Mortgages in Menorca for non-residents: what to know

Buying property in Menorca as a non-resident in Spain is increasingly common. Many international buyers finance part of the purchase through a mortgage, especially when buying a second home or making a long-term investment.

However, mortgage conditions for non-residents differ from those for Spanish residents, so understanding the process is essential.

Who is considered a non-resident?

A non-resident is any buyer whose tax residence is outside Spain. This includes European and international buyers purchasing property in Menorca without permanently living in Spain.

How much do banks usually finance?

Spanish banks generally finance:

• Around 60–70% of the purchase price or valuation for non-residents
• Higher percentages for Spanish tax residents

Buyers therefore need savings to cover:

• Down payment
• Taxes
• Notary and registration costs

Typical required documents

Banks usually request:

• Passport or ID
• NIE number
• Proof of income
• Tax returns from the country of residence
• Bank statements
• Existing assets and debts information

Requirements may vary depending on nationality and lender.

Importance of the property valuation

The bank will order an official valuation. Financing is typically calculated based on the lower amount between:

• Purchase price
• Appraised value

Additional mortgage-related costs

Buyers should also consider:

• Property transfer tax or VAT
• Notary fees
• Land registry fees
• Valuation costs
• Potential bank fees

Buying as investment or second home

Buyer profile matters:

• Second-home buyers are evaluated on income stability
• Investment buyers may also be assessed on assets and financial background

Why Menorca attracts non-resident buyers

• Stable real estate market
• Protected natural environment
• High quality of life
• Limited housing supply
• Long-term asset security

Tips before applying for financing

• Compare several banks
• Obtain mortgage pre-approval
• Seek legal and tax advice
• Calculate all acquisition costs carefully

Conclusion

Getting a mortgage in Menorca as a non-resident is entirely feasible with proper preparation.
At Fincas Venalis, we guide international buyers through every stage of the purchasing process to ensure a smooth and secure experience.

More information: https://venalismenorca.com/en/