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How Much Money Do You Need to Take Out a Mortgage in Spain?

Posted by rv on 25/09/2023


Taking out a mortgage in Spain can be an exciting step towards owning property in this vibrant and diverse country. However, it’s crucial to understand the financial requirements involved in the mortgage process. From down payments and fees to ongoing costs, knowing how much money you need is essential for a smooth home-buying experience. In this article, we will delve into the key financial aspects you need to consider when taking out a mortgage in Spain.

  1. Down Payment

One of the most significant financial requirements when taking out a mortgage in Spain is the down payment, known as the “entrada” or “fianza.” While the minimum down payment can vary depending on various factors, it’s generally around 20% of the property’s purchase price. However, this percentage can be higher or lower depending on your specific circumstances and the lender’s policies.

  1. Property Valuation and Appraisal Fees

Before a mortgage is approved, your chosen lender will require a property valuation and appraisal. The cost of these services typically ranges from 300 to 800 euros, depending on the property’s size and location. It’s essential to budget for these fees as they are typically paid upfront.

  1. Mortgage Setup Fees

Mortgage setup fees in Spain include various costs such as notary fees, administrative charges, and property registration fees. These fees are typically around 2-3% of the mortgage amount. Keep in mind that these costs can vary depending on the lender and the complexity of the mortgage agreement.

  1. Mortgage Tax

In Spain, you’ll also need to account for the mortgage tax, which is typically around 1% of the mortgage amount. This tax is paid when the mortgage deed is signed and registered.

  1. Stamp Duty

Stamp duty, known as “Impuesto de Actos Jurídicos Documentados,” is another expense to consider. It’s a tax imposed on certain legal documents, including mortgage deeds. The rate varies by region in Spain and can range from 0.5% to 1.5% of the mortgage amount.

  1. Mortgage Life Insurance

While not mandatory, many lenders in Spain require borrowers to take out mortgage life insurance. The cost of this insurance will depend on factors such as your age and health, but it’s essential to include it in your budgeting.

  1. Home Insurance

Home insurance, while not directly related to the mortgage itself, is often required by lenders to protect their investment. The cost of home insurance varies depending on the property’s value and location.

  1. Additional Costs

It’s also wise to set aside some extra funds for unforeseen expenses and closing costs. These might include legal fees, property inspection costs, and utility transfer fees.


Taking out a mortgage in Spain involves various financial requirements, from the down payment to associated fees and ongoing costs. It’s crucial to carefully plan your finances and budget for these expenses to ensure a smooth home-buying process. Additionally, consulting with a financial advisor or mortgage expert can help you navigate the intricacies of Spanish mortgage requirements and find the best option for your unique circumstances. Owning a property in Spain can be a rewarding experience, and understanding the financial aspects involved is the first step towards making your dream a reality.

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