|| Part 2 of a 3-part series
The new tax requirements for landlords raise many questions. Here are the answers to some of the most common queries.
6/14: I started renting before April 1, 2015. How do I issue electronic rent receipts?
In this case, you should register on the Finanças website to identify the minimum contract elements which will allow the issuing of electronic rent receipts.
To do this, simply go to the Finanças website > Tax services > submit > rent (enter your fiscal number and password) > issue of rent receipt. On this page, you should select “add another agreement” and proceed to the characterisation of the contract identifying the minimum elements. After recording this data, you can select the contract on the homepage for future use.
7/14: What are the minimum contract elements?
The minimum elements of the contract have to be recorded to automate the issuing of electronic rent receipts. Data can be changed at any time. Simply select the contract in question, select edit, change and save.
The minimum elements of the contract are:
▪ NIF (fiscal number) of the landlord and tenant;
▪ Property identification (property registration number);
▪ Contract type (for example: lease, sublease or promissory contract);
▪ Contract purpose (example: permanent housing, not permanent housing or no housing);
▪ Starting date of the contract;
▪ Amount of payment;
▪ Frequency of payments.
8/14: The lease is in the name of several tenants. Do I have to issue a receipt to each one?
It is not necessary to issue a receipt to each one. Respective identification is already part of the receipt when identified in the registration contract or in the minimum contract elements. However, if you wish, you may issue an electronic rent receipt individually to each tenant, declaring the proportional share of the payment.
9/14: We lease a property belonging to several owners. How do we issue the receipt?
Each of the owners of the property, and their respective share, should be identified in the registration contract (Modelo 2) or in the minimum contract elements, depending on whether the contract was done before or after March 31. The electronic rent receipt can be issued either by just one of them, with the permission of the others, or by all, in respective shares.
The same rule applies in the case of rented premises belonging to an undivided inheritance. However, it is the executor who must submit the Modelo 2 statement or record the minimum contract elements.
Since landlords over 65 years old are not required to use electronic rent receipts, if one of the heirs falls in this age group, he/she can issue a paper rent receipt according to his/her share or, if all agree, be part of the full invoicing of the rental income.
By Dennis Swing Greene
|| [email protected]
Dennis Swing Greene is Chairman and International Tax Consultant for euroFINESCO s.a.