can Foreigners Get a Mortgage in Spain?

Yes, foreign citizens, both tax residents and non-residents, can apply for and obtain mortgage loans from Spanish banks to buy property in the country. However, the conditions and requirements can vary significantly compared to Spanish applicants or tax residents.

Banks are often more cautious with non-residents due to a perceived higher risk (difficulty in claiming in case of default, currency fluctuations, etc.), which translates into slightly different conditions.

Typical Conditions for Non-Residents

Commonly Required Documentation

The specific documents vary by bank, but you will generally need the following (all non-Spanish documents must be officially translated):

• NIE (Foreigner Identification Number).
• Valid passport or ID card.
• Recent payslips (if employed) or tax returns (if self-employed).
• Employment contract or proof of professional activity.
• Bank statements from the last few months.
• Income tax return from your country of tax residence.
• Credit report from your home country (e.g., Equifax, Experian, Schufa).
• Proof of other assets or savings.
• Preliminary property contract (contrato de arras).
• Property information report (Nota Simple).

Note that for mortgage payments and associated costs, it will be essential to have a Spanish bank account.

Tips for Your Mortgage Application

• Compare offers: Don't settle for the first one. Compare conditions from various banks or use a mortgage broker specialized in foreigners.
• Prepare documents in advance: Gathering and translating all paperwork can take time.
• Show financial strength: A good credit history and substantial savings will improve your chances and terms.
• Consider additional costs: Besides the down payment, budget for purchase costs, taxes, and potential mortgage setup fees.
• Seek professional advice: A financial advisor or mortgage broker can help you navigate the process and find the best fit.