The housing prices in Spain have been rising steadily since 2016, even during the Covid-19 pandemic. In the last five years the increase has been of 16%. The National Statistics Institute data indicates that around 40,000 mortgages are signed each month in Spain, resulting in a high percentage of total sales. Due to the low interest rates and tax deductions, mortgaging when buying a property in Spain is the best option today.
The Euribor, the main indicator for calculating mortgage interest rates in Spain, has been low for various years. Mortgage interest rates in Spain many times are lower than those applied in other countries, which undoubtedly favors buyers who have taken out mortgages over those who buy their home in cash.
In fact, many clients have their funds well invested obtaining higher returns, it therefore makes it very attractive for all buyers to mortgage.know more
When you invest in real estate in Spain, there are also tax implications to consider, especially in the high-end properties. Specifically, if you buy a property in Spain and its value exceeds a certain threshold, you will have to pay wealth tax every year, a tax assigned to the different Spanish regions that, in some parts double the European average.
Mortgages allow you to reduce the tax burden of Wealth Tax, Inheritance Tax and Gift Tax, as they are considered as a debt and can be deducted to reduce the taxpayer's net worth. Therefore, taking out a mortgage for the acquisition of a property in Spain has positive repercussions from a tax point of view. It is important the mortgage is in place at the time of purchase.see wealth tax deductions
There is not one best bank or mortgage for everyone, and our team always make sure they tailor each application to meet each client’s specific profile and needs. There are different alternatives to consider based on each client´s preferences and priorities, therefore it is important for every buyer to have all the information in order to make the best choice.
Mortgaging in Spain is different to other countries and the Lionsgate Capital team explain these differences to all clients. It is important all buyers have all the information in order to make the best decisions.
Obtaining a mortgage in Spain for residents and non-residents can often become a long, complex, and sometimes fruitless process. You must provide a series of documentation to prove your level of solvency and wait for the bank to respond, which can take a very long time without ensuring a positive outcome. In addition, the offer may not fit your budget or needs.
For all these reasons, the best option is always to use the services of a mortgage broker who understands the local market, has vast experience in the financial industry, and can negotiate with Spanish lenders on your behalf. The Lionsgate Capital team are experts in helping all buyers secure the most suitable mortgage depending on their circumstances and priorities when purchasing a property in Spain.
We worked with Lionsgate when buying a house in Spain this year. The experience was outstanding and we were able to source a mortgage matching our needs from a wide selection of banks. The process from start to end was very personalised and we felt that what we were looking for was well understood, both in terms of mortgage flexibility and general terms and conditions. Our consultant Maria took extra steps to explain to us (first time buyers in Spain) all nuances of financing in Spain, including insurance requirements and the important small print conditions. Maria also liaised with our lawyers and agents and thereby created a great all around service. We can recommend Lionsgate highly. Many thanks!!
Outstanding service and overall results! Buying a property in Spain and finding the best mortgage was not as straightforward as we thought. We had approached the banks directly until we spoke to Juanita and then decided the Lionsgate team could take over. They obtained the best mortgage and conditions for us whilst facilitating the process all the way, we will certainly work with them again for future property acquisitions and recommend anyone buying a property to contact their team.
The Lionsgate Capital team should be your first port of call. Where other brokers had failed, Juanita was able to secure me the best mortgage deal in a timely and professional manner. Her great communication throughout the process made being a first time buyer in Spain a hassle free experience. Thank you for everything!
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We are one step away from helping you with your next mortgage in Spain. Our aim is for the process to be as quick, simple and cost effective as possible. Please note that there is no charge for an initial consultation. We are your Mortgage Broker