Rent out or sell half of duplex

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nwdiver
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Re: Rent out or sell half of duplex

Post by nwdiver » Fri Oct 19, 2018 1:10 pm

at46 wrote:
Fri Oct 19, 2018 8:08 am
nwdiver wrote:
Fri Oct 19, 2018 3:23 am
at46 wrote:
Thu Oct 18, 2018 9:09 pm
nwdiver wrote:
Thu Oct 18, 2018 7:29 pm
at46 wrote:
Thu Oct 18, 2018 3:23 pm
nwdiver wrote:
Thu Oct 18, 2018 1:45 pm
at46 wrote:
Wed Oct 17, 2018 9:17 pm
copodenieve wrote:
Wed Oct 17, 2018 3:10 pm
at46 wrote:
Wed Oct 17, 2018 1:52 pm
copodenieve wrote:
Wed Oct 17, 2018 1:36 pm
The rents are deposited each month, minus administration fees and VAT of course, into my account with BancoEstado.
Since she's collecting IVA, my guess is that you're renting it furnished. Coz I think there's no IVA on unfurnished rentals.
Both sides are rented unfurnished, and IVA is being collected on both. This seems correct to me, but may not be. Anyone know for sure?
Have you seen the contracts? Maybe she's renting them as a corporate entity. Coz if you were to rent them as an absentee landlord/physical person, you'd have to pay 35% tax on your Chile derived rental income. So she might be using a company to save you 16% (less her commission). Not sure if that's gonna fly with the SII if it ever comes to that. Do let us know what you find out.
Using a reputable firm........your contract is to allow them to be put into a rental "pool" in their company for a certain amount of time, thus it does save money......
Interesting. So the government is herding foreign landlords into rental company pools? The rental company's payouts to you as a landlord, are they not considered 'rental income'? Even if they're not, I thought there's no non-taxable minimum allowed on any Chile derived income. So wouldn't those payouts still be subject to the 35% tax?
Who said anything about "foreign landlords", it's anyone who what's to use the service.........now if your business is cif not so useful........
The OP still lives in California - see the very first message in this thread.
So what's your point?
That whatever you wrote above is incorrect. But you already know that :)

She's ripping off the OP by charging him 19% IVA while he still needs to pay 35% on his Chile derived rental income as a foreign landlord.
It's the "so the government is herding foreign landlord into rental company pools" bit you are far off base with, the system is set up for Chilean owners to pay business taxes not IVA and rental tax on income from rental properties, oh but you knew that......
It's all about the wine.

at46
Rank: Chile Forum Citizen
Posts: 564
Joined: Fri Sep 20, 2013 6:13 pm
Location: Vancouver/Santiago

Re: Rent out or sell half of duplex

Post by at46 » Fri Oct 19, 2018 1:26 pm

nwdiver wrote:
Fri Oct 19, 2018 1:10 pm
at46 wrote:
Fri Oct 19, 2018 8:08 am
nwdiver wrote:
Fri Oct 19, 2018 3:23 am
at46 wrote:
Thu Oct 18, 2018 9:09 pm
nwdiver wrote:
Thu Oct 18, 2018 7:29 pm
at46 wrote:
Thu Oct 18, 2018 3:23 pm
nwdiver wrote:
Thu Oct 18, 2018 1:45 pm
at46 wrote:
Wed Oct 17, 2018 9:17 pm
copodenieve wrote:
Wed Oct 17, 2018 3:10 pm
at46 wrote:
Wed Oct 17, 2018 1:52 pm
[quote=copodenieve post_id=186148 time=1539794170 user_id=24543]
The rents are deposited each month, minus administration fees and VAT of course, into my account with BancoEstado.
Since she's collecting IVA, my guess is that you're renting it furnished. Coz I think there's no IVA on unfurnished rentals.
Both sides are rented unfurnished, and IVA is being collected on both. This seems correct to me, but may not be. Anyone know for sure?
Have you seen the contracts? Maybe she's renting them as a corporate entity. Coz if you were to rent them as an absentee landlord/physical person, you'd have to pay 35% tax on your Chile derived rental income. So she might be using a company to save you 16% (less her commission). Not sure if that's gonna fly with the SII if it ever comes to that. Do let us know what you find out.
Using a reputable firm........your contract is to allow them to be put into a rental "pool" in their company for a certain amount of time, thus it does save money......
Interesting. So the government is herding foreign landlords into rental company pools? The rental company's payouts to you as a landlord, are they not considered 'rental income'? Even if they're not, I thought there's no non-taxable minimum allowed on any Chile derived income. So wouldn't those payouts still be subject to the 35% tax?
Who said anything about "foreign landlords", it's anyone who what's to use the service.........now if your business is cif not so useful........
The OP still lives in California - see the very first message in this thread.
So what's your point?
That whatever you wrote above is incorrect. But you already know that :)

