Everything You Need to Know About Financing Foreign Properties


Buying a property abroad is an exciting step, but it can also be challenging when it comes to financing. At ConnectHouses, we understand the complexity of this process and are here to guide you with our expertise. In this comprehensive guide, we explore all financing options for foreign properties, provide concrete examples, and answer frequently asked questions to help you make informed decisions.

Financing Options:

  1. Traditional Mortgage:

    • An example of a traditional mortgage for a foreign property is obtaining a loan from a local bank in the country of purchase. For instance, if you wish to buy a vacation home in France, you can apply for a mortgage from a French bank. While terms and interest rates may vary, this option often offers stability and familiarity.

  2. Equity Release:

    • Suppose you already own a property in the Netherlands and have built up equity in it. You can choose to use this equity as financing for your foreign property. For example, by taking out a second mortgage on your Dutch property and using the released funds as a down payment for the foreign property.

  3. International Mortgage:

    • Some international mortgage lenders offer specialized products for non-residents, making it possible to obtain a mortgage for a foreign property. For instance, a Dutch lender specializing in international mortgages may provide financing for a property in Spain.

  4. Developer Financing:

    • Occasionally, developers or sellers of foreign properties offer financing options for buyers. For example, a developer in Portugal may offer an installment plan where the buyer pays monthly installments over a certain period without interest.

Trends and Tips:

  • Utilizing Equity: Consider using the equity in your current property as financing for your foreign purchase. This can be a cost-effective way to obtain the necessary funds.
  • Tax Considerations: Take into account the tax implications of owning property abroad. Professional tax advice can help avoid tax pitfalls.
  • Currency Exchange Risks: Be aware of the impact of currency fluctuations on the cost of financing a foreign property. It's wise to employ strategies to mitigate currency exchange risks.


  1. Can I get a mortgage for a property abroad if I'm not a resident of that country?
    • Yes, some lenders offer specialized mortgage products for non-residents, but the terms may vary.

  2. What are the typical interest rates for foreign mortgages?
    • Interest rates can vary depending on the lender, the country, and your financial situation. Compare interest rates to find the best deal.

  3. Is it possible to rent out my foreign property for additional income?
    • Yes, many buyers rent out their foreign properties for extra income. However, be mindful of local regulations and taxes.

  4. What documents do I need to apply for a mortgage for a foreign property?
    • Required documents vary by lender and country but may include identification documents, proof of income and assets, and property information.

  5. How can I mitigate currency exchange risks when financing a foreign property?
    • Some strategies to mitigate currency exchange risks include using currency forward contracts, diversifying currency risks, and opting for a mortgage in the currency of your income.

  6. Can I get a mortgage for a property in a country with a currency different from the euro?
    • Yes, many lenders offer financing options in various currencies, but consider the impact of currency fluctuations on your monthly payments.

  7. What about taxes when owning property abroad?
    • Tax implications vary depending on the country of purchase and your tax residency status. It's advisable to seek professional tax advice to determine the right tax strategies.

  8. Are there special financing options for investors looking to buy for rental purposes?
    • Some lenders offer specialized financing products for investors intending to purchase property for rental purposes. These loans may vary in terms and interest rates, so compare options to find the best deal.

By exploring the various financing options and considering the applicable rules and trends, you can make an informed decision when financing your foreign property. At ConnectHouses, our experts are ready to guide you through every step of the process and answer all your questions. Contact us today for personalized advice and support in realizing your real estate dreams!

Ready to explore the best financing options for your dream property abroad?