How Much Deposit Do You Need to Buy Property in Spain? The Full Payment Timeline (2026)
Six weeks before completion, a British buyer I was working with rang me in a panic. She had budgeted carefully for the 10% deposit, lined up her currency transfer, and told her bank she needed the funds available. Then her abogado sent over the full completion statement, and she realised she had forgotten about the ITP. That is 7% of the purchase price in Andalusia, paid on top of what she had already committed. She needed an extra €26,600 in three weeks.
This is the most common and most expensive misunderstanding about buying property in Spain. The 10% deposit is real and it matters, but it is only one part of the picture. Here is the full breakdown, in the right order.
Spain’s Three-Stage Payment System
Buying property in Spain works differently from the UK. There is no single exchange-and-completion moment. Instead, money moves at three distinct stages, each with its own legal function.
Stage 1: The Reservation Fee
As soon as you agree a price verbally, the agent will ask for a reservation fee (reserva or señal). This is paid within 24 to 48 hours and takes the property off the market while your lawyer carries out initial due diligence on the title, planning status and community debts.
The amount varies, but most Costa del Sol transactions use between €3,000 and €6,000 on properties up to €600,000. On higher-value properties, developers and some private vendors ask for more, sometimes €10,000 to €15,000.
Critically, the reservation fee is almost always refundable at this stage if your lawyer finds a legal problem with the property. It is not your commitment to buy; it is the vendor’s commitment to take the listing off the market while you check the paperwork. It is held in the agent’s client account until arras are signed.
Stage 2: The Contrato de Arras (10% Deposit)
The contrato de arras is the private purchase contract. The day you sign it, you pay 10% of the agreed purchase price, less any reservation fee already paid.
On a €380,000 property, the 10% arras payment is €38,000. If you already paid a €5,000 reservation fee, you hand over €33,000 on the day of arras signing.
This 10% is not a rough guide or a starting point for negotiation. It is embedded in Spanish legal practice under Article 1454 of the Civil Code (arras penitenciales), and it is protected in both directions:
- If you pull out without legal grounds, you forfeit the 10%.
- If the vendor pulls out, they must refund double: your 10% back, plus an equal penalty payment.
The arras contract also fixes the completion deadline, typically 30 to 90 days later for a cash purchase. Mortgage buyers usually negotiate 90 to 120 days to allow time for the bank to process the tasación (valuation) and issue the FEIN (mortgage offer).
For a full walkthrough of what the arras contract actually says and what to watch for, see our contrato de arras guide.
Stage 3: The Balance at Escritura
The remaining balance, roughly 90% of the agreed price, is paid at the notary on completion day. Spanish law requires payment by certified banker’s draft or same-day SWIFT transfer cleared into the notary’s account before the keys change hands. Personal cheques and standard bank transfers are not accepted.
On a €380,000 purchase: €342,000 at completion, plus any adjustment for taxes and costs (which are typically handled separately by your gestor in the weeks following).
What Deposit Really Means: The Total Cash Requirement
Every buyer asks “how much deposit”, and the truthful answer is: more than 10%. The taxes and purchase costs in Andalusia add 8 to 10% on top of any property price. They are not optional, and they cannot be mortgaged.
Resale property in Andalusia (2026):
| Cost | Rate | On a €380,000 property |
|---|---|---|
| ITP (transfer tax) | 7% | €26,600 |
| Notary fee | Variable | approx €900 |
| Land Registry | Variable | approx €650 |
| Abogado (legal fees) | 1% typical | approx €3,800 |
| Gestor | Fixed | approx €500 |
| Total extra | ~8.8% | approx €32,450 |
New-build in Andalusia (2026):
| Cost | Rate | On a €380,000 property |
|---|---|---|
| IVA (VAT) | 10% | €38,000 |
| AJD (stamp duty) | 1.2% | €4,560 |
| Notary, Land Registry, legal, gestor | Variable | approx €5,500 |
| Total extra | ~12.6% | approx €48,060 |
The full cost breakdown for every buyer profile is in our complete buying costs guide.
The practical cash requirement for a €380,000 resale, all-cash purchase: approximately €412,450 in total.
