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.
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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 deductionsThere 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.
is based in the Balearic Islands with the main head office located in the heart of Palma de Mallorca. Aside from the Balearics, our network and experience extend to all the high-end areas in mainland Spain. Our clients purchase properties in the main hub spots for HNW and UHNW ex-pats and foreigners in Spain, including Mallorca, Ibiza, Menorca, Marbella, Madrid, and Barcelona.
who can help you secure the best overall mortgage terms and conditions in Spain, based on your preferences and priorities when purchasing a property. We speak your language and the language of the banks, work closely with all banks in Spain and in other jurisdictions, and have extensive experience in the financial industry.
will assist you with all the important information you need to know before buying a property and will advise you on the best way to optimize your investment and help you to obtain the best mortgage in Spain. Whether you are a Spanish tax resident or a non-resident, contact the Lionsgate Capital team to help you find the solution that best suits your specific needs and possibilities.
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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
