Maximum income from renting out an apartment. Residential rental: in search of maximum profitability

The less prestigious the area, the more profitable it is to rent housing there, CIAN analysts have found. Apartments in New Moscow, Kapotnya, Lyublino and Kuzminki pay for themselves the fastest, but they are also more difficult to sell than housing in prestigious areas.

Attractive Kapotnya

The average yield from long-term rental of an apartment in Moscow in the first half of 2016 was 5.5%, according to a study prepared by specialists from the CIAN company. In other words, you can pay for an apartment in the capital by renting it out in just over 18 years. However, the period varies significantly for different regions.

As it turns out, the owners of the most expensive real estate in the city center find it most difficult to recoup the funds spent on their purchase. The leaders of the anti-rating included the Arbat, Khamovniki and Gagarinsky districts. Here, the capitalization rate (the relationship between the price of an asset and the amount of annual income received from renting it out) fluctuates in the range of 4–4.5%, CIAN points out. Thus, having bought an apartment in these areas, you will have to wait 22–25 years for a return on investment.

Buying an apartment in the least prestigious areas, on the contrary, is the most promising investment decision, according to the research data. The maximum profit for investors will come from renting out apartments in the settlements of Pervomaiskoye and Marushkinskoye in New Moscow, as well as in the Kapotnya district in the South-Eastern Administrative District. Capitalization rates here range from 6.4 to 6.7%. That is, the rentier will be able to recoup their investments in 15–15.6 years. The leaders in terms of profitability (6.7%) are three-room apartments near the Moscow Oil Refinery in Kapotnya.

This effect is due to the fact that as you move away from the city center, rental rates do not decrease as much as the cost per square meter, explains CIAN.

The study is based on an analysis of over 1 million advertisements for the sale and rental of housing in Moscow, posted on the cian.ru portal in 2012–2016. At the same time, rental rates and housing costs were discounted taking into account the dynamics of prices and rental rates.

Company "Miel-Rent" provides approximately the same figures as CIAN, however, without division by region: the capitalization rate for economy-class apartments in the capital ranges from 4 to 7% per annum.

One-room apartments are more popular

Renting studio apartments has grown in popularity over the past year. “Their share in the demand structure increased by 3 percentage points over the year. and amounted to 58%, notes General Director of the Domofond.ru portal Eric Segerborg. - At the same time, the number of contact requests for advertisements about offers for rent of two-room and three-room apartments, on the contrary, became lower by 1 percentage point. - 34 and 7% respectively.” The average rental rate also decreased over the past year in all housing segments by 3%. You can rent a one-room apartment in Moscow for an average of 30.8 thousand rubles, a two-room apartment for 43.3 thousand rubles.

Rentier rule

CIAN data confirms the so-called golden rule of the rentier, says Sergei Shloma, director of the secondary market department at Inkom-Real Estate: “The smaller the living space, the cheaper it is, the more income it brings. From this point of view, purchasing luxury real estate for rent is a unique pleasure: the profitability of elite real estate is minimal compared to standard housing.”

The yield from leasing luxury real estate varies between 1–4% of the initial investment amount, depending on the cost per square meter, decoration, equipment and furniture, estimates Yulia Kovaleva, director of the urban real estate rental department of Kalinka Group. Distance from the center also often plays in favor of rentiers. “In our database there is an apartment on Butikovsky, 5, in the Ostozhenka area, which is rented for $10 thousand per month,” Kovaleva gives an example. “At the same time, the owner recently rented out a relatively cheap apartment on ½ Taras Shevchenko embankment for $15 thousand.”

More democratic options are not only more profitable, but also faster. For example, economy-class apartments are now sold out within a few days on average, but last year even a few hours were enough, estimates Oksana Polyakova, deputy director of the apartment rental department at Inkom-Real Estate. “Today, comfort and business class apartments take about two weeks to choose from seven to ten options,” she continues. “Last year we looked at three or four apartments for no more than four days.” Elite apartments can be on display for as long as desired until the owner decides to adequately reduce the rental rate.

If we take the statistics on average for the region, CIAN’s conclusions are logical - cheaper areas bring greater profitability, agrees Anna Moiseeva, general director of the Home Staging real estate agency. On the other hand, profitability always depends not only on the area, but also on the specific apartment. The expert lists several signs of a liquid property: small footage, low price, proximity to the metro and the center. “It is important to always remember that at some point the apartment that is currently being rented will still have to be sold,” Moiseeva notes. “And then factors that are beneficial to the rentier will make it less liquid for the seller.”

Buy closer to the center

“The duration of exposure of apartments for sale, of course, depends on the quality of the apartment itself: the adequacy of its price, house and floor,” notes Anna Moiseeva, general director of the Home Staging real estate agency. “But in general, an apartment in a more prestigious area can be on display for about two to three months, versus six months or more for less marketable apartments in remote areas.”

