Can I have a get a mortgage if I have benefits?

An allowance as valid income for the Spanish or Portuguese bank.

No, this is not possible with our member banks.

This applies to both WAO, WIA (WGA or IVA) and a Wajong benefit.

Why is this not possible?

There are 3 reasons why benefits are (often) not accepted when applying for a mortgage with a bank in Portugal or Spain:

• Life insurance: unlike in the Netherlands, banks require non-residents to take out life insurance for a mortgage in Spain. With benefits, this insurance is practically impossible.
• Assessment of foreign benefit: banks in Spain or Portugal need to understand the Dutch/Belgian system of benefits and how it leads to a stable income. Benefits are specific to the Netherlands or Belgium. Verifying the continuity of a benefit from another country requires administrative efforts. The bank takes on the risk of international agreements and the specific rules of Dutch or Belgian social security legislation. In addition, legislation on benefits can change, which banks cannot influence. Almost all Spanish or Portuguese banks see this as too great a risk.
• Bank's risk policy: banks have their own risk policy frameworks that determine which income sources are considered "safe" or "reliable". A benefit, especially from non-residents, may be outside these frameworks. Many banks prefer earned income because it is considered more stable and predictable.

What can you do?

Our tip is often to still look into buying cash or through a family loan.
Or in case of emigration: rent a property in Spain or Portugal first. It is possible to eventually become a resident in Spain or Portugal, as these are EU countries. After 2 years of tax obligation, you are considered a tax resident and different conditions apply again.