mortgage in spain


Taking out a mortgage is a significant financial decision, and it’s essential to understand the costs involved, especially when considering buying property in a foreign country like Spain. Spain is a popular destination for real estate investment, thanks to its beautiful landscapes, vibrant culture, and attractive property market. If you’re thinking about securing a mortgage in Spain, it’s crucial to have a clear understanding of the expenses involved to make an informed decision. In this article, we’ll explore how much money you need to take out a mortgage in Spain.

  1. Down Payment

One of the most substantial upfront costs when taking out a mortgage in Spain is the down payment. The typical down payment in Spain can range from 20% to 30% of the property’s purchase price. The exact percentage may vary depending on your financial situation, the lender’s policies, and the type of property you are buying. Keep in mind that if you are a non-resident, you might be required to make a higher down payment.

  1. Property Valuation Fees

Before approving your mortgage application, the lender will require a professional property valuation. This valuation helps determine the property’s market value and ensures that the loan amount is in line with the property’s worth. Property valuation fees can range from €300 to €600, depending on the property’s value and location.

  1. Mortgage Arrangement Fees

When securing a mortgage in Spain, you’ll also need to pay mortgage arrangement fees. These fees include the costs associated with processing your mortgage application, conducting credit checks, and other administrative tasks. Mortgage arrangement fees can typically range from 1% to 2% of the mortgage amount.

  1. Notary and Registry Fees

Once your mortgage is approved, you’ll need to sign the mortgage deed before a notary. Notary fees can vary based on the mortgage amount and the notary’s location but usually range from 0.1% to 0.5% of the loan amount. Additionally, you’ll need to register the mortgage in the property registry, incurring further fees, which are generally around 0.1% to 0.3% of the mortgage amount.

  1. Stamp Duty and Taxes

In Spain, you’ll also be responsible for paying a tax known as “Impuesto sobre Actos Jurídicos Documentados” (AJD), which is a tax on legal documents, including mortgages. The rate can vary from one region to another but typically ranges from 0.5% to 1.5% of the mortgage amount.

  1. Mortgage Insurance

Lenders in Spain may require you to take out mortgage insurance, especially if you are a non-resident. This insurance protects the lender in case you default on your mortgage payments. The cost of mortgage insurance will depend on factors such as the loan amount, your age, and the property’s location.

  1. Life Insurance and Home Insurance

While not mandatory, it’s a good idea to consider life insurance and home insurance when taking out a mortgage in Spain. Life insurance can cover your mortgage payments in the event of your death, ensuring that your loved ones aren’t burdened with the debt. Home insurance can protect your property from damage or loss. The cost of these insurance policies will vary based on your coverage choices.


Securing a mortgage in Spain involves various costs, including the down payment, property valuation fees, mortgage arrangement fees, notary and registry fees, stamp duty, taxes, mortgage insurance, and optional life and home insurance. It’s essential to budget for these expenses and consult with financial advisors and real estate professionals to ensure you have a clear understanding of the total cost of taking out a mortgage in Spain. Proper financial planning will help you make a sound investment in the vibrant Spanish property market.