How much equity do you need to buy property in Spain?

How much equity do you need to purchase new construction property in Spain?

You are planning to buy a property in Spain. It is important to understand your financial situation so you know what your options are.

In the blog “How much mortgage can I get for a house in Spain?” we explain how much you can borrow at most. The follow-up question is: how much equity do you need?

If you want to purchase property in Spain with a Spanish mortgage, you will need an amount of your own money in addition to the mortgage. We try to clarify it with a calculation example:

Suppose you want to purchase property for an amount of €250,000 euros, in Spain you can then, as a non-resident, finance up to 70% through a Spanish mortgage.

So 30% of the purchase price you pay from your own money, this is an amount of €75,000.

In addition, you also pay the one-time purchase cost from your own funds:

• 10% VAT on new construction property

• 4% for applying for NIE number, lawyer, notary and other taxes

This makes the total one-time acquisition cost 14% of the purchase price, amounting to €35,000.

So for the purchase of the property you will pay about €110,000 from your own money. The exact amount can vary depending on several factors, such as mortgage terms and the buyer’s specific situation.

In addition, take into account costs for furnishing and personalization.

Your Destinations provides expert advice and can help find the right partners to sort out all the possibilities for you! Do you want mknow honor about this topic? Then contact us and we will be happy to discuss your options!