Mortgage loans for foreign citizens, ie non-residents, are a kind of mortgage loan that is granted through banks in the Costa del Sol, with the objective of those foreigners or even those whose tax residence is not In the nation has the opportunity to obtain a loan and can invest in Real Estate in Costa del Sol. However, in order to obtain one of these credits must comply with a number of requirements, including the ID Number Abroad, which we talked about when we offered a guide on how to buy a house on the Costa del Sol in 10 steps, it will also be necessary to have the simple registration note of the property that you are going to acquire.
It is also important to note that banks do not offer 100% of the money necessary to acquire a property for sale in Marbella or in any of the cities of the Costa del Sol, so the buyer must have at least 30% of the amount End of the house, however that percentage will depend directly on the bank with which the corresponding procedures are being carried out.
What are the documents required by banks to grant mortgage loans?
Firstly, it is important to clarify that the documents we are about to mention are just some of those that a bank could request, all depending on the internal policies of the banking institution in question, being today Banco Santander and Banco Popular, the most important Which are offering this type of financial aid.
It is also important to clarify that documents related to the economic area and that are requested from citizens who do not reside here, are necessary to carry out an evaluation that will define whether or not the mortgage will be granted and which will be the specifics of each country. In the same way, it is important to add that it is precisely the non-resident clients that offer the most mortgage loans are the British and are followed by the Germans. However, there are also many other citizens who are able to opt for this method. financing.
As far as the right to buy a luxury apartment for sale in Fuengirola or in any city on the Costa del Sol is concerned, there are no restrictions, and as a result, if there is a buyer who does not have Spanish nationality and who is Interested in investing in Real Estate in Spain, you can practically enjoy the same rights as someone who was born here.
Now, we want to offer you a list of the most common documents that could be requested, always highlighting that some banks may request some more, or just less:
- Photocopy of the Foreigner’s Identity Number (NIE) or passport, remembering that the NIE is a code that allows to carry out the tax identification of non-residents in Spain and which will be totally necessary to carry out any type of transaction Real estate in the country.
- You must also present a certificate that shows that you do not live in the nation, and that can be requested from the Directorate General of Police.
- The three (3) last payrolls of the nation in which you reside
- Proof of work or the contract issued by the company in which you work
- A certificate of fiscal residence, which is a document issued by the fiscal authority of the country in which the person requesting the credit was born, and who certifies for one year, that it has complied with the tax obligations established
- Last declaration of heritage of the country of residence.
- At least: 3 last debit receipts that were incurred and canceled, such as credit cards or loans.
- Tax return.
- The contract of sale of the property on the Costa del Sol or the contract of deposit.
- Document showing the statement of accounts in which your monthly salary earns
- Simple registration note of the property to be acquired.
How are mortgages for foreigners who want to buy a house on the Costa del Sol?
This type of financing also has a series of characteristics that specify the way in which this procedure is performed, and which also serves as a guide to be clear about the main characteristics of the same:
- Firstly, it is necessary to define that mortgages for non-residents in Spain are no more than mortgage loans that are granted to foreign citizens who do not have fiscal residence in the Spanish nation and are interested in buying a villa for sale in Costa del Sol, which are also really attractive, since it has modern and minimalist decoration, in some cases private pool and even large terraces overlooking the sea and golf courses in the area.
- It is also necessary to emphasize that this type of credit should not be confused with mortgages for foreigners who have fiscal residence in the country, since the latter are practically the same as for anyone who was born in Spain.
- However, the maximum amount of financing for this type of mortgage loan is usually 70% of the price of the property or the appraisal, and people will have a maximum payment term of 30 years.
- It is also important to note that the interest rate that will be paid by them is almost always greater than any other type of mortgage loan. Today this interest is between 2 and 3.00%, which despite being higher than other mortgages is undoubtedly a very good option for those buyers who do not have the entire budget.
- In the same way, it should be emphasized that if the buyer is going to maintain tax residence in the country where he was born, the property acquired on the Costa del Sol will not be considered as his habitual residence, but as his Second residence.
Bank requirements to grant mortgage loans to foreign buyers
Apart from the documents mentioned above, applicants must also comply with a set of requirements that will be explicitly stated by the different banks that currently handle this type of credit aid.
