How does reverse rental work?

The General State Budgets are here and with it comes long-awaited news. Its approval implies the arrival of tax advantages for those who contract reverse rental, a formula intended for elderly people with a degree of dependency. Rent your apartment and forget about worries 0% late payment. We take charge if the tenant does not pay. Although the best-known formula may be the reverse mortgage, there is also a reverse rental. In essence, it is a way to obtain financing in exchange for giving your home to rent . All this without the need to lose property. In an even simpler way, you rent the property you own in exchange for an amount of money that the company offers you periodically. At the same time, said company receives the payment of the monthly payments from the tenant to recover the financing it lends you. Now, reverse rental aims to become one of the most interesting products of the year thanks to the General State Budgets. But why? For the first time, the PGE offers a series of tax credits for reverse rental.

Reverse Lease Requirements

Below, we review the most important reverse rental requirements: Have severe or great dependence . Own a home . That the property meets the minimum Singapore WhatsApp Number Data requirements to be rented . Initially, reverse rental was born with the idea of being used in cases where a person with a high degree of dependency could not reside in their home and had to move to a residence . Consequently, the expenses involved in the move were covered by the profitability offered by renting the home. Features of reverse rental If you want to rent an apartment and you meet the requirements we mentioned above, you may be considering the option of reverse renting. In that case, we list its main characteristics so that you know what it consists of: It generates a higher financing income than with a conventional rental.

Tax advantages of reverse rental

The 2023 PGE introduces a list of tax credits for people who hire a reverse rental service. After all, the rental contract must be formalize through a public date and by going to the notary. The bonuses presente are the following: Exemption from payment of the Tax on Transmissions and Documente Legal Acts (ITPAJD). It can range between 0.75% and 1.5%. 50% bonus on Georgia WhatsApp Number List Notary fees. 90% reduction in Registry expenses. Bare property: what does it consist of? Bare ownership is the sale that occurs of a home without expelling the person who still resides in it, since he or she exercises his or her right of lifelong usufruct. In other words, it is what is know as selling the property. The elderly person sells ownership of it in exchange for