Mortgages

Rainbow Estate is happy to offer you free and independent mortgage advice and can assist you in arranging all forms of borrowing related to property:

Resident mortgages

Non-Resident mortgages

100% mortgages

Equity release

Second home loans

New development financing

Interest only borrowing

Land and Construction funding<

We use professional experts who have a wealth of experience, not only in the financial market, but also in property and the Spanish bureaucratic system. By collaborating with a number of different banks and other financial organisations, you can be assured that the best financial deal for you will be secured by friendly, efficient and knowledgeable professionals. And what's more, there is no charge to you.
Residents and Non-Residents may apply for and obtain mortgages in Spain. Non-Residents can usually apply for up to 70% and Residents can obtain up to 100% depending on the valuation of the property.
A mortgage involves costs which must be allowed for. The valuation will cost from 250-450 euros and the set-up fee for the mortgage is usually 1% of the amount applied for. Our experts will ensure they secure the best deal and type of mortgage for you. Although Residency is now no longer required by law in Spain if you spend more than 183 days a year in the country, and in no way does it compromise your nationality, it can be beneficial if buying and selling property:

As a Resident you will only be subject to 20% Capital Gains Tax (percentage of the profit you have made since the property was last sold). Non-Residents will pay 35%

Residents who are older than 65 years, and provided they have lived in the property for at least 3 years, are not liable to Capital Gains Tax

As a Resident, if the property is your primary residence and all the profits are invested into the next property you buy, you will not be subject to Capital Gains Tax. As a Non-Resident 5% of the declared selling price will be withheld

If you are a Resident and you will your property to your spouse or child who are also Residents, Spanish Inheritance Tax can be avoided on 95% of the valuation (up to 120,200 euros) provided that you have lived in the property for at least 3 years and your inheritor pledges not to sell the property for 10 years

As a working Resident you will be entitled to tax relief on the mortgage

To apply to become a Resident in Spain, there is a bureaucratic process to go through with many different documents to complete and different places to go to present the documents - the Town Hall, Police Station, Bank and only during specific hours etc which can be quite frustrating, especially if you do not speak Spanish.
Rainbow Estate is fully conversant with the system and will undertake this on your behalf.