How much deposit do you need to buy property in Spain?
Non-resident buyers typically need 45–50% of the price in cash: a 30–40% deposit because lenders cap at 60–70% loan-to-value, plus 10–12% for taxes and fees. On a €500,000 purchase that is roughly €225,000–€250,000 available before completion.
- EU-resident buyers can sometimes reach 70% loan-to-value.
- Funds must be in place and traceable before notary signing.
- Source-of-wealth evidence is required for the full deposit.
- Bridging or a home-country remortgage can bridge a deposit shortfall.
Key takeaways
- Non-residents typically need a 35–40% deposit, versus 20% for Spanish residents.
- Purchase costs add a further 10–12% on resale property, and 11–13% on new-build.
- Total cash requirement: c.45–50% of purchase price plus mortgage arrangement fees.
- Regional variations in transfer tax (ITP) can move the total by 2–4%.
- Cash-only buyers avoid mortgage fees but face the same taxes, notary and legal costs.
The headline number
For a €1,000,000 property purchased by a non-resident with a 65% LTV mortgage, expect an all-in cash requirement of approximately €470,000–€500,000. That breaks down as:
- €350,000 deposit (35% of price).
- €60,000–€100,000 in taxes (varies by region and new vs resale).
- €15,000–€25,000 in notary, registry and legal fees.
- €5,000–€15,000 in mortgage arrangement and valuation fees.
Every line below is explained in more detail — the total is easy to plan for once each component is understood.
Deposit: 35–40% for non-residents
Spanish resident buyers can typically borrow up to 80% LTV, requiring a 20% deposit. Non-resident buyers (including US, UAE and post-Brexit UK buyers) are generally capped at 60–65% LTV, requiring a 35–40% deposit.
Higher LTVs are occasionally available for exceptional profiles — prime coastal assets, HNW clients placing assets under management with a private bank — but the mainstream expectation is a 35–40% deposit.
Transfer tax (ITP) or VAT (IVA)
The single largest purchase cost — and it depends on the property type and region:
- Resale property — ITP (Impuesto sobre Transmisiones Patrimoniales): 6–10% depending on the Comunidad Autónoma. Andalucía 7%, Madrid 6%, Balearics 8–13% (sliding scale), Catalonia 10%.
- New-build (first sale) — IVA + AJD: 10% VAT (IVA) plus 1.2–1.5% stamp duty (AJD). Total c.11.2–11.5%.
- Commercial or land purchases: different rules apply — VAT is generally recoverable if the buyer is VAT-registered.
Notary and land-registry fees
Both fees are set by government tariff and scale with the property price. Together they typically amount to c.1–2% of the purchase price:
- Notary fees: c.0.3–0.5% (both the sale escritura and the mortgage escritura).
- Land Registry (Registro de la Propiedad): c.0.2–0.4%.
- Gestoría (administrative processing): €300–€1,000.
Independent legal fees
Budget 1% + VAT (21%) of the purchase price for independent Spanish counsel, subject to a minimum fee of c.€2,000–€3,000. This covers title investigation, contract review, tax registration, NIE support and representation at notary.
Never use the seller's lawyer or a lawyer recommended by the estate agent — an independent Spanish abogado, ideally one who works regularly with international buyers, is essential.
Mortgage arrangement and valuation fees
- Lender arrangement fee: 0.5–1.5% of the loan amount, deducted at completion.
- Valuation (tasación): €400–€1,500 depending on property value; paid up front.
- Intermediary fee (where applicable): disclosed at term-sheet stage.
Under Ley 5/2019, the lender pays the notary, registry and gestoría fees relating to the mortgage itself (not the sale) — a reform that reduced buyer costs from 2019 onwards.
Worked example: €750,000 resale in Andalucía
- Deposit at 35% LTV cap: €262,500
- ITP at 7%: €52,500
- Notary + registry (c.1%): €7,500
- Legal fees (1% + VAT): €9,075
- Mortgage arrangement (1% of €487,500): €4,875
- Valuation: €700
Total cash required: c.€337,000 — approximately 45% of the purchase price. Add a modest contingency and €340k–€350k is a realistic planning number.
What about cash buyers?
Buying without a mortgage removes the arrangement fee, valuation and mortgage-related notary costs — but the taxes, legal fees and sale-side notary/registry costs all still apply. Total overheads on a cash purchase are typically 10–12% of the price, on top of the price itself.
Cash buyers often refinance later (see our equity release guide) to release capital tax-efficiently once ownership is established.
Frequently asked
Questions from readers
Can I transfer a deposit from my home country to buy in Spain?
Yes. Funds transferred from an overseas bank account (UK, US, UAE, EU or elsewhere) to your Spanish account for completion are entirely standard. You'll need to evidence the source of funds under Spanish AML rules — savings, sale proceeds, inheritance or investment income are all acceptable with documentation.
Do I pay the deposit to the seller or a solicitor?
The reservation deposit (€3,000–€10,000) is usually paid to the estate agent to take the property off-market. The 10% arras deposit is paid on signing the private purchase contract, typically to the seller directly or into escrow via lawyers.
Is the deposit refundable if the mortgage falls through?
Only if the arras contract explicitly makes it conditional on mortgage approval — which we always recommend. Without that clause, a mortgage decline can cost you the full 10% deposit under standard Spanish arras terms.
How is the deposit affected by buying off-plan?
Off-plan purchases involve staged deposits during construction, all of which must be protected by a bank guarantee (aval bancario) under Ley 38/1999. The mortgage is drawn at completion, so the interim cash requirement is higher.
Do I need to pay Spanish tax on money I bring into Spain?
No. Transferring your own capital into Spain is not itself a taxable event. However, any transfer over €10,000 must be declared to the Spanish authorities under EU AML rules — your bank will handle the reporting.