Spanish Holiday Home Purchase for US Residents

The Balearic Islands are a Spanish archipelago in the western Mediterranean Sea. The islands are best known as Majorca (also known as Mallorca) and Ibiza. Menorca is another Balearic Island; it is known for being quieter than both Majorca and Ibiza and has fewer prime estates on offer. On the other hand, Menorca is growing more desirable, and high-value and luxury property is becoming simpler to locate as more individuals try to buy on the island.

All of the Balearic Islands are frequently visited by tourists. However, Majorca and Ibiza are more well-known and popular with international property investors. Majorca also boasts outstanding real estate for sale, with prices to match, with a wide range of properties for sale.

The Balearic Islands are popular with US investors, particularly those searching for a holiday property in Europe, due to Spain's climate, culture, and lifestyle. In addition, prime real estate is frequently less expensive than neighbouring France while providing the same benefits

Spanish Mortgages for US Residents

There are few limits on property ownership in Spain. However, tax implications and your capacity to buy in the country should always be investigated ahead of time. Most local high street lenders will be unable to assist you with Spanish mortgages for US residents or citizens. These lenders prefer "plain vanilla" mortgage arrangements, and you will most likely be excluded by default as an American borrower. In addition, most prominent Spanish lenders do not provide Spanish mortgages to US citizens. Therefore you will benefit from working with a broker that can connect you with more lenders.

Private banks, in particular, are better positioned to offer Spanish mortgages to US residents because they are more flexible in assessing borrower risk and can fulfil the sometimes-complex standards for onboarding and lending to you as an American. Niche and alternative lenders are also well-equipped to work with American borrowers, and many can lend to you even if they do not have a Spanish basis - for example, London-based private banks can provide Spanish mortgages.

On mainland of Spain, the mortgage market is still recovering from the 2008 financial crash, and repossessed goods held by domestic banks are gradually being sold off. 

Can I, an American Citizen, Purchase Spanish Holiday Home?

Spain is one of the more approachable European countries for purchasing property, and Americans can buy a Spanish holiday home. In contrast to other European countries (some of which impose strict restrictions on who can buy and own property), US citizens have greater freedom in purchasing Spanish holiday homes. 

You should get information on any entrance requirements and laws before purchasing a Spanish holiday home to ensure that there are no restrictions on your ability to enter Spain. As an American citizen, you may normally visit and stay in Spain for 90 days without a visa. However, if you want to stay in the country for an extended amount of time on a trip, you may need to apply for a visa (after the 90 days, you will need to leave Spain and will only be able to enter again without a visa after a continuous period of 180 days).

If you are an American citizen or resident who is retired (even if you have significant wealth), an entrepreneur or own a business, or the majority of your wealth is invested in real estate or other illiquid assets, private banks and niche lenders are likely to be your best option for a Spanish mortgage.

Get in touch today

If you need a mortgage for a Spanish home, Enness can connect you with international and alternative lenders that can provide cheap and flexible financing. Enness has worked with many American purchasers and has a track record of assisting them in obtaining non-resident mortgages. Contact us to explore your funding solutions.