Mortgage Equity Guide
Why Spain's 60% Mortgage Cap Really Means 50%
Spain requires ~50% equity after taxes and fees. Learn why, how your country compares, and how international buyers bridge the gap.
The Number Most Buyers Get Wrong
When international buyers first research Spanish mortgages, they see a headline figure: 60–70% loan-to-value for non-residents. That sounds workable. On a €300,000 property, you'd need €90,000–120,000 as a deposit, right?
Not quite. Spanish banks calculate LTV against the purchase price only. But your actual cash outlay includes transfer tax, notary fees, registry costs, and legal expenses—none of which can be financed. These closing costs typically add 10–13% to the purchase price, depending on the region and whether you're buying a new build or resale.
The result: even with a 70% mortgage, you're only borrowing around 60–65% of the total cash you'll actually need. At a more typical 60% LTV—which is what many first-time non-resident buyers receive—you're covering barely half. For exact figures on your target property, try our buying costs calculator or read the full guide to costs and taxes.
How Your Country Compares
Spain's equity requirements look steep in isolation, but the picture changes when you compare across Europe. Some countries offer higher LTV ratios yet pile on transfer taxes that push real equity needs upward. Others, like the Netherlands, offer nearly full financing—but closing costs still come out of pocket.
| Country | Typical Max LTV | Closing Costs | Real Equity Needed |
|---|---|---|---|
| Spain (non-resident) | 60–70% | 10–13% | ~40–50% |
| Norway | 85% | 2–3% | ~18% |
| Sweden | 85% | 4–5% | ~20% |
| Denmark | 80% | 3–5% | ~23–25% |
| Germany | 80% | 10–15% | ~30–35% |
| France | 80–90% | 7–8% | ~17–28% |
| Netherlands | 100% | 5–6% | ~6% |
| Italy | 80% | 10% | ~28% |
| Poland | 80–90% | 4–5% | ~15–25% |
| Portugal (non-resident) | 65–75% | 7–8% | ~30–40% |
| Austria | 80% | 10% | ~28% |
| Belgium | 80–90% | 11–15% | ~25–35% |
The table makes one thing clear: Spain is among the most conservative markets for non-resident buyers, but it's not alone. Germany, Belgium, and Portugal also demand significant upfront capital. Nordic countries offer more leverage, but their housing markets operate under different conditions—higher property taxes, stricter amortisation rules, and more centralised lending systems.
The key difference is that Spain's rules are explicit and predictable. You know what you need before you start looking, and that transparency is worth something.
A System Built After Crisis
Stability by Design
Spain's conservative lending standards are a direct response to the 2008 financial crisis. During the boom, Spanish banks routinely offered 100%+ mortgages to foreign buyers. When property prices crashed by 30–40%, millions of borrowers went underwater and hundreds of thousands of homes were repossessed.
The regulatory response was decisive. Tighter LTV caps, stricter documentation requirements, and more cautious appraisals became the norm. The result has been a more stable market with fewer distressed sales and sustainable price growth since recovery began around 2014.
This isn't a barrier designed to keep international buyers out. It's a safeguard that protects everyone in the market—including you—from the kind of overleveraging that caused the crisis in the first place. For a deeper look at how the Spanish market has recovered, see our guide to why Spain.
How International Buyers Bridge the Gap
If the equity requirement sounds daunting, you're not alone. But thousands of international buyers navigate this every year. Here are the most common approaches—practical, tested, and used by buyers from all over Europe.
Sell or Refinance at Home
Many buyers release equity from their primary residence, a holiday cabin, or inherited property. Some take a home-equity loan in their home country—where terms are often more favourable—and bring the funds to Spain. This is especially common among Nordic and Dutch buyers.
Combine Savings with a Home-Country Loan
Rather than covering the full equity from savings alone, buyers often use a mix: part savings, part personal loan from their home bank. A smaller loan at familiar rates can be more efficient than stretching for a larger Spanish mortgage.
Pool Resources with a Partner
Joint purchases are common. Partners or family members contributing separate equity pools can comfortably meet the threshold. Spanish banks are accustomed to joint applications from international couples.
Start Within Your Comfort Zone
Buy a property where the equity feels manageable. A €200,000 apartment at 60% LTV requires roughly €95,000–105,000 in equity—achievable for many European households with existing property or savings. You can always trade up later.
A Smarter Starting Point
Spain's equity requirement forces a discipline that many buyers later appreciate. Starting with more skin in the game means lower monthly payments, less interest over the loan's lifetime, and a comfortable buffer if property values dip temporarily.
For detailed mortgage terms and application steps, read our non-resident mortgage guide. To estimate your monthly payments at different LTV levels, try our mortgage calculator. And for a complete overview of your financing options, see our finance guide.
Ready to Plan?
Get the Full Picture Before You Buy
Knowing exactly how much equity you need is the first step toward owning property in Spain. Browse available properties and see what fits your budget.
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