How Much Deposit Do You Need for a Mortgage in Spain as a Non-Resident?
Planning your mortgage deposit in Spain? As a non-resident buyer, you need to budget for your contribution to the purchase price, regional taxes and other buying costs. This guide explains the figures with practical examples.
The quick answer: how much cash will you need?
If a Spanish bank approves 70% financing, you must fund the remaining 30% of the purchase price yourself, plus the taxes and fees applicable where the property is located. There is no single purchase-tax rate for all of Spain.
For a €500,000 resale with a €350,000 mortgage, your contribution to the price is €150,000. Under the ordinary regional rates illustrated below, adding transfer tax takes that to €180,000 in Madrid, €185,000 in Andalucía or €200,000 in Catalonia, before legal fees and other expenses. These examples assume the taxable base equals the price.
Lower financing means a larger cash contribution. Treat 70% as a possible outcome to assess, rather than an entitlement.
How much can a non-resident borrow in Spain?
Lenders assess non-resident applications individually. Banco Sabadell describes a typical financing range of 50%–70%, depending on its risk assessment. Your income, existing debts, age, credit history, income currency and the property can all affect the result.
The loan-to-value ratio, or LTV, describes the mortgage relative to the value used by the lender. In a structure based on the lower of the purchase price and valuation, a higher valuation does not automatically increase the loan.
| Approved financing | Mortgage | Your contribution |
|---|---|---|
| 70% | €350,000 | €150,000 |
| 60% | €300,000 | €200,000 |
| 50% | €250,000 | €250,000 |
These illustrations assume the lender accepts a value at least equal to the purchase price. The approved amount can also be limited by affordability. Confirm the financing basis with the specific bank.
What costs must you pay on top of the deposit?
Resale property: transfer tax depends on the region
An ordinary resale purchase generally attracts transfer tax, known as ITP. The applicable rules depend on the autonomous community where the property is situated. Being a non-resident does not make Andalucía’s rate applicable to a purchase elsewhere.
The table below compares selected destinations for international buyers. It uses ordinary rates, without assuming eligibility for reduced rates or exemptions.
| Property location | Ordinary ITP structure | Tax on a €500,000 base |
|---|---|---|
| Andalucía — including Costa del Sol | 7% | €35,000 |
| Community of Madrid | 6% | €30,000 |
| Catalonia — including Barcelona | Progressive 10%–13%; 10% up to €600,000 | €50,000 |
| Valencian Community — including Alicante | 9%; 11% if the property value exceeds €1 million | €45,000 |
| Balearic Islands — including Mallorca and Ibiza | Progressive 8%–13% | €41,000 |
| Region of Murcia | 7.75% | €38,750 |
| Canary Islands | 6.5% | €32,500 |
This is a selected regional comparison, not a complete table of every Spanish tax regime. The €500,000 examples assume full ownership of one ordinary home and a taxable base and property value equal to the price. Reduced rates, reliefs and special purchaser or transaction rules can change the tax. In Catalonia, certain large-holder and whole-building purchases can attract a specific 20% rate. For another region, including the Basque Country or Navarra, obtain the local calculation before setting your budget.
Progressive rates do not apply the highest bracket to the whole price
In the Balearic €500,000 example, the first €400,000 is taxed at 8% (€32,000) and the remaining €100,000 at 9% (€9,000): €41,000 in total. Catalonia also uses a progressive ordinary scale above €600,000: the next €300,000 is taxed at 11%, the next €600,000 at 12%, and the excess above €1.5 million at 13%.
The Valencian 11% rule above €1 million is a higher applicable rate rather than the same progressive structure. Do not assume every region calculates higher-value purchases in the same way.
Check the taxable value, not just the agreed price
For ITP, a higher applicable cadastral reference value can increase the tax base. If the declared value or agreed price exceeds that reference value, the higher figure is relevant. Ask your lawyer to check the property’s tax valuation and any special rules before finalising the budget.
New-build property: VAT plus regional purchase stamp duty
On mainland Spain and in the Balearic Islands, an ordinary first delivery of a completed home by a developer generally attracts 10% VAT, plus purchase AJD stamp duty at the applicable regional rate. Certain protected housing and special transactions have different treatment.
For a €500,000 new home with the relevant tax bases equal to the price, the ordinary illustrations are:
| Property location | VAT | Purchase AJD | Combined taxes |
|---|---|---|---|
| Andalucía | €50,000 (10%) | €6,000 (1.2%) | €56,000 |
| Community of Madrid | €50,000 (10%) | €3,750 (0.75%) | €53,750 |
| Catalonia | €50,000 (10%) | €7,500 (1.5%) | €57,500 |
| Valencian Community | €50,000 (10%) | €7,000 (1.4%) | €57,000 |
These are purchase-deed AJD examples, separate from the tax on a mortgage deed. They assume no relief or special treatment. Madrid has lower purchase AJD bands for qualifying lower-value homes; the €500,000 example uses 0.75%. The Valencian 9% ITP and 1.4% general AJD rates apply from 1 June 2026.
Canary Islands, Ceuta and Melilla: the mainland VAT calculation does not apply. These territories are outside the Spanish VAT area. Local indirect-tax rules, such as IGIC in the Canary Islands, require a separate new-build calculation; do not add 10% VAT automatically.
Purchase costs and mortgage costs are different
Budget for legal advice, purchase-deed notary and registration expenses where payable, valuation, and any agreed bank opening or mortgage broker fee. Include VAT in professional quotations where applicable, and allow for currency conversion and transfers.
For mortgages covered by Spain’s Law 5/2019, the lender bears the mortgage-deed notary, registration, tax and administrative-agency costs; the borrower pays the valuation. This does not mean the bank pays your property purchase expenses.
