Purchasing a property in Spain as a second home has always been, is and will always be the dream of many foreigners, as it combines all the ideal characteristics one could wish for in a holiday home. Since the pandemic and the rise of remote working, foreigners no longer see Spain only as a destination for their second home, but as the perfect place to settle down and buy a property as a primary residence. Independently of the big capital cities such as Madrid or Barcelona, dream destinations like the Balearic Islands or Marbella, associated with a very high standard of lifestyle, are taking centre stage.
According to a recent article in the newspaper Economía de Mallorca, “Real estate investment in Spain is booming, with forecasts pointing to a growth of up to 10% by 2024. This dynamism in the sector is being driven by a number of favourable economic factors, a low interest rate environment and growing interest from both national and international investors.
Once the decision has been made to buy and invest in a property in Spain, the most important decision to consider is whether to purchase the property with own funds or with a mortgage. Buying a property with own funds may seem like the easier option, but there are several reasons why it makes sense to take out a mortgage. Nowadays, many foreign buyers are considering financing the purchase of a property in Spain in order to maximise the return on their real estate investment.”
The process of financing the purchase of a property in Spain can vary considerably from financing in other countries such as Germany, the United Kingdom, Switzerland or the United States, among others. Procedures and conditions can differ significantly from one country to another, which is why it is important to work with local experts who know the market. At Despacho Lamas we collaborate with Lionsgate Capital, the leading mortgage experts in the Balearic Islands based in Palma de Mallorca, who save each client time, effort and money by obtaining the best mortgage or financial solution for their real estate transaction.
In addition to the above-mentioned advantages, financing allows clients to access a higher value property for the same amount of their own funds. Lionsgate Capital’s mortgage calculator will help you see what savings you need to put down, and therefore how much you can expect to buy. It is a tool used for guidance, prior to making an appointment with the Lionsgate Capital team, who will be able to explain how you can maximise your investment in more detail.
Initially, most non-resident foreigners can apply for a mortgage in Spain as long as they meet certain minimum requirements. When applying for a mortgage as a non-resident, the following points must be taken into consideration:
In order to optimise your property investment in Spain, it is recommended that you hire the services of professionals operating in the location where you wish to purchase your property. Lionsgate Capital’s team of financial experts, based in the Balearic Islands, help each client to obtain the best mortgages and conditions available at the time of purchase. With over fifty years of joint banking experience and working with all the banks in Spain, as well as private banks in other jurisdictions, Lionsgate Capital is committed to providing the best personalised financial solution for each client.
The Lionsgate Capital team, as mortgage brokers, in collaboration with the Despacho Lamas team, specialised in legal and tax advice in the real estate market, guarantee the optimisation of your real estate investment, both in the Balearic Islands and in the rest of Spain!
