Deposit Requirements for Buying in Spain
The deposit is the single biggest hurdle for most buyers in Spain. Unlike some countries where 90-95% mortgages are common, Spanish banks are more conservative. Your residency status determines how much you need to bring to the table.
Non-Residents: 30-40% Deposit
Most Spanish banks lend a maximum of 60-70% LTV to non-residents. For a property priced at 300,000 EUR, that means you need 90,000-120,000 EUR in cash as a deposit. Some banks may go up to 70% for exceptionally strong applications, but plan for 60% as your baseline.
Residents: 20% Deposit
If you are a Spanish tax resident, banks typically offer up to 80% LTV. That brings the deposit down to 20% of the purchase price. For our 300,000 EUR example, that is 60,000 EUR.
The Hidden Extra: Purchase Costs
Here is what catches many buyers off guard. On top of the deposit, you need to pay approximately 10-13% of the purchase price in taxes and fees. These cannot be financed and must come from your own funds.
For a 300,000 EUR property in Andalucia:
- Property Transfer Tax (ITP): 21,000 EUR (7%)
- Notary fees: 1,000-1,500 EUR
- Land registry: 800-1,200 EUR
- Lawyer fees: 3,000-4,500 EUR (1-1.5%)
- Mortgage arrangement fee: 1,500-3,000 EUR (0.5-1.0%)
- Property valuation: 300-500 EUR
- Gestor fees: 300-500 EUR
Total Cash Needed: A Real Example
For a non-resident buying a 300,000 EUR apartment on the Costa del Sol:
- Deposit (40%): 120,000 EUR
- Purchase taxes and fees (11%): 33,000 EUR
- Total cash required: 153,000 EUR
That is just over 50% of the property price in cash. For a resident, the total drops to around 93,000 EUR (31%).
The Reservation Deposit
When you find a property, you pay a reservation deposit of 3,000-6,000 EUR to take it off the market. This is followed by a "contrato de arras" (preliminary contract) where you pay 10% of the purchase price. If you withdraw, you lose this 10%. If the seller withdraws, they pay you double.
Strategies to Reduce Your Deposit
- Build a relationship with a Spanish bank before applying
- Consider becoming a tax resident (if you spend 183+ days in Spain)
- Look at developer properties, as some banks offer higher LTV for new builds
- Use a mortgage broker who has special agreements with banks
- Apply with a co-borrower to strengthen the application
Use our free calculator to estimate your total costs and see exactly how much cash you need for your target property price range.