Millions of Americans dream of buying property in Europe. Whether your ideal home is a pied-à-terre in Paris, a villa in Tuscany, or a flat in Barcelona, if you need financing, it’s important to understand your options and how mortgages in Europe differ from in the US.
For example, Americans living abroad often face stricter documentation requirements, higher down payments, and fewer lenders are willing to work with foreign borrowers.
In this article, we’ll provide an overview of your options and how getting a mortgage to buy real estate in Europe works.
Mortgage options for US expats buying in Europe
As a US citizen, there are generally three ways to finance purchasing a property in Europe: a mortgage from a European bank, a mortgage from a US or international bank, or using US-based assets to secure a loan.
Each route carries different costs, benefits, and risks, and the best choice depends on your personal finances, risk tolerance, and long-term plans.
Getting a mortgage from a European bank
European banks are the most common source of financing for Americans buying property in the EU, where many lenders offer specialized mortgages for non-resident buyers. Borrowing in local currency eliminates exchange-rate risk on the loan (where dollar/Euro exchange rate fluctuations could otherwise change the relative cost of your loan). Furthermore, these days interest rates are often lower in the EU than in the US.
However, there are trade-offs. European lenders typically require larger down payments, often 25-40% of the property value. Documentation is strict, too. Even with a Euro-denominated mortgage, US expats earning in dollars must consider potential currency fluctuations that could affect overall affordability.
Getting a mortgage from a US or international bank
Some US banks or international banks with US ties offer loans for foreign property, though availability is limited. This option can be appealing because your familiar banking relationship and US credit history may simplify the process. Additionally, servicing a loan in US dollars avoids some international paperwork challenges.
On the downside, interest rates on US bank mortgages for foreign property are usually higher than European rates. Banks may also limit the loan-to-value ratio or total loan amount. Many are hesitant to hold liens on foreign property, which restricts availability and choice.
Leveraging US assets
Another option for financing is to use US-based assets such as securities, retirement accounts, or equity in an existing property to secure a loan. This can bypass European banking bureaucracy and offer flexibility in managing currency, as payments can remain in dollars while the property is in euros.
The cons include typically higher interest rates and the need to provide collateral, which could put US-based assets at risk. Currency exposure also remains a factor if property costs are in euros but the loan is in dollars.
Obtaining a mortgage from a European bank
For most US expats, a mortgage from a European bank remains the most practical and cost-effective choice. Each EU country has unique rules and lending practices, but common factors apply across the board.
Documentation requirements
European banks carefully evaluate foreign borrowers. Be prepared to provide a passport, proof of legal residence if applicable, income statements, employment contracts or business records, bank statements covering several months, a local tax or identification number, and a property appraisal or purchase agreement.
Lenders are particularly cautious with foreign income. Many will scrutinize your US salary or rental income to account for currency risk. Complete and organized documentation significantly increases the chance of mortgage approval.
Deposit requirements
Non-residents usually face higher down payments than locals. In many EU countries, 25–40% of the property value is standard, while in Italy or certain regions of Spain, deposits can rise to 40–50%. High deposits reduce lender risk but require substantial upfront capital.
Interest rates and currency considerations
Interest rates in Europe vary by country. Germany and France historically offer lower rates, while Spain and Italy are slightly higher. Borrowing in local currency removes exchange-rate risk on monthly payments, but US expats earning in dollars should budget for possible currency fluctuations or consider hedging options.
Countries more open to foreign buyers
Some EU markets are particularly welcoming to foreign buyers, offering competitive financing and relatively clear application processes. The table below illustrates typical mortgage terms for non-resident US buyers across several popular countries in 2026:
| Country | Typical LTV for Non-Residents | Typical Down Payment | Average Interest Rate (Fixed 10-Year) | Notable Requirements |
| Portugal | 60–70% | 30–40% | 3–4% | Local tax number, bank account, proof of income, property insurance |
| Spain | 60–70% | 30–40% | 3–4.5% | Local tax number, bank account, proof of income, property appraisal |
| Italy | 50–60% | 40–50% | 3.5–5% | Higher deposits in rural areas, insurance may be required, proof of income, tax ID |
| France | 60–75% | 25–35% | 2.5–3.5% | Local bank account, property appraisal, proof of income |
| Germany | 60–80% | 20–30% | 2–3% | Proof of income, local tax ID, sometimes mandatory life insurance |
| Netherlands | 50–70% | 30–50% | 3–4% | Income verification, local bank account, property insurance |
| Belgium | 60–70% | 30–40% | 3–4% | Proof of income, tax number, property valuation |
Portugal, Spain, and France are the most accessible for non-residents with better down payments and LTV options. Italy and the Netherlands typically require higher deposits, especially outside urban centers. Germany consistently offers low rates, but insurance requirements and documentation can be more rigorous.
What European lenders look for
European lenders use the same factors as in the US when considering a mortgage but also factor in currency risk if you are earning in a different currency to the mortgage. Lenders of course need to ensure that you can reliably meet your obligations and that the property represents a low-risk investment.
Steps to improve your chances
Opening a local bank account demonstrates financial engagement, while you may also have to obtain a local tax or identification number. Engaging a broker experienced in expat mortgages all improve approval odds. Additionally, budgeting for extra costs like taxes, notary fees, and insurance shows lenders you are prepared to manage the full financial commitment.
- Open a local bank account to handle mortgage payments and receive funds.
- Secure a local tax or identification number required by lenders.
- Provide proof of income spanning at least a year.
- Work with a mortgage broker familiar with expat financing.
- Budget for additional costs like taxes, legal fees, and property insurance
Risks unique to US expats
US expats face challenges beyond standard lending requirements. FATCA compliance can make some banks hesitant to work with US citizens due to reporting obligations. Currency fluctuations may affect affordability if income is in dollars. Limited lender options often mean working with specialist brokers or institutions experienced in expat finance. D
Buying property in Europe for Americans – seek advice
Mortgages from European banks remain the most practical choice for most buyers, offering competitive rates and local expertise. Large down payments, additional fees, and currency considerations are standard, but manageable with preparation and planning.
You should also seek advice form an expat specialist financial advisor, and consider property in Europe in the context of your wider cross-border financial plan and investment strategy. Your advisor will also advise you regarding US and local tax considerations, and you should also update your estate plan once you have assets in Europe, which may include needing a local will.
With the right advice and careful planning, buying property in Europe can fulfil the dream and provide you with pleasure for years to come.
