These 5 Countries Offer Loans To Foreigners

Intro

Hi, I’m Kat Kalashian for Live and Invest Overseas, and today I’d like to share five countries that offer loans for buying property overseas to foreigners.

Are you ready to own a home abroad? If you’re wondering why anyone would want to do that, you can look at the broader case for overseas real estate on its own merits. But if you’re already there mentally, then your global property dreams may be more within reach than you think in a handful of countries where local financing is available even to non-residents.

It can be more challenging because many foreign banks are cautious about lending to non-residents, and the terms will likely be different from what you may be used to, especially if you’re American.

You should not expect a fixed-rate 30-year mortgage. Those are largely unique to the United States. Shorter loan terms, usually 15 to 25 years, are more common overseas, and variable interest rates are common as well.

That said, there are still a few places where foreigners can get mortgages even without residency.

Portugal

Portugal is one of the countries where foreign buyers can access mortgages through major banks such as Millennium BCP, Novo Banco, and Santander.

Loan-to-value ratios for non-resident foreigners typically range between 60% and 70%. As a non-local buyer, you will likely be required to make a larger down payment, usually around 30% to 40% of the purchase price, compared with a local buyer who may only need to put down 10% to 20%.

To apply, you’ll need a Portuguese tax number, called the NIF, as well as a local bank account and the usual financial documentation, including your passport, proof of income, employment verification, recent bank statements, and a purchase agreement.

Once approved, the home will be independently appraised and the bank will provide a formal mortgage offer.

Rates vary depending on your credit profile, income, and down payment. In 2024 and 2025, mortgage rates were averaging around 3% to 4%, and both fixed and variable mortgage options were available.

One thing to note is that in most European countries using civil law, including Portugal, banks often make life insurance mandatory for mortgages. As a result, terms can vary depending on the age of the prospective borrower. The eligibility cap for life insurance is typically around age 70 or 75, which means the closer you are to that age, the shorter the loan term you can usually expect.

Spain

Spain also offers foreigner-friendly mortgage options, and many buyers take advantage of them. In fact, in 2022, 7% of all mortgages in Spain were issued to foreign buyers, according to the General Council of Notaries.

Spanish banks typically lend up to 70% of the property’s purchase price for non-residents, compared with 80% for locals, so the difference is not enormous.

You should expect to make a minimum down payment of 30% and show steady income in order to qualify. Mortgage terms generally range from 20 to 25 years, and borrowers typically need to be under 65 years old.

Required documents usually include your Spanish tax ID, or NIE, your passport, proof of income, employment contract, bank statements, and credit history.

Spain’s interest rates remain relatively competitive within Europe. In 2025, rates were generally in the high-2% to high-3% range for residents and somewhat higher for non-residents, often between 3% and 5%.

Both variable and fixed rates are available, though many buyers choose variable-rate mortgages tied to the Euribor, the Euro Interbank Offered Rate.

Italy

Italy also allows foreign buyers to obtain mortgages, but banks there tend to be more conservative when dealing with non-residents.

Not all banks work with foreign non-resident buyers, but your chances are better in urban areas and in tourist-heavy destinations where international buyers are more common.

Foreigners are generally expected to make a larger down payment, typically between 40% and 50% of the purchase price. You will also need to obtain an Italian tax ID, known as the Codice Fiscale, open a local bank account, and provide the standard documentation such as your passport, proof of income, bank statements, and credit report.

Most loan terms range from 20 to 25 years. Interest rates in 2025 were generally between 2.7% and 5%, although rates may be higher for non-residents.

Both fixed and variable loans are available, with variable loans typically tied to the Euribor. Banks may also require both property insurance and life insurance depending on the terms of the loan.

Greece

Greece is another country where foreigners can apply for mortgages through local banks, often for up to 65% of the property’s commercial value, as determined by an independent appraisal.

Loan terms can range from 3 to 35 years, depending on the borrower’s country of residence and profile. Lending criteria in Greece do tend to be stricter than in Portugal or Spain.

As with the other countries on this list, life insurance is often required to get a mortgage through a Greek bank, and the age cap for life insurance is usually around 70 or 75.

Interest rates vary widely, typically ranging from around 2% to 5% depending on the loan structure. Floating-rate loans are often tied to the three-month Euribor, plus a fixed spread set by the bank.

Banks usually require collateral, most often a mortgage lien on the property, along with insurance against fire, earthquake, and other natural risks. In some cases, a cash deposit or pledged investment account may also be accepted as collateral for floating-rate loans.

The process of getting a mortgage in Greece can be more bureaucratic than in Portugal or Spain, but it remains a viable option for buyers with strong financials and a long-term plan.

Panama

Panama is the one non-European country on this list, and it remains one of the more accessible Latin American markets for foreign buyers seeking financing.

Panama offers relatively approachable mortgage options both for residents and non-residents, although the documentation and loan structure can feel quite different from what Americans may be used to.

Loan terms are generally around 25 years, and interest rates often average around 6%, depending on the bank, the property type, and the applicant profile.

Mortgages for second homes are typically charged a 1% premium. This is not based specifically on foreign citizenship. Rather, the assumption is that a non-resident is buying a second home, and the same premium can apply to Panamanians buying second homes as well.

Foreigners should expect to make a down payment of at least 30%, although some developers may offer more flexible in-house or supported financing options.

Instead of relying heavily on credit scores, Panamanian banks focus more on your demonstrated ability to pay. In addition to a completed mortgage application and the standard identification and income documents, you may also be asked for a recent utility bill showing your address, personal reference letters, bank reference letters from your home country, tax returns, and a property appraisal by a bank-approved expert.

In some cases, you may also need to provide a résumé and a letter explaining your investment plan or why you want to buy that particular property in Panama.

All of these documents usually have to be authenticated by apostille or through the Panamanian consulate. As in the other countries listed here, borrowers are also commonly required to carry life insurance and insurance on the property.

The mortgage is secured with a lien filed in Panama’s public registry. In our experience, mortgages in Panama are generally adjustable-rate mortgages, although rates have not changed dramatically over the past couple of decades.

While the process can be more documentation-heavy than in some other countries, Panama remains one of the more flexible lending markets in Latin America for expat buyers.