Yeah: Spanish banks grant mortgages to buyers who do not reside in Spain, and they do it daily on the Costa Blanca. But the mortgage for non-residents has its own rules — less funding, more documentation and some preparation tricks that make the difference between a “Yeah” agile and months of comings and goings.
How much do they finance? (and why less)
A resident is typically funded up to 80% of the lower between price and appraisal; to the non-resident, between the 60% and the 70%. The bank assumes more cross-border collection risk and compensates for it by asking for more entry. Practical translation: to buy a home 200.000 €, prepare around 60.000-80.000 € entry plus a 12-14% additional taxes and expenses.
Deadlines, types and fee
The deadlines are usually somewhat shorter (frequently until 20-25 years, with age limit upon expiration) and the types, slightly higher than those of resident; the landline is the favorite of the foreign buyer due to its predictability. The solvency rule is the same: the sum of your installments (including those of your country) should not exceed 30-35% of your net income.
The documentation they will ask for
Passport and NO, income justification (payroll and contract, or tax returns if you are self-employed), income tax return for your country, recent bank statements, credit report from your country (according to nationality) and debt ratio. All, in general, translated when the bank requires it. golden advice: ask for one pre-approval before signing a deposit — reserving with financing in the air is the classic source of lost deposits.
The process, in realistic order
1) Bank pre-approval with your documentation. 2) Reservation/earnest money of the home with sufficient time (60-90 days if there is a mortgage involved). 3) official appraisal. 4) Binding offer (FEIN) and the 10 legal reflection days. 5) Notary. From start to finish, calculate 6-10 weeks if the documentation is well prepared from day one.
The most common setbacks
Income difficult to prove (self-employed without clean declarations), currency distinct from the euro (Mortgage regulations give extra rights to the debtor in foreign currency and some banks rate it), and compare only the interest rate ignoring links and commissions. Always compare two or three offers: There are notable differences between Spanish banks for the non-resident profile.
At Mayrasa we accompany international buyers every week: We guide you on which entities work best with your profile and we coordinate the financing times with the reservation of your home — start by seeing what you can buy in Torrevieja and the Costa Blanca with your real budget. Pre-approval first; after, to visit with peace of mind.
