Non-residents typically need 30-40% deposit on Spanish properties, while EU residents can secure 20% deposits. Banks offer LTV ratios of 60-70% for non-residents and up to 80-90% for EU residents. A €300,000 Costa Blanca property requires €90,000-€120,000 deposit for non-residents, financed through international transfers.
One of the most common questions from international property buyers on the Costa Blanca is: "How much deposit will I need?" The answer is not straightforward because Spanish mortgage requirements differ significantly based on your residency status, nationality, and the bank's lending criteria. Unlike some countries where 10-15% deposits are standard, Spanish banks impose stricter requirements for non-resident foreign buyers, reflecting both regulatory caution and the complexity of cross-border lending.
The concept of LTV (Loan-to-Value) ratio is central to understanding Spanish mortgages. LTV expresses what percentage of the property's purchase price you can borrow. If a property costs €300,000 and you secure a 70% LTV mortgage, the bank lends €210,000, requiring you to provide a €90,000 deposit. This article provides comprehensive guidance on realistic deposit expectations for different buyer profiles on the Costa Blanca, explains how Spanish banks assess lending capacity, and includes practical examples with actual Costa Blanca property prices and mortgage scenarios.
Understanding LTV (Loan-to-Value) Ratio
Deposit Requirements by Buyer Profile
Spanish Bank LTV Offers and Comparison
How Much You Can Borrow: Affordability and Income Requirements
Down Payment Protection and Deposit Timing
Timeline: Deposit Payments and Mortgage Processing
Practical Examples: Costa Blanca Property Scenarios
Negotiating Better Deposit and Mortgage Terms
Common Mistakes and How to Avoid Them
The Bottom Line
Deposit requirements and mortgage terms for Spanish properties depend critically on your residency status, nationality, and financial profile. Non-resident foreign buyers typically require 30-40% deposits and qualify for 60-70% LTV mortgages, while EU residents can access 20% deposits and 80-85% LTV. Understanding LTV ratios, shopping multiple banks for competitive rates, and structuring deposits strategically can save thousands in interest and transfer costs.
The key to successful Spanish property financing is preparation: secure mortgage pre-approval before signing preliminary agreements, transfer deposits in stages aligned with purchase timeline using cost-effective currency specialists, and ensure affordable monthly housing costs include all taxes and fees. Most importantly, remember that your deposit is at risk only during the preliminary agreement phase; once you sign the public contract before the notary, you're committed to completing the purchase.
If you're planning to purchase a new build property on the Costa Blanca, contact our team to connect with English-speaking mortgage brokers familiar with non-resident financing. We work with specialist lenders offering competitive rates for international buyers and can guide you through the deposit and financing process from initial offer through completion.
Thinking of making the move to Costa Blanca? Book a free 30-minute consultation with our experienced agents — 12+ years helping buyers find their perfect new build home in Spain.