The deposit is usually the single biggest number that surprises first-time foreign buyers in Spain — it’s significantly higher than what many British and American buyers are used to putting down at home.
The Short Answer
Most non-resident buyers need to put down 30–40% of the purchase price as a deposit, since Spanish banks typically cap non-resident mortgages at 60–70% loan-to-value (LTV). On top of that deposit, budget a further 10–12% of the purchase price for taxes, notary fees, registration, and valuation costs — these cannot be financed through the mortgage itself.
Worked Example
| Item | €300,000 property, 70% LTV |
|---|---|
| Mortgage amount (70%) | €210,000 |
| Deposit required (30%) | €90,000 |
| Taxes, notary, registration (≈11%) | €33,000 |
| Total cash needed upfront | €123,000 |
In other words, even with mortgage financing, you typically need roughly 40% of the purchase price in liquid cash before completion — a figure that consistently catches buyers off guard when they first start budgeting.
Why the Deposit Is So Much Higher Than for Residents
Spanish banks view non-resident borrowers as higher risk for a few structural reasons: income verification is harder across borders, enforcement in case of default is more complex internationally, and the bank has less ongoing relationship visibility into the borrower’s finances compared with a local resident client. The lower LTV ceiling is the bank’s way of pricing in that added risk.
Can the Deposit Requirement Be Lower?
Occasionally, for very strong applicants — high, well-documented income, excellent credit history, and existing assets with the same bank — a lender may stretch slightly above 70% LTV, but this isn’t the norm and shouldn’t be assumed when budgeting.
Frequently Asked Questions
Where should the deposit funds come from?
Banks will want a clear paper trail showing the source of funds (savings, sale of another property, inheritance, etc.) as part of anti-money-laundering compliance, so keep documentation of large transfers.
Can I use equity from a UK or US property as my deposit?
Yes, many buyers release equity from an existing property through a remortgage at home and transfer the cash as their Spanish deposit, though this is a separate transaction from the Spanish mortgage itself.
Do new-build properties have different deposit requirements?
Off-plan purchases often require staged deposit payments to the developer during construction, separate from and in addition to the mortgage deposit paid at completion — see our guide on buying off-plan property in Spain for details.