How many own money Do you have to bring in a mortgage in Spain?
You will have to contribute an amount or percentage from equity.
In Spain, as a foreign buyer, you may finance up to 70% of the purchase price or the appraisal value (the bank takes the lowest value). This means that you have to contribute at least 30% of the purchase price yourself. The bank in Spain may even want to finance a lower percentage (e.g. 60 or 65%). In that case, you will have to put in even more of your own money!
There is also no funding on the buyer's costs in Spain. And these are quite hefty because of the high transfer tax and other costs, such as the notary and registration in the land register. An indication of this is 10-14% of the purchase price, depending on the region. You cannot co-finance these costs so you will have to pay them out of your own money as well!
Calculation example own money
If you want to buy a property in the costa del sol for €325,000, you need to consider the following:
- Financing of 70% - which means you have to bring in 30% yourself. This amounts to €97,500
- The cost of buyer in this region is ~10%. So that comes to €32,500
- You may pay the estate agent a fee (sometimes as much as 3%) or engage a lawyer. We'll keep it at €5,750 here
Your total equity is €135,750 (41.8% of the purchase price)
Know exactly how much equity you need to put in?
Via our handy calculation tool, you can have a complete picture of your required equity and everything concerning your maximum financing in Spain within 30 minutes.