The always increasing expenses of the property abroad (community, local rates, income tax ) has made a lot of non residents decide to rent out the property and receive an income to reduce their costs. If a property is let the non resident will be liable to the payment of income tax on the rent received ( 24,75 %) . For property owners from the UE certain expenses can be deducted when working out the tax to be paid.
However, before renting out it is very important to make certain enquiries and about, the agency handling the agreement, the terms of the letting contract and the circumstances of the tenants as otherwise this may turn into a great problem and unexpected costs, if finally the tenant does not pay the rent.
If you are in this particular case and you are not receiving the agreed rent , you should react quickly and not wait until circumstances may improve, as this normally does not occur. If after having claimed by recorded delivery the payment of the unpaid rent to the tenant, there is no reaction , you should instruct the presentation of a lawsuit to claim the payment of the rent due and eviction of the tenant. The court will give the tenant 10 days for payment and simultaneously set a date for eviction. The tenant will be only able to avoid the eviction if he pays the outstanding rent or opposes to the claim presenting valid arguments.
In principle this should be a straight forward process and the landlord can even claim the legal fees paid in connection with the lawsuit from the tenant. However, we should admit that if no rent was received, the possibility to be reimbursed the legal costs will not be very high.
For more information or an appointment please contact us on (0034) 952 822 321 or admin@nonresidenttaxesinspain.com.
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