Mortgage Loans for Non-Residents in Spain

1. Guidelines for non-residents

• Loan-to-value ratio (LTV): Maximum 70% of the purchase or appraisal price (whichever is lower). Some lenders limit it to 60% depending on the risk profile.
• Debt-to-Income Ratio (DTI): Monthly payment should not exceed 30-35% of net income. All debts must remain within this threshold.
• Minimum loan amount: Generally €100,000, with some exceptions.
• Maximum term: 20 to 25 years, with a maximum age of 75 years at the time of loan maturity.
• Property type: Most financing for second homes or vacation homes.

2. Risk assessment and documentation

Required documents:

• Income: Last 3 pay stubs, employment contract and last tax return. Self-employed persons must submit financial statements for 2 years.
• Credit history: Report from country of residence, no defaults.
• Assets: 6 months of bank statements and evidence of savings (40-50% of value).
• Other requirements: Passport and NIE/DNI, property title or rental contract.

3. Accepted currencies

Spanish banks prefer deposits in stable currencies: EUR, USD, GBP, CHF, CAD, AUD, SEK, NOK, DKK, PLN, AED, QAR, SAR, ILS, MXN, JPY, SGD. Deposits in other currencies may involve higher restrictions or lower LTV.

4. Expenses according to region and type of property

• Property Transfer Tax (ITP):
  • Valencia and Catalonia: 10%
  • Madrid: 6%
  • Andalusia: 7-9% depending on price
  • Balearic Islands: 8-10% depending on price
  • Possible reductions for first homes depending on region and buyer profile.
• Other costs:
  • Notary and registration: 1-2% of the price
  • Valuation: 300-600€
  • Bank charges (opening, 1%)
  • Broker/Lawyer: 1-2% recommended

5. Purchasing process

1. Initial steps: Obtain NIE (Non-Resident Tax Identification Number) and open an account in Spain.
2. Reservation contract (1-2 weeks): 1% deposit of the price.
3. Mortgage approval (4-8 weeks): Submission of documents, appraisal and evaluation.
4. Private Purchase Agreement (1-2 weeks): 10% down payment.
5. Mortgage offer and reflection:
   • 10 days in most regions.
   • 14 days in Catalonia.
6. Notarial signature (2-4 weeks): Final transfer before a notary and mortgage disbursement.

Are you interested in acquiring a mortgage? Don't hesitate to contact me, I'm here to help you.

Contact Information:

IG: @tunuevohogarenvalencia

WhatsApp: +34 629 20 83 13

Web: https://tunuevohogarenvalencia.es/