Every case is handled individually and rates will vary depending on individual circumstances, but as a guideline, this is a realistic scenario for the moment. Arranging a mortgage through us, you will be able to avoid this in the vast majority of cases. different insurances, credit cards, investment funds or pension plans to decrease the rate. It is still normal practise for the banks to have clients set up e.g. The rates above are still so called “clean” rates, meaning that except for the first year, there are no other products from the bank attached. This means that although non-residents are still offered a lower LTV than residents, the fact that they are non-residents no longer has the same impact on rates, terms and conditions as it did last year around the same time. Looking at variable rates, we observe around 1.2-1.5%+EURIBORĪs opposed to last year, we are now seeing that the Spanish banks have a bigger focus on financial profile rather than residential status. Additionally, it is worth noticing that the banks in Spain still do not offer interest only mortgages, which means that both the fixed rate mortgages and variable rate mortgages are capital repayment loans.
We do this every year in February and this year will be no different.Īs ever, the rates we mention are based on the market at the moment of publishing and we cannot guarantee that these rates will be available in the future, nor that they will be applicable to every individual case.
#COMMENT CALCULER SON RENDEMENT LOCATIF UPDATE#
Any portion not used to purchase another main home (or reinvested in a savings plan/ pension) will be taxed.Īt Spectrum International Mortgages we do an annual update on the rate development in Spain. Certain other conditions apply but in general, the gain will be exempt from taxation if all the proceeds are reinvested. The gain is then added to your other income for the year and taxed at the scale rates of income tax.ĭespite the potential for high rates of tax on sale, there is main residence relief available if you reinvest the proceeds into another main home in Portugal (or the EU/EEA). In all other instances, 50% of the gain is taxable and inflation relief can also be applied if the property was held for more than 2 years. If you purchased the property prior to January 1989 there is no tax on the gain realised on sale. Whilst this is less of a problem if you have found your dream home and want to spend many years living there, it is a more significant consideration if your intention is to buy a property for the short term or for investment purposes. What does this mean for young adults who are looking to buy their first piece of land/property? Coupled with the high interest rates being charged by Maltese banks for mortgages, and below average salaries earned in Malta, this market has become very difficult to access, and those who do manage to strike a deal will still see themselves paying very expensive loans for many years, hindering further investment for quite some time.Ĭapital gains tax is charged on the sale of all property in Portugal. Prices continued to soar, partly due to the constant increase in demand, but also the lack of regulation which encouraged property sales at high prices, contributing to the inflated valuations we see today. Realising how lucrative this market was, more inhabitants started investing in property and for most individuals this became the perfect investment which would see them, at the very least, retire comfortably.įast forward to 2022 and property in Malta has become very expensive and relatively scarce. The initial outlay was relatively affordable, even for those days, with sales or rents practically guaranteed for the newly erected properties. Many Maltese realised that an opportunity was on the horizon and several local entrepreneurs began to buy land and develop it. As the baby boomers grew up and became young adults, and expats, particularly from southern Italy, made their way to the Maltese islands, demand for property started to grow. In the mid to late 20th century, Malta was still very underdeveloped, slowly recouping from the devastation suffered in the second world war. Even though real estate remains a solid asset, individuals who are looking to start their investment journey must understand that the market today is far removed from where it was 50 years ago. This love has been passed down from previous generations, which saw the value of their properties rise and rise as the years went by. One asset class which the Maltese are very fond of is real estate.
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