Lease Option Agreement Spain

That is, the buyer wants to buy the house, but requires to have the house at his disposal until he confirms his decision. In other words, he wants the option to buy to be for his exclusivity. Thus, with the exclusive right of the option to purchase on the property, the buyer pays a sum to the seller to compensate him for the time that the house is reserved for the buyer and has left the sale market. In the latter case (the lease with the possibility of buying between individuals) it is necessary to clarify the taxation of the business with regard to income tax, from the point of view of the owner/seller, because the collection of the “option to buy” will be a “benefit” for the seller/ lessor. On the other hand, it should be noted that if the option to purchase is exercised, so that the purchase is finally completed, the taxes deducted from the purchase are not paid with the prior taxes for the consent of the option. This is a widespread and frequent confusion that is very common in practice. The reason is that the option right and the future sale are considered tax-efficient and taxable. You rent a villa for 800 euros per month for 11 months with a rent to buy option of 250,000. If you still live abroad and are constantly commuting to Spain, this contract is an excellent option because it gives you freedom and you only commit if you decide to do so. No strings attached. You can freely agree on the period to exercise the purchase option that suits your needs.

Normally, they last 2 to 5 years, but can agree otherwise. The tax base is the price paid for the call option. If this option is not agreed, or it is less than 5% of the total price of the property. The applicable rate will vary depending on the self-governing community, as this is a lost toll (usually between 6 and 10%). The answer is very simple. Both sides agree on this point. In other words, the amount paid for the option will be deducted from the price if both parties agree. In this case, the amount paid for the call option is equal to the amount remaining to be paid for the property. The main drawback is that these contracts usually take 2 to 5 years and that, in the meantime, the owner`s financial situation may change – for the worse – that is, if the property has a mortgage against it and the owner is late, this can lead to a procedure.

You still have the right to rent the property if it is withdrawn, as the lender must respect the tenants for the long term, even if you may no longer be able to purchase the property under the same conditions as you originally agreed. You should find the money now and pay the mortgage on the property if you want to buy it back from the bank. Not to mention that if you paid in addition to the option fee, you would probably lose them in the event of a foreclosure. But the truth is that lenders are very flexible when it comes to real estate, which leaves them a lot of room for trading. After all, this is a buyer`s market and it is unlikely that they will easily let go of a potential buyer if necessary to secure the sale. Let`s look at option 3 – rent before buying your property in Spain. I really have to rent to buy I don`t want to sell my house for 3 years, but need a holiday home by then, so I have to do it so quickly, I have nothing against when it needs work, but would make a place for purchase, you can advise thanking you so much,Patricia Moore In this article, On Idealista/News prepared by the site ComparaJ√°.pt, we are considering an alternative: a leasing option, also known as “let to buy”, “to buy” or “rent-to-own”.