Answer extracted from The Costa Property Podcast — listen to the full episode below.
How much money must you have in your bank before obtaining a mortgage for property purchase in Spain?
You must have 10–12% of the purchase price in liquid funds for taxes and transaction costs, which cannot be financed through a mortgage. For non-residents, the maximum mortgage available is 70% of the property value, meaning you need to cover the remaining 30% yourself. For a €300,000 property, you'd need approximately €120,000–€126,000 in your bank before applying.
The hidden costs that change the final price
When scrolling property portals like Idealista, the price you see on screen is not the total cost of your purchase. Taxes, notary fees, and legal expenses add 10 to 12 percent to the purchase price, and these costs cannot be covered by mortgage financing—they must be paid from your own funds at the point of sale.
This distinction is critical. A property listed at €300,000 does not cost €300,000 to buy; it costs significantly more once these mandatory transaction expenses are factored in, as explained in detail in The Costa Property Podcast episode on the true cost of Spanish property acquisition.
The 70% mortgage ceiling for non-residents
Spanish lenders impose a strict cap: non-resident buyers can borrow a maximum of 70% of the property's appraised value. This means you must personally fund the remaining 30% down payment out of pocket.
For a €300,000 property, 70% equals €210,000—the maximum mortgage amount available. The gap of €90,000 between the purchase price and the mortgage, combined with €30,000–€36,000 in transaction costs, totals approximately €120,000–€126,000 that must already be sitting in your bank account before you even submit a mortgage application.
A worked example: the €300,000 property
Consider a specific scenario discussed by property experts on the Costa del Sol: a property priced at €300,000. With a maximum mortgage of €210,000 (70% of value), you cover €90,000 out of your own funds toward the purchase price itself.
Then add the transaction layer: taxes and notary fees (10–12% of €300,000) require an additional €30,000–€36,000 paid upfront. Your total liquid requirement is €120,000–€126,000—not negotiable and not available through any form of financing. This cash must be confirmed and available before your lender will approve your mortgage application.
Understanding this structure before beginning your property search ensures you know the true financial threshold, as detailed in this episode covering the exact figures required for Spanish property purchases.
"If you see a property and you can afford it, buy it. I don't have a crystal ball so I can't tell you if it will go up or down but if you're buying for the right reasons then absolutely."
Warner — Property Valuation Expert and Real Estate Agent, WL Costa Properties. Warner leads property valuations for clients on the Costa del Sol and sits beside buyers during notary signings for property purchases and sales in Spain. With many years of experience closing transactions, he brings on-the-ground expertise in pricing and financing structures across the Benalmádena and surrounding markets.
Beyond the core funding question, the episode also explores how distance from the beach influences property values and the timeline required to complete a cash purchase—both factors that interact with financing decisions and liquidity planning.
Key takeaways
- Transaction costs (taxes, notary, legal) represent 10–12% of the purchase price and cannot be financed through a mortgage.
- Non-residents are capped at a 70% maximum mortgage on property value, requiring you to fund the other 30% from savings.
- For a €300,000 property, expect to have €120,000–€126,000 liquid in your bank before mortgage approval.
- The advertised price on property portals is never the final cost—always calculate the full transaction expense upfront.
See also
What is the timeline for completing a property purchase in Spain as a cash buyer?
If you are a cash buyer with no complications, the purchase process can be completed within six to eight weeks, though it can happen in as little as two weeks if well-prepared.
Why do properties listed on portals like Idealista sometimes remain active even after being sold?
In Spain, owners can list their property with multiple agents simultaneously, and each agent may have different information about the property status and sale stage.
How does distance from the beach affect property pricing in Benalmádena?
Frontline beach properties in Benalmádena typically cost over 4,200 euros per square meter, while properties located 10 to 15 minutes inland towards Arroyo de la Miel or Benalmádena Pueblo cost 3,600 to 3,700 euros per square meter.