The fact that real estate located closer to the center sells better is evidenced by Rosreestr data. For example, in the first half of 2016, almost 15% fewer transactions involving the transfer of rights to residential premises were registered in the Moscow region than during the same period in 2015: 294.7 thousand and 345.4 thousand transactions, respectively. These statistics mainly describe transactions in the secondary housing market.

Demand for new buildings is also decreasing. From January to June 2016, the number of agreements for participation in shared housing construction (DDU) in the Moscow region decreased by 4%, to 41.3 thousand.

In Moscow, on the contrary, transactions with both new and secondary real estate began to be concluded more often. The total volume of transactions with the transfer of ownership of housing increased by 10.8%, to 62.7 thousand.

The popularity of Moscow was influenced by the fact that over the past year and a half, Moscow developers have brought to the market a record volume of new projects that can compete in price with the Moscow region, explains Tatyana Kalyuzhnova, head of IRN-Consulting. Discounts also played a role. “In about 30% of projects, with 100% payment, you can get a 5–10% discount,” notes Kalyuzhnova.

Average price of 1 sq. m in new buildings in Moscow (in the area from the Third Transport Ring to the Moscow Ring Road), according to IRN, today amounts to 172.3 thousand rubles. In the Moscow region at the end of June it amounted to 85.4 thousand rubles. for 1 sq. m, according to the company's research "Miel-New Buildings" . But when looking at specific offers, the benefits of buying an apartment in Moscow become more clear. For example, in mid-June the Zheldoripoteka company launched a new residential complex “Atmosphere” in the Lyublino district of the South-Eastern Administrative District. At the stage of preparing the site for construction work, the cost of one- and three-room apartments with an area of ​​34.9–76.9 sq. m. m is 4.1–11.1 million rubles, or 115–145 thousand rubles. for 1 sq. m.

For one “square” in the Opalikha O3 residential complex, located in the Moscow region, 13 km from the Moscow Ring Road, you will have to pay an average of 124 thousand rubles, and the price of apartments, according to the developer’s website, is estimated from 2.4 million to 6.86 million rub. (for a one- and three-room apartment, respectively).

Even the most profitable investments in the long-term rental market are significantly inferior in profitability to traditional bank deposits. According to the Central Bank, the basic level of return on ruble deposits for more than one year in July was 10.7% per annum.

If you rent an apartment, you are generally required by law to file a tax return and pay taxes. If you are renting out an apartment not as an entrepreneur, the declaration that you need to fill out is the 3-NDFL declaration. And the tax that you need to pay on your income is personal income tax (personal income tax). Otherwise, such a tax is also called “income tax”.

The 3-NDFL declaration is submitted to the tax authority every year. So, in 2018 you submit a declaration on income received from renting out an apartment in 2017, in which the tax payable is calculated. You also have the obligation to submit a 3-NDFL declaration with all the information to the tax authority if you rent out an apartment in one city and live in another (For example: renting out an apartment in Moscow, for which you are also required to pay tax ).

If you are renting out an apartment this year, then you must submit a 3-NDFL declaration and pay the 2018 apartment rental tax in 2019.

When and where to file a declaration in 2018

The 3-NDFL declaration is usually submitted at the end of the calendar year in which you received income from renting out an apartment. At the end of the year, but no later than April 30 of the year following the one in which you received income. The declaration, as a rule, is submitted to the tax office at the place of your permanent registration (even if the housing you rent is located in another place). You are not required to submit any documents with the declaration, but it is advisable to attach a copy of the lease (or rental) agreement to the declaration. This makes it more likely that the inspector will understand everything in the declaration and will not ask you for additional information. But please do not give the original contract, as it will not be returned. The declaration can be sent by mail. This way you won’t have to go to the tax office. Most often, if the documents are completed and submitted correctly, the inspection will not ask any further questions.

When and in what amount are taxes paid on apartment rentals?

You will need to pay income tax yourself. That is, it is your responsibility, and you must pay the tax yourself, without waiting for the tax office to send you a notice. The tax payment deadlines are not the same as for filing a return. Payment of taxes for renting out an apartment is made no later than July 15 of the year following the one in which you received the income. The apartment rental tax for so-called tax residents is 13%. As a rule, a tax resident, regardless of citizenship, is someone who permanently lives in Russia (more precisely, spent more than six months in Russia in the calendar year in which the income from renting out housing was received).

