Owning Property and Living in Spain
Equity Release Schemes are now available

Are you Asset Rich but Cash Poor?

Several Equity Release schemes are now available in Spain through international banks and other financial institutions.

Equity Release schemes in Spain are not quite the same as those being offered in the UK because of the differences in the Spanish tax and legal systems.

And until now, Spanish financial institutions have not fully understand the concept of Equity Release, and so have not attempted to introduce them, nor have they considered the implications of people being asset rich, but cash poor.

Over the last few years, some international banks have become increasingly convinced of the need for Equity Release schemes, and so a number of such schemes are now available.

Generally, these schemes are based on an interest-only loan which is secured against your property. This interest-only loan releases capital which is invested to meet interest payments and provide a regular source of income. In some cases, an initial cash lump sum is also available.

Effective means of limiting Spanish inheritance tax

The loan registered against your property also reduces the net asset value of your property, and can therefore have the added advantage of being highly effective in reducing inheritance tax liabilities in Spain.

These Equity Release schemes have no maximum age and do not require proof of income.

We may have the answer for you

If you are currently asset rich and cash poor, you may be considering selling your home. This is a problem if you would prefer to stay where you are, and keep your home for your heirs.

In extreme cases you may be looking for a quick sale to raise cash. But then your home will need to be undervalued or offer something unusual.

So if you are considering selling because you are asset rich and cash poor, then you should consider using an Equity Release scheme. You may benefit from several advantages:

▪ Retention of the family home
▪ Increased income in retirement
▪ Benefit from any future property price rises

If you would like to know more - without obligation - please contact us and we will explain further the benefits of releasing equity from your home.