How much to save to buy a house in Spain in 2026: the complete guide for expats

One of the most common surprises for people buying property in Spain — especially expats unfamiliar with the Spanish system — is the total upfront capital required. Unlike some other European countries, Spain has relatively high transaction taxes and additional costs that must be paid out of pocket, on top of the 20% down payment that banks typically require.

This guide breaks down every cost, so you can plan your savings target accurately.

The total capital you need to buy in Spain

As a working assumption, you should have access to approximately 30–35% of the property purchase price in liquid savings before you start the formal buying process in Spain.

This breaks down as:

• 20% down payment (banco financing is typically capped at 80% LTV)
• 10–13% in taxes and transaction costs (varies by region and property type)
• 3–5% reserve for moving costs, initial works, furniture, and emergencies

The 20% down payment explained

Spanish banks as a rule finance a maximum of 80% of the lower of the purchase price or the official appraisal value (valor de tasación). The 20% difference must come from your own funds.

Important detail: if the appraisal comes in lower than the agreed purchase price, the bank's 80% is calculated on the lower appraisal value, not the purchase price. This means you may need to contribute more than 20% of the actual purchase price. This is a common scenario in competitive markets where buyers sometimes agree to pay slightly above appraisal value.

Example: You agree to pay €220,000 for a property. The official appraisal comes in at €205,000. The bank offers 80% of €205,000 = €164,000. You need to cover: €220,000 − €164,000 = €56,000 from your own funds (25.5% of the actual purchase price).

Transaction taxes and costs by property type

Resale properties (vivienda de segunda mano)

ITP varies significantly by autonomous community. The lowest rates are found in the Basque Country (4%), the Balearic Islands (first bracket: 8%), and Madrid (negotiating historic low). Highest: Valencia (10%) and Catalonia (10%).

New build properties (obra nueva)

Regional tax differences: a significant variable

The ITP rate is set by each autonomous community (comunidad autónoma), which is why buying the same property in different regions of Spain can differ by thousands of euros in transaction costs.

This is a meaningful consideration if you are flexible about location and comparing equivalent properties across different regions.

Ongoing costs after purchase

Beyond the purchase costs, prepare for recurring annual costs:

• IBI (Impuesto sobre Bienes Inmuebles — property tax): €400–2,000 per year for typical residential properties, depending on location and value.
• Community fees (gastos de comunidad): For apartments in buildings with shared areas — typically €50–200 per month. Request the cuota de comunidad from the seller before buying.
• Home insurance (seguro de hogar): Typically €300–600 per year for standard coverage. Mandatory if you have a mortgage.
• Maintenance reserves: Industry guidance suggests setting aside 1–2% of the property value annually for maintenance and repairs.

How to get your NIE before saving is complete

One practical step you can take well before you have your savings target reached is to obtain your NIE (Número de Identificación de Extranjero). This is Spain's foreign identification number, and it is mandatory for all property transactions in Spain — you cannot open a bank account, sign a purchase contract, or apply for a mortgage without one.

Applying for a NIE:

• Can be done at a Spanish consulate in your home country, or at a police station (comisaría) in Spain if you are already here.
• Takes 2–10 weeks depending on location and demand.
• Costs approximately €10–12 in fees.

Get this done early — it has no expiry date once issued, and having it ready means you can move quickly when you find the right property.

Savings strategies for expats targeting a Spanish property purchase

Separate savings accounts: Open a dedicated savings account (in Spain or in your home country) specifically for your Spanish property purchase fund. This makes it easy to track progress and avoids the temptation to use these funds for other purposes.

Currency risk: If your income and savings are in a currency other than the euro, consider whether and when to convert. Currency fluctuations can significantly affect your purchasing power in Spain.

Spanish bank account: You will need a Spanish bank account to manage mortgage payments, utility bills, and IBI payments. Opening one in advance (most major Spanish banks offer products for non-residents) makes the transition smoother.

Track Spanish property prices: Use indices like the INE (Instituto Nacional de Estadística) house price index or local market reports to monitor whether your target market is appreciating faster than you can save — which has been the case in several Spanish cities in recent years.

Summary of savings targets by purchase price

Based on 20% down payment + 10–15% costs + 3% reserve