How Much Deposit Do I Need to Buy Property Abroad?

Let me walk you through the actual cash you'll need at each stage, because the numbers add up faster than people expect.

To secure a property, you typically pay in two stages. First, a reservation deposit: €3-10K depending on country and property value. This holds the property while you do initial due diligence. It's usually refundable if the deal falls through for legitimate reasons. Second, the contract deposit: 10-20% of purchase price, paid when you sign the preliminary contract. This is usually non-refundable if you back out without cause.

If you're financing with a mortgage, banks require 30-40% down payment for non-residents in most European countries. Portugal and Spain hover around 30-40%. France is slightly more generous at 20-30%. Italy is tougher at 40-50%. Greece rarely lends to foreigners at all.

Closing costs add another 8-15% depending on country: transfer taxes, notary fees, legal fees, registration. Spain runs 10-15%. Portugal 8-12%. Italy 10-15%. Greece 8-10%.

Here's the real math for a €300K purchase in Spain with a mortgage. Contract deposit: €30K (10%). Closing costs: €36K (12%). Down payment required: €90K (30%). Your bank pays the remaining €180K as a loan. Total cash you need upfront: €126K. That's 42% of purchase price in cash, even with financing.

For a cash purchase of the same property: €300K price plus €36K closing costs equals €336K total.

The timeline of payments: Reservation (€5K) when you make an offer. Contract signing (10%, say €30K, minus your reservation) 1-2 weeks later. Completion (remaining balance plus costs) 4-8 weeks after that.

New developments often offer staged payments - maybe 20% at contract, 20% at foundation, 30% at roofing, 30% at completion. This spreads your cash needs over the construction period.