- All the documents mentioned in the previous sections must be presented in Spanish only, and must be translated by an official translator. However today some banking entities have their own translators, so you should consult the bank of your choice.
- It is also important to note that the banking entities have provided that the monthly mortgage payment can not exceed 40% of the monthly net income of the foreigner who has requested the loan.
- Likewise, the applicant must contribute to the purchase of the property for sale in Marbella or in any city those expenses related to the documents and deeds of purchase and sale and mortgage, which are generally approximately 16 % Of the purchase amount of the property.
- We previously mentioned that the mortgages in this case are not granted in full, so that applicants must contribute between 20% and 40% of the final price of the apartment for sale in Benalmádena or in the city of the Costa del Sol That you have chosen to carry out this real estate transaction, but this percentage is only an estimate, since the exact amount will depend directly on the bank you are applying to apply for the mortgage, as well as the economic position of the applicants: age , Net annual income, type of work, among others.
Equally important is that the reason why the contribution should be greater than a Spanish is very clear and simple, and is that in these cases the bank will incur a greater amount of risk when granting these mortgages, Since in the case that the adjudicated does not pay, it will be extremely difficult to carry out the embargo of the properties with which it counts in its country of birth.
Difference between mortgage loans for non-residents and mortgages for foreigners
Now, on the other hand, it is important to bear in mind that there are 2 terms that users usually use as if it were exactly the same but that is not so and it is just: mortgage loans for nonresidents and mortgages for foreigners for tax residents in Spain. The latter term is related to loans to Spanish or other nation, which are no more than mortgages that are directed to the acquisition of a first or second property, either foreign or Spanish who do not maintain their fiscal residence in the country , While on the other hand the mortgages for non-residents are directly dependent on that if the applicants carry out the cancellation of all their taxes outside this country, not their citizenship.
After clarifying the difference between the two terms, there are also other important areas related to this topic and in which we also want to deepen and is that some banking entities will accept that you send all the documents mentioned above scanned and via the web or through the mail Postal, but usually will require that the presentation of documents, whether original or copy, is done personally, as well as the signing of any document related to both the grant of the mortgage and the process of purchase- Sale must be made with the presence of a notary qualified for the case.
Also, as experts in Real Estate on the Costa del Sol, we want to recommend that although many of these procedures can be carried out without being present in the place, it is best to go personally, as this will allow you to converse with A bank adviser, who will guide you in all matters relating to legal procedures to obtain such credit, as well as the convenience of payment methods, all details of the contract and much more.
In the same way we recommend that you contact a real estate adviser, since they are experts in the subject, they have extensive experience in this respect since these are procedures that they carry out frequently, so they will be able to guide you from the Most appropriate way on this process.
Why buy a property on the Costa del Sol?
Today there is a large number of investors who decide to buy a property in the area, mainly it is important to add that at least 40% of these investors are foreigners, that is why today we have made known all the steps, requirements and Documents necessary for foreign citizens to receive a mortgage loan.
Firstly, it is important to note that the Costa del Sol has a very privileged location on the map, which allows it to have an approximate 300 and 320 days of sunshine a year, which is undoubtedly extremely attractive to Buyers, plus there you will find the most amazing real estate properties in Marbella, which have unique features such as private pool, jacuzzi, spacious lounges, spectacular terraces with ocean views, panoramic views of golf courses and much more.
On the other hand the business of renting is really fruitful, and is that the Costa del Sol has managed to leave aside the issue of seasonality, which means that it has a high level of tourism throughout the year, which Allows investors to rent such properties and earn very good monthly income.
And lastly it is an area of high revaluation, that is to say, with the passing of the years, the real estate is taking on even more value, so when selling again, the investor can not only recover the initial investment but also obtain Thousands of extra euros.
If you are interested in buying one of the attractive properties for sale in Torremolinos remember to check our real estate section as well as contact the various real estate agencies on the Costa del Sol, who will always be willing to provide you with all the necessary information about it.
Written by: MARA
Number of words: 2120
Contribution to the reader: it provides relevant information regarding the steps to be taken to access a mortgage loan and compares a house in the area