Myth: foreigners cannot get a mortgage abroad - the facts

The myth

The claim is short: banks abroad do not lend to foreigners, so you must pay cash. It is repeated in forums and by sellers who prefer a cash buyer. People who hear a first "no" from one bank in their own country, or from a foreign bank that asked for a local salary, conclude that the whole market is closed. This article describes how lending to non-residents works in general. All loan figures are indicative ranges reported by advisers and brokers in 2026, not offers, and each bank decides case by case. It is not financial advice.

What is actually true

There is usually no law forbidding a bank from lending to a foreigner. Whether it does is a commercial decision, and the answer varies by country, by bank and by the buyer's profile. In several markets, banks lend to non-residents routinely. Typical features:

• Lower loan-to-value. Non-residents are commonly offered a smaller share of the price than residents, often around 50% to 70%, so a deposit of roughly 30% to 50% plus buying costs. The ratio is usually set against the bank's own valuation, which can be below the price you pay.
• Stricter income proof. Banks want stable, documented income, often with several years of tax returns and months of bank statements, and they test total debt service including loans in your home country.
• Currency. A loan is usually in the local currency (often euro). If you earn in another currency, the bank may price that in, and the exchange rate affects your real repayment.
• Local presence. A local tax number and a local bank account are usually required, and some banks ask for the loan repayments to be paid from that account.
• Non-EU borrowers face more checks and often a lower ratio than EU borrowers, and in some markets may find it very hard.

For the overall picture, see mortgages for non-residents: who lends and on what terms. For the risk side, see mortgage leverage and property returns.

Where the myth comes from or is partly right

The kernel of truth is that the market is uneven. Some countries and banks genuinely do not lend to non-residents, or lend only for some property types, and a non-resident who cannot show local income may be refused. Off-plan purchases are often financed by the developer's payment plan, not by a bank. In some emerging markets bank loans for foreigners are thin or expensive, so cash or developer instalments dominate. In some places the local currency and very high nominal rates make a local loan unattractive even where it is available. And banks do refuse applicants whose source of funds cannot be documented. So "it is not available everywhere, and not on resident terms" is true; "it is impossible" is not.

Country examples

Spain. Our guide reports non-resident loan-to-value commonly capped around 60% to 70%, with non-EU buyers often offered less, roughly 50% to 60%; terms of 15 to 25 years; a debt-service test of about 35% of net income as a rule of thumb; and a requirement for an NIE tax number and a Spanish bank account. See Spain mortgage for foreigners.

Portugal. There is no legal bar on foreigners borrowing. Advisers report 60% to 70% for non-residents, with up to 75% or 80% reported for euro-earning EU residents and less outside the EEA, and the central bank's macroprudential recommendation sets wider limits that banks usually tighten for non-residents (Banco de Portugal). A Portuguese tax number (NIF) and bank account are required. Note that since 25 May 2026 a flat 7.5% property transfer tax (IMT) is reported for buyers who are not tax resident, which affects the cash you need. See Portugal mortgage for foreigners.

Greece and Cyprus. In Greece the larger banks are reported to lend to non-residents, including non-EU buyers who pass anti-money-laundering checks, at around 60% to 65% of the bank's valuation, after you obtain a Greek tax number (AFM); see Greece mortgage for foreigners. In Cyprus non-residents are reported at 60% to 70% with a higher margin than residents, and the source-of-funds review is described as the step that slows applications most; see Cyprus mortgage for foreigners. For the Cyprus residence scheme, a mortgage reportedly cannot be used for the qualifying amount, so confirm with a lawyer.

Germany. Banks lend to non-residents more cautiously. A 2026 guide reports about 30% to 40% down for EU citizens living abroad and 40% to 50% for non-EU non-residents, and that non-EU buyers without German income or residence find it much harder. See Germany mortgage for foreigners.

Turkey and Dubai. Turkish banks are reported to lend to foreigners from some banks, commonly up to about 70% of value, but mostly in lira, so the currency risk is large; see Turkey mortgage for foreigners. In Dubai, non-residents are reported at about 50% to 60% for ready property, and off-plan financing for non-residents is often partial or not offered; see Dubai mortgage for foreigners. In Montenegro the mortgage market for foreigners is described as much thinner, and many buyers pay cash or finance at home.

The case of Poland as a borrower country is covered in mortgage in Poland for foreigners: residence card requirements.

How to act safely

• Ask for an indicative term sheet or a written pre-approval from a bank or licensed broker before you sign a reservation, and before paying a deposit. Do not rely on a verbal "it will be fine".
• Make the purchase contract conditional on financing if the country and the seller allow it, and ask a local lawyer how that works.
• Prepare documents early: passport, proof of address, tax returns, payslips or business accounts, bank statements, proof of the deposit and its source. Foreign documents may need translation or an apostille.
• Compare the full cost: rate, fees, valuation, insurance, taxes on the loan, early repayment charges. Ask for the standard information sheet or the effective rate, not only the headline rate. We do not quote rates because they change.
• Stress-test the currency and the rate. If your income is in one currency and the loan in another, check what happens to the payment if your currency weakens.
• Test the alternatives: developer instalments (common for off-plan), or a loan in your country of residence secured on a home you already own, then used as cash. See mortgage in your country against property abroad, which also explains the risk of pledging your own home.
• Be transparent with the bank about the purpose and the source of funds. Do not hide anything; false statements to a bank are a serious problem. See what banks ask before a large transfer.
• Read the sibling articles on other myths, for example permits and passports through property and the hub of myths and facts.

FAQ

Can a foreigner get a mortgage abroad? Often yes, in many markets, at a lower loan-to-value than residents and with more documents. How much deposit? Plan for roughly 30% to 50% plus purchase costs, depending on the country and your profile; these are reported ranges, not offers. Is it harder for non-EU citizens? Generally yes: more checks, a lower ratio, and in some countries few lenders. Do I need a local bank account? Usually yes, and a local tax number. Can I get a loan in my home country instead? Possibly, if you pledge a home you own there and the lender accepts the purpose; the risk is that your home secures the debt. Do banks lend for off-plan purchases? Often only partly or not before handover; developers frequently offer instalment plans instead.

How we help

We are a trilingual platform that finds properties and coordinates independent local lawyers, tax advisers and licensed mortgage brokers, so that financing is checked before you commit. This text is informational and is not legal, tax, financial or investment advice. Lending criteria differ by bank and change over time, so verify current terms with a licensed broker or bank.