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What is the rental advance of our house to increase the pension money?

Date: July 18, 2024 Time: 05:46:19

When retirement arrives, there are many retirees who begin to receive the public pension and look for ways to have more income. Owning a home, the star formula in Spain for saving throughout your life, is a key to exploring new formulas for turning bricks into liquid. The rental advance is one of the formulas included in the guide ‘Housing and pension: Guide to monetize housing and improve your pension’ presented by Mapfre.

It is a contract that allows the transfer of the rental rights of the property owned to an entity during a specific period. In exchange, this entity provides financing to the owner of the property to pay for their stay in a nursing home or when they move to a family member’s home.

How does the rental advance work?

The financing entity provides the owner with the necessary liquidity to assume the cost of the nursing home, charged to the rental income of her home. Upon the death of the owner, her heirs will be able to pay off the accumulated debt in two ways: 1) by directly amortizing the amount of the debt, or 2) allowing the investor to exploit the rental of the home for the time necessary to repay the debt.

Taxation

– The net income obtained from the exploitation of the rental is subject to the returns on real estate capital and must be declared in the personal income tax.

– Bonuses in the application of notarial fees and registration expenses for people in a situation of dependency.

– Exemption from tax on transfers and documented legal acts.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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