A second home in Cumbre del Sol is a fantastic idea.
You’ll be able to enjoy a stunning landscape and a truly attractive climate.
However, it’s important to understand the characteristics of these types of properties, as they can be subject to very specific usage.
Property for tourist use
A property for tourist use (known as a ‘VUT’ in Spain) is a property given to a third party on a temporary and repeated basis. In other words, people unrelated to the owner are allowed to stay there, under contract, for a short period of time. This will be equal to or less than 31 days and owner must hold a licence awarded by a local council. Logically, the competent municipality will be that in which the property is located.
As you can see, a VUT is intended for commercial use during a short period of time. In general, this activity applies to second homes intended to be put to an additional use. However, this doesn’t stop owners from enjoying their property as they wish, as they can still opt to stay in it for a some time.
Can you live in a tourist property all year round?
Owners can stay in their tourist property, but not for the whole year. It must be rented out at some stage for the duration required by law. However, this requirement may vary from one region of Spain to the next, as each Autonomous Community is responsible for regulating tourism.
Second home
This is a home purchased when you already have another property. The purpose of the purchase is to use the property as an occasional residence or to make an investment of some kind. Likewise, the owner does not have to be registered in this property’s municipality. As such, it is not legally considered to be the owner’s dwelling, as they have their usual home for this purpose somewhere else.
In addition to the above, there are specific taxes applicable to second homes. You’ll be taxed differently depending on various factors, such as the property’s use or whether it is intended as an investment. For example, if you rent it out, you’ll generate property income that is considered economic activity. If the property is only used as an occasional residence, you won’t obtain any earnings from it and, as such, you’ll pay less taxes.
Difference between first and second homes
The fundamental difference is that a first home is your usual residence, in which you spend your day-to-day life. You stay in it for the majority of the year and it is where you are registered. Furthermore, the Spanish Tax Agency indicates that, in addition to the above, there will be personal or professional ties to your first home.
Whether a property is considered a first or usual home depends on two requirements. The tax office makes it clear that this will be the home in which you reside continuously for three years. Another option is if you live in it permanently for twelve months after its purchase or the completion of works.
Second and first homes also differ in their purchasing criteria. When you look for a first home, you’ll normally want to make sure that it is close to your workplace. Likewise, certain other services should be within reach, such as schools, health centres, shops or leisure venues, among others. You’ll also want to look for homes with easy parking outside.
On the other hand, when it comes to purchasing a second home, buyers place the emphasis on leisure. They tend to look for properties located outside of cities, in a calm environment or with a plot of land. At the end of the day, its main use will be for holidays or the occasional weekend.
Can you live in a second home all year round?
Living in a second home all year round will generate tax problems. Remember that your tax residence will not coincide with your real residence, which may lead the authorities to investigate. Similarly, if you buy a home and spend the next 12 months in it, it will become your usual residence.
Buying a second home in Cumbre del Sol
Buying property in Cumbre del Sol for use as a second home is a great idea. Here, you’ll enjoy a pleasant, calm environment with panoramic views of the Mediterranean and various natural parks. Without a doubt, this is a charming location in which to spend your holidays or a weekend, breaking away from day-to-day life and all its stresses.
Buying a second home in Cumbre del Sol is a no-brainer. Whether it’s to enjoy personally or as an investment through renting it out, you’ll gain a very valuable asset. And to guarantee that you invest your capital in the right property, don’t forget to hire a quality estate agent in Cumbre del Sol. We look forward to hearing from you!