Down payment to buy property in Spain (non-residents)

If you’re buying property in Spain as an international buyer, the down payment question comes up immediately:

“How much down payment do I need to buy a property in Spain?”

At Presta Estate, we work as buyer’s agents (property finders) and mortgage brokers, helping non‑resident buyers from the UK, USA, and across Europe plan their budget before they reserve a property or pay a deposit.

In this guide, we’ll explain clearly and with real numbers:

• What “down payment” means in Spain (and how banks use LTV)
• What non‑resident vs resident buyers typically need in cash
• The extra purchase costs you must budget for (on top of the down payment)
• A simple step‑by‑step way to calculate your total cash requirement

The ranges in this guide are based on typical Spanish bank policy we see in practice when arranging mortgages, especially for non‑residents. They are planning ranges, not guarantees.

Keep in mind:

• Bank criteria varies by lender, your financial profile (income, debts, residency status), and the specific property.
• Region and transaction type matter (resale vs new build) because taxes and fees can change materially.
• For simplicity, examples use the purchase price, but in many cases banks calculate the maximum loan based on the lower of the purchase price and the bank appraisal value.

In Spain, your down payment is the part of the purchase price not financed by the bank, so it must come from your own funds.

Banks base mortgage amounts on Loan‑to‑Value (LTV):

• LTV = the percentage of the property price the bank will finance
• Down payment = the remainder you pay yourself
• Example: if a bank offers 70% LTV, you typically need 30% of the price as down payment.

Down payment for foreign buyers (non‑residents)

For many non‑resident buyers, typical bank financing ranges are:

• often up to ~60–70% mortgage financing (depending on the bank and your profile)
• 30–40% down payment (of the purchase price)

This is a common range for UK, US, and non‑resident EU buyers, depending on the bank and your profile.

Down payment for Spanish residents

For resident buyers, it’s common to see:

• often up to ~80% mortgage financing
• Around 20% down payment

This is the part many buyers underestimate.
In Spain, purchase costs are typically not financed by the bank, so you should plan to pay them in cash on top of your down payment.

Resale property (second‑hand): typical cost items

Common items usually include:

• Transfer tax (ITP): varies by autonomous community (and sometimes by buyer/property circumstances)
• Notary and Land Registry fees
• Legal fees (if you use a lawyer)
• Mortgage-related costs (if financing), which vary by bank and situation

New build property: typical cost items

Common items usually include:

• VAT (IVA) on the purchase price (rate depends on the scenario/property type)
• Stamp duty (AJD): varies by autonomous community
• Notary and Land Registry fees
• Legal fees (if you use a lawyer)
• Mortgage-related costs (if financing), which vary by bank and situation

As a broad planning range, total additional costs often land around ~10–14% of the purchase price, but the exact figure depends on region and whether the property is resale or new build.

Example: €500,000 property in Spain (non‑resident buyer)

• Property price: €500,000
• Mortgage (70%): €350,000
• Down payment (30%): €150,000
• Additional costs (approx. 12%): €60,000
• Total cash required: €210,000

That’s about 42% of the property price, why many non‑resident buyers plan for ~40–45% cash all‑in.

Your down payment requirement can move up or down depending on:

Buyer profile

• Income stability and type (employed vs self‑employed)
• Country of tax residence
• Credit history and existing debts

Property factors

• Primary residence vs holiday home / second home
• New build vs resale
• Property type and bank appetite for that asset

Bank risk assessment

• Age of the buyer(s)
• Currency of income
• Debt‑to‑income ratio and overall affordability

In strong profiles, it may be possible to secure better LTV, meaning a lower cash requirement.

Sometimes, but it’s not the norm, especially for non‑residents.

Lower down payment scenarios can include:

• Certain new‑build structures (depending on developer terms)
• Some resident scenarios
• Occasional bank campaigns (uncommon and very profile‑dependent)
• For most non‑resident foreign buyers, it’s safest to assume low down payment options are limited.

For non‑resident buyers, a practical rule of thumb is:

• 30–40% down payment, plus
• ~10–14% purchase costs, totaling
• ~40–45% of the property price in cash (in many cases)

We generally recommend:

• Plan your cash position early (before you negotiate seriously)
• Get a mortgage pre‑assessment before you reserve a property
• Budget realistically for costs so you don’t risk delays or deposit problems later