The tasacion: the number that decides how much the bank will lend.

The tasacion is not a rough estimate or a real estate agent's opinion. It is a formal, regulated valuation carried out by a sociedad de tasacion authorised by the Bank of Spain. The valuer visits the property, inspects its physical condition, checks the land registry records (nota simple), confirms that the built area matches what is legally registered, and compares it with recent transactions in the area. The result is a detailed report with a certified value. The bank lends based on the lower of this certified value or the purchase price you agreed — whichever is less. The buyer always pays for the valuation.

Key facts

• Cost: typically 250 to 600 euros, depending on property type and value
• Carried out by a sociedad de tasacion registered with the Bank of Spain
• The bank lends on the lower of the valuation or the purchase price
• Always paid by the buyer, regardless of the mortgage outcome

In the standard process, the bank orders the tasacion once it has reviewed your financial profile and given a preliminary green light. This means the valuation typically happens after you have already reserved a property or signed a deposit contract (contrato de arras). Some buyers choose to commission an independent tasacion before making an offer, especially for properties where the asking price seems high or the area has limited comparable sales. A tasacion is valid for six months from the date it is issued. If the purchase takes longer than that, you may need a new one — at your cost.

Timeline to expect

• The bank orders the tasacion after reviewing your financial documents
• The inspection and report usually take 5 to 15 working days
• A tasacion is valid for 6 months from the date of issue
• If your purchase extends beyond 6 months, you may need a new valuation

The most common problem, especially for non-resident buyers, is a tasacion that comes in lower than the agreed purchase price. When this happens, the bank lends less than expected and the buyer must cover the gap with additional funds. But a low valuation is not the only risk. The valuer may flag structural issues, illegal extensions, rooms built without a licence, or discrepancies between the registered area and the actual built area. Any of these can reduce the valuation significantly — or, in some cases, block the mortgage entirely until the issues are resolved.

Watch for these

• Valuation below purchase price — the buyer covers the gap in cash
• Illegal extensions or rooms built without a building licence
• Discrepancy between registered area and actual built area
• Structural issues or habitability concerns flagged in the report

The loan-to-value ratio (LTV) that the bank applies is based on the tasacion value, not the price you agreed with the seller. If the property is valued at less than what you are paying, the effective LTV drops and you need more of your own funds to complete the purchase. Non-residents typically receive 60 to 70 percent LTV. If the tasacion comes in 10 percent below the purchase price, the cash you need at closing increases significantly. Understanding this dynamic before you commit to a price — not after — is one of the most important steps in a cross-border property purchase in Spain.

The numbers that matter

• Non-residents typically receive 60 to 70 percent LTV based on the valuation
• If valuation is lower than purchase price, the gap comes from the buyer's funds
• A 10 percent shortfall on a 300,000 euro property means 30,000 euros more in cash
• Understanding this before making an offer prevents unpleasant surprises at closing