Non-Resident Mortgage in Spain: What International Buyers Should Know Before Making an Offer

A non-resident mortgage in Spain is perfectly possible, but it works differently from the mortgage a resident would get, and most of those differences appear before you have even made an offer. Many buyers fall for a property first and discover the financing rules second, and that is the wrong way round. Here is what is worth understanding, in the order it matters.

How a Non-Resident Mortgage in Spain Differs From a Resident One

Spanish banks do lend to non-residents, but they are more cautious. Most will finance between 60% and 70% of the price or of the bank’s own valuation, whichever is lower. Each bank sets its own limits, so treat that as a typical range, not a promise. On a €300,000 property at 65%, the bank would lend €195,000. You would need to find the remaining €105,000 from your own funds, and the purchase costs come on top of that.

What Banks Will Ask For

Expect to show your NIE and passport, proof of income (recent payslips and your employment contract, or your accounts if you are self-employed), your latest tax return in the country where you live, recent bank statements, a list of any loans you already have and details of the property you want to buy. Most banks also want you to open a Spanish bank account. As a rough guide, they like your total monthly debt repayments to stay around 30% to 35% of your net income.

If you earn in pounds or dollars and the mortgage is in euros, the bank will look at the currency risk, and so should you. A change in the exchange rate can make the same monthly payment noticeably more expensive.

Who Pays What: A Common Myth

Many buyers have read that the borrower pays the stamp duty on the mortgage. That is outdated. The Bank of Spain publishes the official breakdown on its customer portal (in Spanish), so here is the short version for mortgages signed after 16 June 2019. The bank pays the stamp duty on the mortgage deed, the notary fees for that deed, the land registry fees and the gestoría. You pay for the valuation of the property and any opening commission the bank includes in its offer, plus the copies of documents you ask for. The taxes and fees on the purchase itself (transfer tax or VAT, notary and registry) remain yours.

The Paperwork and the 10-Day Rule

Before you sign, the bank must give you two documents: the FEIN, a standardised sheet with the real terms of the loan, and the FiAE, which warns you about the clauses that matter most. You must have both at least 10 calendar days before signing. You then meet the notary, who checks that you have understood what you are signing, no later than the day before the signature. Use those 10 days well: compare offers from more than one bank and have your lawyer read the FEIN with you.

How Long It Takes, and Why It Matters

Allow two to three months from application to signing. The valuation, the bank’s approval and the 10-day period all take time. That timeline matters when you are asked to sign a reservation contract or pay a deposit. Before you do, make sure the contract says what happens to your money if the bank refuses the mortgage. A deposit that cannot be recovered in that case is a risk you can avoid.

Before You Make an Offer

Get a decision in principle from at least two banks, compare their FEINs side by side, check the property’s legal situation with a nota simple, decide how you will handle the exchange rate and keep your deposit protected. Doing this first means you can make an offer knowing what you can borrow, not hoping.

If you are planning to buy with a mortgage and would like an independent view before you commit, you can book a free consultation and send me the property and the bank’s offer. I will tell you what to check before you go any further.

This article is general information, not legal advice for your specific situation.

Myriam Boada Hernández, Buyer’s Agent and Lawyer — Come to Malaga