Mortgage in Spain for US citizens: everything you need to know

A growing trend reveals that more US citizens are moving to Spain as digital nomads or retirees. With an expat community of over 41,000 US citizens, adapting to life in Spain becomes a smoother experience.

So why not consider taking the same step yourself?

Continue reading to learn how to secure a mortgage in Spain from the US and discover the best Spanish mortgage options available for you.

Key takeaways

• Spanish banks provide a range of mortgage options for US buyers, including fixed and variable rates 
• Key prerequisites for obtaining a mortgage in Spain include a bank's assessment, acquiring an NIE number, and compiling all required documentation
• Homevest offers a digital solution that simplifies the mortgage process, connecting you directly with top Spanish lenders

What are the rules for a US citizen applying for a mortgage in Spain?

US citizens applying for a mortgage in Spain must demonstrate their eligibility and financial reliability. This involves meeting the bank's criteria and providing evidence of stable income and ability to repay the loan.

Like any non-resident, US citizens will require a Spanish NIE (Número de Identificación de Extranjero) to apply for a mortgage.

When purchasing property in Spain, US nationals should keep in mind two important factors:

• their stay in Spain is restricted to 90 days without a visa
• opting to rent out their Spanish property involves higher taxation, due to distinct tax regulations for non-EU property owners

What deposit do you have to pay to buy a property in Spain from the US?

Spanish banks typically provide financing options of up to 70% for non-residents, requiring a cash deposit of 30% of the property's value.

What Spanish mortgages are available for US buyers?

US citizens exploring mortgage options based on USD income have several choices among Spanish banks, including Sabadell, Santander, Caixabank, Cajasur, and Bankinter.

Each of these banks presents unique advantages tailored to various financial scenarios:

• Cajasur stands out as an excellent option for first-time homebuyers in the Costa del Sol region
• CaixaBank offers enticing fixed-term deals, accommodating those seeking access to loans of up to 2,900,000 EUR
• Santander proves to be a suitable choice for properties valued at less than 100,000 EUR
• Sabadell offers competitive interest rates designed specifically for non-residents
• Bankinter excels as a remote banking solution that remains easily accessible even when you are not in Spain

The added convenience is that most of these banks accept your documents in English, saving you valuable time by eliminating the need for translation into Spanish.

How do you apply for a mortgage in Spain from the US?

Before embarking on your home-buying journey, remember you must have a Foreign Identification Number to secure a mortgage in Spain. 

You can obtain it from the Spanish consulate in the US. Prepare the necessary documents, pay the associated fee, and you should receive your NIE within a few weeks.

1. Prepare your documents 

Make sure you have the required mortgage documents in one place. You’ll need your passport, proof of income, Form 1040 tax, and bank statements.

A solution that can optimize your time is Homevest, a digital service that centralizes your credit file in one place for you to apply to multiple banks. Homevest allows applicants to interact with leading Spain’s banks in direct competition, ensuring you get the best mortgage deals.

Once you've uploaded all the mortgage documents onto the platform, you can manage the progress of your application directly from your Homevest account. 

2. Open a Spanish bank account

Having a Spanish bank account makes buying property easier. It helps you pay for notary fees and taxes and transfer money needed to buy the property. This account also makes the process smoother and offers better options.

3. Get pre-approval

Check with the banks to see how much they might lend you. Remember, this is just an initial step and doesn't mean you will definitely get the loan.

4. Appraise the property

You can get a property valuation either through the bank or independently. An independent appraisal might give you a better idea of the property's value.

5. Official mortgage application

Once you've chosen a property, complete the detailed mortgage application for the bank to review.

6. Legalities

Consult a notary and get legal advice to make sure all your documents are correct. This is particularly important as Spanish laws differ from those in the United States.

7. Close the deal

At the last meeting, you'll sign the mortgage, take care of any fees, and then the bank will pay the seller. Once this is done, you'll own the property.

How long does it take to get a Spanish mortgage as a US citizen?

The mortgage pre-approval process with Spanish banks typically involves a 14 days period for receiving a formal offer, followed by a 15 days negotiation phase. After finalizing the terms, it takes about 21 days to proceed to the signing at the notary's office.

Continue reading to discover the timeframe and what to expect during the loan process at a Spanish bank as a non-resident.

Frequently asked questions

How does my credit history in the US affect my mortgage application in Spain?

Spanish banks do not rely on US credit scores. Instead, they request income statements, tax returns, and bank statements, to assess creditworthiness. 

Can I negotiate the terms of my mortgage with Spanish banks?

Yes, negotiation is common in Spain, and services like Homevest can help ensure you secure the best deal.

What are the typical fees involved in the mortgage process in Spain?

You must set aside approximately 4-11% of the property’s value for taxes and fees, which vary based on the property's location. 

What are the tax implications of buying property in Spain?

Property taxes, registry costs, and notary fees are significant expenses US buyers should consider. For a detailed breakdown, consult a guide on property taxes in Spain.

It's in your best interest to seek a mortgage that suits your financial situation, so it doesn't affect your everyday life. Finding support that eases the process and helps you save money is important. From this perspective, Homevest is an option you can consider. They provide advice tailored to your needs and help you compare mortgage offers directly from the US. Homevest's service is free of charge, and they only make a commission from the bank upon completion of the mortgage.

Sources used in November 2023:

1. US residents in Spain

We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.