Non-resident mortgages are a type of mortgage loan granted by financial institutions in Spain so that foreigners or Spaniards whose tax residence is not currently Spain can access a second residence in our country. Also Spaniards who went to work abroad and now want to return to their country and value buying a home can be considered non-resident applicants.
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Documentation for non-resident mortgages
The economic documentation that is requested from non-resident citizens to evaluate the granting of the mortgage is specific to each country, since the proof of income and properties depends on each national regulation. The foreign clients that have the most offer of this type of mortgage loans are the British and the Germans, although there are many other nationalities that can qualify for this form of financing; financial institutions offer this type of mortgage only to certain European nationalities or some Western countries outside the European Union such as the USA.
Although it is possible that the financial institution in Spain agrees to receive the scanned documentation or by post, the usual is to require the presentation of the originals in person, as well as the signature before a notary.
Normally banks do not grant non-residents financing above 80% of the purchase and sale price of the house, which implies that you have to have money saved to pay the expenses (which in Spain are around 10% of the price of the house) and 20% of the price of the property. Depending on the applicant’s profile, up to 50% savings may be required.
Mortgages to foreign residents 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. Mortgages for non-residents depend on customers paying their taxes outside of Spain, not their nationality..
Non-resident mortgage conditions
Mortgages for non-residents are usually more expensive than mortgages for tax residents in Spain. There are several reasons, among which we can mention:
- The difficulty for Spanish banks to assess the income-generating capacity of 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 impossibility, of recovering the debt if the non-resident mortgagee defaults on the mortgage loan.
For these and other reasons, Spanish financial institutions usually require more savings to the operation and offer worse financial conditions to non-residents, although mortgage brokers selected by Futur Finances have agreements with banks to offer the best mortgage conditions to non-residents in Spain.