Definitive Guide: Private Equity Financing for Foreigners in Spain [Updated 2025]

The challenge of financing yourself as a foreigner: why banks won't give you liquidity on your property

The profile of foreigners and the perception of banking risk

Bureaucracy and document filters

Why banks won't lend against your property

The Spanish banking system follows a traditional credit scheme based on:

Seniority and national taxation.

Credit history in Spain.

Payroll or recurring local income.

If you do not meet these criteria, you do not fit into their risk model. As a result, thousands of international property owners end up blocked, even though they have valuable real estate assets.

The perfect alternative: private equity

«If you own real estate, you have access to financing.»

Preserve our heritage, don't sell it!

How private equity works in Spain

What is private equity?

How private capital is formalized for foreigners

Advantages of private capital over banking for foreign property owners

When you already own property in Spain and need liquidity, the difference between closing on time or missing out on the opportunity lies in how you are assessed. 

Private equity is based on a simple logic: if the asset is solid and the operation is coherent, it can be financed. These are the advantages that make the difference compared to the traditional banking circuit.

Speed and certainty of closing

Banks carry out pre-qualification, risk analysis, internal validations, and often require weeks of waiting. 

In private equity, the process is feasibility → appraisal → notary → disbursement.

Imagine you have to make a payment to the tax authorities in ten days: with the property documentation and appraisal underway, you can get to the signing on time. The key is not to promise speed, it is to organize the process to make it happen.

Evaluation based on the guarantee and exit plan

The bank asks you for proof of income in Spain, local history, and job stability. Here, the key is your real estate guarantee and a clear exit plan (sale, bank refinancing, asset flows).

If the property is well valued and the charges are manageable, the LTV is adjusted and approved. Your tax residence or the international origin of the income does not block the transaction.

Structural flexibility: LTV, terms, and grace periods

  • Prudent and configurable LTV: calibrated to ensure sustainable and attractive operations.

  • Customized terms: from 6–18 month bridge financing to longer horizons when the case allows.

  • Adjusted grace periods and amortization: useful for inheritances, renovations with subsequent sale, or periods of corporate reorganization.

  • Second guarantee, if appropriate: combining two assets in Spain may allow for greater liquidity while maintaining reasonable risk.

Access even with ASNEF/RAI or incidents

For banks, a negative credit rating closes the door. In private equity, there is no automatic veto: the value of the asset, the LTV, and the consistency of the capital allocation are weighed.

If it helps as an example, think of a foreign company with premises in Barcelona and a minor incident: if the asset is solid and the timing is right, the financing can go ahead.

Less international bureaucracy, more real processing

Essential and relevant documentation is required: identity (passport/NIE), simple note from the Registry, appraisal, and a summary of the use of capital.

When foreign documents are involved, a plan is made as to which ones require certified translation and which ones do not. The goal is to reduce friction and save time without compromising legal certainty.

Liquidity without selling (you retain ownership)

Selling quickly often involves aggressive discounts and the loss of a strategic asset. With private equity:

  • You get liquidity today.

  • You retain ownership.

  • You plan the exit (sale under better conditions or bank refinancing) when the context is favorable.

It is, in essence, converting equity into liquidity without disposing of your assets.

Cost vs. opportunity: the price of being late

Private capital may be more expensive than a bank mortgage, but the cost of not foreclosing is usually higher: tax surcharges, loss of an asset at auction, contractual penalties, or an investment that goes up in smoke.

The correct calculation is the «total opportunity cost»: how much is it worth to resolve the issue today and preserve the value of your assets?

Legal certainty: notary, approved appraisal, and transparency

The formalization is done with a public deed before a notary. The appraisal is issued by an approved company and the borrower receives prior documentation with time to review it.

For residential properties, the LCCI (notarial deed of transparency, explanation of conditions, choice of notary) applies. Result: speed with guarantees.

No bundling or cross-selling

You are not obliged to take out insurance, set up direct deposit for your paycheck, or sign up for credit cards. The structure revolves around your assets and your schedule, with no ancillary products that make the process more expensive or complicated.

Coordination of complex cases: seizures, tax authorities, inheritances, companies

Where banks see a «no go,» private equity offers simple, executive engineering:

  • Seizures and auctions: liquidity to cancel and lift encumbrances.

