Empty housing can significantly improve the financial situation of its owner: income from rental. It is enough just to find respectable tenants who will not only keep the property in perfect order, but will also pay for the opportunity to live under their roof.
Characteristic of the Slavic mentality is the desire to receive net profit without taxes. Therefore, in those situations where this is possible, transactions are carried out bypassing the tax service. And renting an apartment in this case is perhaps the clearest example. Only a small percentage of landlords declare rental income. The overwhelming majority are looking for loopholes: “do I need to pay tax on income from renting out housing?”, “responsibility for renting out an apartment without paying tax deductions?”, “do I need to pay tax on the rental of non-residential premises?” and what is the penalty for renting out an apartment without paying taxes. All these questions are aimed at achieving the goal - to avoid punishment when making profits without paying taxes.
At the same time, few of the owners who illegally rent out housing understand the magnitude of responsibility when renting out an apartment, ignoring taxes on income for renting. Therefore, the amount of fines and punishment for concealing income comes as a complete surprise.
Taxes when renting out an apartment
The country's Tax Code (more precisely, Article No. 19 of the Tax Code of the Russian Federation) stipulates that both an organization (their branches and divisions) and an individual are required to pay taxes and fees. The owner of a rental property falls into the latter group. The exception is cases when the property is registered in the name of an organization or individual entrepreneur.
The obligation for individuals who are also landlords is to submit a tax return, drawn up and completed according to f. 3-NDFL. The document must indicate the full amount of income received from renting out the apartment. The deadline for filing a return for the previous year is 30.04. current year. Before you go to pay the fee (tax) for renting out an apartment, it is important to make sure that all the numbers are indicated correctly and the payment is calculated correctly. Upon verification and acceptance of the declaration (according to f. 3-NDFL indicating rental income) by the tax office at the place of registration, you need to transfer the payment to the service details. And this should be done before July 15. current year.
The amount of income tax when renting out apartments depends on the rental price specified in the contract. The standard rate for personal income tax is 13%, if you do not take into account the amount of fines, penalties or, on the contrary, reductions.
Official delivery of real estate
From a legal point of view, this is the most profitable option for the owner in relation to the property. The advantages of official rent include the following:
- There is no need to be afraid that the tenant will destroy the property or not pay for accommodation or utilities.
- The transaction is completed according to all the rules, everyone is protected.
- You can draw up an official lease agreement yourself, including all the points that concern the owner.
- There will be no problems with the Tax Inspectorate due to concealment of income.
The rental agreement is concluded between the residents and the owner of the apartment. It appears as an official document that confirms the legality of renting housing. The document contains all the information about the transaction, terms, conditions, guarantees and obligations of both parties.
Two types of contracts are practiced. This is a rental agreement - it is concluded in cases where an apartment is rented to an individual; it does not need to be registered. The lease agreement is concluded with legal entities; mandatory registration is required if its duration is more than 1 year.
In the contract you can specify all the conditions that are relevant to you. For example, the amount of the monthly fee, payment terms (down to the date and time), time for checking the apartment, etc.
Taxation protected by law
The legislative branch stipulates the obligation of citizens to report on their profits. The payment for renting out the apartment is calculated from the total amount of receipts, which is taxed on the individual’s income.
Ignoring this obligation will entail liability based on articles of the tax or even the Criminal Code. Before you think about how to rent out an apartment and not pay tax on this source of income, it is worth understanding that, based on the severity of the crime and its individual indicators, the case falls under:
- Article 171 of the Criminal Code of the Russian Federation, which classifies the crime as illegal business activity when receiving income over 2 million rubles.
- Article 198 of the Criminal Code of the Russian Federation, which relates undeclared rent to activities aimed at evading physical activity. persons from paying taxes and contributions if the amount of debt for three years is more than 900 thousand rubles.
- Article 122 of the Tax Code of the Russian Federation, which describes actions in terms of “non-payment of tax” or “incomplete payment” of the amounts of tax or insurance fees and other contributions.
The listed documents cover situations in which the owner of a rental apartment is silent about the income received (hides funds, does not indicate the source in the declaration, indicates incorrect amounts). However, if the declaration is not submitted at all, the incident also falls under Article No. 119 of the Tax Code of the Russian Federation.
Control measures of the tax office to identify rental apartments
“Who needs my apartment?” - owners who evade paying taxes often think. You need to remember that if today the tax office is not interested in the proceeds to your account, then tomorrow it may well react.
- The Federal Tax Service operates a special automated system that signals the inspector if a person’s bank account consistently receives significant unidentified amounts.
- In addition, banks help the tax office work. Upon seeing suspicious activity, the bank may block the account and demand an explanation.
- If the lease is registered in Rosreestr, information from the Unified State Register will be sent to the tax office automatically.
- Finally, reports from good-natured neighbors or disgruntled tenants about illegal apartment rentals must be checked.