Payment Timeline at a Glance
| Stage | When | Amount |
|---|---|---|
| Reservation fee | Day 1 to 2 after agreeing price | €3,000 to €6,000 |
| Contrato de arras | Day 7 to 21 | 10% of price minus reservation fee |
| Completion (escritura) | Day 30 to 90 | Balance (~90% of price) |
| ITP or IVA + AJD | Within 30 days post-completion | 7% resale / 11.2% new-build |
| Notary, registry, legal fees | At or shortly after completion | ~1.5 to 2% of price |
Note: if you miss the 30-day ITP filing deadline, surcharges start immediately: 5% up to 3 months late, 10% to 6 months, 15% to 12 months, and 20% thereafter plus interest. Your gestor should file this for you automatically as part of their post-completion service, but confirm it explicitly before you sign.
Mortgage Buyers: How the Numbers Change
If you are financing part of the purchase, the deposit calculation is significantly different from what you are used to in the UK.
Non-Resident British Buyers (Most Buyers Reading This)
As a UK national and non-EU citizen post-Brexit, Spanish banks will typically lend 60% to 70% of the lower of the purchase price or the bank’s valuation (tasación). This is lower than the 80% to 90% available to Spanish residents.
What that means in practice on a €380,000 property:
| LTV | Mortgage amount | Your cash contribution |
|---|---|---|
| 60% | €228,000 | €152,000 (40%) |
| 70% | €266,000 | €114,000 (30%) |
Add taxes and fees of approximately €32,450, and a British buyer taking a 70% LTV mortgage needs roughly €146,450 in cash available.
There is also an arrangement fee (approximately 0.5% to 1% of the loan), plus mortgage deed stamp duty (already included in AJD for new-builds, but charged separately at approximately 1.2% for mortgaged resales), and a separate tasación fee of €250 to €600.
Resident Buyers
If you are tax-resident in Spain (183 or more days per year) and buying a primary residence, Spanish banks will typically offer up to 80% LTV. Some lenders go higher for qualifying buyers. This meaningfully reduces your cash requirement.
At 80% LTV on €380,000: mortgage of €304,000, cash contribution of €76,000 plus costs of approximately €32,450.
Off-Plan Staged Payments
Off-plan developers use their own schedules, but a typical structure on the Costa del Sol looks like this:
- 20% to 30% on signing the reservation/purchase contract
- Additional staged payments during construction (often 10% every 6 months)
- Balance on completion, when the certificate of habitation is issued
Every stage payment on an off-plan purchase must be individually protected by a bank guarantee (aval bancario) or insurance policy under Ley 57/1968. If the developer cannot provide an individual guarantee per stage payment, that is a serious red flag. Your abogado should confirm this before any money leaves your account.
The Exchange Rate Factor
The deposit numbers above are in euros, but you are thinking in pounds. In 2026, GBP/EUR has traded between roughly 1.14 and 1.22. On a €380,000 property, that range represents a difference of £21,858 in sterling terms.
| Rate | €380,000 in pounds |
|---|---|
| 1.14 | £333,333 |
| 1.18 | £322,034 |
| 1.22 | £311,475 |
The practical response is to lock in your rate with a forward contract as soon as your arras is signed. A currency broker can reserve today’s rate for 6 to 12 months at no upfront cost, giving you certainty on the pound amount you need to transfer at each stage. Our currency hedging guide explains how this works and which FCA-authorised brokers offer the best terms.
Five Things British Buyers Get Wrong About Spanish Deposits
1. Forgetting that taxes are separate. ITP is not included in the purchase price. It is 7% on top. Budget for it from day one.
2. Assuming the UK mortgage LTV applies. Spanish non-resident LTV is 60% to 70%. If you budgeted a 10% cash deposit based on UK assumptions, you may need to find significantly more cash.
3. Not having funds available quickly. Arras are typically signed within 7 to 21 days of agreeing a price. If your money is in a 90-day notice account, that is a problem.
4. Paying by personal card or UK bank transfer. Stage payments in Spain require SWIFT transfers from a Spanish or European IBAN. Some agents also accept credit transfer receipts at arras, but completion absolutely requires certified funds.
5. Skipping the NIE and Spanish bank account. You cannot legally complete a Spanish property purchase without a NIE (Numero de Identificacion de Extranjero), and practically you need a Spanish IBAN to receive the post-completion tax demands and community fee direct debits. Apply for your NIE as early as possible.
Ready to Work Out Your Exact Figure?
The numbers above are representative for the Costa del Sol in 2026, but your exact deposit requirement depends on the property price, whether you are buying resale or new-build, your LTV if using a mortgage, and whether you qualify for any reduced tax rates.
Get in touch and I can send you a personalised cost summary based on the specific property you have in mind, along with a shortlist of properties at your real budget rather than your headline figure. No obligation, no pressure.
