Russian Investors and the Mortgage in Europe

Russian Investors and the Mortgage in Europe

In a number of European countries, banks are ready to issue mortgage loans to foreigners, including Russian citizens. In today’s article, we’ll stop on Bulgaria and Germany, and try to figure it out what expects foreign investors in these countries.


Last year Bulgaria became one of the most popular destinations for Russian investors. The real estate in the country is relatively inexpensive, and a house by the sea is a fairly liquid object. Compared with other European countries, it is expensive to apply for a mortgage in Bulgaria. Here, Russians have to put up with high rates: if for citizens of the country they are 3-3.5%, then foreigners are usually offered 7-14% per annum.

But even in spite of such conditions, due to the low cost of objects, Russians continue to buy Bulgarian real estate. Especially since banks are willing to finance up to 60-70% of the value of the object, and you can repay the loan for 20 years. The last payment must be made to 60 years of the borrower, if it is female, or up to 65 years, if it is a man. Bulgarian banks are ready to provide a loan of up to € 100,000 considering the value of  the property, this will be enough. In Bulgaria a square meter in the center of the city costs an average of € 1,063.


If a foreigner makes out a mortgage in Germany for the first time, the bank will most likely finance no more than 50% of the value of the property. And if you already have apartments in Germany and even more so you have already managed to repay at least one mortgage loan in this country, then you can count on financing 60-70% of the value of the object.

The bank usually provides a loan for a period of 5 to 30 years, and by the end of the loan period the applicant must be no more than 65 years old. The floating rate on average is 3-4.5% per annum, while the fixed rate may exceed 5% per annum. Payments, as in other countries, should cover no more than 35% of the borrower’s income per month. Mortgages are more likely to be approved for properties ranging from € 300,000, and the cheaper real estate is, it is to get a loan. A square meter in the center of German cities will cost € 4,758.

European Countries that Russian Investors Love the Best

Three most popular among Russians countries for investment are Spain, Switzerland, and the UK. Why they are favored we’ll try to find out in this article.


Mortgages in Spain are available to non-residents. However, if holders of permanent residence can receive a loan of up to 80% of the value of real estate, then non-residents can count on only 50-70%. And the minimum loan amount is € 50,000. A Russian can be given a mortgage for 5-25 years, with the last payment due up to 65 years of a borrower.

Interest rates can be fixed, floating and mixed. Staying at a fixed rate is more predictable and safe, but this rate will exceed the floating ones. Popular, as a rule, are precisely floating rates, but here no one is immune from their growth. At the beginning of 2019, Russian citizens can count on a floating rate of 4.1-5% per annum or a fixed rate of 5.5-7% per annum. Payments should cover no more than 30-35% of the borrower’s income per month. A square meter in the center of Spanish cities averages € 2,862.


In terms of rate, Switzerland is the most profitable European country. Residents can count on a rate of 1.2% per annum. For foreigners, the conditions may be slightly worse: depending on the bank, the floating rate for non-residents can be approximately 1.8-3% per annum, and the fixed rate is about 2-4.5%. The floating rate depends on the Euribor and may change every 6 or 12 months.

When choosing a property, foreigners can count on a loan of up to 50-60% of the value of the object, and the mortgage is issued for 10 years. The borrower undertakes to make the last payment up to his 67 years. The minimum loan amount is about € 580,000. On average a square meter in the center of Swiss cities costs of € 9,730.

Great Britain

The average mortgage rate for non-residents varies within 3-6% per annum. Floating rate can be about 3%, and fixed one is 4.5-6%. Payments should cover no more than 35-40% of the borrower’s income per month. At the same time, the loan period can be from 5 years, and then it is possible to extend it under new conditions.

Non-resident foreigners can count on a loan of 50-70% of the value of the property. Mortgage loans to foreigners give British and Latvian banks. Though, in British banks you have to apply at least for £1 million (i.e. about € 1.5 million). Thus, it is virtually impossible to purchase an economy class property. An average square meter in the center of English cities costs of € 4,438.

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