Switching Mortgage from Spain to UK
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Would it make sense to switch my mortgage from my Spanish property to my UK property now that the Euro seems to be gaining in strength, possibly moving towards convergence with the pound? By switching I could pay off my Spanish Mortgage. (With no penalty), and have a smallish mortgage on my UK property where I know one pound = one pound rather than One pound = ?Euros.
Any comments / advice would be welcome.
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may the farce be with you
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Don't forget that by switching to a property in UK you will loose any mitigation of the Spanish wealth tax that you currently have and do you have the necessary euro already in Spain or would you have to buy some because it is a very bad time to buy large amount.
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I already pay Spanish Wealth tax as I still live in the UK. Yes it is a bad time to buy euros and that's the gamble. Is is going to get worse? E.g. Will my €1000.00 mortgage become £1000.00?
Thanks for the reply
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may the farce be with you
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Yes as a non-dom you do pay Spanish Wealth tax but that should be reduced by the amount of your mortgage set against the value of your property. I f you close the Spanish mortgage the wealth tax will increase because you cannot count your UK mortgage against a UK property against your wealth tax in Spain.
According to the medium term outlook published by several of the Exchange Companies the value should bump along at about the current rate with a gentle rise toward the end of the year. My guess would be if you average out from now to the end of the year the interbank rate would be 1.34 - 1.35.
This message was last edited by JohnKath on 2/23/2008.
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Plus you would need to take into consideration your inheritance tax liability in Spain.
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Quite frankly m'dear, I don't give a damn!
www.herbalmarbella.com
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