– Wealth tax
Spain raises an annual wealth tax also for nonresidents. The tax rate ranges between 0.2% and 2.5% with a tax exempt amount of the first €700,000.
Financing can reduce wealth tax on Spanish properties as mortgages are deductible and by this reduce or avoid the annual wealth tax payment obligation.
– Inheritance tax
A mortgage is also deductible from the value of a Spanish inheritance and reduces the Spanish inheritance tax which lastly has been decreased considerably also for Andalusia.
– Liquidity
Maintaining liquidity by financing your real estate acquisition will allow you to diversify your investment.
– Low interest rates
Interest rates are at a historic low also in Spain which makes financing even more attractive.