Where to borrow to finance a real estate purchase abroad?

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Ma résidence secondaireMathilde RidoleVous envisagez d’acheter un bien en Espagne, en France, en Italie ou ailleurs. Mais pour son financement, vaut-il mieux emprunter en Belgique où à l’étranger?PublicitéMa résidence secondaireDécouvrez toutes les informations sur votre projet ici.

There are several ways to finance a second home.If most investors opt for conventional mortgage credit, other solutions exist however, such as Crédit Bullet, resumption of outstanding, guarantee on group insurance or securities account, etc..But before choosing the type of financing, it is still necessary to decide the """"residence"""" of your mortgage credit.Do you have an interest in funding your villa in France on the Côte d'Azur?Or is it better to take these steps in Belgium, where do you live?

Borrow abroad

Nothing forbids you to go through a local bank if you buy abroad.But if you have no income domiciled in an account in the country where you wish to acquire a property, obtain mortgage credit may be very complicated. """"Je n’ai encore jamais vu une banque consentir un prêt avec une simple hypothèque sur le bien, alors que le client n’a encore aucune résidence ni de revenus en France"""", pointe Bertrand Marot, directeur international & professional wealth management chez Degroof Petercam.""""Foreign financial institutions will first refuse a mortgage credit to a foreign customer, but may propose to re-study the file if they submit money in life insurance for example.However, this may not be enough, """"explains the specialist.Banks needing guarantees, that is to say security as to customer solvency, it is therefore very complicated for potential buyers who have no local history to obtain funding for thePurchase of a good.

""""Il est plus simple, plus facile et plus rapide d’emprunter auprès d’une banque belge.""""Bertrand MarotDegroof Petercam

If you still succeed in obtaining a credit abroad, you can possibly benefit from more advantageous rates.In France for example, """"interest rates are more competitive than in Belgium, the market being very competitive,"""" said Bertrand Marot.But nothing guarantees that French, Spanish or Italian financial institutions give you a better rate than your Belgian bank.So be sure to compare the basic rates from one country to another and from one bank to another.

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Mortgage is often the most complex element when buying a second home abroad.If you go through a local bank, you can take out this mortgage on site and on the property in question, which is almost impossible to achieve with a Belgian bank.""""A loan within a foreign bank makes it possible to take out a mortgage on site, this is one of the advantages,"""" concedes Valéry Halloy, spokesperson for BNP Paribas Fortis (BNPFF), leader in the mortgage marketin Belgium.

Borrow in Belgium

But borrowing in Belgium is probably more accessible.""""It is easier to obtain a loan from a Belgian bank which knows better the financial situation of the customer, especially if the income (professionals, furniture, rental) of the customer are mainly in Belgium,"""" explains Valéry Halloy.An opinion shared by Bertrand Marot: """"It is simpler, easier and faster to borrow in a Belgian financial institution.This is the reason why Belgian banks have developed a whole offer: they realized that it was very complicated for their customers to contract a credit abroad.""""

Le taux en vigueur est le même pour un bien situé en Belgique ou à l’étranger.Valéry HalloyPorte-parole de BNPPF

Vous pouvez contracter un nouveau crédit auprès de votre banque en respectant certaines conditions: """"Au moins un des emprunteurs devra être résident belge, le client devra disposer de revenus suffisants pour rembourser le crédit et il doit disposer d’un bien en Belgique qui sera pris en gage"""", liste le porte-parole de BNPPF.Because you must normally subscribe a mortgage or a mandate on your residence in the sun. """"Souscrire une hypothèque sur une seconde résidence à l’étranger est possible, mais c’est un sujet complexe et c’est pourquoi les banques belges n’offrent généralement pas cette possibilité"""", explique Valéry Halloy.If there is a concern for insolvency, it is indeed very complicated for the bank to go and seize a property abroad and to submit it at auction.Rest assured, solutions exist.You can for example use the mortgage on your first property or a securities account as a guarantee for the reimbursement of the mortgage credit of your second home.

As for the rate, Belgian banks do not make a difference if the property is located with us or elsewhere. """"Le taux en vigueur est le même pour un bien situé en Belgique ou à l’étranger, indique encore le porte-parole de BNPPF.To the customer to compare with the rates offered by foreign banks.""""

What about tax advantages?

The Belgian federal state grants two tax advantages over the second residences.To claim it, the housing must be in Belgium or in the European Economic Area (EEE), which includes all the member countries of the European Union and three of the four member states of the European Free Associationexchange (Norway, Iceland and Liechtenstein, but not Switzerland).Mortgage credit must also have been concluded in Belgium or in one of the EEA countries.

The first tax advantage is the ordinary deduction of federal interests, which makes it possible to fully deduct the paid interest of taxable real estate income.

The second is the one that can be obtained on capital depreciation.This depends on the existence or not on a loan in progress for its clean residence and the moment when this loan has been concluded, since it cannot be cumulative with other tax reductions (Habitat check)granted by the regions (except in a limited number of cases), because it is part of the same tax basket.To be able to claim this tax advantage, your credit must meet a series of conditions: the loan runs at least over 10 years and must be guaranteed by a mortgage registration.Capital depreciation and the possible bonus of balance due to the remaining due to the reduction in federal long -term savings, or 30%.The amount which provides a tax advantage is however limited according to the year of the loan and your professional income.

Vous pouvez également prétendre à certains avantages fiscaux dans le pays où est située votre résidence secondaire, mais pour en bénéficier """"il faut que l’objet du crédit soit très clair et que son affectation, s’il ne s’agit pas d’un crédit hypothécaire, soit précisée"""", avertit Bertrand Marot.

RésuméSource:MonArgentMa résidence secondaireMa résidence secondairePublicitéQuestions de lecteursPublicitéPublicité

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