Example

Throughout 2017, Alexandra from St. Petersburg rented out an apartment in Moscow for 25,000 rubles a month. At the end of 2017, Alexandra independently filled out the 3-NDFL tax return by (no later than) April 30, 2018. She sent her to the tax office in St. Petersburg at Alexandra’s place of permanent registration. She attached a copy (not notarized) of the lease agreement, made independently, to the declaration. Alexandra sent the declaration and a copy of the agreement by mail so as not to waste time “going” to the inspectorate. Until July 15, 2018, she independently paid 39,000 rubles in income tax (at a rate of 13%).

How to do everything with Taxes

On the Taxation website you will find everything you need to correctly fill out and submit a tax return in any part of Russia and not pay unnecessary taxes. Now you don't need to go to consultants. You can do everything yourself much faster and cheaper:

1 Fill out the declaration on the Tax website. With us, filling out the declaration correctly will be quick and easy.

2 Download the attachment list template for sending the declaration by mail. A template for a simple one-page inventory can be downloaded from the “3-NDFL Declaration” / “How to submit 3-NDFL” section of the website.

3 Send the declaration by a valuable letter with a list of attachments. You don't even have to go to the tax office.

To proceed to filling out the 3-NDFL tax return on our website, please click the Next button below.

According to the law, the owner, when renting out personal living space, is obliged to pay tax to the state. Today the rate is 13%, but an increase is possible next year.

Taxation applies to all persons, both individuals and legal entities, who receive profit.

Accompanied by obtaining material benefits.

Consequently, the owner is obliged to pay tax in the amount 13% for individuals or 6% for individual entrepreneurs.

It must be drawn up and registered if the premises are rented for more than 12 months.

Having agreed on the transfer of the right to use an apartment or house to the tenant, both parties to the transaction must secure it in a written agreement.

Lease and lease should not be confused, since in both cases different types of contracts are drawn up.

The parties are referred to as the lessor and the tenant. This agreement provides for further accommodation in the premises of an individual tenant and members of his family, for example.

When drawing up a contract, you need to take into account possible difficulties and controversial issues. There must be a description of the property located in the premises, its appearance, conditions for resolving controversial issues, terminating the transaction, and so on.

The drawn up agreement must be registered. This procedure is carried out Federal Tax Service And city ​​administration.

For this you will need documents:

• , for housing;
• civil passports of the parties to the agreement;
• to the premises;
• 3 copies of the contract;
• landlord's statement;
• power of attorney, if the actions are not performed by the owner;
• payment receipt .

Registration takes just over 2 weeks. You can submit the package of documents yourself, send it by a valuable letter with a list of attachments, or online.

If the housing will be rented out for a period of less than 12 months, the contract does not need to be registered (Article 609 of the Civil Code of the Russian Federation).

Calculation of personal income tax from the owner when renting out housing

Regardless of whether registered or not, the owner must pay tax to the state budget, because it makes a profit (object of taxation).

To determine the amount to be paid, the monthly payment must be specified in the contract.

This is done once a year. The deadline for paying personal income tax in 2015-2016 is set until May of the year following the year in which the apartment was rented.

The declaration is accepted by the tax office at the place of registration of the home owner. The current tax rate is 13% .

If the tax is not paid, the tax authorities may fine the owner a large amount.

The owner of the apartment calculates the tax on his own. The declaration form must be obtained from the same Federal Tax Service.

When calculating the amount, you need to take into account the following nuances:

Federal Tax Service employees will provide the owner of the premises with payment details.

The tax amount is calculated using the following formula:

H = A * C * 13%,

N– the amount of tax to be paid;
A— rent (specified in the contract);
WITH– the number of months in which the apartment was rented out;
13% — tax rate for 2015.

If the apartment is rented out, that is, to a legal entity, the landlord himself must withhold tax. It simply adds 13% to the rental amount. The state appoints him as a tax agent in such relations.

Procedure for paying personal income tax on profits from housing rentals

After filling out the declaration and attaching the agreement and personal documents to it, visit the tax office. Ask the staff for bank details.

You can make a payment and through the post office. You can also pay for the completed receipt virtually through any bank online from your bank account.

You can pay the tax once a year or by making advance payments over 12 months. The main thing is that by May of the current year following the reporting year, the owner has fully paid the tax dues.

If the owner has registered as an entrepreneur, then he is also required to submit a declaration to the Federal Tax Service. However, in addition to tax, insurance payments to the Pension Fund of the Russian Federation are also subject to payment, which exceed 30 thousand rubles per year.

When using a patent, the individual entrepreneur pays its cost and 50% of insurance payments.

Is the tenant subject to taxes and fees?

The person renting the premises does not pay taxes.

His only obligation is to pay the rent to the owner of the property on time and in full. If the contract specifies a clause on necessity, this also becomes mandatory for residents.

An exception is the case when the text of the contract itself states that The tenant must pay the tax.

Then, the company is the tax agent of its employee and pays tax instead of the owner of the premises, but at his expense.

