The Spanish Golden Visa offers a path to residency for non-EU nationals who make a significant investment in Spain—most commonly in real estate. One of the key requirements is to invest at least €500,000 in property. But what if you don’t have that amount readily available? Can you use a loan to help meet the investment threshold?
The answer is yes, with some important conditions and strategies. Here’s how to use loans effectively while staying within the rules.
Understanding the €500,000 Requirement
The Spanish Golden Visa program requires an investment of €500,000 in real estate, free of any liens or financing. That means the first €500,000 must come from your own funds, not from a mortgage or any form of loan secured by the property in Spain.
However, anything you invest above the €500,000 can be financed through a mortgage or other loan, even from a Spanish bank. This opens up some flexibility for investors who have partial capital and strong credit.
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Scenario: Combining Cash + Loan
Let’s say you want to buy a property worth €800,000 in Spain. Here’s how you can structure it:
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First €500,000: Must be paid from your own liquid assets—cash, savings, or non-mortgaged funds.
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Remaining €300,000: Can be financed through a mortgage, either from a Spanish or foreign bank.
This structure meets the Golden Visa requirement, since the qualifying €500,000 investment is mortgage-free.
Using a Personal Loan or Equity from Another Property
If you don’t have €500,000 in liquid assets, you may consider:
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Taking a personal loan in your home country (not secured against the Spanish property).
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Using home equity from property you already own elsewhere to raise the funds.
These options are viable because the Golden Visa requirement is that the Spanish property itself is not encumbered by a mortgage or lien—how you raise the money outside Spain is up to you, as long as the funds are legally sourced and documented.
If you need an explanation on writing your CV, Cover Letter and Email Template or help applying speak to Happy Face
Important Financial Considerations
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Documentation: Be ready to show that the €500,000 comes from legal, traceable sources. Transparency is key in the application process.
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Taxes and Fees: In addition to the purchase price, factor in taxes (roughly 10–13% depending on region), legal fees, and notary costs.
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Income Requirements: While the Golden Visa doesn’t have strict income thresholds, you’ll need to show you can support yourself and your dependents while living in Spain.
Loan from a Spanish Bank?
Spanish banks will often lend to foreign investors—especially if you have good credit and the property is of high value. Just remember:
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The first €500,000 must still be paid in full by you.
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You’ll likely need a down payment of at least 30–40% if using a mortgage for the amount above €500,000.
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Interest rates vary but are generally competitive, especially for non-residents with stable income.
If you need an explanation on writing your CV, Cover Letter and Email Template or help applying speak to Happy Face
