Spanish Mortgage Requirements for Non-Residents – What You Need

If you’re a foreign buyer planning to purchase property in Spain, understanding the mortgage requirements for non-residents is essential. Spanish banks do lend to non-residents — but you’ll need to meet specific eligibility criteria, prepare the right documents, and prove financial stability.

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✅ Who Qualifies as a Non-Resident?

In Spain, you’re considered a non-resident if:

• You live outside Spain more than 183 days per year

• You’re tax resident in another country

• You don’t hold a permanent residence permit in Spain

📌 Non-resident mortgages are common among EU citizens, UK buyers post-Brexit, and Americans or Australians buying second homes.

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🧾 Main Requirements at a Glance

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📄 Documents You’ll Need

Banks will request all or most of the following:

For Individuals:

• Valid passport or EU national ID

• Spanish NIE

• Latest 3–6 months of payslips or proof of pension/income

• Employer contract or tax return (for self-employed)

• Annual tax declaration

• Credit report from your country (e.g., Experian, Equifax)

• Recent utility bill or proof of address

• Personal bank statements (showing income and expenses)

For Company Owners:

• Proof of ownership

• Company financial statements

• Corporate tax filings

📌 Documents must be translated into Spanish and sometimes apostilled or notarized.

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💰 Minimum Deposit Required

Unlike Spanish residents who may get up to 80% financing, non-residents are generally offered:

• 60–70% Loan-to-Value (LTV)

• That means you’ll need a 30–40% deposit in cash

Example: On a €300,000 property, expect to pay €90,000–€120,000 upfront, plus closing costs (another ~10–13%).

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🏦 Can You Use Foreign Income?

Yes — but it must be:

• From a legal, taxable source

• Supported by official documentation (pay slips, tax returns, etc.)

• In a strong currency (EUR, USD, GBP are preferred)

💡 Banks are cautious with freelance, crypto, or irregular income unless it’s well-documented.

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📊 Debt-to-Income Ratio (DTI)

Spanish banks calculate affordability based on your debt-to-income ratio — ideally no more than:

• 30%–35% of your net monthly income

That includes:

• The Spanish mortgage

• Any other loans (home, car, personal)

• Credit card debt

📌 If you’re buying with a spouse/partner, banks assess both incomes.

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⏳ Mortgage Application Timeline

• Pre-approval: 1–2 weeks after submitting documents

• Final approval: 2–4 weeks after property valuation

• Signing: Often within 6–8 weeks total

Tip: Start your NIE and bank account application as early as possible — delays here are common.

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❗ Other Conditions to Know

• Age limits: Most banks require you to be under 75 when the mortgage ends

• Life insurance: Sometimes mandatory

• Home insurance: Usually required to be in place before signing

• Currency risk: Some banks allow foreign currency loans, but most lend in EUR

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⚖️ Why You Should Have Legal Support

Mortgage requirements can vary by bank — and contracts are always in Spanish. A bilingual lawyer ensures:

• Your documents meet legal and banking standards

• You’re not subject to abusive clauses

• The property is legally safe to buy

They can also represent you via power of attorney if you’re abroad.

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❓ FAQs

Can I apply if I’m self-employed?
Yes — but you’ll need to provide company tax filings and profit/loss statements.

Do I need to open a Spanish bank account?
Yes — it’s required to process mortgage payments and register utilities later.

Can I submit documents in English?
No — most banks require official translations into Spanish, often certified or apostilled.

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🤝 How We Can Help

At Borderless Lawyers, we guide foreign buyers through every step of the mortgage process. We’ll help you:

• Prepare the correct documents

• Understand legal requirements

• Review bank terms

• Avoid common delays and denials

👉 Book a consultation to get personalized mortgage support in Spain.