The biggest surprise for international buyers in Spain isn't the mortgage. It's the total amount of cash needed on completion day. Between the deposit and the purchase costs, the number is larger than many first-time overseas buyers expect. Here is exactly what to budget for, with a worked example.
The two numbers that matter
When you buy with a mortgage in Spain as a non-resident, your own funds need to cover two separate things:
- The deposit: the gap between the purchase price and what the bank lends. Non-residents can typically borrow up to 60–70% of the property value, so plan for a deposit of 30–40%.
- The purchase costs: taxes and fees on top of the price, typically 10–13% of the purchase price.
Put together, a sensible planning figure for total cash required is 40–53% of the purchase price. It's a wide range, so let's break down where your money actually goes.
What's inside the 10–13% purchase costs?
Spanish purchase costs are made up of a handful of items, and the exact total depends on the region where you buy and whether the property is a resale or a new build:
- Transfer tax (ITP). The largest single cost on a resale property. ITP (Impuesto sobre Transmisiones Patrimoniales) is set regionally, which is one reason the overall range varies. New-build purchases are taxed differently, through VAT and stamp duty rather than ITP.
- Notary fees. The notary is a public official who witnesses the deed of sale and, if you're borrowing, the mortgage deed. Fees are regulated and scale with the transaction.
- Land registry fees. Registering your title at the Registro de la Propiedad makes your ownership official and protects it in law.
- Legal fees. An independent lawyer checks the property's legal status, reviews contracts and protects your interests. For non-residents buying from abroad, good legal representation is money well spent.
Since the 2019 Spanish mortgage law reform, lenders bear most of the costs of setting up the mortgage itself, which has simplified budgeting for buyers. Your lawyer and our team will confirm the precise figures for your region before you commit. The areas we cover are listed on our service areas page.
Worked example: a €300,000 purchase
Here's how the numbers stack up on a €300,000 resale property bought by a non-resident, using the standard planning ranges:
| Item | Rate | Amount |
|---|---|---|
| Purchase price | – | €300,000 |
| Mortgage (non-resident LTV) | 60–70% | €180,000–€210,000 |
| Deposit from your funds | 30–40% | €90,000–€120,000 |
| Purchase costs (ITP, notary, registry, legal) | 10–13% | €30,000–€39,000 |
| Total cash required | 40–53% | €120,000–€159,000 |
The spread between best and worst case is nearly €40,000 on this example, which is why it pays to know your realistic loan-to-value before you fall in love with a property. A free consultation with our team, followed by a written pre-approval within 14 days of receiving your documents, turns those ranges into firm numbers for your situation.
Why can't the mortgage cover the costs?
Spanish lenders calculate the loan against the property's value, not against your total outlay. Taxes, notary, registry and legal fees therefore always come from your own funds. When you plan your budget, treat the 10–13% as untouchable cash that must be available at completion, alongside your deposit.
Practical tips for funding your purchase
Evidence your deposit early
Lenders want to see that your deposit and costs are already in place, usually via 6–12 months of bank statements. Money that has been sitting in your accounts is easier to evidence than funds arriving at the last minute.
Think about currency
If your savings are in pounds, dollars or another non-euro currency, exchange-rate movements between offer and completion can shift your costs. Many international buyers use a currency specialist to lock in rates. Ask us and we can point you in the right direction.
Don't forget ongoing costs
Beyond completion, budget for community fees, local property tax (IBI), insurance and utilities. If you're weighing up rate structures for the mortgage itself, our guide to fixed vs variable rates explains how each affects your monthly outgoings.
Borrowing more can sometimes make sense
Some buyers who could pay cash choose to finance part of the purchase anyway, because a mortgage reduces the net value of their Spanish assets for Wealth Tax purposes. Read how a Spanish mortgage can reduce your wealth tax liability for the details.
FAQ
What deposit does a non-resident need to buy in Spain?
Plan for a deposit of 30–40% of the property value. Non-residents can typically borrow up to 60–70% loan-to-value from Spanish lenders, so the deposit covers the remainder of the purchase price.
How much are the purchase costs on top of the deposit?
Budget approximately 10–13% of the purchase price on top of your deposit. This covers transfer tax (ITP) or the equivalent taxes on new builds, plus notary, land registry and legal fees. The exact figure varies by region and property type.
Can the mortgage cover the purchase costs as well?
No. Spanish mortgages are calculated against the property value, so taxes and fees must come from your own funds. On a €300,000 purchase with a 70% mortgage, you would need €90,000 deposit plus roughly €30,000–€39,000 in costs from savings.
Want firm numbers instead of ranges? Book a free consultation and we'll map your budget against real lending terms from 15+ Spanish banks, or see the full process on our How We Work Calculator page.
