The advantages of financing your property purchase in Mallorca – An interview with Juanita Casanas, President of Lionsgate Capital.
Lionsgate Capital are the leading mortgage brokers in the Balearic Islands, owned by American serial entrepreneur Drew Aaron and led by Juanita Casanas, former Director of a top financial institution in Mallorca. Lionsgate Capital was founded in 2016 in the heart of Palma de Mallorca, where Juanita and the team assist high-net-worth clients to optimize their property investment in Spain, especially in the Balearics.
“Thanks to our professionalism, know-how and extensive network, we have become a benchmark in the Balearic Islands and mainland Spain for property buyers.” – Juanita Casanas
What information should buyers consider when purchasing a property in Mallorca?
When purchasing a property in Mallorca, it is essential you understand the differences between Spain and your country of residence and have all the correct information to invest intelligently and maximize your return on investment. Whether you buy a property with your own funds or with a mortgage is not always an easy decision. One of the biggest mistakes people make when purchasing a property in Spain is not knowing about the advantages of financing versus buying with cash.
Why should every non-resident buying a property in Spain consider a mortgage?
If you have the funds to buy the house, it does not always make sense to tie up your capital. The main reasons every buyer should consider a mortgage are to maintain liquidity, diversify their investments and benefit from tax deductions, amongst other advantages. In the end, it’s all about the maths and how you can maximise your return on investment.
Can yachties easily access a mortgage when buying a property in the Balearics or mainland Spain?
Absolutely. Yachties, who often have specific financial circumstances, can still obtain a mortgage in Spain. The best way to obtain a favourable mortgage and conditions is for them to do so through an experienced mortgage broker who will understand that their income might not follow a traditional structure.
What tax benefits do mortgages have in the Balearics?
The main benefits are the Wealth Tax and Inheritance Tax deductions. When you purchase a property in the Balearics for more than 700,000 euros, you must pay Wealth Tax. The Wealth Tax in the Balearics is on a scale that can be as high as 3.45% per annum on high-end properties. When you purchase a property with a mortgage, the mortgage is deductible for tax purposes and taxes are only payable on the net amount.
Why contact Lionsgate Capital to obtain the best mortgage instead of going directly to the banks?
When contacting Lionsgate Capital, you will obtain valuable information about how the process works, and the different options so you can make best decision about how to purchase. Lionsgate Capital is one contact for all banks. Our mortgage advisors are impartial and will always ensure the best mortgage is obtained to suit your needs and circumstances. Every bank is different and a small difference in the interest rate can make a big difference in savings over the years, therefore it is important you are matched with the bank that offers you the best terms and conditions for your purchase.
What makes Lionsgate Capital unique?
We are an independent firm of mortgage brokers based in Mallorca, specialized in helping high-net-worth and ultra-high-net-worth individuals interested in purchasing properties between 1M Euros and 30M Euros. Our team has over 50 years’ joint banking experience and if you are considering buying a property in Mallorca, contact us to save you time, effort and money!