Consequences for a homeowner who refuses to register an agreement and fails to pay taxes

If the premises are rented for a period of more than one year, the contract must be registered.

The tax amount can be significantly reduced by registering as an individual entrepreneur. When an entrepreneur chooses a “simplified” plan, his responsibilities include paying for everything 6% of the profit received.

If it is done without registering the contract and, accordingly, without paying tax, the owner will face punishment.

Of course, sanctions will be applied only if the Federal Tax Service somehow becomes aware of this fact.

If the declaration was not submitted and the tax was paid, the owner faces punishment - fine of 5% of profit specified in the declaration for each month of delay (Article 119 of the Tax Code of the Russian Federation).

If even after the fine the owner does not pay the tax, then the penalties will increase by another 20% of the amount not included in the budget. Minimum fine - 1000 rubles.

In addition, the owner of the apartment may even be subject to criminal liability for tax concealment. It occurs if taxes are hidden on a particularly large scale ( over 600 thousand rubles), which the owner had to pay up to 3 years.

Article 198 of the Criminal Code of the Russian Federation determines the amount of the fine in this case - 100–300 thousand rubles. An alternative option is forced labor for up to 12 months, arrest, and imprisonment for up to one year.

However, in order to collect the actual tax and/or fines, the tax service must prove in court the fact of illegal rental. In practice, such cases are rare.

Even if a police officer or prosecutor’s office employee comes to the apartment and is interested in the people living in the housing, it is very difficult to prove the fact of hiring.

Often, residents introduce themselves as friends, relatives, or acquaintances.

Often no one draws up documents confirming the transfer of money, limiting themselves to verbal agreements.

If, however, the landlord does not want to pay the tax, you should not limit yourself to an oral agreement.

More expedient enter into a free use agreement, which guarantees at least the safety of the property and premises in their original form.

Otherwise, the owner may not receive payment, discover a debt or broken furniture in the apartment.

Video: How to calculate tax on rental income?

The program explains what tax payment responsibilities fall on homeowner-tenants.

It is discussed in what amount and when the personal income tax is paid on income from rental housing, how the procedure for filing a tax return and the actual payment of tax occurs, and how the owner can minimize the amount of tax payable.

There are two ways to earn income from residential real estate - through profitable sales and by renting out housing. Moreover, if in the first case we are talking about a one-time receipt of funds, then in the second, the owner of the property can count on long-term passive income, which makes this strategy similar to placing savings on a bank deposit.

However, Russians consider renting out housing a more effective way to earn money than a bank deposit. According to surveys by the analytical center of the National Agency for Financial Research, citizens named the purchase of real estate as the most reliable investment (49%). “Buyers who choose the rentier route receive a certain amount from month to month, but the downside is the payback period is 15-18 years long,” notes Natalia Kuznetsova, general director of the Bon Ton real estate agency.

According to the INCOM-Real Estate company, currently 44,644 residential real estate properties are rented out within the old borders of Moscow alone, of which 88% are apartments and 12% are rooms. Over the year, total supply increased by 27.5%. That is, the number of Muscovites renting housing increased by a little more than a quarter during this period.

“The growth in rental supply is evidence of the social vulnerability of a significant segment of the population. Indeed, for many, renting out housing is becoming the main source of income,” comments Oksana Polyakova, deputy director of the apartment rental department at INCOM-Real Estate.

As the Miel-Arenda company notes, today one-room apartments are the most in demand on the rental market. More than 30% of all tenants are looking for this particular type of housing, although during the crisis the share of rooms in the rental market also increased.

Rentier with a mortgage

The main reasons for the popularity of the rentier strategy are currency volatility and mortgages. In the context of a weakening ruble, many sellers are refusing to sell the property in favor of renting it out. Moreover, the majority of apartments purchased for subsequent rental were recently purchased using a mortgage loan, says Oksana Polyakova.

For rental purposes, buyers most often consider options in Moscow with a convenient location and proximity to the metro; preference is given to apartments that are ready for finishing.

Nevertheless, investors' fervor gradually faded as the housing market in modern Russia developed. Today, according to Natalia Kuznetsova, the share of investment transactions in the primary market is up to 4-5%. For comparison: according to CIAN, just a year ago the share of investment transactions in new buildings was 9%, and in the early 2000s it reached 35%.

“The problem with this strategy is the long payback period. The yield is up to 7% per annum (for comfort-class projects), which does not cover the real level of inflation,” says Kuznetsova.

At the same time, according to her, deposits cannot be called a more profitable alternative - their average market profitability is quite comparable to the profitability from renting out housing.

Deposit or apartment

The BEST-Novostroy company compared the profitability from leasing with the profitability from placing funds on deposit.

