All you need to know about financing in Spain for foreigners.
Lionsgate Capital are the leading mortgage experts in the Balearics specialised in non-resident buyers. Their multilingual team based in Palma will assess you with a wealth of experience and knowledge to obtain the best financing conditions for your Mallorca home.
In the first of a 3 part series we asked them all about financing your real estate investment in Spain for foreigners and how it can benefit you.
Part 1/3 : What is Wealth tax in Spain and how can it affect you?
When you buy a property in Spain, it is important to make sure you are informed of all the tax issues in advance.
Many people are caught out by laws they are not necessarily aware of and this can result in more tax being paid.
So what is Wealth Tax?
Wealth tax is a direct tax on your entire net worth It follows a progressive sliding scale, the higher the price of the property, the more you are taxed.
Do I need to be a Spanish Resident?
If you plan on owning a property in Spain, you will have to pay Wealth Tax based on the requirements of the different autonomous communities in Spain, whether you are a Spanish tax resident or not.
If you become a Spanish tax resident, you will have to declare the tax based on all your worldwide wealth, while if you are a non-resident, you will have to declare the tax based on the value of your properties located in Spanish territory.
Financing can help.
But here is the good news!
You can significantly reduce or even avoid paying the wealth tax by financing the purchase of the property, since mortgages are deductible for Wealth Tax purposes.
The amount to be taxed will be reduced by the amount of the mortgage, allowing you to pay less wealth tax, but only if the mortgage is in place at the same time as the purchase.
Therefore, in Spain it makes sense to take out a mortgage even if you have the funds to purchase the property in cash.
Contact Lionsgate Capital, the leading luxury mortgage experts in Spain for a personalised initial consultation.
Want to read more about Mallorca?
In North Mallorca, The Campanet Valley emerges as a hidden treasure. In North Mallorca, The Campanet Valley emerges as a hidden treasure, tempting travellers to explore its rich history, pristine landscapes and the promise of wellness that lies beneath its...
The owner of Camp de L´Oca, Pollença, brings his vision to life. Award winning architect James Craven has owned a house and holidayed in Pollença for many years. When the opportunity to build a house for his family on a wonderful 4 acre site in the countryside...
Morgan and Morgan Mallorca
Morgan and Morgan Mallorca is trading name of
Morgan and Morgan Mallorca Ltd.
Regsitered Address: London (Strand) Office, 7 Bell Yard, London, WC2A 2JR
Company registration: 08525926 | VAT No: GB174841488
Our sales and developments are operated through -
Morgan Morgan Mallorca SL.
Registered Address: Carrer Roser Vell 5 07460 Pollença, Illes Balears
Company registration NIF B16628042.
© 2013 morgan-morgan.co.uk
Mallorca accommodations with Emerald Stay