Being non-resident in Spain does not influence so that you can get a mortgage in Spain. You have to know where to go and we are going to show you.

The purchase of a house is evident that involves a large investment. A mortgage could help you to reach the price for the apartment on the seafront that you have fallen in love… Or maybe you consider asking for a mortgage to take advantage of low-interest rates. If the mortgage is one solution for you and you want to know how to acquire one of them, in Spain, read on.

Getting this loan doesn’t have to be complicated if we have all the necessary information in advance. Obtaining the mortgage for the non-residents operates practically in almost the same way as for those Spaniards who have decided to acquire a second house.

Do not confuse mortgage loans for non-resident with mortgages to foreigners for tax residents in Spain. The difference is whether clients pay taxes outside of Spain, not their nationality.

As a curious fact, we must take into account that properties purchase by foreigners are very high in the country and represents at least 13% of the total sales in Spain.

Documentation needed to request a mortgage

It covers all those documents related to the economy and the resources that they request from non-resident to assess their ability to pay. In Spain, it is necessary to deliver this documentation because it is the way to demonstrate income and properties of the person interested in acquiring a mortgage.

Documentation to show:

• The NIE (link of dompick).
• If you are employed by another person: 2 last payroll receipt, income statement and company letter.
• If you are self-employed: Accounting letter, declaration of the income of self-employed employees of the last 2 years and annual accounts of the last 2 years.
• Other sources of income.
• Bank statement for the last 12 months.
• The last mortgage statement or rental agreement for the current house.

Mortage points for non-residents

• Maximum financing: between 50% and 70% of the value of the purchase or appraisal, depending on the bank and the information presented by the client. When it comes to non-residents the mortgage doesn’t reach 80% as for the residents. The main reason is that in the case that the applicant doesn’t comply with the payment of the assigned monthly installments, it is very difficult to seize their assets from abroad.
• Repayment method: approximately 30 years.
• The interest rate is often higher. The differential that is added to the Euribor can be closed to 3%.
• Power of attorney: Necessary to send both the original notarized papers and a body attorney in both countries.

If the buyer retains the fiscal residence of his country of birth, the property acquired in Spain, can’t be considered as a habitual residence.

Choose the bank, the office and the commercial carefully

We insist, requesting a mortgage in Spain for non-residents doesn’t have to be complicated. However, it is highly recommended to ask for help because:

• In most bank offices in Spain, only Spanish is spoken. Not all offices speak English, German, Russian, French, or Chinese.
• Not all the offices are used to work with foreigners and it will take a long time to process your application or they will refer you to another office.
• You should not contact only one bank, you have to compare several Banks to obtain the best conditions.
• The best-known Banks do not always offer the best conditions.

In Dompick we help for free to all customers who work with us. Ask your Sales Manager and he will give you the contact of the people and offices that can help you in an agile way, in your language and who are used to this type of operations. So you can get the best conditions and the operation is not delayed.

Mortgage offers for non-residents

In Spain, there are few entities that offer you the opportunity to apply one mortgage to finance your house if you are not resident in Spain. Although it is complicated, it is not impossible, and here we offer you some Spanish banks that give you the opportunity at the time of writing this article. It is only indicative because the conditions change every month.

Sabadell Bank

This Spanish entity offers you the opportunity to get a mortgage despite not residing in the country. Terms:

For this, you only have the contract the insurance linked to the mortgage with the same bank “(vida,hogar)” and Key Account.

Characteristics:

• Euribor + from 2,50%
• 3,70 TIN on the first year
• 3,70 TAE changeable
• Depreciation point to 30 years
• Besides, the conditions of financing are to 60% of the buy-sell

Popular Bank

This bank entity finances 70% of the amount of the home but the maximum repayment term is 20 years.

Mediolanum Bank

The bank entity does not offer mortgages to people who are not resident in Spain.  Even so, it is possible to get a mortgage of Mediolanum since the entity in some cases can make an exception. Do not hesitate to contact us. Dompick can facilitate contact with this entity if you are interested in obtaining the mortgage through this bank.

Santander Bank

This entity gives you the opportunity to take advantage of this mortgage offer until June 30, 2017. For this, the non-resident must fulfill 3 of these 4 conditions:

1. Make deposits for a minimum amount of 2.000 € per month or € 24.000 per year, in an account opened in the bank in the name of the owner. Deposits in cash or by check.
2.     Use Santander debit or credit card 12 times during three months prior to the adjustment of the interest rate.

1. Establish 3 payments of invoices through the account of the entity itself during the three months prior to the loan review.
2. Maintain a minimum annual balance of 5.000€ in a current account or fixed-term deposit.

Furthermore, the person who wants to receive mortgage assistance must keep deposited in the bank, in any accounts in which it owns, at least 1.000€. Finally, you will have to have a multi-risk home insurance policy with Aegon Santander Generales, Seguros y Reaseguros S.A.

Characteristics:

• Euribor + 1,70%
• Repayment period up to 20 years.
• Furthermore, the financing conditions are more than 60% of the sale.
• The Banco Santander offers you a compensation rate for partial or cancellation of 50% in the first 5 years and 20% in the remaining years.

Do you already know what bank you will go to get your mortgage? Dompick can help you to contact the bank in which you are interested. Write us and we will help you for free.