2023-10-06 21:17:44
Buying a new home is, generally, one of the first instincts of Spaniards looking for a new home. However, the majority of house sales carried out in Spain are second-hand. The reason lies in the supply, with used homes being more numerous than new home developments, and in the price, since new construction apartments usually have a higher price.
However, there is a formula that allows you to access a new house in an accessible way: the rent with option to buy new construction.
How rent with option to buy new construction works
The operation of the rent with option to buy in new construction homes It has certain peculiarities compared to the second-hand one. One of them is taxation: when purchasing a new home you have to pay the Value Added Tax (VAT) and the Tax on Documented Legal Acts (IAJD). VAT, corresponding to 10% of the sale price, must be paid because this is a new house. On the other hand, the IAJD varies between 0.5% and 1.5%, depending on the autonomous community where the property is located.
For him rent with option to buy in newly built apartments, VAT is paid monthly on a prorated basis. This means that the monthly rental payment consists of two components: a prorated VAT (10% of the value of the property) and the rent that has been agreed with the developer or construction company.
Completion of the rental contract with the option to purchase new construction
It should be noted that if the rent-to-own contract ends and the tenant chooses not to buy, they will not only lose the rents paid, but also the VAT they have been paying. However, he may still continue in the home only as a tenant, without incurring the payment of VAT, until the regular rental contract ends.
In the event that the developer or construction company violates the agreement, the tenant has the right to request a full refund of the fees and demand compensation for damages, in addition to covering related legal costs.
Finally, although the price agreed in the contract is fixed, if previously undisclosed problems are detected in the home – such as defects or unanticipated repairs, known as hidden defects – the tenant has the right to request a reduction in the price. final sale price.
The rental contract with the option to purchase on a new construction home
And lease contract with option to purchase It must detail the following aspects of the rental and purchase to be valid. Likewise, the following data must be reflected in the contract template:
Data regarding the rental of housing:
DurationTerm to purchaseMonthly installmentHow expenses are divided
Data related to the purchase of the property:
Written confirmation from the tenant that he wants to buyFixed sales pricePercentage of the rent to be deducted in the salePossible advance payment that is deducted from the final price or that the owner keeps if the tenant withdraws
Download the rental contract model with option to buy in PDF or en Word free, updated to the latest law of 2023 and ready to fill out.
Differences between renting with the option to buy new construction and second-hand construction
In rent with option to buy, the tenant pays a monthly fee as if it were a simple rental. At the end of the agreed period, they can choose whether or not to buy the home. If the tenant decides to buy it, he has the right to have the fees already paid deducted from the total price of the property. This modality allows the tenant to evaluate whether the home meets their needs and gives them time to save if they decide to make the purchase.
Leasing with an option to own not only benefits the tenant, but also the owner. During the rental period, the owner receives a monthly income and, if the property is eventually sold, he achieves his goal.
However, there are differences between rent with option to buy second-hand and new construction, especially in the tax aspect. For new construction, VAT is paid prorated monthly. The rental fee consists of the payment of prorated VAT, which is 10% of the value of the apartment, plus the agreed rent. But it is essential to consider that if after two years another person, other than the tenant, buys the new home, they will no longer have to pay VAT, but rather the Property Transfer Tax (ITP).
If the home is new, but the owner who rents it is an individual through a contract with an option to purchase, the tenant does not have to pay VAT at any time. In this case, it is a second transmission and will also be subject to the ITP.
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