  • Tax/Social Security payments: meet deadlines and avoid penalties.

  • Inheritance: finance the tax and regularize the registration without selling at a loss.

  • Corporate liquidity: working capital secured against a company asset.

Bank-friendly: a bridge to refinancing

It’s not about «choosing sides.» Another effective strategy you can follow is:

  • Close quickly with private capital to meet the need.

  • Refinance with the bank when you meet their criteria (time, documentation, cash flow).

 

Think of it as a bridge to avoid missing the execution window.

International operations designed for you

If you live outside Spain, you can grant power of attorney, coordinate the notary appointment, and prepare for signing by sending documentation electronically. Are you coming to sign? The minutes and deed are scheduled to minimize stays. The entire process is designed for an international owner.

Don't forget!

Private equity does not compete with your ownership: it puts it to work for you. 

If the bank won’t lend to you due to its non-resident policy, lack of local history, or impossible terms, here’s a fast, flexible, and secure way to convert your property into immediate financing and maintain your assets.

Requirements and conditions for obtaining financing in Spain as a foreigner

Property as collateral: the cornerstone of private equity

Minimum documentation: the essentials to get started

The official appraisal: starting point for calculating the LTV

Types of properties accepted

Transactions with previous charges: cancellation and consolidation

Typical timeline: from application to disbursement

One of the great advantages of private equity is predictability. Although each case has its own pace, the average timeframes are:

  • Pre-feasibility (24 hours): analysis of the asset and LTV estimate.

  • Documentation and appraisal (3–5 days): verification and official valuation.

  • Legal review and notarization (5–7 days): the deed and transparency certificate (when applicable) are prepared.

  • Disbursement (immediately after signing): transfer of capital to the client.

In total, a standard transaction can be completed in 7–15 calendar days, a timeframe that would be unthinkable in traditional banking.

Economic conditions: balance between agility and security

The cost of private capital varies depending on the risk and type of asset, but it is always designed with complete transparency. The main expenses are:

  • Annual nominal interest rate: determined by the LTV, the duration, and the complexity of the case.

  • Notary and registration fees: set by tariff.

  • Appraisal fees: flat rate based on surface area and location.

There are no linked products or hidden costs. And most importantly: you pay nothing for the feasibility study.

Legal certainty and transparency: what protects you

The role of the notary: your guarantee of transparency

Approved appraisal and control of asset value

Cost transparency and prior documentation

Regulatory compliance and prevention of money laundering

Cost, risk, and return: decide with numbers, not feelings

Understanding the real cost

The nominal interest rate varies according to three factors:

  • The LTV (loan-to-value ratio).

     

  • The duration of the operation.

     

  • The risk involved (if there are charges, tax deadlines, or urgency).

     

The typical range in private financing is tailored to the client’s profile and the type of property, always with transparently negotiated terms.

The cost of not executing on time

Beyond the interest rate, the real risk lies in not taking action. Delays with the tax authorities, penalties, loss of property through foreclosure or auction, or an investment that evaporates due to lack of liquidity.

Private equity turns opportunity into immediate reality: it allows you to make a payment, save an asset, or take advantage of a project before time runs out.

In terms of opportunity cost, resolving the issue today is usually more profitable than waiting three months for the bank to respond with a «no.»

Optimizing operations: how we reduce your risk

At Proactivo Finance, we design operations to maintain a healthy balance:

  • Prudent LTV (50–60%), so that the property is not overleveraged.

     

  • Reasonable timeframes, adjusted to the purpose (for example, 12–18 months if the exit will be a sale or refinancing).

     

  • Flexible repayment schedules, with partial grace periods when required by the transaction.

     

Real viability, validated before investing time in appraisal or signing.

Let's look at a simple example!

International operations: sign from abroad and don't waste time

Many of our clients live outside Spain. That is why we have adapted all our processes to a fast, digital, and secure international operation.

Sign with power of attorney

If you are unable to travel, you can grant a power of attorney in your country so that a representative can sign on your behalf.

In-person signature: express processing

If you prefer to come to Spain to sign, we will coordinate everything to minimize your stay.

Constant communication and traceability

Throughout the entire process, you will have direct access to our team for follow-up and to resolve any questions.

