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Date Published: 19/12/2022

Financial assistance in Spain: How to get government help if you cannot pay your mortgage

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This is the Spanish government aid to help you pay your mortgage in 2023

Financial assistance in Spain: How to get government help if you cannot pay your mortgage

If you have a mortgage with a variable interest rate in Spain, you will surely have noticed the rise in interest rates recently and the amount you are paying each month.

The increase in mortgage repayments, together with the sharp rise in house prices and inflation, is making it difficult for some people to make ends meet.

To make things easier for property owners in Spain with a variable-rate mortgage, the Government has recently approved a series of measures to help people make their mortgage payments on their primary residence.

See also: How to switch your mortgage from a variable to fixed rate

These are the requirements to qualify for the aid to pay your mortgage in Spain:

You must have a mortgage on your home and the purchase price was not more than 300,000 euros
Your salary must be less than 3.5 times the IPREM salary rate (i.e. 29,400 euros per year for the year 2023
The mortgage repayment amount must make up more than 30% of your salary
Your mortgage repayment instalments must have gone up by at least 20%

If you meet all these requirements, you will be eligible to receive the following assistance for two years:

A freeze on your mortgage repayment amounts for 12 months
Change the variable interest rate for a fixed one
Extend the term of the loan up to 7 years

If your salary is less than 25,200 euros a year (3 times the IPREM) and you spend more than 50% of your monthly salary on paying back your mortgage and your monthly repayment amounts have increased, you can:

Request a grace period or payment break of 2 years
Pay a lower interest rate during this grace period
Extend the term of your mortgage payment up to 7 years

As for the interest rate, this will still be payable during the grace period, but it will be lowered to the Euribor amount minus 0.1%.

There are several other conditions and more mortgage aid that can be received in Spain, depending on your circumstances. To learn more, applying for this government mortgage repayment assistance, and for all help with your financial health and legal issues in Spain, contact Abad Abogados Lawyers.

You may also like: These are the new tax measures proposed in Spain for 2023

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Abad & Asociados Abogados y Economistas, S.R.L. is a firm of English-speaking lawyers and accountants founded in 1996 in Murcia by Isaac Abad, winner of the “Best Lawyer 2022” award in Tax Law in Murcia granted by “Best Lawyers”.

The Abad Abogados Murcia law firm specialises in offering innovative legal solutions to its clients, prioritising quality, satisfaction and success. With offices in central locations in Murcia city, Los Alcázares and La Zenia in Orihuela Costa, Alicante, it is easy for expats and foreign citizens abroad in Spain to access the legal services they need.

The team at Abad can help you with any issues relating to Real Estate and Property law, Taxation, Litigations and Commercial law in Spain. From getting a NIE number in order to Abad Abogados English-speaking lawyers in Murcia and Los Alcazares

be able to undertake official paperwork in Spain, to completing your residency and visa requirements, they are there to ease every step of the move to Spain for people wanting to come and live in the country.

They can also handle any resident and non-resident tax declarations in Spain, including property taxes and issues surrounding double taxation across international borders, as well as inheritance tax and wills.

Whether you want to formally register your own business in Spain, take someone to court or face being taken to court yourself for whatever reason, Abad & Associates will be by your side.

Their unqualified successes in helping clients navigate these issues have made Abad Abogados one of the leading firms of Lawyers and Accountants and Tax Advisors in the Region of Murcia and in Alicante province.