Taxation

Financing the purchase of your home with a Solbank Mortgage will allow you to save on tax in your annual tax declaration if you are resident in Spain.

Independently of your residence status, you will have to pay indirect taxes both when formalising the Mortgage and in the purchase of the home.

Resident in Spain

The total sum of the installments paid during the year, which include capital and interests, for the acquisition of the main residence, gives the taxpayer a right to a tax deduction directly from the tax rate.

The maximum sum to which the deduction can be applied and the percentage of the deduction change according to the time that has passed since the purchase:

In other words, the maximum annual limit is 9,015.18 euros, to which one of the percentages will be applied according to the time that has passed since the acquisition, and differentiating a first section of 4,507.59 euros at a higher percentage than the remainder up to 9,015.18 euros.

For example, a person who, during the year 2002, had a monthly mortgage payment of 600 euros, taking into account the fact that two years have not yet passed since the acquisition of the main habitual residence, will be able to deduct:

(*) If the financing of the home through the mortgage complies with the following conditions:

The amount financed must be at least 50% of the purchase price of the home. In the event that the purchase is of a new home after selling the current home, this 50% will be understood as referring to the excess of the corresponding investment, in other words, the difference between the purchase price of the new home and the selling price of the current home.

During the first three years, the amount repaid cannot amount to more than 40% of the total amount borrowed.

If these conditions are not met, the percentage of the deduction in both cases will be 15%.

(**) The total maximum limit is 9,015.18 euros. In individual tax declarations, this maximum limit is applied individually for each of the spouses.

Where deductions have previously been enjoyed for the acquisition of the main residence, the new deductions can be applied to the difference between the value of the main residence now being purchased or built and the amount that would have been subject to deduction for the quantities invested in previous main residences.

Buying an apartment on the beach, building the home of your dreams... whatever your plans, Solbank and Bank of Andalucia offers you financing precisely to your own requirements. Top Beach Property S.L. can assist you with the introduction and the detail;

Personalised advice

Maximum transparency

The best conditions

Possibility of choosing between different Mortgage types

To help you make what may be the most important financial decision in your life, Solbank has published the Practical Home Buying Guide.

To resolve all your queries, to help you go through all the procedures, to find the best solution at every moment and to avoid you finding, as often happens, that you are faced with unexpected expenses.

For maximum specification of all the details of your particular case, ask us now to analyse your purchase operation, without any commitment on your part and completely free of charge.

To finance the purchase of your home, Solbank offers you different types of Mortgage, so that you can choose the one best suited to your needs.

Solbank Fixed Interest Rate Mortgage

To pay the same monthly repayment consistently throughout the life of the loan

Mixed Mortgage

To ensure payments over the first four years, guaranteeing the interest rate in case of possible rate increases in the short and medium term. After this initial period, your mortgage will be adapted to the current market interest rate and will be revised annually.

Solbank Variable Interest Rate Mortgage

To enjoy a lower interest rate during the first year and have your Mortgage repayments revised annually according to the interest rates in force at the time.

And, in addition, if you choose the Solbank Personal Mortgage in our variable rate mortgage option, you can take our a loan which will cover the purchase of the home that will be your usual place of residence, and in future you will have a personal loan to pay for anything you wish, from buying a car to renovating your home, plus the added advantage of lower interest rates than any other personal loan.

The capital you pay off will continue to be at your disposal during a long period of time, so that you can use it for anything you wish.

You can choose to peg your Mortgage rate against either of the two following indexes:

IRPHce: Reference Index for Mortgage Loans (for all finance organizations), published by the Bank of Spain.

EURIBOR: European Interbank Offered Rate, published by the Central European Bank.

Find out more now about Solbank Mortgage conditions: