Repsol YPF

Carmen Bazán, financial consultant of Legálitas gives us some tips. The only objective of opening a housing account is to save enough money to purchase and/or rehabilitate what will be our main property. To do this, the account holder has to make periodical payments over a maximum of four years during which the account will enjoy significant tax advantages when it comes to making a tax declaration.

How much to pay in?
Each holder of a property-based savings account can choose the amount they wish to pay in and the frequency of the payments. The maximum amount is 9,015.18 euros a year, so it is best not to exceed this figure, since the tax advantages only correspond to this amount. The reduction is 15% of the money paid in, that is, if you pay in the maximum amount, 1,352.27 euros will be reduced at the end of the year, explains Bazán.

When it comes to choosing, check the different interest rates offered by each bank. The banks offer remuneration according to the average balance of the account. For example, there are products that pay an attractive interest but only to those that have an average balance of 60,000 euros. Others have higher interest rates on lower amounts, but as long as the account holder has an average balance of 30,000 euros, says the financial consultant.

Monthly interest
You should also bear in mind the frequency of the interest payments. It is best to receive them each month than annually, advises Bazán. This is because the Equivalent Annual Rate (TAE), which is the effective profitability of the operation, is different depending on the frequency. In banks that pay the interest annually, the nominal interest coincides with the TAE.

In terms of costs, it is best to find a property-based savings account that has no maintenance costs.Some banks cover these commissions but shouldnt, since these are deposit accounts that do not provide any service, states Bazán. If they do try to include this type of maintenance cost, it would be worth negotiating with the bank.

Minimum amount payable
In some cases a minimum amount is required before a home savings account can be opened, for example: 1,500 euros a year.Everyones financial situation must be examined together with their savings plans. They may prefer to save little by little without any type of pressure.

After four years of 15% tax deductions, the owner must buy a property or reform the one they have. If they do not do so, they have to return all the money that has been deducted in each tax declaration to the inland revenue, concludes Bazán.