Advice on Spanish mortgage options can be useful before turning your attention to the Spanish housing market. There are several options to finance the purchase of property in Spain.
Een voordeel van het vestigen van hypotheek op de Spaanse woning kan zijn het reduceren van de Spaanse erfrecht belasting. Daarnaast kan het handig zijn om (financiële) zaken gescheiden te houden van elkaar (Nederland/België en Spanje).
One advantage of establishing a mortgage on the Spanish property is that it may reduce the Spanish inheritance tax. In addition, it can be useful to separate (financial) business in Spain and another country. Mortgages for (non-) residents in Spain are offered by Spanish and foreign banks.
Characteristics and conditions:
- Financing is possible up to 70% of the price or value of the property. Own contribution of at least 30% plus contribution of the purchase costs.
- Short & long interest periods up to 30 years. Variable interest rate based on the EURIBOR rate with a (bank depending) surcharge.
- Repayment mortgages. Max. term up to 40 years (depending of age).
- Option for penalty free redemption.
- Provable steady income from employment or own business (minimum 2 years annual figures are to be available) or income from rents.
- Max. 35% – 45% of the total net income necessary for living. In short, too much to mention and subject to changes.