Navigating Non-Resident Mortgages in Spain: A Guide to Financing Your Dream Property

Holiday home with a view of the Costa Brava

If you're a non-resident looking to purchase a holiday home or investment property in Spain, financing options are available, but they come with specific terms and requirements. Here’s a breakdown of the main mortgage types available to non-residents, tailored for different property goals.

Holiday Home Mortgage in Spain

Holiday home mortgages are designed for non-residents purchasing a property for personal use, not as their primary residence. Key details include:

• Loan-to-Value (LTV): Up to 70% of the property purchase price (or valuation, if lower).

• Interest Rates: Fixed, variable, and mixed-rate options are available. For variable rates, lenders often use the annual Euribor reference rate plus a margin (e.g., Euribor + 2%).

  
  

Our mortgage partner, Mortgage Direct, works closely with banks to negotiate the most favorable terms for clients, ensuring competitive rates in the current market.

Construction Mortgage in Spain

For those planning to build or refurbish a property in Spain, construction mortgages are available. These differ significantly from standard mortgages.

• Funding Scope: Covers up to 60-70% of the project’s total value, including land costs, but clients must have sufficient funds for upfront payments, taxes, and ongoing costs.

• Requirements: Detailed project plans (Proyecto de Ejecución), building licenses, and contractor quotes are mandatory.

• Stage Payments: Funds are released in stages based on project progress, verified by an independent valuer.

  
  

Given the complexity, consulting Mortgage Loan Officer for guidance on financing options and lender requirements is essential.

Investment Mortgage in Spain

If you plan to rent out your property or purchase an additional residence, banks classify this as an investment mortgage.

• LTV: Typically 50-60% of the property’s purchase price or valuation.

• Usage: Designed for properties not exclusively for personal use or for those generating rental income.

  
  

Commercial Mortgage

For properties classified as commercial premises (e.g., offices, hotels, shops), financing options differ from residential mortgages.

• LTV: Generally 50-60%.

• Company Purchases: If buying through a Spanish company, conditions depend on whether the company actively trades post-purchase.
  

Our mortgage partner has extensive experience with commercial mortgages, ensuring tailored solutions for unique situations.

Why We Work with Mortgage Direct?

Mortgage Direct collaborates with Spain’s leading lenders to secure exclusive terms not typically available to clients directly. These include favorable rates, personalized solutions, and assistance with navigating the complexities of Spanish mortgage regulations.

Whether you’re purchasing a holiday home, building your dream property, or investing in a rental, Mortgage Direct can help you find the best financing options tailored to your needs.

Contact us today to discuss your unique situation and let our mortgage partner guide you through the process of financing your Spanish property.