I’ve seen a lot of discussions on the forums recently about buying property in Spain, and the enthusiasm is great! I’m here to share a slightly more complicated scenario: my family and I are currently working and living in the UK, but we’re dreaming of buying a holiday cottage in sunny southern Spain. This whole process involves a lot of details, like understanding Spanish bank codes, but the biggest question is: can we actually get a mortgage from a Spanish bank in our situation?
After a lot of research and consultations, the answer is: Yes, you can, but the conditions are stricter than for Spanish or EU residents. To the banks, we are classified as ‘non-residents,’ so they are more cautious when assessing our mortgage application. This is because our primary income and assets are outside of Spain, making it more complicated for them to recover the debt if repayment issues arise.
Basic Requirements for a Non-Resident Mortgage
Although the specific requirements can vary slightly from bank to bank, they generally all ask for the following items. I’ve put together a simple table for reference:
| Document/Requirement | Description |
|---|
| NIE Number | This is the Foreigner’s Identity Number in Spain. It’s the essential first step for buying property or applying for a loan. |
| UK Credit Report | The bank will need to assess your credit history in the UK. A report from a credit agency like Experian is usually required. |
| Proof of Income | Payslips from the last 6-12 months, your employment contract, annual tax returns, etc. |
| Bank Statements | Statements from your main UK bank account for the last 6-12 months to show a stable cash flow. |
| Proof of Down Payment Funds | Evidence that you have the funds to cover at least 30%-40% of the property price, plus associated taxes and fees. |
It’s crucial to note that as a non-resident, banks will typically only lend a maximum of 60% to 70% of the property’s value. The loan term might also be shorter, which is a common topic in the banking world, much like the recent news about [BBVA’s acquisition of Sabadell]. Therefore, having a substantial down payment is absolutely key. For example, for a small apartment we were looking at valued at €150,000, the bank would only lend a maximum of €90,000. This meant we had to come up with a €60,000 down payment, plus another €15,000 for taxes and legal fees, totaling around €75,000 in upfront capital.
All documents submitted from the UK, such as your employment contract and bank statements, will likely need to be officially translated into Spanish by a sworn translator. This is an additional cost and can be time-consuming, so be sure to factor it into your budget and timeline. We spoke to a few banks, and some account managers were more flexible. If your documents are in standard English formats, their internal team might be able to understand them without a translation—something they’re used to from things like industry-wide [bank stress tests]. So, it never hurts to shop around and ask multiple banks!