Ask for a written breakdown of any opening fee, insurance premiums, account costs or other offer conditions. You can also review Viva Finance’s fees before deciding to proceed.
Worked examples for Andalucía: €300,000, €500,000 and €800,000 properties
The national comparison above shows why location matters. The detailed budgets below are specifically for Andalucía, including the Costa del Sol; do not reuse the 7% tax assumption for another region.
The following resale examples assume 70% financing in Andalucía, ITP calculated on the price, and a planning allowance of 2% of the price for legal advice, purchase-deed expenses and valuation, including applicable VAT. The allowance is an assumption, not a quotation or a regulated fee.
| Budget item | €300,000 home | €500,000 home | €800,000 home |
|---|---|---|---|
| Mortgage at 70% | €210,000 | €350,000 | €560,000 |
| Your 30% contribution | €90,000 | €150,000 | €240,000 |
| ITP at 7% | €21,000 | €35,000 | €56,000 |
| Other-cost allowance at 2% | €6,000 | €10,000 | €16,000 |
| Cash subtotal* | €117,000 | €195,000 | €312,000 |
*Add any bank opening fee, mortgage broker fee, insurance premiums, currency-transfer costs and your personal reserve. These are excluded from the subtotals. Replace the 2% allowance with actual quotations; tax bases, property complexity and services can change the result. A reservation or arras payment credited towards the price forms part of your contribution, rather than an additional purchase cost.
The same €500,000 Andalucía resale with 60% financing
The mortgage falls to €300,000. Your contribution rises to €200,000; adding €35,000 ITP and the illustrative €10,000 other-cost allowance produces a €245,000 cash subtotal, before the excluded items above. That is €50,000 more than with 70% financing.
The same €500,000 Andalucía budget for a new build
With 70% financing, €150,000 towards the price, €50,000 VAT, €6,000 purchase AJD and the same illustrative €10,000 allowance produce a €216,000 cash subtotal, before the excluded items. Off-plan stage payments may also require cash well before a mortgage is available at completion.
What happens if the valuation is below the price?
Consider a €500,000 purchase valued at €450,000. If the bank applies 70% to the lower figure, the mortgage is €315,000, rather than €350,000. You would need €185,000 towards the price: €35,000 more than planned, before taxes and fees.
This is why a preliminary financing assessment is useful before committing to a purchase. It is also why an initial indication should not be treated as final approval.
Know your budget before you make an offer
We can assess your income, debts and available funds to help you set a realistic property search range.
Five checks before paying a reservation or signing arras
- Confirm the likely loan amount. Check affordability as well as LTV; having enough savings does not guarantee approval.
- Verify your available funds. Separate accessible cash from expected sale proceeds, restricted investments and money you want to keep as a reserve.
- Check the tax base and quotations. Confirm resale versus new-build treatment and obtain written estimates for professional and lender fees.
- Have your lawyer review the contract. Ask what happens if financing is refused, reduced or delayed. Do not assume your deposit is automatically refundable.
- Prepare evidence of the source of funds. Banks may ask for supporting records for savings, gifts, investments or property sales. See our mortgage documents checklist.
Your recurring budget matters too: mortgage payments, insurance, community fees, local property tax and maintenance continue after completion. Our tax guide for foreign property owners covers the ownership side.
Frequently asked questions
Is a 30% deposit enough for a Spanish non-resident mortgage?
It may cover your share of the price if 70% financing is approved and the lender’s accepted value supports it. You still need taxes, fees and a reserve. With less financing or a low valuation, you need more.
Can I get an 80% mortgage as a non-resident?
Do not build your purchase budget around 80% unless a lender has assessed and confirmed that structure for your case. Non-resident lending commonly involves a lower percentage. Your nationality alone does not determine your lending classification.
Is the arras deposit extra money on top of my down payment?
Where the contract credits it towards the price, it is part of your purchase contribution. For example, €50,000 already paid towards a €150,000 contribution leaves €100,000 of that contribution to pay, plus outstanding costs. Your lawyer should confirm the contract treatment.
Can I use a gift or money from a property sale?
Potentially, subject to lender acceptance and checks on the source of funds. A gift may require supporting documentation and tax advice. Sale proceeds need to be available when payments are due; an expected sale is not the same as cash already received.
Does a larger deposit guarantee mortgage approval?
No. The lender still assesses income, existing debts, credit history and the property. Extra savings can reduce the loan requested, but do not replace a satisfactory affordability and risk assessment.
Are buying costs the same everywhere in Spain?
No. Transfer tax and stamp duty vary by autonomous community, and transaction details matter. This guide compares selected regional taxes across Spain, while the detailed €300,000–€800,000 budgets use Andalucía. Use the rules for your property’s location and transaction when calculating your own cash requirement.
Sources and further reading
Tax and mortgage-cost rules checked on 6 October 2026. Examples are Viva Finance planning calculations, not bank offers.
- Ministerio de Hacienda: regional tax measures for 2026, including Valencia and Murcia
- Community of Madrid: transfer tax and purchase stamp duty
- Catalan Tax Agency: transfer-tax brackets and special rates and purchase stamp duty
- Balearic Tax Agency: progressive transfer-tax calculation
- BOE: Canary Islands transfer-tax legislation
- Agencia Tributaria: Spanish VAT territory
- Junta de Andalucía: general ITP and AJD rates
- Agencia Tributaria: VAT or transfer tax when buying a home
- Catastro: reference values and their tax use
- Banco de España: allocation of mortgage expenses
- Banco Sabadell: non-resident mortgage financing