Mortgage in Portugal or Ireland?

J

JKT

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Im buying an apartment in Portugal for E120k. Does anybody know if its better to take a mortgage out in Portugal or Ireland? What are the advantages/disadvantages? If I take the mortgage out in Portugal can I claim mortgage interest relief in Ireland??
 
Unless you have a property in Ireland you can offer as security via way of a remortgage you will have to raise the mortgage on the Portuguese property. The maximum advance is 80% of the purchase price - subject to income criteria. What do you intend doing with the apartment? Are you going to live it or let it out?

Sarah

www.mortgagesoverseas.com
 
I plan to live there for 4 weeks of the year and rent it for the remaining. If I take out say a 70% mortgage in Portugal will I be able to claim tax relief here.
 
Is that a big disadvantage of buying in portugal or is it the same in Spain and other countries? Is there any way I can claim mortgage interest relief on a property bought abroad?
 
In a word - no! In some countries you the mortgage interest can be offset against the rental income to reduce your income tax liability but not in Portugal. Do you have a main residence in Ireland? If you do you should be claiming mortgage interest relief on that (assuming you qualify).

Sarah

www.mortgagesoverseas.com
 
I have a main residence in Ireland with lots of equity as I have NO mortgage on it. Should I remortgage my home in Ireland to pay for the apartment in Portugal or just take out a mortgage on the property in Portugal (and probably end up paying a higher mortgage rate???)
 
But If I ran into issues with repayments I could loose my home in Ireland whereas keeping the mortgage on the apartment in Portugal I assume would be safer?

BTW do you know anything about the aparthotel complex in Portimao called Oceano Atlantico?
 
JKT said:
But If I ran into issues with repayments I could loose my home in Ireland whereas keeping the mortgage on the apartment in Portugal I assume would be safer?

BTW do you know anything about the aparthotel complex in Portimao called Oceano Atlantico?
Click to expand...

Then surely you'd lose the apartment in Portugal?
No offence, but have you researched this fully? You should be sure about the area, know you'll be able to rent it etc. Asking whether people know anything about it suggests you don't.
Be careful and good luck!
 
JKT said:
But If I ran into issues with repayments I could loose my home in Ireland whereas keeping the mortgage on the apartment in Portugal I assume would be safer?

BTW do you know anything about the aparthotel complex in Portimao called Oceano Atlantico?
Click to expand...

Whichever property the mortgage is secured on you risk losing if you couldn't keep up the repayments. I would echo kalEl's semtiment about researching the market before jumping in on what 'seems' like a cheap property by Irish standards.

No, I don't know anything about the complex - I'm in Central Portugal, a long, long away from the holiday hotspots of the Algarve. Thank goodness!

Sarah

www.mortgagesoverseas.com
 
hi

Hi Sarah,

My name Is Andrej. Im interesting to buy a apartment in Portugal,Albufeira and Im sure you can help me!

Regard

Andrej
 
My advice JKT is to get the mortage on the portugese property - not on the Irish property. With regards to the tax relief I know in spain you can offset the income tax from renting against your mortgage if taken out in Spain. I don't know much about the portguese market but really you need to ask some questions on a forum geared for portugese property. There are plenty of forums for the spanish market. Inform yourself well about local taxes, what taxes you pay when purchasing a property, do you pay a yearly tax whether you rent out the property or not. What costs are incurred for maintenance if it is part of a development, what costs do you incurr if you wish to sell.

Angela59
 
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