“Taking into account fluctuations in rates on ruble deposits and changes in average budgets for purchasing an object (for comparison, we took a 2-room apartment in a new building), the rental yield remains almost comparable to the profitability from placing a deposit,” commented the chairman of the company’s board of directors “ BEST-Novostroy" Irina Dobrokhotova.

But don't forget about the details. The investor receives the highest interest if he does not withdraw it and does not replenish the deposit before the expiration of the term, while the funds from rental can be spent monthly for his own needs, or can be sent to a replenishable deposit. Thus, the owner of the apartment can receive double benefits, Dobrokhotova notes.

But renting out an apartment also has its downsides, she noted. This is the need to pay personal income tax (it can be reduced from 13% to 6% by purchasing a patent or acting as an individual entrepreneur), the need to pay property tax, as well as depreciation expenses (current repairs). Also among the disadvantages is the risk of loss of income if the contract with tenants is terminated early. There may be agent commission costs if the apartment is rented with the help of a broker.

In order to avoid paying a broker's commission, some landlords look for tenants by posting advertisements on Internet sites, notifying friends and acquaintances, etc. But this is becoming less and less popular: landlords are learning that they can be serviced for free by real estate agencies with their own database of properties.

Thus, according to INCOM-Real Estate, over three years the share of independent renters decreased by 25 percentage points to 20%. In the fall of 2015 it was 45%, a year later - 32%, and in 2017 - only 27% of homeowners tried to act on their own.

Don’t forget about the disadvantages of placing funds on deposit. If the license is revoked or the bank goes bankrupt, there remains the risk of non-return of the deposit when placing an amount in excess of 1.4 million rubles. Another significant drawback is the impossibility of withdrawal or loss of interest in case of early withdrawal of funds from the deposit.

While experts argue and compare the profitability of a deposit in a bank and renting out an apartment, the rental housing market has begun a gradual recovery after the crisis - in August it showed an increase in prices. “The average cost of renting 1-room economy class apartments in August 2018 was 31,670 rubles, which is 5.96% higher than the average cost of similar apartments in August 2017,” commented Maria Zhukova, director of the MIEL-Arenda company.

*For the 30 largest banks, data from the Central Bank of the Russian Federation **Data from bnMAP.pro

Last updated March 2019

The real estate market is currently experiencing a downturn. Despite this, many owners continue to rent out their own apartments, wanting to generate additional income.

What documents need to be drawn up when renting out housing, what taxes to pay, what liability is provided for violators - you will find answers to these and other questions in our article.

How to register a property for rent

If you own an apartment (or other residential premises) that you plan to rent out, then you need to know what documents are drawn up, as well as what the tax is when renting out an apartment.

Conclusion of an agreement

The relationship of renting out housing is called either hiring or renting.

The agreement between you (the landlord) and the tenant must be recorded in writing in the form of an agreement. There is no strict standard form for the contract, but the text must indicate:

• the subject of the contract, that is, the home itself. The contract indicates the full address of the property, characteristics (area, floor, number of rooms, etc.), cadastral number;
• rental amount and payment procedure. Describe the amount of payment and the frequency of its payment. As a rule, the employer makes payments every month in a certain fixed amount. It is also possible that the rent is determined monthly by calculations (for example, taking into account the inflation index, dollar exchange rate, cost of utilities, etc.). When concluding an agreement, the owner has the right to fix the possibility of increasing the rental price, but subject to certain restrictions (for example, no more than once a year, and no more than 10%).
• details of the parties (passport details, registration addresses, TIN).
• date and place of conclusion of the contract.

You can supplement the contract with other information that, in your opinion, is essential.

Payment guarantees

It is a good idea to specify the conditions for receiving and returning the deposit and its amount. When renting out housing to tenants, you can request a so-called guarantee payment - payment for the last month of residence (in advance). This money will be a kind of safety net for you in case the employer decides to move out ahead of time and refuses to pay. The guarantee payment is also used as compensation for damaged furniture, plumbing fixtures and other property. All these details must be taken into account in the contract.

Contract time

It is important to indicate in the agreement the duration of its validity. Such contracts are concluded for a period from 1 month to 5 years, and unless you indicate otherwise, it is considered valid for a maximum period (5 years). It is advisable to highlight a separate point - how long you are renting the apartment and how you can terminate the agreement.

This usually indicates the time in which each party is obliged to notify the other of the planned termination of the agreement. You can also indicate the conditions when you have the right to terminate the contractual relationship yourself (systematic violation of payment terms, deterioration of the condition of the housing, residence of strangers who are not tenants, etc.).

After drawing up an agreement with all the conditions, the agreement is sealed with the personal signatures of the parties. Registration of the agreement with a notary is not required.

