Can non-residents get a mortgage in Spain?

Can a non-resident get a mortgage in Spain? If so, at what value, and do you pay more for not being a permanent resident? Buying a property in Spain is a great idea for anyone who wants to enjoy the charms of the country, but there are a number of factors to know beforehand.

As a general rule, obtaining financing in Spain as a foreigner is not usually a problem, although the criteria for those who live here all year round may be different from those who have their residence in another country.

In addition, there are other important factors to be aware of when buying property in Spain. If you are thinking of applying for a mortgage as a non-resident, here are some key aspects to help you go for it.

Differences between residents and non-residents

Although nationality is not usually an important issue for banks, the residency factor can be.

A “resident in Spain” is defined as a person who has lived in the country for more than 183 days in the calendar year and who has his or her main economic interests and activities in the national territory. If these two criteria are not met, any person is considered a “non-resident”, whether Spanish or foreign. Although it depends on the particular conditions, residents of Spain have access to better conditions regardless of their nationality.

In addition, it is possible that some banks offer greater benefits to those who, although not being residents in Spain, do have permanent residency in another country of the European Union, as opposed to the mortgage conditions that a non-EU resident would obtain.

What mortgage options are there for foreigners not residing in Spain?

Second home mortgages for those people who do not live in Spain usually have the following conditions:

• The maximum amount to be financed is usually 60% of the value of the property.
• Interest rates may be slightly higher. In addition, the current demand for mortgages in Spain for foreigners is at a fixed rate.
• The amortization period is usually between 20 and 25 years.

As for documentation required, non-resident foreigners will need to provide very similar information to residents. The most usual ones are a copy of their passport, a certificate of fiscal residence, the last tax declaration in the country where they filed it, a work contract and payroll, a certificate from the Land Registration office on the house to obtain the mortgage for, and the deposit contract or purchase agreement to which both parties have arrived.

It is possible, in addition, that they may be asked for some extra guarantee, such as a credit risk report that sheds light on their solvency.

Finally, it is necessary to know that not all financial institutions have mortgages for non-residents. But fortunately, the most important banks in Spain do offer this option.

Is it the right time to take out a mortgage in Spain?

All forecasts made by financial experts coincide with the fact that the evolution of the Spanish real estate market will continue to be positive in the near future, even in spite of the health emergency during the COVID-19 pandemic, which meant a pause in the growth of the country, as in others worldwide.

Although the growth will not be sharp, the experienced housing boom after the confinement, the historical level of savings in the country and the existence of financing options at very good rates are good reassuring on the recovery of the sector.

If you feel encouraged to buy a property in Spain, find out about the current range of purchasing possibilities available in the market. Recent years have witnessed the development of some sound, innovative and safe options for the acquisition of a quality second home in Spain and Europe.

In the case of Vivla, we offer an intelligent, flexible and sustainable purchase model that will give you access to truly unique homes. You only purchase the fraction of property that you need to use, sharing and minimizing all associated expenses and management costs and enjoying a minimum of 6.5 weeks of use per year with the purchase of a 1/8 fraction.

With Vivla, you are not only the owner of the home; you make a highly profitable investment. In addition, you also enjoy the full management of your home so that you only have to worry about enjoying it, and you have access to personalized and exclusive services.

It is another way to invest and enjoy a second property. Contact us to find out more about how to purchase a second home the Vivla way.