€3.85M Spanish Mortgage for UAE Property Investor

€3.85M Spanish Mortgage for UAE Property Investor

Key Facts: 

  • Client: UAE National & Resident  
  • Property type: Villa in Majorca
  • Property Value: €3,850,000
  • Loan Amount: €3,850,000
  • Interest Rate: 1.5% variable
  • Term: 5 years, interest-only
  • AUM: €1,750,000

The island of Majorca has a permanent population of around 850,000 and the broadest spread of property prices and types across the three main Balearic Islands. Property prices in Majorca can vary widely. Prices start from around €6,250 per square metre and go up to approximately €10,000 per square metre. 

Spain is one of the more accessible European countries to buy property in, and there are few restrictions on buying Spanish property, regardless of whether you will be a resident or not. The Balearics are particularly popular with international property investor. Generally, if you hail from a country outside the EU, you will not face significant restrictions to buy a property as a non-resident. 

Given Ibiza and Majorca have extremely active property markets, and real estate sits at the higher end of the price range, there is a growing demand for international mortgage finance in the Balearics in particular. In this case, our client was a UAE national and resident and the property in question was a luxury villa worth €3,850,000. 

Enness have access to more than 500 private banks and international mortgage providers who take a very different approach to financing luxury property than their Spanish counterparts. While many Spanish banks can be reluctant to utilise your full wealth and assets, other lenders are more than willing to accept various assets as collateral. This is vital when looking to minimise costs, maximise assets and arrange mortgage finance as quickly as possible.

You should ensure that the structuring of your Spanish mortgage for non-residents is both tax-efficient and cost-effective. As this case illustrates, Enness will be able to do this for you. Your broker will appreciate the intricacies of the Spanish tax system and will consider the legal and regulatory factors alongside your advisors and other specialists. Moreover, the loan was structured in a way that allowed the client to apply for the Golden Visa. 

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