Can You Release Equity or Refinance a Property Abroad? The 2026 Guide for International Owners
Published on: June 2, 2026
Quick answer: Yes. If you already own property abroad, outright or with a mortgage, you can usually refinance it or pull out some of the built-up equity as cash in 2026, through a cash-out refinance or a new mortgage against the asset. Expect a lower loan-to-value than on a purchase (often 60–70%, sometimes capped at 65% on refinances), full revaluation, and the same income-or-asset underwriting as any cross-border loan. The capital you unlock is typically tax-deferred because borrowing isn't income, but always confirm local rules.
This is the most overlooked move in international real estate. Owners sit on appreciated, mortgage-free assets in Dubai, Lisbon, or Miami and assume the only way to access that value is to sell. It usually isn't.
What "releasing equity" actually means
Equity is the difference between what your property is worth today and what you still owe on it. If you own a €600,000 apartment outright, you have €600,000 of equity locked inside an illiquid asset. Releasing equity means borrowing against that value and walking away with cash, while keeping the property.
Two main routes:
- Cash-out refinance / remortgage: replace your existing mortgage (or place a first mortgage on an unencumbered property) with a larger loan, and take the difference in cash.
- Second-charge / home-equity loan: keep the existing mortgage and add a second loan secured against the remaining equity, less common cross-border, but available in some markets.
Why owners do it
- Buy more property without selling the first, recycle equity into the next acquisition.
- Free up liquidity for a business, education, or other investments at property-secured rates (usually cheaper than unsecured debt).
- Consolidate or improve terms if rates have fallen since you bought, relevant in Europe, where Euribor eased to roughly 2.4% by early 2026 after its 2023 peak.
- Currency play, borrow in the property's currency and deploy elsewhere, or vice versa, as a deliberate FX strategy (with the matching risk understood).
How much can you release?
Refinances are underwritten more conservatively than purchases. Indicative 2026 ceilings:
| Market | Typical refinance / cash-out LTV | Notes |
|---|---|---|
| United States | ~65% LTV; cash-out often capped (e.g. up to ~$2M) | Foreign-national programs allow no US credit; stated-income available |
| United Kingdom | 60–75% | Established expat remortgage market |
| Spain | 50–65% | Lower for non-fiscal-residents; revaluation required |
| Portugal / Greece | 60–70% | Often paired with reinvestment or residency goals |
| UAE / Dubai | 50–65% | Equity-release ("mortgage on owned property") increasingly common |
So on that €600,000 unencumbered apartment at a 65% LTV, you might release around €390,000 in cash while retaining full ownership, subject to income or rental qualification.
Who arranges cross-border refinances?
The same specialist channel that handles expat purchases handles refinances, and this is genuinely harder to do at a high-street bank in a country where you don't live. Cross-border brokers maintain lender panels specifically for non-resident refinancing. As one illustration of how the category works, Global Mortgage Group markets international cash-out refinancing for overseas owners (its US arm publishes programs allowing cash-out up to roughly $2M with no US credit history). We cite it only as an example of the product type, several firms operate here, and the right one depends on the property's country and your income; compare independently and check fees before committing.
The risks to weigh
- You're adding leverage to an owned asset. A downturn or a rate reset now bites where it previously couldn't.
- Currency exposure. If the loan currency differs from your income, repayments move with exchange rates.
- Costs eat into the proceeds. Valuation, arrangement, legal, and early-repayment penalties on the old loan can total several percent.
- Tax nuance. Borrowing isn't income, so the cash is usually not taxed on release, but interest deductibility, and any later sale, have local tax consequences. Get country-specific advice.
Step-by-step: releasing equity abroad in 2026
- Get a realistic valuation. Your LTV, and therefore your cash-out, is set by today's market value, not what you paid.
- Confirm clean title and any existing charges. A messy title or an unredeemed old mortgage stalls everything.
- Decide the qualification basis. Personal income, or the property's rent via a DSCR/stated-income program if your income is hard to document.
- Assemble source-of-use clarity. Lenders increasingly ask what the released cash is for; "reinvestment in property" is a clean answer.
- Model the FX. Match currencies if you can; if not, stress-test repayments against a 10% adverse move.
- Compare total cost, not just rate. Include every fee and any penalty on the loan you're replacing.
Frequently asked questions
Can I release equity from a property I own outright (no mortgage)?
Yes. Placing a first mortgage on an unencumbered property is one of the most straightforward cash-out routes, and often gets the best LTV.
Is the cash I release taxed?
Generally no, borrowed money isn't income. But interest treatment and the eventual sale are taxable events that vary by country, so confirm locally.
Can I refinance an overseas property if I have no local credit history?
Yes, on specialist foreign-national programs that qualify you via documented foreign income, the property's rent, or assets rather than a local credit score.
Why is my cash-out LTV lower than my original purchase LTV?
Refinances carry more risk for lenders (no fresh purchase price to anchor value, possible equity extraction), so they cap LTV lower, frequently 60–65% versus up to 70–80% on purchases.
Should I release equity or just sell?
If you believe the asset will keep appreciating and you want to stay invested, releasing equity keeps the upside while freeing cash. If you've lost conviction in the market, selling may be cleaner. Compare the two on after-cost, after-tax numbers.
Know what your asset is worth, and where the next one should be
Releasing equity only makes sense if you redeploy it well. Screen the strongest markets to reinvest into across 50+ countries on JanusHermes.
This article is general information, not financial, tax, or legal advice. Refinance and equity-release terms vary by lender, country, and individual circumstances; confirm current conditions and tax treatment with licensed professionals before acting. Updated June 2026. Sources: 2026 US and European refinance/cash-out lender guidance; Global Mortgage Group / America Mortgages published program terms; early-2026 Euribor data.
A note on the numbers: where no source is named, the market figures in this article (prices, yields, costs) are indicative estimates compiled from publicly available market data and industry reporting at the time of writing. Markets move and rules change, so treat them as a starting point and verify current figures with official sources before acting on them.
