The bank does not finance your purchase price. It finances its valuation.
This is the mistake that derails most Spanish purchases shortly before the notary appointment — and almost nobody plans for it: the loan is calculated on the lower of the purchase price and the tasación.
What the tasación is
The tasación is a valuation produced by a company licensed in Spain. It is commissioned by the bank, paid for by you, and it is the figure the bank calculates with. The price you agreed with the seller matters only insofar as it lies below the valuation.
The rule: loan = percentage × the lower of purchase price and tasación.
What happens when the valuation comes in below the price
Say you buy as a non-resident at €400,000 and expect 70 % financing. The valuation comes back at €370,000.
| Expected | After the valuation | |
|---|---|---|
| Purchase price | €400,000 | €400,000 |
| Basis for the loan | €400,000 | €370,000 |
| Loan (70 %) | €280,000 | €259,000 |
| Cash needed for the price | €120,000 | €141,000 |
| Purchase costs on top (roughly 10–13 %) | from own funds | from own funds |
A gap of €21,000 — in cash, at short notice, on top of the purchase costs. And it only becomes visible once the private contract has long been signed.
Simplified model calculation illustrating the valuation mechanism. Not a statement about credit conditions; loan-to-value ratios and purchase costs vary by case and region.
Why valuations come in low
- Overheated micro-locations. Valuers work from completed sales, not from today's asking prices.
- Fittings nobody pays for. High-end interiors, a pool, furniture — included in the price, often only partly reflected in the valuation.
- Undeclared building work. Extensions or pool houses that were never registered do not exist for the bank.
- Non-arm's-length sales. Anything that did not come about at market terms makes the valuation more conservative.
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