Down payment Calculator

💰 Understanding Total Property Expenses and Mortgage Financing for Non-Residents in Spain

📌 What Are the Estimated Expenses?

When purchasing a property in Spain, you should consider the following costs:

✅ Property registration fees
✅ Taxes associated with the purchase
✅ Property appraisal for mortgage purposes
✅ Administrative fees for tax processing

🔎 Please note: These figures are approximate and may vary depending on the province where the property is located, as well as whether you are purchasing a new-build or a resale property. To ensure a solid financial plan, we recommend adding a ±2% margin to your budget for unforeseen expenses.

🏦 Mortgage Financing for Non-Residents: The 70% Limit

If you are a non-tax resident in Spain, meaning you declare taxes in another country, the maximum mortgage amount you can obtain is 70% of the property purchase price.

💡 Why this limit?
The Bank of Spain regulates this financing cap across all Spanish banks, making it a standard requirement in the mortgage market.

🚀 How to optimize your financing?
To cover the remaining 30% of the purchase price, plus expenses, you will need savings or alternative financing. Our team can guide you through currency exchange solutions and financial planning to make the process smoother.

🏡 Why Choose  Mortgage in Spain, Mortgage Broker?

💼 We are a mortgage broker licensed by the Bank of Spain.
🔍 Access to exclusive mortgage conditions thanks to our strong relationships with Spanish banks.
📄 Simplified documentation process—we take care of the paperwork for you.
👩‍⚖️ We connect you with trusted real estate professionals (lawyers, real estate agents, currency exchange services, and utility setup companies).
💰 No fees for our service—our commission is covered by the bank that grants your mortgage.
⚡ Fast, professional, and stress-free mortgage approvals.

📞 Need personalized mortgage advice? Contact our expert team today and secure the best mortgage deal for your property in Spain!

Down Payment Calculator – Understanding the Source of Funds for Your Mortgage in Spain

When applying for a mortgage in Spain, banks require a minimum down payment of 30% for non-residents. However, it is not enough to simply have the funds—Spanish banks thoroughly analyze their origin to ensure they meet regulatory and financial stability requirements. Additionally, buyers must consider extra costs of up to 12% on top of the purchase price, depending on the location and applicable taxes. Below, we explain which sources of funds are accepted, which ones are not, and why some sources are restricted.

✅ Accepted Sources of Funds

Spanish banks accept down payment funds from transparent and legally justified sources, including:

• Savings from Employment or Business Income – Funds accumulated from salaries, dividends, or self-employment earnings. Banks require proof such as tax returns, payslips, or business financial statements.
• Sale of a Property or Investments – If the funds come from selling a property, stocks, or other investments, banks will request documentation proving the sale (e.g., sales deed, brokerage statements).
• Inheritance or Gifts from Immediate Family – In some cases, a gift from parents to children can be an accepted source of funds, provided it is clearly documented. Banks will typically require a notarized gift letter stating that the money does not need to be repaid and, in some cases, proof of tax compliance.
• Pension or Retirement Funds – Withdrawals from pension plans or retirement accounts are valid, but banks may require proof of withdrawal and tax details.
• Dividends or Funds from a Personal Business – If you own a company, you can use funds from your business for the down payment, as long as they are well documented.

❌ Unaccepted Sources of Funds

Some sources of funds are not accepted by Spanish banks because they do not represent direct savings and may pose financial or regulatory risks. These include:

• Loans from a Mortgage on a Property in Your Home Country – If you take out a new mortgage in your home country to finance the down payment for a property in Spain, Spanish banks will not accept these funds. The reason is that banks require the down payment to come from direct savings, not additional debt.
• Personal Loans or Any Borrowed Money – Any funds obtained through a personal loan, credit line, or any form of borrowed capital will not be accepted. Spanish banks want buyers to have genuine savings rather than relying on external financing, which could increase their overall financial burden.
• Cryptocurrency Transactions – Due to difficulties in tracing and verifying the source, banks do not accept funds from cryptocurrency sales.
• Cash Deposits Without Clear Justification – Large cash deposits without proper documentation are seen as high risk for money laundering.
• Funds from Offshore Accounts in High-Risk Jurisdictions – Banks may reject money originating from tax havens or flagged jurisdictions due to international compliance regulations.
• Unreported or Untaxed Income – Any funds not declared to tax authorities or without supporting financial records will not be accepted.

Additional Costs Beyond the 30% Down Payment

In addition to the 30% minimum deposit, buyers must set aside an extra 10-12% of the property price for taxes and other costs, depending on the location of the purchase. These additional expenses may include:

• Property Transfer Tax (ITP) or VAT – Typically between 6% and 10% of the purchase price, depending on the region and whether the property is new or second-hand.
• Notary and Land Registry Fees – Usually around 1% of the purchase price.
• Legal Fees – It is recommended to hire a lawyer, whose cost is generally 1% of the purchase price.
• Mortgage Arrangement Fees – If financing is involved, banks may charge an opening fee, which can vary.

Why Do Banks Require a Clear Source of Funds?

Spanish banks must comply with strict anti-money laundering (AML) regulations and financial risk policies. Ensuring that the down payment comes from direct savings rather than additional borrowing serves multiple purposes:

1. Prevent financial instability – Borrowing money to finance a down payment increases overall debt and financial risk for the borrower.
2. Ensure financial responsibility – Banks want to see that buyers have accumulated genuine savings rather than relying on further loans.
3. Comply with European banking regulations – Spanish banks follow EU AML directives, which require full transparency in financial transactions.

Need Guidance on Your Mortgage Application?

At Mortgage in Spain, we help non-resident buyers navigate the mortgage process, ensuring their funds meet bank requirements and maximizing approval chances.

We are a mortgage broker licensed by the Bank of Spain. Our services are paid by the bank that grants your mortgage, meaning you don’t have to worry about additional fees.

✅ Get expert advice today! Contact us to start your mortgage journey with confidence.