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It’s not just the intoxicating beauty of Ibiza’s coastline that makes it a top destination for the wealthiest people in the world. Chic nightlife, glamourous beach clubs and a thriving wellness scene create a heady island appeal like no other. Ibiza has reopened to tourists from coronavirus with luxury getaways now back on the agenda for high net worth travellers.
It’s little wonder the Balearic island is a popular spot for property investors and wealthy buyers who want to own their own piece of paradise. The market has been booming in recent years with strong and growing demand at the top end of the market.
Prime property in Ibiza is on a par with London in terms of price. In some areas, buyers will be looking at paying at least €6 million euros to purchase a home on the Spanish island. Rental values vary between €2,200 euros per square metre and 8,300 per square metre.
The mainstream Spanish banks don’t have a large risk appetite for high value transactions. And high net worth buyers will typically struggle to get a deal done with traditional lenders. However, Enness has a global network of contacts at private banks and international mortgage providers. These lenders will take a very different approach to lending in the luxury property market than the mainstream Spanish banks.
As a brokerage, we specialise in facilitating property finance for foreign nationals and high net worth individuals. Through Enness, high net worth buyers can utilise their full wealth and assets when financing a property purchase. This helps keep costs down and makes for a smoother and faster transaction.
For Ibiza properties, wealthy borrowers can expect to benefit from loan to value (LTV) ratios of up to 70%, as well as low mortgage rates of around EURIBOR +1 that can be locked in for the longer term. There are also equity release options with 50% of assets under management. Property taxes and charges for buying a home in Ibiza typically amount to around 10% of the purchase price. Various property insurances are also necessary under Spanish laws.
Investors will need to consider residency issues and how buying a property may impact on tax. It’s vital that finance is secured in a tax-efficient and cost-effective manner. At Enness we’re well acquainted with the Spanish tax system and have trusted contacts who advise us of the latest changes. At the same time, we will use a buyer’s entire portfolio of global assets to minimise mortgage costs. We approach every client and situation as unique, finding bespoke solutions which can include creating a specific mortgage vehicle. This is a very different approach to domestic banking which is usually risk-averse and reliant on one size fits all offerings.
A property in Ibiza is a jewel in any property portfolio, benefiting from sparkling beaches and pristine waters in abundance. If you want a second home on the island, we can help. Our first-class access to international mortgage financiers and private banks is second to none. We will secure products structured around a client’s specific needs.
Our focus is always delivering the best value for our clientele, achieving the lowest rates and costs possible. We know who to approach to get a deal sealed fast and seamlessly. Call one of our experts today for a no obligation chat about your plans for the future and how we can help you fulfil them.