[Anonymous]

We have a couple of friends in the manilva area of Malaga who need a small mortgage and have been told a lot of different answers to this question, any help would very much appreciated. They have lived in the area 7 years now and have paid wealth tax for three years running but were then told they do not need to pay any more.They have now been informed that to get a mortgage they will have to put in a wealth tax return first, if not they will be charged around about 4,500 euros. Is this correct as they have been told different answers to this question they are Spanish residents.

Also can you advise them on this question they are aged 65 & 66 and have been told they can only get a 7 year mortgage and another agent has quoted 15 years.

Can anyone offer any advice or recommend a mortgage for them?

Thanks

[Anonymous]

Jackie,

I’m not a mortgage specialist, but the bit about paying 4.5k Euros if they don’t do a wealth tax return first sounds like hogwash to me. The Spanish wealth tax or impuesto de patrimonio was set to zero as of 01/01/2008, after which it was no longer necessary to do wealth tax returns. Since then you only have to do an income tax return.

At their age, a 15-year mortgage sounds feasible.

[Anonymous]

Jackie,

I’m not a mortgage specialist, but the bit about paying 4.5k Euros if they don’t do a wealth tax return first sounds like hogwash to me. The Spanish wealth tax or impuesto de patrimonio was set to zero as of 01/01/2008, after which it was no longer necessary to do wealth tax returns. Since then you only have to do an income tax return.

At their age, a 15-year mortgage sounds feasible.

[katy]

Personally I think anyone of that age planning to take out a mortgage (especially in a falling property market) must have a touch of the sun.

I think they have probably misunderstood what the bank have said. If they are residents then they should have been doing tax returns even for a nil amount. I assume this is what the bank wants.

[katy]

Personally I think anyone of that age planning to take out a mortgage (especially in a falling property market) must have a touch of the sun.

I think they have probably misunderstood what the bank have said. If they are residents then they should have been doing tax returns even for a nil amount. I assume this is what the bank wants.

[Anonymous]

Hi

The period of mortgages that bank are willing to agree can vary enormously for one bank to another.

Whether you are considered to be resident or non-resident can also vary for one bank to another.
In banking terms being resident or non resident is based on where you declare you income.

The real question is the purpose of the loan and the means to repay it.

[Anonymous]

Hi

The period of mortgages that bank are willing to agree can vary enormously for one bank to another.

Whether you are considered to be resident or non-resident can also vary for one bank to another.
In banking terms being resident or non resident is based on where you declare you income.

The real question is the purpose of the loan and the means to repay it.

[Author]

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