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What is meant by Residency?
There are two types of residency status, fiscal residency and official residency. Fiscal residency is automatic once an individual spends more than 6 months of the year in Spain, however no documentation is provided to the individual.
Official residency must be applied for and culminates with a residency identification card (Tarjeta de Residencia).
Note possession of a NIE number is compulsory in order to purchase a property, however this does not qualify as official residency in Spain.
Residency for mortgage purposes
Generally banks will treat individuals that have a Tarjeta de Residencia as resident and those that do not as non-resident for mortgage purposes.
The consequence is that the range of mortgage products available is greater for residents and residents may also borrow more, up to 100% or in the case of first time buyers 120%.
Some banks however, do not use the "tarjeta de residencia" as the key factor, taking a more pragmatic view looking at your overall circumstances, in effect agreeing that if you are fiscally resident, then you will be deemed resident for mortgage purposes.
Please feel free to contact us if you would like to discuss whether you would be deemed resident or non resident for mortgage purposes.