Ask a non-resident buyer how much they need to buy in Spain and the answer is often "30% deposit" — which is true but incomplete. The deposit is only the portion of the property price you pay upfront because the bank will not finance 100%. You also need separate cash for taxes, notary fees, land registry, legal advice, and other purchase costs — typically another 10–13% on top of the price. Confusing the two is one of the most common reasons otherwise-ready buyers discover a funding gap weeks before notary.
This guide explains the difference, walks through a simple numeric example, and shows how to calculate your total cash requirement before you make an offer.
Deposit vs total cash — two different numbers
Deposit (down payment) is the equity you contribute toward the property price. For non-residents, Spanish banks usually lend up to 70% loan-to-value (LTV), meaning you fund the remaining 30–40% yourself. Some banks sit at 30% minimum deposit; others require 35% or 40% depending on profile, property type, or appraisal result.
Purchase costs are separate transaction expenses — transfer tax (ITP) or VAT on new builds, notary, land registry, gestoría, valuation, and often legal fees. Banks finance against the property value, not these costs. You pay them from your own liquid funds alongside the deposit.
Our non-resident mortgage guide and mortgage calculator both use the same broad ranges: 30–40% deposit plus an estimated 10–13% for purchase costs. The calculator defaults to a €300,000 property with €90,000 deposit and shows purchase costs of roughly €30,000–€39,000 — use it to model your own figures instantly.
Worked example: €300,000 property
Take a resale apartment priced at €300,000 — a round number close to many Costa del Sol purchases and the calculator's default.
- Maximum loan at 70% LTV: €210,000
- Minimum deposit (30%): €90,000
- Purchase costs (10–13% estimate): €30,000 – €39,000
- Total cash needed before completion: roughly €120,000 – €129,000
If your bank requires a 40% deposit instead of 30%, the down payment alone rises to €120,000, and total cash with costs reaches approximately €150,000 – €159,000. That swing is why "I have 30% saved" does not always mean you are ready to exchange contracts.
For a full line-by-line explanation of taxes and fees — ITP bands in Andalusia, notary scales, mortgage opening charges — read our companion article on the cost of buying property in Spain. That piece and this one are designed to be read together: here you size total cash; there you understand what each fee is.
Why buyers underestimate the total
Estate agents and listing portals quote the property price, not your all-in budget. Buyers from the UK or US often mentally convert "30% down" and stop there, because in some markets closing costs are smaller or can be rolled into financing. Spain is different: purchase costs are paid upfront in cash and are rarely added to the mortgage.
Another trap is assuming the bank will lend 70% of whatever price you agree. The loan is based on the lower of purchase price or bank valuation. If the appraiser values the property below your offer, your effective deposit requirement rises even though the headline LTV percentage stays the same.
When the required deposit varies
The 30–40% band is indicative, not guaranteed for every file:
- Investment or buy-to-let — some lenders cap non-resident LTV lower than 70% for non-owner-occupied property, pushing deposit requirements toward the top of the range.
- Self-employed or foreign-currency income — stronger profiles may still reach 70%, but marginal files sometimes face 65% LTV or a higher equity requirement.
- Valuation below price — if you offer €300,000 but the bank values at €280,000, 70% of €280,000 is €196,000; you need €104,000 equity plus costs, not €90,000.
- Residents — if you are tax-resident in Spain, different rules may apply (often up to 80% LTV). This article focuses on non-resident benchmarks.
Once you know your total cash number, model monthly payments on the loan portion. Our mortgage calculator separates loan amount, instalment, interest over the term, and purchase costs — enter your price and deposit to see whether the monthly figure fits your income before you proceed.
Can family gifts count towards my deposit?
Yes, in many cases — but the bank will require proof of source. Expect to show the donor's bank statements, a gift letter, and evidence the funds moved cleanly into your account. Large recent transfers without documentation can delay underwriting. Gift tax may apply in Spain depending on the donor's relationship to you and the region; your lawyer should flag this before completion. Funds must be accessible in time for notary, not promised for a future date.
Do I need the full deposit before starting the mortgage process?
You need to demonstrate you have or can access the full amount — deposit plus purchase costs — before the bank issues final approval and certainly before signing at notary. You can start the mortgage study with proof of funds partially in place, but do not pay a non-refundable reservation on a property if your liquid cash falls short of the total figure in this guide. Build in a buffer above the estimate; purchase costs at the upper end of the 10–13% range are common on resale property in Andalusia.
