What is reverse rent? Pay for residence with rent

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Although the reverse mortgage is possibly the best-known option, the reverse rental represents another alternative to obtain financing in exchange for renting a home. What are your requirements? Does it have tax advantages? Who is it intended for? We tell you everything you need to know about reverse renting . What is reverse rent? Reverse Lease Requirements Features of reverse rental Difference Between Reverse Lease and Reverse Mortgage Tax advantages for reverse rental Steps to follow for reverse rental The reverse rent, how much money do they grant? Does reverse leasing have any costs? How long does the reverse rental last? What is reverse rent? Reverse rental was devised in 2016 by the company Pensium and consists of a form of financing in which a person transfers their property to a company that, in exchange, provides periodic payments. Meanwhile, the company receives the rent from the tenant to recover the money advanced, since they usually provide several months of entry so that the owner can cover the costs of assistance.


Reverse rental aims to provide complementary income to older people to cover their care expenses in nursing homes or in a home, to guarantee their best care. That is, the apartment is rented to pay for the residence , for example. Reverse rental is emerging as one of the most attractive products of the year thanks to the tax credits included in the 2023 General State Budgets (PGE). Reverse Lease Requirements This financing Phone Lead option is aimed at a particular person profile and not everyone can access it. The key requirements are: That the person requesting the reverse rental has a Degree of Dependency (recognized or in process). That there is a home that can be used for rent . That the person(s) who owns the home have the capacity to sign (it may be through power of attorney or legal guardian). That the person allocates the income to assistance expenses : For example, that the money obtained from renting the apartment is used to pay for the residence. Features of reverse rental If you are considering reverse rental and you meet the requirements, these are its main features: It offers higher income than traditional rental.



The reverse rental contract must be formalized in a public deed and registered in the Property Registry. The loan is paid with the rent of the property . Monthly installments can be adapted to the needs of the moment. The property can be of any type : main residence, second home or other. The rental can be canceled at any time. Difference Between Reverse Lease and Reverse Mortgage The most relevant difference between both concepts is that in reverse rental you do not lose ownership of the house nor do you have to mortgage it. Additionally, the initial costs of a reverse lease are less than those of a reverse mortgage. Tax advantages for reverse rental The tax advantages of reverse leasing include : Exemption from paying the Tax on Property Transfers and Documented Legal Acts, which varies between 0.75% and 1.5%. 50% bonus on notarial fees and 90% reduction in registration expenses. Other advantages granted by regional regulations . These tax benefits only apply to people with some degree of dependency recognized by the Public Administration (including Grade I).