When concluding an agreement for a period of 12 months or more, it must be registered with Rosreestr. But many owners do not apply to the Unified State Register authorities for registration. then there is a risk of claims from regulatory authorities. In order to reduce risk, you can enter into an agreement for a period of 11 months. Or for an indefinite period (but then such an agreement can in any case be valid for no more than 5 years).

Transfer and Acceptance Certificate

The transfer of housing for use to the tenant is formalized by a transfer and acceptance certificate. It dates from the day the tenant moved in. Scrupulous owners usually indicate in the deed the condition of the housing, as well as all valuable property that is located in the apartment and is transferred to the tenant for use. If you come across an unscrupulous tenant, then if you have an act with a detailed list, it will be easier for you to prove the fact of loss of property. This means it is easier to return it or compensate for its cost.

Proof of payment

Having signed the agreement and transferred the housing for use to the tenant, you have the right to demand payment from him according to the agreed conditions. It is important to record in writing all the facts of the transfer of money - this will help to avoid possible disagreements. Payment under the agreement can be made in two ways:

• The employer gives you the money in cash. Each transfer must be formalized with a receipt indicating the amount, date and purpose (for rent). Then seal the document with the signatures of the parties. This confirms payment (for the tenant) and receipt of money (for you);
• Funds are transferred to your current account in non-cash form. This method has a number of advantages: firstly, it is convenient, since there is no need to waste time on a personal meeting, and secondly, payment documents (receipt, payment order, bank statement) are certified by the bank, therefore, they are a much more reliable confirmation of payment.

Despite the undoubted advantage of non-cash payments, tenants prefer to meet with tenants in person and, as a rule, in a rented apartment. Under the pretext of receiving money, the owner evaluates the condition of the property and the reliability of the tenants.

If, in addition to rental payments, you charge the cost of utilities from tenants, then their amount should be indicated separately in the receipt (for bank payments, require payment with a separate receipt). This will help you avoid possible inaccuracies and confusion.

Taxes when renting out an apartment: documents, calculations, payment terms

When you rent out your own apartment, such activity is subject to taxation. There are several ways to pay tax on apartment rentals. Let's look at each of them and use examples to determine how to make the payment minimal.

Personal income tax payment

This method of fulfilling obligations is the simplest, as it does not require registration or additional documents from the lessor. All you need to do is draw up a declaration in form 3-NDFL and submit it to the fiscal authority. You can receive the declaration form in one of the ways convenient for you:

• personally apply for the document to the Federal Tax Service at your place of residence and fill it out on the spot according to the sample;
• download the form on the official tax website and fill it out at home yourself (3NDFL Declaration for 2018), indicate the income code 1400 ;
• register on the Federal Tax Service website using the “Personal Account”, fill out the form in the program and send it by email.

Drawing up a declaration is not a complicated procedure. In the form you need to fill in your personal data (full name, tax identification number, registration address, etc.), indicate the income received from renting out housing at the end of the year, as well as the amount of the fee, which is 13% of income.

News: apartments will be offered to renters! This is the so-called self-employed tax. The law is being tested in Moscow, the Moscow region, the Republic of Tatarstan, and the Kaluga region. If the experiment succeeds, the tax rate will be 4%!

When renting out an apartment, it is important not to delay filing a declaration and paying taxes.

• The completed declaration in form 3-NDFL for 2018 must be submitted to the Federal Tax Service by April 30, 2019 (for 2019 – by 04/30/2020),
• And transfer the tax to the budget before July 15, 2019 (for 2019 – until July 15, 2020).

Example 1

Resident of Tula Sergeev S.L. rents out his own room. According to the agreement, employers pay Sergeev 7,320 rubles. per month. For 2018, Sergeev received an income of 87,840 rubles, which he reported to the tax office by filing a declaration. Sergeev must pay a fee of 11,419 rubles. (RUB 87,840 * 13%) until 07/15/2019.

IP on the simplified tax system

Another way to legally rent out housing is to register an individual entrepreneur using the simplified taxation system (STS). This method has both pros and cons. On the one hand, when registering an individual entrepreneur, the amount of rental tax is not 13%, but 6%, plus a fixed annual contribution to the Pension Fund in the amount of 29,354 rubles. (from 2019 Unified Social Tax). In addition, you will need to go through the registration procedure:

• collect documents (passport, application);
• pay the state fee of 800 rubles;
• submit documents to the INFS at the place of registration (in person, by mail or using the electronic resource on the Federal Tax Service website);
• make advance payments of 6% of the rent amount every quarter.

If all documents are filled out correctly and provided in full, then after 3 days you will receive a registration certificate and an entry sheet in the State Register.

