Purchasing a property with a deposit and payment in instalments – what does this mean for you?

JM Real Estate Consulting Spain explains:

Purchasing a property with a deposit and payment in instalments – what does this mean for you?

Emigrating to the South of Spain, a dream for many. Lovely weather, beautiful surroundings, a quieter life with less stress. But yes, even in Spain a beautiful home costs money.  And then the question arises whether you necessarily have to be able to finance a house 100 per cent yourself.

The answer is no, that is not always necessary. Depending on your personal situation, you can apply for a loan from a Spanish bank or you can buy the property in consultation with the owners with a deposit and payment in instalments. In effect, you are taking out a loan from the owner of the property you want to buy. How this works is explained below.


At JM Real Estate Consulting Spain we increasingly get the question whether a property can be bought on the basis of a so-called “rent to buy”. In short, a hire purchase means that you, as a potential buyer, first rent a house for a number of years and then have the first right to buy it. Often, (part of) the rental price is then deducted from the previously agreed purchase price.

Not all owners in Spain are open to such a construction. That is understandable, as they want to sell their property and not act as landlords. They are afraid that their property will be damaged, that tenants will stop paying and that they will have to put their property on the market again after a few years.

In order to meet the ever-increasing demands of our customers, JM Real Estate Consulting Spain has found a new option. The possibility of buying your dream home with a deposit and payment in instalments. What does this offer mean?

Suppose you have found your dream home. A beautiful villa with a pool and a nice plot of land. You make an offer and agree on a price of 150,000 euros. You do not have this amount in your account, so you would like to make use of the deposit purchase. JM Real Estate Consulting Spain will consult with the owner on your behalf. When he is open to it, we will take the next steps:


  1. A Contrato de Arras shall be drawn up.

In this contract it is agreed what percentage you will pay as a deposit. In general, this is 30% of the purchase price, so in this case it is 45,000 euros.

In this contract is agreed the amount you will pay monthly to the owner, for which period you will pay in instalments and when you will go to the notary for the final transfer. In addition, it will be determined which part of your monthly payment will be deducted from the purchase price. Finally, any other agreements you may have with the owners will be recorded in this contract.


  1. You pay your deposit and get the keys to your property. Now you can start enjoying your new life in Spain.

  1. At the end of the period in which you have paid the owner monthly, it is time to go to the notary. Then the remaining amount will be paid to the owner and the property will be transferred to your name and registered. From that moment on, you are the proud owner of your dream home in sunny Spain.


Would you like to know more? Please do not hesitate to contact us. The team of JM Real Estate Consulting Spain will be happy to explain the possibilities of buying a property in beautiful Andalusia.

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