Hela infon är på engelska så då blir det ju inte så bra då, men håll till godo
Dear Calderon,
You should know a rental contract is a considered as a private contract between owner and tenant.
However, you have the option to register the contract at the Land Registry (as Title Deeds). If you get this option, then you should go to a notary so make the contract legal and so pay notary fees, registry fees and tax for the registration ( I should look for further information to know how much the tax is). Notary and registry fees would depend on the rent per month, the total to get per year and the extension of the rent. These expenses must be paid by agreement between both parties (you can pay all of them, you can discuss with the tenants they should pay it or expenses can be shared between you both).
By register the contract, there are some advantages and dissadvantages you should take into account.
ADVANTAGES FOR THE TENTANT:
- Tenants have a guarantee the lessor is the real owner of the property.
- In case the owner wants to sell the property, tenants have the right to oblige the owner to fulfill the contract. Moreover, the tenant has priority to buy the property, this is, if you want to sell the property, you should ask tentants first if they want to buy it. Obviously tenants have a deadline to decide, at the moment 30 days.
ADVANTAGES FOR OWNER
- You can include a clause in the contract saying that in case of non payment of the monthly rent, you have the right to finish the contract and so tenants must leave the property automatically. Obviously this is always included in a rental contract but if the contract is registered the eviction process would be quicker, even a court case.
Dissadvantages for both parties are the expenses you have to pay and the time to register the contract.
Regarding taxes, as you are non resident in Spain, you should include the income from the rent in your annual non resident tax declaration. You know that as owner of a property in Spain (as you are non resident) you have to pay this tax once a year. This is a patrimony tax so the calculation is based on the catastral value of the property that appears on the SUMA TAX (IBI). If you rent the property, you should declare, apart from the patrimony, the incomes you get because of having a property rented in Spain. This tax you have to pay it even if the contract is not registered at the Land Registry but obviously if it is, the Administration will have acknowledge of the rent so you will have to declare it or they can request you to do it (with penalties if not pay it on time).
Hope this information is helpful.
As you know in Spain there is NO specific register for rents or an Administration to go to registered yourself as lessor!!
Have a good evening,
