How much do you need as a down payment for property in Spain?

One of the first questions every potential property buyer in Spain asks is: what do I need to bring? Here is a concrete review of down payment, taxes and fees — with examples.

Mortgages in Spain as a non-resident

Spanish banks typically lend non-residents 60-70% of the property's appraised value (against 80-85% for residents). That means you as a foreign non-resident buyer need a minimum of 30-40% of the purchase price ready in equity — plus purchase-related taxes and fees on top.

Taxes and fees on the purchase: 10-13% extra

On top of the purchase price, you should budget for:

Transfer tax (ITP): 6-10% of the purchase price for a resale property (varies by region — Andalusia 7%, Valencia 10%)
Stamp duty (AJD): 1-2% for new build (together with VAT/IVA at 10%)
Notary fee: Typically 600-1,500 EUR
Land registry fee: Typically 300-900 EUR
Legal costs: Typically 1% of the purchase price
Any buyer-side agent fee: Rare in Spanish transactions, but it occurs

A concrete example: a 250,000 EUR property

For a resale apartment at 250,000 EUR in Andalusia as a non-resident with a Spanish mortgage:

Property price: 250,000 EUR
Spanish mortgage (max 70%): 175,000 EUR
Equity needed for the property itself: 75,000 EUR
ITP at 7%: 17,500 EUR
Notary, registry, legal fees: approx. 3,500 EUR
Total equity needed: approx. 96,000 EUR

Alternative to a Spanish mortgage: Many buyers release equity from their property back home to finance the Spanish purchase. This typically gives better loan terms than a Spanish non-resident mortgage, and you avoid the Spanish loan application process.

Buying with equity released from home

Releasing equity at home to finance a Spanish property is very common and preferred by most advisors over a Spanish non-resident mortgage. You borrow more cheaply, avoid the bureaucratic Spanish loan process and retain flexibility. Remember that any interest costs on a loan at home for a Spanish property are typically not tax-deductible at home.

Cash or financing?

Many buyers who have sold a property at home buy directly with cash in Spain. This markedly simplifies the process — no bank approval, no documentation requirements for lenders, and the ability to move quickly in a competitive situation for an attractive property.

Frequently asked questions about down payment and financing

Can I get a Spanish mortgage as a foreign buyer?

Yes, most major Spanish banks (Santander, BBVA, CaixaBank) lend to non-residents, but at a lower loan-to-value (max 60-70%) and typically with requirements to document income, existing debt and assets. The process can take 4-8 weeks.

Can taxes and fees be negotiated down?

The transfer tax (ITP) is set by the region and cannot be negotiated. Legal and agent fees are negotiable, but they are also where you should least try to save — good advice during a property purchase pays for itself.

When do I need the funds ready?

Typically 10% is paid as a deposit when signing the arras contract (within the first weeks after agreeing terms). The rest is paid at the notary appointment, typically 1-3 months later. Make sure the funds are ready in a Spanish account well in advance of the notary appointment.