She's ripping off the OP by charging him 19% IVA while he still needs to pay 35% on his Chile derived rental income as a foreign landlord.
It's the "so the government is herding foreign landlord into rental company pools" bit you are far off base with, the system is set up for Chilean owners to pay business taxes not IVA and rental tax on income from rental properties, oh but you knew that......
[/quote]
Well, that was my reaction to your misleading statement that you made because you had overlooked the simple fact the guy is a US tax resident. If I didn't say that, your error would have never come to light. You're not trying to refute my 'She ripping off the OP..." bit, or are you?

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nwdiver
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Re: Rent out or sell half of duplex

Post by nwdiver » Fri Oct 19, 2018 7:23 pm

No I'm just stating the fact you can pay less tax no matter where you live, when renting out property in Chile.....
It's all about the wine.

copodenieve
Rank: Chile Forum Tourist
Posts: 10
Joined: Fri Mar 09, 2018 6:14 pm

Re: Rent out or sell half of duplex

Post by copodenieve » Sun Oct 21, 2018 10:34 pm

Jamers41 wrote:
Thu Oct 18, 2018 5:45 pm


Would you be so kind enough as to share the info of the "corredora" with me via PM? It just so happens that my wife and I have been looking at properties in Rancagua lately as a way to escape from the worst of Santiago (even though we are already on the outskirts).
James I don't seem to be able to reply to your PM (I think because I am still too new to the site). We aren't allowed to make recommendations by name publicly, so if you could PM me with an email address I could send it to you that way. I tried and tried to find a way to respond to your PM but I couldn't find a way. By the way, rentals are ancillary to her primary business with sales/purchases. Hope to make contact.

copodenieve
Rank: Chile Forum Tourist
Posts: 10
Joined: Fri Mar 09, 2018 6:14 pm

Re: Rent out or sell half of duplex

Post by copodenieve » Sun Oct 21, 2018 10:40 pm

Jamers41 wrote:
Thu Oct 18, 2018 5:45 pm

Would you be so kind enough as to share the info of the "corredora" with me via PM? It just so happens that my wife and I have been looking at properties in Rancagua lately as a way to escape from the worst of Santiago (even though we are already on the outskirts).
James, I tried to respond to your PM but was unable to (I think because I am too new on this site). The corredora deals primarily in sales/purchases but also rentals. I'd be happy to pass along the information, but we are prohibited from doing this publicly on the site. If you PM me again with an email, I could send you the contact info. It's the only way I can think of getting you the information at this time.

copodenieve
Rank: Chile Forum Tourist
Posts: 10
Joined: Fri Mar 09, 2018 6:14 pm

Re: Rent out or sell half of duplex

Post by copodenieve » Sun Oct 21, 2018 10:46 pm

Sorry if I misled anyone (I'm still just learning what the variables are). The IVA is indeed just on the agent's fee. Part of the agent's service is paying the tax quota to SII. As for my residence, for the past 3 or 4 years, I've spent about half the year in California and half here in Chile. (No soy de aqui ni soy de alla.) I'm currently applying for permanencia.

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