When purchasing a property in Mallorca, it is essential you understand the differences between Spain and your country of residence and have all the correct and important information to invest intelligently and maximise your return on investment.
One of the biggest mistakes people make when purchasing a property in Spain is not knowing about the advantages of financing versus buying cash. Many non-resident buyers that have purchased their home without a mortgage are hit with a huge wealth tax bill the year after the purchase, which they could have avoided if they had been properly informed on the advantages of financing prior to buying. If you are resident in another country and you buy a property in the Balearics, the wealth tax is on a scale that goes up to 3.45% per year for high-end properties and must be paid every year. This is just one of the reasons it makes sense for everyone to finance today, even if the funds are available.
Another mistake clients make is approaching banks directly when they do not know which bank is the best one for them at that specific moment. When clients approach a bank that is not right for them, they end up frustrated after they have been through the process and either have not obtained a positive outcome or have obtained a reply that does not meet their expectations. Some clients even risk losing their property because the timeframes or viability have not been met.
These mistakes can be avoided if you contact the right professionals from the very beginning to obtain the best advice and guidance throughout the process of purchasing a property in Mallorca.
Most importantly, when it comes to optimising your real estate investment, you should speak to the team at Lionsgate Capital, the leading mortgage brokers in the Balearics, who will be able to give you valuable information that will help you make the best decision when purchasing a property in Spain.
