Non-resident mortgages are a type of mortgage loan granted by financial institutions in Spain so that foreigners or Spaniards whose tax residence is currently not Spain can access a second residence in our country. Also the Spaniards who went to work abroad and now want to return to their country and value buying a home can be considered as non-resident applicants. In all cases, we recommend that an expert mortgage broker analyze your chances of getting a mortgage in Spain:
Documentation for mortgages to non-residents
The economic documentation that is requested from non-resident citizens to evaluate the granting of the mortgage is specific to each country, since the demonstration of income and property depends on each national regulation. The foreign clients that have more offer of this type of mortgage loans are the British and the Germans, although there are many other nationalities that can opt for this form of financing; Financial institutions offer these types of mortgages only to certain European nationalities or some western countries outside the European Union, such as the US. Raven Balo, expert collaborator of the portal, explains what documentation to provide on his website.
Although it is possible that the financial institution in Spain accepts to receive the scanned documentation or by postal mail, it is usual to demand the presentation of the originals in person, as well as the signature before a notary.
You have to have money saved
Normally, banks do not grant non-residents financing above 80% of the purchase and sale price of the home, which means that you have to have money saved to pay for expenses (which in Spain are around 10% of the price of the house) and 20% of the price of the property.
Mortgages to foreigners resident in Spain
Do not confuse mortgage loans for non-residents with mortgages to foreigners for tax residents in Spain. Mortgages for residents in Spain, whether national or from another country, are normal mortgages to acquire a first or second home. Non-resident mortgages depend on customers paying their taxes outside of Spain , not their nationality.
Mortgage conditions for non-residents
Normally, mortgages for non-residents are more expensive than mortgages for tax residents in our country. There are several reasons, among which we can mention:
- The difficulty it has for Spanish banks to assess the ability to generate income for non-residents, having to analyze documentation from a foreign country and study foreign companies in sectors that they may not know in depth.
- The difficulty, if not impossible, of recovering the debt if the non-resident mortgage defaults the mortgage loan.
For these and other reasons, Spanish financial institutions usually require greater contribution of savings to the operation and offer worse financial conditions to non-residents, although the mortgage brokers selected by Bettersave Finances have agreements with the banks to offer the best Mortgage conditions for non-residents in Spain.