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Mortgage numbers rise as credit outlook lifts

The number of new home mortgages in Spain was up 2 percent on a year ealier in March, the first such rise in 47 months, official figures released on Wednesday show.

Published: 29 May 2014 09:45 CEST

Mortgage numbers rise as credit outlook lifts

Photo of villa in Spain: Shutterstock

Spaniards signed off on 16,625 new mortgages in March, up from 16,420 in February, with the average loan being €102,397 ($139,000), the preliminary figures from Spain's national statistics body show.

The total value of all loans was €1.7 billion.

March's rise was the first year-on-year bump since 2010, putting an end to nearly four years of negative values.

News of the rise also came on the same day that the Spain's central bank (BOE) said banks were starting to loosen the reins on credit to consumers.

There was a "certain improvement in the expectations concerning the economy and the solvency of consumers", said the bank its May monthly bulletin.

Credit in Spain has plummeted by 23 percent since the country's housing bubble burst in 2008.

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Can you pay taxes in Spain with a foreign bank account?

Navigating the ins and outs of the Spanish tax system can be a little daunting at times. That’s why many people choose to pay for a gestor to handle it all for them.

But for many foreigners in Spain, especially those with property in the country but who aren’t resident, figuring out when and how to pay your taxes can be extra complicated, especially if you don’t speak Spanish.

READ ALSO: What does a ‘gestor’ do in Spain and why you’ll need one

This was compounded by the fact that, for many years, you couldn’t pay Spanish taxes from a foreign bank account. As such, many people were forced to open a Spanish bank account for the sole purpose of paying tax.

Can you pay taxes in Spain with a foreign bank account?

Fortunately, it’s no longer like that. From February 1st 2024, the tax authorities in Spain started allowing tax payments via direct debit from any bank account within the SEPA area, removing the need for a Spanish bank account.

So, in short, yes, you can pay your Spanish taxes with a foreign bank account — depending on the country in which the account is based.

What is SEPA?

SEPA stands for Single Euro Payments Area is a basically an integrated bank transfer system. SEPA includes all the EU members states, plus those in the EFTA (Iceland, Norway, Liechtenstein and Switzerland). The UK is also still member of the SEPA area, despite Brexit.

Before the change, you could only pay your taxes in Spanish via banks approved by the tax authorities.

READ ALSO: Spanish tax returns: A handy guide for foreigners

VAT and tax experts Marosavat explain that under the previous rules, “direct debit [was] only available when the taxpayer’s bank account belongs to a bank entity cooperating with the Spanish tax authorities. This requirement impose[d] an important restriction when using direct debit as a payment method, especially for foreign taxpayers.”

But slowly, the Spanish tax authorities have eased the rules and made it easier for foreign businesses and tax payers to pay their tax from abroad. First, in March 2021, the rules were relaxed for foreign businesses with tax obligations in Spain.

Then from July 2023 foreign accounts were approved for deferment and split applications of tax debt, and from February 2024 for regular tax payments.

Following the changes, Marosavat says, “the payments will still be processed through a cooperating bank entity, which communicates with the taxpayer’s bank entity. In consequence, all commissions and bank expenses related to the procedure will be passed on by the tax administration to the taxpayer.”

According to Spain’s Agencia Tributaria website, which you can find an English language version of here:

Payments are allowed for those who do not have an open account in any collaborating entity in state collection management.　
It is especially intended for use by those who pay their debts from abroad.　
It can be done by both natural persons and legal entities.　
The payment will have releasing effects on the date of receipt and entry of the transfer.

Non-resident property owners

This is particularly welcome news for second home owners in Spain, many of whom are non-resident and manage their properties from abroad for most of the year.

According to IberianTax, by extending tax payments to the wider SEPA area, “property owners can now continue to use their home country’s bank accounts or accounts from other SEPA countries to make tax payments towards their taxes. This change simplifies the process and alleviates the burden of setting up a separate Spanish bank unnecessarily.”

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