Apartment for mortgage and for rent

Question

Apartment for mortgage and for rent

Shkolny Vitaly asks:

Good day! I heard in Spain it is possible to buy an apartment on a mortgage, lease it out for a long-term lease, and pay interest on the profit. Is that so? Thank you

31.12.2020

SPAIN. Consultation

Mortgage, lending

Expert answers (4)

Julia Efimenko (Benimarestates) · Answer 1 · 2021-01-04T15:03

Good afternoon, Vitaly! Yes, that's right. This is practiced quite often in Spain. In the case of purchasing real estate with a mortgage in Spain, you can freely lease your property without any restrictions from the bank and cover the monthly payment through rent. Recently, the conditions for obtaining a loan for non-residents in Spanish banks have improved compared to those that were previously. For example, commissions for early repayment of a loan, both partial and full, 3 years after receiving the loan, 0%.

Evgeny Antipov (ALBAMAR GROUP) · Answer 2 · 2021-01-02T04:45

Vitaly, good afternoon.
Yes that's right. This option is possible.
Spanish banks lend at a rate of 2-3%
For a maximum period of up to 30 years.
Maximum loan amount for non-residents 70% In fact, 60-65% can be issued
You need to have in your account 30-40% of your own funds + 12.5% for taxes and registration. Total 42-52.5% of the property value.
Yours faithfully,
Antipov Evgeniy
ALBAMAR GROUP company
+34633558960

Elena Kofeynikova (SpainLuxInvest) · Answer 3 · 2021-01-01T22:53

Hello Vitaly! Yes, it is possible, but for this you need to carefully choose the region, city, district, segment and real estate, so that the apartment is accurately rented out and can recoup the loan payments. Rarely, but there are also options that, for the lease of one object, can pay off mortgage payments for 2 real estate. Best regards, Elena Kofeynikova

Olga Popova (Luxbarcelona) · Answer 4 · 2021-01-01T13:17

Vitaly, yes it is, namely: showing his high official !!! (References 2NDFL) income in your homeland, you can expect that the bank will give you 50-70% of the cost of the object at a maximum of 2.5% per annum.
You can rent it out and pay monthly mortgage payments with the rent.
There are many details that should be borne in mind - the tenant may move out and you need to quickly look for another, the tenant may stop paying and you can only evict him through the court, if the children do not live in the apartment, you can evict them in 2 months. Again, all all terms are all relative - it all depends on the specific situation. We are waiting for you in Barcelona!