The net return is made up of the difference between the total income and the deductible expenses in the terms previously mentioned, as represented in the following scheme:
(+) Full returns:
- The amount that the acquirer, assignee, lessee or subtenant must pay for all concepts, including, where applicable, the amount corresponding to all those assets transferred with the property.
- In the absence of proof or in the case of linked operations, the valuation of said returns will be carried out at their normal market value.
- When received from family members, be it the spouse or relatives, including relatives, up to and including the third degree, the total net income may not be less than the imputed income derived from said property.
(-) Expenses necessary to obtain income (excluding VAT or IGIC if the lease is subject to and not exempt from VAT ):
- Interest and other financing costs
Maintenance and repair costs
- Taxes, surcharges and fees
- Doubtful balances
- Insurance contract premiums
- Contract formalization costs
- Legal defense expenses.
- Amounts accrued by third parties as a result of personal services (including administration, porterage).
- Other necessary tax-deductible expenses
(-) Amounts intended for amortization:
Property: 3 percent of the highest of the following values:
- Acquisition cost satisfied that corresponds to the construction
- Cadastral value, excluding land value
Movable property transferred together with the property: Order of March 27, 1998
Rights or powers of use or enjoyment of real estate
- Of fixed duration: acquisition cost between the number of years of duration.
- Lifelong: 3 percent of the acquisition cost satisfied
Depreciation expense limit in this case : the full returns derived from each right or faculty
(=) Net return on real estate capital
Remember: The total amount to be deducted for the interest on foreign capital invested in the acquisition or improvement of the property, right or enjoyment from which the income comes, and other financing expenses, as well as repair and conservation expenses, may not exceed, for each property or right, of the amount of the full returns obtained.