Net performance

(+) Gross returns:

• The amount that the purchaser, transferee, lessee or sub-lessee 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 related-party transactions, the valuation of said returns will be carried out at their normal market value.
• When received from family members, whether spouses or relatives, including in-laws, up to the third degree inclusive, 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

  • Limit of the two previous expenses: They may not exceed, for each asset or right, the amount of the gross income obtained
  • Exceeding the limit: The excess can be deducted in the following four years.
• Taxes, surcharges and fees
• Doubtful debts
• Insurance contract premiums
• Supplies
• Contract formalization costs
• Legal defense expenses.
• Amounts accrued by third parties as a result of personal services (including administration, concierge).
• Other necessary tax-deductible expenses

(-) Amounts allocated to amortization:

• Property: 3 percent on the highest of the following values:

  1. Acquisition cost satisfied corresponding to the construction
  2. Cadastral value, excluding the value of the land

• Personal property transferred together with the property: Order of March 27, 1998

• Rights or powers of use or enjoyment over real estate

  1. Fixed-term: acquisition cost divided by the number of years of duration.
  2. Lifetime: 3% of the acquisition cost paid

  Amortization expense limit in this case : the full returns derived from each right or faculty

(=) Net return on real estate capital