a propertyin Sotograndeor elsewhere in the country. It can, however, be more challenging toobtain a suitable mortgage deal if you are a non-resident, not leastas some Spanish banks outright refuse to lend money to those who paytheir taxes outside the country.
Manyother lenders, however, are happy to cater to the needs ofnon-residents seeking a mortgage for Spanish property. Indeed,various dedicated ‘non-resident’ mortgages are available.What arethe key differences between resident and non-resident mortgages inSpain?
In anutshell, if you are a non-resident of Spain seeking a mortgage for aproperty purchase in the country, it’s likely that the dealsavailable to you won’t be attractive as those you would have beenable to access if were a resident.
One keydifference is how much you will be permitted to borrow. Most Spanishbanks that you approach for a mortgage will probably only lend you upto 60% of the property’s sale value, possibly rising to 70% in somespecial cases.
What ifyou’d like to borrow more than that for your mortgage on a Spanishproperty? Well, you could always look to buy a repossessed propertyfrom a bank, which may enable you to borrow as much as 100% of theproperty’s value in some cases.
Residentsof Spain, meanwhile, can expect to be offered up to 80% of theproperty’s value when they seek a mortgage in the country. Thisdifference in the situation for residents and non-residents can beexplained by the fact that if the resident fails to keep up withtheir mortgage repayments, the bank’s only guarantee will be theactual property.
What elsedo non-resident mortgage seekers in Spain need to be aware of?
Bear inmind that the amount you’ll be allowed to borrow isn’t the onlyfactor to which you will need to be alert when you’re on thelookout for a Spanish mortgage.
Forexample, you can expect the prospective lender to request a lot ofdocuments from you in assessing your application, including proof offunds, work contracts and tax returns – as well as your creditrating from your home country.
Furthermore,your documents will need to be officially translated, with theseofficial translations potentially requiring a Hague Apostille to beattached to the original document, verifying that it is legitimateand authentic.
Beforeyou go through all of these processes, however, it’s worthdouble-checking whether Spanish banks would necessarily consider youto be a ‘non-resident’ at all. The term ‘non-resident’applies to foreigners who don’t pay taxes in Spain. So, if you arean expatriate registered as a resident of Spain, or you have stayedin the country for over 183 days and pay taxes in Spain, you will beentitled to apply for a standard Spanish mortgage with the samefinancing conditions as citizens of the country.
Now thatyou know the broad ‘state of play’ for those seeking a mortgagein Spain, why not start your search in earnest for your idealproperty on the Costa del Sol? Here at Property Sotogrande, we bringtogether up-to-date property listings from multiple leading estateagents in Sotogrande,to help you find your ideal new home, apartment or villa so muchquicker and easier.
