Thinking about buying a home in Cambrils as a foreinger?

How to apply for a mortgage if you Do not live in Spain

There are more and more people interested in purchasing a home in Spain. However, many of them do not have residence in our country, either because they are foreigners or because they are Spanish citizens who have left the country to  live abroad.

If you are Spanish and have the Spanish nationality, but you are live abroad, and therefore, paying taxes in a different country, you will not be able to apply for a traditional mortgage loan. You must apply for a non-resident mortgage. 

Let’s analyze the different types of loans you can consider and what requirements are needed to access them. 

What is a non Spanish Resident?

A non-resident citizen is someone who has not stayed in Spain for more than 183 days during a calendar year and who does not have his or her tax residence in Spain. Thus, all non-residents must apply for this type of mortgage; the rest will be eligible for a traditional mortgage.

Foreigners who pay taxes in Spain will be able to acquire a normal mortgage. Therefore, mortgages for non-residents do not depend on the nationality of the person applying for them, but on where they pay their taxes. 

Interest Rate

Mortgage requirements for  non-residents are far more strict than for residents. 

See below for additional information.

  • Shorter amortization period. The maximum time to amortize this type of mortgage is 30 years, although 20 is normal.
  • The amount to be financed by the bank will be will be between 50% and 80% of the appraised value of the property or the purchase price. If the mortgage is intended to purchase a second home, the amount will rarely exceed 60%.
  • Higher interest rates. The rates applied are usually higher.
  • In mortgages for non-residents it is more complex to contract binding products, such as direct debiting the payroll or contracting some type of insurance, to improve the conditions.
  • Finally, not every bank offers mortgages for non-residents, given the risk to seize any assets abroad in case of non-payment

Documents you will need

There are some of the documents you will need to submit (translated to Spanish in most cases) if you apply for a non-resident mortgage in Spain:

  1. Photocopy of DNI (ID), NIE or passport
  2. Work contract
  3. Last three payslips from the country of residence
  4. Banking movements of the last 6 months
  5. Six most recent receipts for outstanding debts, such as loans or mortgages
  6. Tax residence certificate
  7. Statement of income
  8. Non-resident certificate
  9. Credit risk report
  10. In addition, most entities will require people who want to access a mortgage for non-residents to have a bank account based in Spain.

Here is a link with additional information from Caixabank.

https://www.caixabankresearch.com/en/sector-analysis/real-estate/buying-home-spain-and-taking-out-mortgage-foreigner

Our legal professional team will be more than happy to help solve your questions and  guide you through this process if you wish to acquire a home in Spain. 

I will be happy to help if you need my assistance.  You can contact me directly visiting my website:

https://esthercarretero.com/

 

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