If you\nplan to purchase luxury property in Spain, it may be interesting to\nresorting to external financing. This article will discuss the financing options\nof luxury property in Spain.<\/p>\n\n\n\n
Let's start with the classic option for financing a second residence: a home loan. Here, you (re)take out a mortgage on a property in Belgium. A classic home loan goes through your Belgian bank. <\/p>\n\n\n\n
This financing is less suitable for higher-end properties because of the limited possibilities.<\/p>\n\n\n\n
Please note that a Belgian bank will usually request a draft of the notarised deed of sale of the Spanish home before effectively disbursing the loan. In Spain, this draft is drawn up only a few days before the deed is executed, so the funds cannot always be transferred in time. Notify your advisor in Spain in advance that you have taken out a loan so that preparations can be made.<\/p>\n\n\n\n
An alternative to the home loan is\na Spanish mortgage. Spanish banks generally allow you to borrow up to 70% of the\npurchase price. However, this form of credit is expensive. Not only are the\nSpanish interest rates higher, there are also more transaction costs. For a Spanish\nmortgage, you can contact Spanish banks or a mortgage broker in\nSpain.<\/p>\n\n\n\n
Read more about a Spanish mortgage.<\/strong><\/a><\/p>\n\n\n\n In the case of an international mortgage\nloan, the mortgage is established by a foreign bank on the property\nproperty in Spain.<\/p>\n\n\n\n This form of financing is usually only available for the purchase of luxury properties. <\/p>\n\n\n\n However, the terms are more interesting than a classic home loan or Spanish mortgage. In addition, you can also opt for a bullet formula.<\/p>\n\n\n\n An international mortgage loan is basically granted to a company. You then acquire the property through a company. <\/p>\n\n\n\n Read more about buying with a company in Spain.<\/strong><\/a><\/p>\n\n\n\n With an advance on securities, you invest a certain amount with your private banker. In return, you can borrow on flexible terms, without notary fees. Your investment portfolio then acts as collateral for the loan. <\/p>\n\n\n\n Thanks to its flexibility, this form of financing is also highly suitable for high-end properties. Moreover, an interesting loan-to-value is possible and your investment portfolio will bring in income. In combination with an international mortgage loan, it is possible to borrow more than 100% of the purchase price.<\/strong> <\/p>\n\n\n\n Financing can also result in a tax benefit. For instance, there is a wealth tax in Spain, even for non-residents. From the time you have net assets in Spain greater than 700,000 euros, rates between 0.25% to 2.5% are applied. Through financing, you can reduce your net assets and thus pay no or less wealth tax.<\/p>\n\n\n\n Update December 2020<\/strong>: the highest rate will be raised to 3.50% for net assets above \u20ac10 million nationally from 2021.<\/p>\n\n\n\n Read more about wealth tax in Spain.<\/strong><\/a><\/p>\n\n\n\nA\ninternational mortgage credit<\/h4>\n\n\n\n
An advance on\nsecurities<\/h4>\n\n\n\n
Tax benefit\nof financing?<\/h4>\n\n\n\n