Has Brexit affected property purchases in Cumbre del Sol?

by | Practical advices

Do you want to know the effect that the UK’s exit from the EU has had on the purchase of property in Cumbre del Sol?

Do you know if you can buy a property under the same conditions as those who have Spanish nationality?

Below, we clear up the main doubts that may arise in this regard.

Has Brexit affected property purchases in Cumbre del Sol

The Brexit

The word Brexit is the combination of Britain and exit, that is, the exit of the United Kingdom from the European Union. This took place on 31 January 2020 and had numerous consequences. Among them are some changes in the requirements that British citizens must meet in order to purchase a property in Spain. Cumbre del Sol is a destination with a high demand among this sector of the population. For this reason, we inform you in detail about the changes that have taken place.

Can a British person buy a property in Cumbre del Sol?

British citizens often look for a real estate agent in Cumbre del Sol to enquire about buying or selling a property.

When in doubt, our answer is always the same. Brexit and buying property in Spain are totally compatible. In other words, it is still possible to buy property in Cumbre del Sol. There are just a few small changes that it is advisable to be aware of.

What are the requirements?

If you are a foreigner you will have to fulfil two conditions:
– Obtain the NIE (foreigner’s identity number).
– Open an account in a bank. It is not compulsory, but it is advisable to save money on commissions if you are going to apply for a mortgage.

In addition, we advise you to:
– Find a lawyer to check all the documentation and to be able to carry out the purchase or sale process.
– Look for a registered estate agency with the corresponding qualifications, insurance and bank guarantees against malpractice.
– Get up to date with tax policy. This is an issue that has not changed, but it is worth knowing about. When you buy a property you will have to pay:

  • VAT.
  • Stamp duty (Impuesto de actos jurídicos documentados, IAJD).
  • Transfer tax (Impuesto de transmisiones patrimoniales), if it is a second-hand house.
  • Real estate tax (IBI).
  • Personal income tax (IRPF) if you are resident in Spain.
  • Non-resident income tax (IRNR). Capital gains tax (Plusvalia) if the property is worth more than 700,000 euros.

Other associated costs are:

  • Notary fees.
  • Registration in the Land Registry.
  • If you apply for a mortgage, you will have to pay for the valuation.

Have house purchase prices risen after Brexit?

Prices are subject to the ups and downs of the property market in general. Therefore, you will have to study the real estate offer in Cumbre del Sol to find out what the margins are.

What is an important factor is the fluctuation of the pound, which can make the price more or less affordable.

Can you live in the property all year round as a foreigner?

You can stay for three or six months without restrictions. After 180 days, you will have to apply for a residence permit. This is a significant difference with the past. EU citizens have free movement within the EU and can settle relatively easily in any EU country. Now, for Britons, the process is somewhat more complex.

In addition, if you rent your home, you will now have to pay more tax on the income you earn. It goes up from 19% to 24% of what you earn in NI.

Do I get residency if I buy a property in Cumbre del Sol?

In most cases you do not get it. Only if you make a property investment of 500,000 euros or more will you get the golden visa. In this way you will have this possibility much easier.

Are there differences between residents and non-residents?

As we have just indicated, the tax policy is different depending on the nationality of the person. If you are a resident, you will have a certain treatment and the possibility of accessing tax and social benefits.
Steps to buy a property in Cumbre del Sol as a foreigner.

Before taking this step, we recommend you to do the following:

  • Find out about taxes, fees and regulations.
  • Contact a registered real estate agency in Cumbre del Sol to obtain multidisciplinary advice. In other words, professionals in the sector will provide you with the information you need regarding prices, areas, taxes, opportunities, regulations, etc.
  • Bring your documentation up to date and request the necessary documents to facilitate the process.

As you can see, if you are a British citizen, the process of purchasing a property in Cumbre del Sol is simple. The proof is that an increasing number of non-EU nationals are choosing to buy a home in this area. Only a few things have changed from the pre-Brexit period. The key is a proper planning process, prior research and professional advice. In this way you are guaranteed success when buying a property in Cumbre del Sol. Find out more now so we can make the process easier for you!