Rent out or sell half of duplex

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copodenieve
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Re: Rent out or sell half of duplex

Post by copodenieve » 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?

copodenieve
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Re: Rent out or sell half of duplex

Post by copodenieve » Wed Oct 17, 2018 3:21 pm

My only choices at the moment are to leave the houses empty or rent them. I cannot sell until I have gone through the inheritance process (I am the only surviving offspring), and the inheritance process cannot be started until I get their marriage registered with registro civil. Though my parents lived here about 25 years before passing, they apparently never realized this should be done. I submitted the paperwork a year ago, but unfortunately their original marriage certificate (U.S. 1953) has an error (missing my mother's maiden name) and so it was rejected in spite of the attached apostille. I am currently untangling that thread and working on my permanent residency. Then comes posesion efectiva. Wheeeeee! So fun! ;-) In the meantime, I cross my fingers on the rentals and hope that income helps me with my permanent residency. Everything is connected to everything else. :-) I feel fortunate to have found this forum.....

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fraggle092
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Re: Rent out or sell half of duplex

Post by fraggle092 » Wed Oct 17, 2018 5:44 pm

copodenieve wrote:
Wed Oct 17, 2018 3:10 pm

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?
No, I dont know. But according to the SII:
Al arrendar un inmueble sin amoblar, el arrendador no tiene obligación de emitir boleta, pues este servicio no está gravado con IVA.
Which agrees with what at46 said earlier.
I would imagine that you are paying IVA on the agency commission, not on the whole property rent.
Payment of IVA should always be accompanied by some sort of official receipt.
If you have doubts, you need to consult an expert. The SII itself is usually not helpful.
Gloria wrote:
Wed Oct 17, 2018 2:47 pm
My neighbor is going thru that situation with a second property in the city and even though they have a "reputable agency", he is at this very instant "standing guard" in the rental to avoid getting broken into and have the house stripped down to nothing.
Yeah, leaving properties vacant is just asking for problems. There are the Okupas who move in and use them for drinking and drugging, plus the usual thieves who will steal all the fittings and fixtures.
Après moi, le déluge

Gloria
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Re: Rent out or sell half of duplex

Post by Gloria » Wed Oct 17, 2018 7:33 pm

fraggle092 wrote:
Wed Oct 17, 2018 5:44 pm

you need to consult an expert. The SII itself is usually not helpful.

Neither are the experts! :lol:
I'm from the generation of common sense, wisdom and unfiltered answers. I sayeth as I seeth.

at46
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Re: Rent out or sell half of duplex

Post by at46 » 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.

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nwdiver
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Re: Rent out or sell half of duplex

Post by nwdiver » 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......
It's all about the wine.

at46
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Re: Rent out or sell half of duplex

Post by at46 » 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?

Jamers41
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Re: Rent out or sell half of duplex

Post by Jamers41 » Thu Oct 18, 2018 5:45 pm

copodenieve wrote:
Wed Oct 17, 2018 1:36 pm
Checking in for a quick update, in case someone comes across this thread in the future.

I opted to rent, and six months in (admittedly a very short time), all seems well. BUT - I made that choice based on a recommended local rental agent. She seems very good, and since my mother has also passed in the intervening months, she now has both houses in the duplex rented out and administers the rentals. The rents are deposited each month, minus administration fees and VAT of course, into my account with BancoEstado.

All could go sideways in the future, of course, but as of now, all is well.

The corredora recommended to me was (Ack! just edited out - I thought a positive referral was OK - so sorry!), in Rancagua. My experience so far has been very good, and I have no connection to her other than the professional one. She doesn't know of my recommendation, and I might well have been equally happy with other agents.

Best of luck to anyone who might be considering a similar situation.
First off, I'm really sorry about your parents. I miss my grandparetns and a cousin a lot, and yet my parents are still alive, so I know I really don't even have a clue yet as to what that feels like.

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).

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nwdiver
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Re: Rent out or sell half of duplex

Post by nwdiver » 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........
It's all about the wine.

at46
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Posts: 870
Joined: Fri Sep 20, 2013 6:13 pm
Location: Vancouver/Santiago

Re: Rent out or sell half of duplex

Post by at46 » 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.

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nwdiver
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Re: Rent out or sell half of duplex

Post by nwdiver » 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?
It's all about the wine.

at46
Rank: Chile Forum Citizen
Posts: 870
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 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.

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