19 Dec 2008 12:00 AM:

As non residents in Spain are taxed at the rate of 24% on the gross rental income without an option to deduct mortgage interest payments or other expenses. one of the tax tip given to me was to agree with the tenant to pay for IBI and community charges in return on paying lower rent.  It is important to create a clear rental agreement stating that.

Could someone comment (EOS residental lawyer especially) on the above tip (validity in taxman eyes, experiences, pros and cons).

Does anyone have a sample of tenant agreement incorporating above that will stand in law in case something goes wrong (tenant defaulting on paying IBI or comunity charges or terminating the contract prematurely)?

Many thanks

Tanja

 

 

Thread: Reducing Spanish Income Tax

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