Mortgage tax changes in Spain help buyers
Mortgage Tax Changes in Spain 2018
Recent tax changes introduced by the government in Spain now mean that mortgage tax, which previously was paid by buyers, must now be paid by the bank financing the Spanish mortgage. The new changes have taken effect immediately.
For buyers, this means a reduced need for funds to cover the costs of purchases. In the past, the cost of buying a house in Spain, including legal and taxation costs, might easily amount to 10% of the sale price or more. Now, this figure is expected to drop by up to 2%.
Commenting on the changes, Spanish euro mortgage brokers Offshoreonline spokesman Guy Stephenson said, “This is a welcome and unexpected change that benefits buyers who often might struggle to have sufficient savings to pay high notary and tax costs when buying in Spain.”
The credit crunch of 2008 caused Spain’s property prices to crash, but since 2014, the market has shown a consistent and solid recovery. Supported by strong economic growth in recent years, a total of 465,000 properties were sold in 2017 – a 15pc increase on the previous year.
According to Spanish bank BBVA, house prices in the country are forecast to rise by 5pc in 2018; rental prices, too, are growing at rapid rates. Major cities such as Barcelona, Palma and Madrid are achieving new record-high average rental prices, as more and more homes go up for sale.
Offshoreonline are Spanish mortgage brokers. Contact us to discuss the opportunities that now lie ahead for those looking to buy property in Spain.