Buying in Spain is not only the purchase price. You need a deposit and you need the purchase costs, and neither can be borrowed. Working this out realistically beforehand is what stops you running short halfway through.
Deposit versus mortgage #
Spanish banks finance a limited share of value for non-residents. As a guide, a mortgage of 60 to 70 per cent of value, and a deposit of 30 to 40 per cent. The bank works from the lower of the purchase price or the valuation.
An example. On a €300,000 property you need roughly €90,000 to €120,000 of your own money for the purchase itself. The purchase costs are not in that figure.
Purchase costs #
Alongside the purchase you pay costs that cannot be added to the mortgage. On average 10 to 13 per cent of the price.
The main items are transfer tax (ITP) on a resale or VAT on a new-build, notary fees for the deed, legal fees for the checks and representation, land registry and cadastral fees, and any bank charges for the mortgage or account.
All of this has to come from your own funds.
Budget beyond the purchase #
There is usually more required than the purchase and the costs. Furnishing the place. Minor works or alterations. Maintenance and repairs.
Then the standing costs begin: IBI, community fees and the utilities.
The total picture #
In practice the total cash requirement lands at 30 to 40 per cent for the deposit plus 10 to 13 per cent in purchase costs. Together, roughly 40 to 50 per cent of the purchase price.
On that €300,000 property, that is somewhere between €120,000 and €150,000.
Practical points #
Always build in a buffer. Allow for the valuation coming in below the purchase price, because the shortfall comes out of your pocket. Look at whether releasing equity in the UK gives you a better rate than borrowing in Spain. And get an indication of your maximum Spanish mortgage before you start viewing rather than after.
One more thing specific to buying in euros: the exchange rate moves between reservation and completion, and on these sums a few cents matters. A forward contract through a currency broker fixes the rate and removes that variable.
In short #
A cash requirement of around 40 to 50 per cent of the purchase price is normal in Spain, made up of the part the bank will not lend and the purchase costs on top. Working it out fully in advance is what keeps the process moving, and it is one of the first things we help with.
Last reviewed 2026-08-24
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