Non-Resident Mortgages in Galicia: Bank Comparison 2025

Differences between resident and non-resident mortgages

If you are a foreigner wanting to buy property in Galicia, it is essential to understand the differences between resident and non-resident mortgages. Spanish banks apply different conditions based on your tax status:

Comparison of the 7 main banks

Abanca: Galicia bank par excellence

Abanca deserves special mention as the main financial institution headquartered in Galicia. With over 300 offices across the four Galician provinces:

• Better knowledge of the local market: Their valuers know prices in rural and coastal areas.
• LTV up to 70%: The highest among banks serving non-residents.
• Fixed rate from 2.80%: Very competitive for non-residents.
• Offices in small towns: Presence in Cee, Corcubion, Fisterra, Muxia and other coastal municipalities.
• Arrangement fee 0.5%: The lowest in the comparison along with CaixaBank.
• Integrated non-resident account: Offers a non-resident bank account with the mortgage.

Required documents for foreigners

For all applicants

• Valid passport or national identity document (EU)
• NIE (Foreigner Identity Number) - mandatory for the deed
• Certificate of non-tax residence in Spain (issued by AEAT)
• Nota Simple of the property to be acquired
• Reservation contract or earnest money agreement

For employed applicants

• Current employment contract (minimum 2 years tenure)
• Last 3 payslips translated and apostilled
• Tax returns from country of origin for the last 2 years
• Tax withholding certificate
• Bank statements for the last 6 months

For self-employed and business owners

• Company incorporation documents (if applicable)
• Tax returns for the last 3 years
• Annual accounts filed at the commercial registry
• Income certificate from a certified accountant
• Business and personal bank statements for the last 12 months

Currency risk and how to manage it

If your income is in a different currency than the euro:

• Prefer fixed rates: With a fixed rate, your euro payment is constant.
• Euro account: Maintain a euro account in Spain for mortgage payments.
• Hedging: For large amounts, consider currency forward contracts with your bank.
• Buffer reserve: Keep an extra 10-15% above the payment as a reserve.

Broker recommendations

• Iber Hypotheken: Specialized in German and Dutch clients buying in Galicia.
• Hipotecas Europeas: Online broker comparing offers from multiple banks.
• Abanca Asesoria: Abanca advisory service for international clients.

Typical broker fees range from 0.5% to 1% of the mortgage amount.

Case study: 150,000 euro property in Corcubion

Buyer profile: British-German couple, 45 and 42, employed with combined income of 4,200 euros/month net.

*Estimated with Euribor at 2.5%. Variable payment changes every 6-12 months.

Estimated additional costs:

• Notary: 600-800 euros
• Land Registry: 350-450 euros
• Administration: 300-500 euros
• Valuation: 250-400 euros
• Property Transfer Tax (ITP): 8% = 12,000 euros
• Insurance (home + life): 500-800 euros/year
• Total purchase costs: 14,000-15,000 euros (in addition to own contribution)

Application timeline

10 tips for getting approved

1. Keep stable income: At least 2 years in the same job before applying.
2. Reduce existing debts: Debt-to-income ratio should be below 35-40%.
3. Save at least 35-40%: You need the down payment (30-50%) plus purchase costs (8-10%).
4. Have your NIE ready: Do not wait for mortgage approval to process it.
5. Use a broker: A non-resident specialist broker will save you time and money.
6. Apply to multiple banks: Do not limit yourself to one. Compare offers.
7. Submit complete documentation: Incomplete files are the most common cause of delays.
8. Show sufficient funds: Demonstrate you have the down payment and a buffer of 6-12 months of payments.
9. Consider Abanca: As a local bank, it offers the best conditions in Galicia.
10. Be realistic: Do not apply for more than you can comfortably afford.

Alternative financing

• Seller financing: Some owners accept deferred payments.
• Private loans: Private entities offer mortgages with LTV up to 70% but at higher rates (6-10%).
• Refinancing home country property: If you have an unencumbered property in your country, you can remortgage it to buy in Galicia.
• Company mortgage: Create a Spanish company (SL) to acquire the property. Tax advantages for some profiles.

Conclusion

Getting a non-resident mortgage in Galicia is absolutely possible but requires preparation and patience. Abanca and CaixaBank offer the best conditions for foreigners, with LTV up to 70% and rates from 2.80%. Budget 2-3 months for the process, have all documentation ready and translated, and consider working with a specialized broker. With proper preparation, you can finance your dream home in Galicia at a reasonable price.