With the introduction of the self-employment regime, it is easier to pay 4% of the change and sleep peacefully.
Penalties for renting out an apartment without paying tax
Each article provides for a monetary fine. At the same time, the list of risks associated with renting out an apartment without paying tax is not limited to administrative measures. The Criminal Code also envisages measures up to and including arresting the defaulter and sentencing him to prison.
Yes, Art. No. 171 of the Criminal Code of the Russian Federation covers those cases when the landlord, who did not pay taxes on income, initially purchased an apartment for rent. Then, as an illegal entrepreneur, the defendant is obliged to pay a tax on renting out an apartment, a fine of up to 300,000 rubles, or attend community service for at least 480 hours or be arrested for six months. If the case of undeclared income from the rental of housing is carried out under Article 198 of the Criminal Code of the Russian Federation, the landlord will have, without taking into account the tax for the apartment that was previously rented, to pay an amount in the range of 100-300 thousand rubles or arrest for up to 6 months, or forced labor or deprivation freedom up to 12 months.
The Tax Code provides for a fine for non-payment and a penalty for late payment. The amount will be 20-40% of the total debt subject to the apartment rental tax. The lower limit is set for property owners who have stumbled once. The upper limit is set for defaulters who rent out an apartment and deliberately avoid declaring their income. The late fee is calculated as a percentage and is equal to 0.0033 of the refinancing rate established by the Central Bank of the country.
The absence of a completed declaration at the tax office (Article No. 119 of the Tax Code of the Russian Federation) is fraught with the issuance of a fine in the amount of 5-30% of the monthly tax payment for renting an apartment. The fine for illegal (read: undeclared) change, which explains the lack of declaration, cannot be less than 1 thousand rubles, but should not exceed a third of the monthly payment.
It is worth noting that some situations involving evasion of tax payments to the budget from apartment rental income may fall under three articles at once, and the degree of punishment will be assigned based on all possible measures. Moreover, if the apartment was purchased as a personal home, and the owner came to the attention of the tax service for the first time, he may be exempt from criminal punishment. Naturally, provided that the entire amount of debt, including fines and penalties, is repaid promptly.
“The neighbors gave it away”
The owner, who was quietly renting out his apartment, suddenly received a lawsuit: the management company demanded to pay a decent amount for water and electricity (almost 116 thousand rubles).
It turned out that several vigilant neighbors contacted the Criminal Code with complaints that two residents lived in the apartment. Formally, no one was listed on the apartment’s personal account; fees were charged to the owners only for housing maintenance and heating; there were no meters in the apartment.
A commission consisting of an engineer, a management technician and the chairman of the house council drew up an act on the residence of unregistered residents in the apartment, and the owners were charged for water and electricity.
The court satisfied the claim, reducing only the amount of the penalty (Novo-Savinovsky Court of Kazan, case No. 2-4935/18). The management company’s act may also serve as the basis for imposing a fine for failure to register temporary registration for residents and collecting tax arrears.
After the minimum amount of tax debt in the Criminal Code of the Russian Federation was increased to 900 thousand rubles, the number of sentences against illegal housing landlords decreased sharply.
As you can see, financial sanctions now mainly predominate: fines, collection of arrears, additional rent charges.
And to believe that no one will find out and get by is a clear utopia. Unlock access to the private part of Clerk with a Premium subscription. Get hundreds of webinars and online courses, unlimited consultations and other proprietary content for accountants.
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How are violators caught?
As you can see, renting a home without paying taxes can deprive the owner of not only money or property, but also freedom. It would seem that such harsh measures should turn citizens’ declarations into the most transparent document, but no.
The reason most landlords choose to take the risk of not paying income tax on the apartment is the low likelihood of discovery. In addition, for a tenant, evasion of taxes by the apartment owner does not pose any danger. Renting and living in someone else's apartment (with the owner's knowledge) is not punishable by law. The logic is simple: if you rent out living space on personal communications, there is no notarized rental agreement or a stack of checks in the “purpose” column of which the payment for the apartment being rented out is indicated, the likelihood of being caught concealing income is low.
At the same time, it is worth remembering the existence of unforeseen factors. Tenants may turn out to be conflicting, creating disturbances for the peaceful living of neighbors. Then a group statement from several residents can start the verification process and reveal unpaid taxes on rental income.
Or friction may arise directly between the owner and the tenant. In such a situation, even a minimally legally savvy tenant, who has an agreement and/or checks in hand, is able to set things in motion. The situation is especially aggravated by the fact that when renting premises from an individual or organization that does not pay taxes on income, the tenant will be treated as a witness, but not an accomplice. This is an additional answer to the question “do I have to pay taxes?”
Is it possible to rent out a room without the consent of the neighbors?
The owner has the right to dispose of the property at his own discretion. But his rights may be limited by the rights of other citizens.