• for the 1st quarter of 2019 – until 04/25/2019.
• for the 2nd quarter of 2019 - until July 25, 2019
• for the 3rd quarter of 2019 - until 10/25/2019
• for 2019 - until March 30, 2019

It is important to know that in addition to tax, you, as an individual entrepreneur, need to pay contributions to extra-budgetary funds. If you rent out housing yourself and do not have registered employees, then in 2019 you will have to pay a fixed amount of 29,354 rubles. All contributions to the funds for 2019 are transferred until December 31, 2019. The amount of contributions reduces the tax amount at a rate of 6%. And if contributions are paid quarterly, then they will reduce the tax within a year. And if once a year, then the reduction will occur at the time when their actual payment is due. The deduction procedure is simple:

• You pay your dues quarterly;
• at the end of the year, you submit a declaration in which you indicate payments to extra-budgetary funds;
• calculate tax at a rate of 6%;
• subtract the amount of transferred insurance premiums from the tax amount;
• the difference is payable by the due date of the advance payment.

Taking into account the additional costs and registration, this method looks unattractive for the landlord. In order to understand whether there are real savings here compared to paying personal income tax, let’s consider an example with the conditions described above.

Example 2

Resident of Tula Sergeev S.L. I registered an individual entrepreneur on the simplified tax system and rent out my own apartment. According to the agreement, employers pay Sergeev 7,320 rubles. per month. For 2018 Sergeev:

• received an income of 87,840 rubles. (7.320 * 12 months);
• transferred insurance premiums of 26,545 rubles. (this amount was in 2018, respectively, for each quarter - 6,636);
• calculated the tax according to the simplified tax system, which must be paid quarterly (87.840 * 6% / 4 = 1.318).

Since the amount of insurance premiums that Sergeev transfers every quarter (6.636) is more than the simplified tax system fee of 6% (1.318), then there is no need to pay tax - the deduction covers it in full.

Let's compare the results obtained with an example of calculating personal income tax: under the same conditions, the total expenses of the landlord-individual entrepreneur amounted to 26,545 rubles, the owner for personal income tax - only 11,419.

Landlord on patent

Another way to legally rent out housing is to apply for a patent. Its essence is that when purchasing a patent, you pay the fee “in advance” based on the average possible annual income that you can potentially receive at the end of the year. This indicator is fixed by law. Its size is determined by regional authorities. You have the opportunity to buy a patent for a certain type of activity (in this case, rental housing) for a period of 6 or 12 months.

You can buy a patent only after registering an individual entrepreneur. Having in hand a certificate of registration of an individual entrepreneur and an application for the use of the PSN (patent tax system), go to the tax office at the place of registration. The patent will be issued to you within 5 days, its validity begins from the moment of issue.

The PSN, like the simplified tax system, is beneficial for owners who rent out not one, but several expensive apartments. That is, they have high incomes. This is because the tax base (potential income) tends to be above average. And although the tax law limited the base to 1,000,000 rubles, regional legislators have the right to increase it up to 10 times for individual landlords. For example, owning a home up to 75 sq. m in Moscow, you will have to pay 36,000 rubles.

Responsibility for non-payment of tax

Above, we described the procedure for officially registering a lease and analyzed how it is more profitable to pay income tax. But few owners resort to such transparent relationships with the state. Many owners rent out an apartment without paying taxes, without declaring the income received. What then awaits the violators? We'll talk about this below.

How to identify the violator

If you rent out an apartment and do not pay taxes, then information about such activities may be available to the authorities. Neighbors often talk about this. If there is noise, guests disturbing the residents of the house, or disorder on the floor, you can be sure:

• one of the conscientious neighbors will definitely inform the district police officer about this;
• Also, similar information can be obtained from public law enforcement organizations, if they exist in your city.

As soon as the district police officer receives information about possible illegal activity, he conducts a walk-through, interviews residents, and obtains information about residents and possible illegal tenants. Then you, as the owner, are interviewed, including checking personal documents and confirmation of ownership of the home. All information is documented in the form of statements and written explanations. This data is sufficient to confirm the fact of illegal rental. Then the information is transferred to the Federal Tax Service.

Another way to identify the violator is the Rosreestr database, where lease agreements for a period of 1 year or longer are registered. But, as we said earlier, the owner can sign a contract for a period of 11 months. In addition, the laws do not contain a direct requirement to register contracts for up to 12 months.

Arbitrage practice

If the Federal Tax Service has sufficient documentary grounds and evidence of a violation, then the case is sent to court. Although the tax office can, through its own inspection, hold you accountable (charge taxes, fines and penalties).

If the tax authority does not have a lease agreement

• When there are no supporting documents in the form of an agreement, it will be very difficult to prove the fact of the lease.
• The basis for the accusation in this case is the testimony of neighbors who state that people living in the apartment are not registered there, and the guests often change.
• But “resourceful” owners prove in court that relatives live in the apartment for free, because this is not prohibited by law.
• In this case, the tenant should understand that the court may require confirmation of relationship. In addition, by deceiving the court, the owner may be punished for giving false testimony.
• However, judicial practice shows that it is almost impossible to prove the fact of a lease based on “denunciations” from neighbors alone.

