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: when the bank sees a valuation less than the price you are paying, the loan is calculated on the lower of the purchase price and the tasación.
Does a Spanish bank finance the purchase price or its own valuation?
The bank does not finance your purchase price but the tasación — its own valuation, produced by an independent appraiser. It lends against the lower of purchase price and tasación, so the financed amount follows the valuation, not the negotiated price. If the valuation comes in below the agreed price, the amount you can borrow falls accordingly, and you must cover the difference from equity — exactly what derails many purchases just before the notary appointment. The valuation differs because appraisers assess conservatively and from market data, while the price is a matter of negotiation. That is why the tasación should be clarified before the binding private contract (arras in Spain, CPCV in Portugal), not after. Buyers who know the valuation early plan their equity share realistically and do not walk into the notary appointment with a financing gap.
What the tasación is — property valuation Spain
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.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
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.
Checklist before the private contractFree initial consultation
What the tasación costs, and who commissions it
You pay for the tasación, not the bank — around 0.10 % of the property value is usual, with a minimum of roughly €300. The bank works from a panel of licensed valuation firms and will have a preference, but it cannot compel you to use a particular one. That leaves room to move: anyone who commissions a second, independent valuation in parallel holds a counter-report if it comes to a dispute — on top of the option of approaching a second lender.
Purchase price, tasación — and the Catastro reference value
Purchase price and tasación are not the only figures that count. Since 1 January 2022 the Catastro has additionally set an annual valor de referencia for every property, under Ley 11/2021 of 9 July 2021. It serves as the minimum tax base for transfer tax (ITP): the higher of purchase price, declared value and reference value is always assessed. If the reference value exceeds your purchase price, you pay ITP on the higher figure regardless of what the bank's valuation produced. The value is derived from actual sale prices in the region and reduced by a flat coefficient of 0.9 so that it should not exceed market value — in weak or data-poor locations it can still sit above it. The Tribunal Constitucional unanimously confirmed the system as constitutional on 12 February 2026; challenging it in an individual case remains expressly possible where the reference value does not fit the actual property.
The reference value can be looked up free of charge in advance at the Sede Electrónica del Catastro, before you commit to a deposit. More on the ITP calculation as a whole: purchase costs in Spain.
Five things to settle before the private contract
- Valuation before you commit. Anyone who only sets the tasación in motion after signing the contrato privado has no negotiating room left. The order decides.
- Check the nota simple. What is in the land register is the basis — what was built but never registered does not exist for the bank.
- Budget a buffer. Do not plan on the maximum. A deviation of 5–10 % between purchase price and valuation is routine, not an exception.
- Keep a second lender in reserve. Valuation firms reach different results. A second valuation through another institution is possible — it costs time, and you only have time if you started early.
- Check the reference value in advance. Even with a fair tasación, ITP can fall due on a higher Catastro figure — free to look up beforehand at the Sede Electrónica del Catastro.
Buying off-plan? There the tasación runs differently — it happens on completion, not at the point of purchase. More on stage payments on a new build.
Frequently asked questions about the tasación
Who pays for the tasación?
Can I choose the valuation firm myself?
What if the tasación comes in below the purchase price?
What is the Catastro's valor de referencia, and how does it differ from the tasación?
Does the tasación work differently on an off-plan new build?
More resources
Mortgage calculator
Monthly instalment, total cost and equity requirement for your exact figures.
Mortgage calculator →Costs of buying a property
All the extra costs on top of the purchase price at a glance.
Costs of buying a property →