Therefore, the need to obtain the consent of neighbors before renting out living space directly depends on the premises itself:
- A room in a communal apartment - no permission required. Each object is a separate premises owned by a specific owner. Therefore, each owner has the right to independently dispose of their property.
- A room in an apartment that is in shared ownership - renting out the property is prohibited. Shared ownership is considered ideal. Therefore, a citizen does not have rights to a specific room. He can use the entire apartment as a whole, but does not have the right to rent out the room.
- A room in an apartment, with a definition of the right of use - the room can be rented out with the consent of the co-owners. As a rule, they do not give such consent.
- Part of the apartment allocated in kind - the consent of the co-owners is not required. From the moment it is allocated in kind, the object is considered an independent property. The owner does not depend on the opinions of co-owners.
- Separate apartment - no need to obtain consent from neighbors.
Expert opinion
Stanislav Evseev
Lawyer. Experience 12 years. Specialization: civil, family, inheritance law.
A prerequisite for leasing an object is the existence of ownership rights to it. For example, if a neighbor rents out a room in a communal apartment, which was provided to him under a social tenancy agreement, then complaints to the local government will lead to termination of the contract with the tenants. And not only the tenants, but also the social tenants of the property will be evicted from the apartment.
What do you need to know to legally rent out an apartment?
In order to keep your own property, savings and freedom intact, and also not to become a victim of pressure from tenants, it is important to understand how to properly formalize the rental of a home and pay the apartment rental tax on time. To do this, first of all, an agreement is drawn up and notarized. It is customary to draw up a lease agreement if the lessor is an organization or individual entrepreneur. If the lessor is an individual, you must sign a rental agreement.
When discussing the terms of the lease, it is worth paying special attention to the duration of the agreement. You need to understand that if the lease duration is more than 12 months, the documents for concluding the transaction must be registered with Rosreestr. Otherwise, even if notarized, the document may be considered invalid and be appealed in court.
Therefore, a common practice is to set deadlines within six months with the possibility of extending the contract with the consent of the parties. Then, when prolonging, it will be enough to draw up an annex to the main transaction document, extending the term of its conditions for another 6 months.
Regardless of the validity of the transaction, the number of extensions or changes of tenants, the tax return is submitted after the end of the year.
How to write a complaint that neighbors are renting out housing
In order for an application to be accepted for consideration, it must be completed correctly. A sample complaint is provided by the body to which the application was submitted.
Regardless of the authority to which the complaint is filed, the following must be indicated:
- name of the body to which the document is submitted;
- personal and passport data of the applicant;
- the essence of the appeal.
It is necessary to describe the reason for the application in as much detail as possible and provide information about illegal activities. If there is evidence of any kind confirming a violation of the law, it must be attached to the complaint.
Note! If the complaint is filed by several neighbors, it is necessary to indicate the personal and passport details of each person who applied.
How to rent out an apartment and not pay taxes
Obtaining the highest level of profit with full compliance with laws and competent, timely filing of declarations is possible. In relation to tax deductions on income from renting an apartment, the principle of tax deduction can be applied.
The essence of the instrument: a tax deduction when leasing property is that for certain categories of taxpayers, adjustment factors apply that reduce the amount of the contribution, and, as a result, they pay less. The following persons fall under the category of such citizens:
- engaged in charitable activities;
- deducting amounts for their own or children’s education;
- paying for expensive medical procedures and drugs;
- deducting additional amounts towards pension insurance;
- who have recently purchased or built housing.
The total amount that will be a tax deduction from income tax for rent cannot fully pay off the payment amount. As a rule, its size does not exceed a quarter of the total required deduction. In other words, you will have to pay tax on income from renting out an apartment, but in a significantly smaller amount.
Paying tax on income received when renting out an apartment is a legally established duty of the taxpayer. The presence of various benefits can reduce the interest rate, but the answer to the question “do I need to pay taxes when renting out real estate” will be positive. This means that attempting to hide income (by not declaring income) or missing rent tax payments is considered a violation of the law.
Even long-term rental of an apartment, ignoring the tax, will not be able to recoup the amount of the fine and compensate for losses from criminal punishment for concealing income. Therefore, instead of looking for ways to rent out housing and not pay into the budget, it is better to correctly draw up all the documents for the transaction from the beginning and replenish the budget gradually, than to hope for luck and end up losing everything.
Alternatives and taxpayer status
Personal income tax can be replaced with another tax at the choice of the home owner. You need to calculate your prospects, decide which option will be more profitable, and notify the tax office of your decision.
There are several options:
- become self-employed and pay 4-6% of rent;
- register an individual entrepreneur, switch to a simplified tax system (USN) and pay 6% of rent;
- register an individual entrepreneur and buy a patent for 6% of average annual income.
You need to remember about additional payments and reporting, which differ for each tax. RENOVAR.RU recommends that it is more profitable for an ordinary individual who simply rents out one or two apartments as an additional income to become self-employed.