If the Federal Tax Service has a lease agreement

The situation is more complicated if the Federal Tax Service has received the executed lease agreement. But even here, options are possible, because you still need to prove the fact of transfer of money. This can be done if payments are made through bank payments, and if you receive money “in hand” without receipts, then there is no confirmation of payment in this case. One of the tricks of violating landlords is to draw up an agreement for free use, that is, in principle, there can be no payment under this agreement. In fact, the owner receives money from employers in cash without documents.

Fines, penalties, criminal liability

Although it is difficult to prove the fact of receiving income from the illegal rental of housing, such cases still occur. What awaits the violator?

The main government complaint is that the owner, having received income, did not give his “share” to the budget in the form of taxes. Therefore, the first thing that the Federal Tax Service Inspectorate, having received confirmation of the lease from the Ministry of Internal Affairs, will require is to pay off the debt on budget fees. To this amount you need to add:

• Penalty for non-payment of tax. The amount is 20% of the arrears. If the court proves that evasion of payment was committed intentionally (and in most cases this is exactly what happens), then the fine increases to 40%;
• The fine for failure to submit a declaration is 5% for each month of delay. The declaration must be submitted by April 30. If on 09/01/2019 you paid off your tax debt for 2018 in the amount of 3,420 rubles, then you need to pay an additional fine of 684 rubles. (3.420 * 5% * 4 months). In this case, the amount of the fine is limited to 30% of the debt amount, but cannot be less than 1000 rubles.
• Penalty for late tax payment. The indicator is calculated for each day from the last day of payment (established by the Tax Code) until the day of actual payment. The penalty is determined by the formula: P = 7.75% / 300, where 7.75 is the Central Bank refinancing rate. That is, when paying off a tax debt in the amount of 3,420 rubles, you will need to pay an additional 0.9 rubles. (3.420 * 7.75% / 300) for each day of delay.

For those who have violated the law not for the first time, the responsibility becomes stricter: the violator will have to pay a fine twice as much as required.

Criminal liability

• If the total collection debt turns out to be more than 900,000 rubles, then you will need to pay tax. The court will also impose a fine of 100,000 - 300,000 rubles, or the owner may be imprisoned for up to 1 year.
• A violator whose debt to the budget is more than 4 million rubles can also go to prison. If the fact of guilt is proven, the lessor can be imprisoned for up to 3 years.
• In addition, if several apartments are rented and the owner has not registered an individual entrepreneur, then he may be recognized as an illegal entrepreneur. The annual income of such an owner must be more than 2 million. The punishment is also severe - a fine (from 100 thousand to 300 thousand rubles) or imprisonment for up to 2 years.

As you can see, it can sometimes be very difficult to prove the owner’s guilt. But if the court nevertheless proves that you rented out the apartment without taxes, then liability for violations can be very serious.

Example 3

In 2017 Savelyev K.D. rented out his own room unofficially. Savelyev did not file a declaration by 04/30/2018 and did not pay tax in the amount of 4,630 by 07/15/2018. The court proved Savelyev’s offense, he paid the fee on 09/30/2018. In addition, Savelyev was charged a fine for non-payment, a penalty for late payment, and a fine for failure to submit a declaration. Let's calculate each amount:

• The penalty for non-payment is 926 (4.630 * 20%).
• The penalty for each day of delay is 1.62 (4.630 * 10.5% / 300). For 77 days (from 07/16/2018 to 09/30/2018) Savelyev will pay 124 (77 * 1.62).
• The fine for failure to submit a declaration is 231 for each month (4.630 * 5%). Savelyev was 5 months overdue, so he will pay 1.155 (231 * 5 months).

Thus, Savelyev will pay 6.835 (4.630 + 926 + 124 + 1.155) to the budget.

Question answer

Question:
If the landlord has registered an individual entrepreneur using the simplified tax system, should he keep records of expenses?

Answer: No, if he applies a rate of 6% of income. If an individual entrepreneur operates at a rate of 15%, then records must be kept. This is due to the fact that the tax base is calculated using the formula “income minus expenses”. Practice shows that most landlords register individual entrepreneurs at a rate of 6%. This is beneficial since the owner does not have employees and does not incur significant costs for services and materials that must be taken into account.

Question:
The landlord has rental income in excess of 300,000 per year. Does the tax rate change for him?

Answer: No, the rate remains the same. But if at the end of the year you managed to receive an income of more than 300,000, then you additionally need to transfer 1% of the income to the Pension Fund.

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