Down payment
20%
Share of the price the bank usually does not finance if it grants an 80% mortgage.
Home-buying guide
How much money you need to buy a flat
Buying a home does not start with the mortgage payment. It starts with knowing whether you have enough savings for the down payment, taxes, purchase costs, financing, furniture, renovation, and a minimum cushion after signing.
Quick rule
A 20% down payment is usually not enough
If the bank finances 80% of the purchase price, you will need to put in roughly 20% as a down payment. But that is not the full cost of the deal. Taxes, notary, land registry, conveyancing, appraisal, renovation, furniture, moving, and surprises still come after.
That is why a prudent reference is to have saved between 25% and 35% of the property price. In tight deals—especially with renovation or extra costs—you may need even more.
Down payment
20%
Share not financed by the bank.
Taxes
6%-10%+
ITP on resale, or VAT/AJD on new builds.
Other costs
1%-5%+
Notary, registry, conveyancing, appraisal, renovation, and furniture.
Quick example
€250,000 flat
Approximate down payment
€50,000
Taxes and fees
€15,000 - €25,000
Renovation, furniture, and cushion
€10,000 - €20,000
Recommended savings
€75,000 - €95,000
Indicative example. The real figure depends on the region, property type, financing, condition of the home, and the deal’s specific costs.
Breakdown
Costs you should calculate before buying
The usual mistake is looking only at the down payment. The real cost of buying a home also includes taxes, closing costs, mortgage fees, setup costs, and a minimum margin so you are not left without cash.
ITP or VAT
6%-10%+
Resale homes usually pay ITP. New builds usually pay VAT and AJD.
Notary
€600-1,200
Cost of formalising the purchase before a notary. Varies with price and deal structure.
Land registry
€300-800
Registration of the home in the Land Registry.
Conveyancing
€300-600
Tax filing, registration, and document coordination.
Appraisal
€300-600
Needed if you apply for a mortgage and the bank requires a valuation.
Renovation and furniture
Variable
Can completely change the real cash needed to move into the home.
Minimum cushion
€5,000-10,000+
Margin so you are not left without cash after signing, moving, or starting mortgage payments.
1. Down payment
The share the bank does not finance
In many deals, the bank may finance up to 80% of the purchase price or appraisal value. The buyer must cover the rest with their own savings.
2. Taxes
ITP or VAT depending on the property type
If you buy a resale home, you usually pay ITP. If you buy a new build, you typically pay VAT and AJD. This block can be one of the largest parts of the upfront cost.
3. Cushion
Do not go to zero after buying
Besides the down payment and taxes, keep a margin for moving, furniture, repairs, community fees, utilities, and surprises.
So how much should you have saved?
A prudent estimate is at least 30% of the property price. That covers a typical 20% down payment plus an extra share for taxes, notary, registry, conveyancing, appraisal, and other purchase costs.
For a €250,000 flat, having between €75,000 and €95,000 saved can be a prudent reference if you want to cover the down payment, taxes, fees, and keep some margin. For a €300,000 flat, the figure may approach €90,000–€110,000 depending on the region, the bank, and the property’s condition.
The exact calculation changes with whether the home is new or resale, the region, the buyer profile, bank terms, appraisal value, required renovation, and the deal’s specific costs.
Before you sign
Want to analyse a specific deal?
If you already have a flat in mind, the Premium Report analyses required capital, yield, cash flow, stress scenarios, and main risks before you buy or invest.
Buying in Madrid
Home purchase costs in Madrid
Calculate down payment, ITP, other costs, and total savings needed to buy a home in Madrid.
Taxes
Madrid ITP calculator
Estimate transfer tax (ITP) for a resale home in Madrid.
Investment
Property yield calculator
Analyse net yield, monthly cash flow, cash-on-cash, and ROCE for a property deal.
Frequently asked questions
Common questions about savings needed to buy a flat
How much money do I need to buy a flat?
As a prudent rule, many deals require between 25% and 35% of the property price saved. That includes the down payment, taxes, purchase costs, and a minimum safety cushion.
Is a 20% down payment enough?
Usually not. 20% may cover the share the bank does not finance, but you still need to pay taxes, notary, registry, conveyancing, appraisal, possible mortgage fees, furniture, renovation, and surprises.
What costs are there besides the down payment?
Besides the down payment, there are usually taxes such as ITP or VAT, notary, registry, conveyancing, appraisal, mortgage fees, moving, renovation, furniture, utilities, and surprises.
How much do I need to buy a €250,000 flat?
For a €250,000 flat, a prudent estimate can sit between €75,000 and €95,000 if you want to cover the down payment, taxes, fees, possible furniture or renovation, and keep some cushion.
How much cushion should I keep after buying?
It depends on your income and stability, but avoid going to zero. Keeping several months of fixed expenses can help cover repairs, moving, utilities, or surprises after the purchase.