You can request a “holiday” on up to 50% on your monthly payments (added on, interest free, to the end of the mortgage) if:
- you took the mortgage out before 1st Sept 2008;
- the total mortgage taken out was less than €170,000;
- you are fully paid up with the mortgage.
and you are:
- Unemployed, or will be before 1st January 2010 and are drawing unemployment benefits;
- An autonomo (self employed) without work or whose annual income is expected to be less than 3 times IPREM (about €18,900);
- On a widows pension.
There are also now additional tax benefits for workers who adquire a new house with third party money (ie a mortgage); if you earn under €33,000 a year you can apply for up to a 2% reduction on deductions on property tax from your pay packet.
And if you have a “cuenta ahorro vivienda” (home saving account, where you can earn tax relief from monies deposited in a saving account for a house purchase), you can now extend the amount of time you have before having to cash in the account (although no additional tax benefits on money invested).
See your bank, employer, tax advisor or the MEH (link) for more information.