Accessible markets for expats
The good news is that banks and mortgage lenders in many countries open their doors to foreign investors and expat property seekers. Chief among them are the Iberian neighbors of Spain and Portugal. Both have long been destinations for expats, with well-established systems and banks with dedicated international client departments. You can secure a mortgage even if you are not a permanent resident.
As with any mortgage or loan, affordability is key, and many institutions offer mortgages for non-residents with loan-to-value ratios (LTVs) capped at 60% to 70%, compared to around 80% for locals (often closer to 60% in Spain). The legal processes are relatively straightforward, but can be lengthy, and you may find bilingual support in some places if you don't speak the host country's language.
The UK is another very popular destination for expats despite Brexit, though the process can be more complex for some European nationals. It is still possible to secure a mortgage as a non-resident, but the range of lenders is more limited than for residents. In most cases, you will need a bank account in the country, a strong credit profile and a significant deposit of at least 25% of the property's value, although requirements vary by lender.
If you are living in the UK and have residency status, the process becomes significantly easier. However, lenders will typically look at how long is left on your visa and your employment history. Many prefer applicants to have at least 12 months remaining on their visa. If you don't have this residency track record, you may have to limit yourself to specialized expat lenders, which tend to charge higher interest rates.
The United Arab Emirates, especially Dubai, actively encourages foreign investment in the real estate sector. Consequently, it has one of the most straightforward expat mortgage processes. A down payment of 20-25% is typical for resident expats, and higher for non-residents (around 35-40% or more).
Higher barriers
However, mortgage lending is not as straightforward in some other countries, where stricter regulatory frameworks and conservative banking practices create higher barriers.
German banks, for example, are known for their caution, making securing a mortgage as an expat more challenging. Typically, lenders prefer applicants to have a permanent residence permit or a secure, indefinite contract with a German employer. Without these, you may have to pay a much higher deposit and possibly face stricter lending terms, such as higher interest rates.
If you are thinking of buying a property in Australia and are a non-resident, you will first have to apply for approval through the Foreign Investment Review Board (FIRB). This government advisory body assesses foreign investment proposals, including property purchases. Without FIRB approval, non-residents cannot purchase a property. The rules are designed to balance foreign investment with local housing needs.
At the time of writing this article, Australia currently has a temporary ban on foreigners buying property in the country. It came into effect on April 1, 2025, and will remain in place until March 31, 2027.
Foreigners can freely buy property in the Netherlands, and in many cases, you can finance up to 100% of the home's value, just as Dutch citizens can. However, typically, you must live and work in the Netherlands to qualify for this level of borrowing. If you are paid in a foreign currency, lenders might apply a 10 to 20% reduction in the calculated value of your income. This is to account for currency fluctuations, and it may reduce your overall borrowing capacity.
Stricter jurisdictions
In some desirable expat destinations, the rules are even stricter. In Switzerland, legislation known as Koller's Law severely limits non-residents' ability to purchase property, especially in major economic areas such as Geneva and Zurich. The primary aim is to prevent foreign speculation and preserve housing for Swiss citizens. There are exceptions to this law in some holiday regions, such as parts of Valais and Graubünden, where non-residents can buy approved secondary residences. But note that there are strict quotas on foreign buyers.
Strict rules exist in some Nordic countries, too. In Denmark, foreign buyers who have lived in the country for less than five years have to apply to the Ministry of Justice for permission to buy a home.
Key takeaways
Higher deposits are often non-negotiable, so anticipate that you may need to make a down payment of 25 to 40% to offset perceived risk.
Prepare an extensive paper trail, including years of tax returns, a year's worth of bank statements, employment contracts, and proof of the source of your deposit.
Plan for currency fluctuations if you earn in a currency other than the currency of your mortgage.
Seek expert guidance from an independent international mortgage broker or cross-border financial advisor.