How much does peace of mind cost? A realistic view of private equity

In the financial world, speed comes at a price, but it also has value. What distinguishes a good transaction from a hasty one is planning and transparency. That’s why at Proactivo Finance we clearly explain every figure before we begin.

Trust is built with information, not promises.

Common situations where private equity can help you

At Proactivo Finance, we receive weekly requests from foreigners who, despite owning valuable properties in Spain, find themselves blocked by the slowness or restrictions of the banking system.

These are some of 0the most common scenarios where private capital offers a quick, safe, and completely legal solution for obtaining liquidity without selling your property.

Situation or need

Example 

How private equity helps you

Urgent payment to the Tax Office or Social Security

You are a resident of France and you own a property in Marbella. You have to pay €80,000 in taxes and the bank will not lend you money because you are a non-resident.

We provide financing within 10–15 days with a guarantee on your property, avoiding surcharges or seizures.

Cancellation of liens or lifting of encumbrances

You are a foreign entrepreneur and you have premises in Madrid that need to pay €120,000 to lift a seizure order from the Spanish Tax Agency (AEAT).

A short-term transaction (12 months) is structured with a mortgage on the asset; the seizure is canceled and the company continues to operate.

Immediate business liquidity

You have a warehouse in Barcelona and need cash flow for new contracts.

A bridge mortgage is granted on the warehouse, with repayment expected through bank refinancing after invoicing.

Acceptance of inheritance or distribution of assets

You inherit a property in the Balearic Islands and must pay inheritance tax before registering it in your name.

We finance the tax amount using the inheritance itself as collateral, preventing the loss of the property.

Debt restructuring or consolidation

You have several commitments in Spain and in your country that are difficult to maintain.

Everything is consolidated under a single mortgage on your home in Spain, with a single payment and an organized schedule.

Incidents in creditworthiness files (ASNEF/RAI)

You are listed in a file for a minor payment default in your country, and no bank will accept your application.

In private equity, the analysis focuses on the value of the property, not your track record.

Investment or reinvestment in projects

You own an unencumbered apartment in Madrid and want to invest in a renovation or project for your company.

You use the property as collateral, obtain liquidity, and retain ownership of the asset.

Properties with small mortgages or minor encumbrances

You have a home with a mortgage of €50,000 and need an additional €200,000.

A second mortgage is structured on the same property, respecting a prudent LTV.

Liquidity due to life or career change

You need temporary capital due to relocation, divorce, or asset restructuring.

The loan gives you financial breathing room without having to sell your assets at a low price.

Keep your property and get the liquidity you need!

Frequently asked questions about financing for foreign property owners

These are some of the most common questions from our overseas customers.

Can I start with just my passport and the Nota Simple?

Yes. With your passport or NIE and the updated Nota Simple, we can begin the review. If you reside outside of Spain, we can help you process the certificate of non-residence, which some notaries require in order to register the deed.

Almost any real estate asset in Spain with a clear registered value: homes, commercial premises, warehouses or buildings. We also analyse urban plots and mixed assets, depending on their documentation and location.

What happens if I have a previous mortgage?

We can cancel it within the new transaction if the value of your property allows it. It is also possible to keep it and structure a second mortgage if the LTV margin supports it.

Yes. Each case is studied individually. With private capital, there is no automatic rejection: the guarantee, the amount requested and the purpose of the loan are all taken into consideration.

It depends on the destination of the capital. The most common transactions are between 12 and 24 months, with the possibility of refinancing or early cancellation when the customer’s situation improves. However, there is the possibility of up to 15 years.

Yes, by means of a power of attorney or with a scheduled in-person signature. We manage the documentation remotely and coordinate with the notary on your behalf.

With complete documentation, between 7 and 15 calendar days. In urgent cases, we have closed transactions in less than a week.

Yes, you can cancel whenever you wish. Only the notary and registration costs for cancellation apply, with no additional penalty.

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CONTACTO

34 937 203 222
analisis@proactivofinance com
Balmes 456 – 08022 Barcelona
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Lo lamentamos, pero solo ofrecemos financiación con garantía hipotecaria.
No podemos ofrecer financiación a una vivienda que ya se encuentra hipotecada y la persona está inscrita en RAI o ASNEF.
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Importe solicitado y finalidad del préstamo
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