How Much Deposit Do You Really Need? Real Numbers and Worked Examples
Short answer: on a typical non-resident purchase, expect purchase costs of roughly 10-14% of the price on top of your equity contribution — resale and new-build transactions land in different parts of that range. Below are two worked examples with real figures. For an explanation of what drives the deposit itself, see our companion guide.
The deposit is only part of the story. Buyers usually need to budget for their equity contribution and then a second layer of taxes and buying costs that the mortgage does not cover.
Written by Mike Brady
Reviewed by Alberto BertazziHow Much Deposit Do You Really Need? Real Numbers and Worked Examples
The deposit is only part of the story. Buyers usually need to budget for their equity contribution and then a second layer of taxes and buying costs that the mortgage does not cover.
Mike BradyAlberto Bertazzi
What matters most
- The real question is not just the deposit. It is total cash needed to complete.
- Non-resident borrowing is often lower than resident lending, so overseas buyers usually need a larger equity contribution.
- Purchase costs vary depending on whether the property is a resale or a new build and on the region, so the final budget should be tailored to the specific transaction.
Resale vs new build: what usually differs
Exact rates depend on the autonomous community and the specific transaction, but these are the typical ranges we work from before a proper case review. Always confirm the current figure for the region in question — this is a planning guide, not a binding quote.
| Cost item | Resale property | New build |
|---|---|---|
| Main purchase tax | Transfer tax (ITP), typically 6-10% of price depending on region | VAT, typically 10% of price, plus stamp duty (AJD) typically 1-1.5% |
| Notary & Land Registry | Roughly 0.5-1% combined | Roughly 0.5-1% combined |
| Legal / gestoria fees | Typically 1-1.5% + VAT | Typically 1-1.5% + VAT |
| Valuation & bank opening fee | Case-dependent, usually a few hundred euros plus a small % of the loan | Case-dependent, usually a few hundred euros plus a small % of the loan |
| Typical total purchase costs | Roughly 10-13% of price | Roughly 12-14% of price |
On top of these purchase costs, non-resident lenders commonly finance a smaller share of the price than they would for a resident, so the buyer's own equity contribution is usually larger too. That is the piece explained in our companion guide on what drives the deposit.
A €300,000 resale apartment, non-resident buyer
Assume a lender offers financing on the lower of price and valuation, and the valuation confirms the €300,000 price. If the buyer's equity contribution works out at 30% of the price, that is €90,000 toward the property itself. Purchase costs at roughly 11% of price add a further €33,000. Total cash needed to complete: in the region of €123,000, before any personal contingency buffer.
A €500,000 new-build villa, non-resident buyer
New builds usually carry a higher combined tax rate than resale. If the same buyer needs a 30% equity contribution, that is €150,000 toward the property. Purchase costs at roughly 13% of price add a further €65,000. Total cash needed to complete: in the region of €215,000, before any personal contingency buffer. New-build purchases often also involve staged payments during construction, which changes the cash-flow timing even where the total is similar to a resale of the same value.
Why buyers underestimate the cash requirement
A lot of buyers anchor on the loan-to-value and stop thinking there. If the bank might finance part of the purchase price, they assume the remaining capital is simply the deposit. In reality, the mortgage and the purchase costs are two different animals living in the same room.
The mortgage normally helps with the property price itself. Taxes, legal fees and several completion costs usually sit outside it. That is why a buyer can be comfortable with the monthly payment and still hit a wall on liquidity.
What usually sits outside the mortgage
Exact figures depend on the property type and location, but buyers normally need to budget for the relevant purchase tax or VAT, notary and Land Registry costs, legal fees and valuation-related costs. On a resale purchase, the regional transfer tax is often one of the main moving parts. On a new build, VAT and stamp-duty style costs can change the shape of the budget.
This is why no serious adviser should give a one-size-fits-all number without knowing whether the property is new or resale and where in Spain it sits.
What many non-resident buyers plan for in practice
Many overseas buyers sensibly work on the basis that they may need a substantial equity contribution plus the full buying costs. Depending on the lender and the profile, that can mean having materially more than a simple 20% deposit available. The exact figure will depend on the transaction, but the planning principle is always the same: be pleasantly overprepared rather than uncomfortably short.
The strongest purchase strategies are built around liquidity first. Then the mortgage becomes a tool, not a rescue mission.
Why this matters before the arras contract
The reservation or arras stage is where unrealistic budgeting tends to bite. If the mortgage comes in lower than expected, or the costs are higher than expected, the buyer suddenly has to find more capital under deadline pressure. That is not the elegant version of the story.
A pre-purchase mortgage review should therefore answer three questions clearly: what the bank may lend, what total cash is likely to be needed, and what margin of comfort the buyer wants to keep after completion.