It is much more difficult for an individual entrepreneur to purchase a home purchase loan than for an individual who is an employee. Mortgage for IP implies a number of factors that make the loan process lengthy and problematic. For an employee, a coveted loan may be obtained by proving the existence of a stable average salary. There are, of course, a number of additional requirements and documents, but this is basic. An individual entrepreneur has only one main requirement – the level of income from his business. The problem is that with the salary almost always everything is absolutely transparent. Help on form 2-NDFL clearly shows how much a person receives per month at their work. What’s wrong with business profitability? What documents are needed here?
Key value taxation system
Oddly enough, only one certificate on the form 3-NDFL, ie, a tax return, certified by the tax authorities. Again, the problem rests on the fact that the business of an individual entrepreneur is more complicated than the salary of an individual. Banks badly and rarely give housing loans to individual entrepreneurs, mainly because in the Russian Federation there is a mosaic system of taxation in this sector. One may ask: what is wrong here? The fact that income indicators are influenced not only by the amount of taxes that the entrepreneur regularly pays, but by the system by which these payments are made.
It may be that business is included in the overall tax system. Or the entrepreneur pays taxes under the simplified plan, when the amount of income is reduced by the value of the expenses of the enterprise. And it is the income in such a simple scheme that will be subject to taxation. Practice shows that these two options are the most transparent. It is much easier to get a loan with them. Especially when a businessman pays tax on turnover, but on profit after each transaction. The trouble is that not all businessmen who are interested in the mortgage for individual entrepreneurs have the opportunity to use such taxation schemes.
Alternative taxation schemes: pros and cons
The most common reason for switching to other systems is the shortage of cash required to cover the tax burden under a general or simplified taxation scheme. Analogs are two options – UTII (single tax on imputed income) and the patent system. The same Sberbank or Good Finance do not welcome individual entrepreneurs working within the UTII or on a patent. Other banks too. For the reason that here it is often unclear the real level of income of the entrepreneur. UTII according to Chapter 26.3 of the Tax Code of the Russian Federation replaces a whole complex of other taxes (on profit, VAT, unified social tax, on the property of a company). Plus the tax on income of individual entrepreneurs as an individual is also abolished.
Only insurance premiums are required. It is not surprising that many novice entrepreneurs are forced to do business using UTII. Moreover, the adherents of practically all types of business have the right to work in such a system (transport, veterinary medicine, cargo transportation, public catering, retail, etc.). So what’s the problem? Imputed income is possible, not real income. Its calculation is made taking into account all the factors that form the income of the enterprise. The tax rate is 15%. The entrepreneur simply pays a single amount, replacing a whole “bunch” of all other taxes. Anyway, it turns out more profitable. However, it is difficult for banks to determine how high the profit is, the degree of profitability, the overall prospects of the business.
And banks are in no hurry to issue a housing loan to such an IP. By the way, it may just be that the amount of taxes paid will show the income that the bank considers too low. Although Sberbank and Good Finance, these strips are trying to keep fixed. The patent system of taxation (PNS) was recently introduced (2013). Its interest rate is even lower – 6%, and exempts the patent from 3 taxes: VAT, personal income tax and property of individuals. True, each constituent entity of the Russian Federation has its own nuances regarding the list of types of business that are permissible for the PNS, but the spread of this system continues. However, the payment of some insurance premiums together with the non-attendance of the tax service by an individual entrepreneur prevents banks from receiving full information on the latter’s income.
Housing crediting of individual entrepreneurs
Good Finance offers individual entrepreneurs who want to get an apartment, a number of mortgage programs (“Trust”, “Revolving”, “Investment”). The interest rate in the housing sector for entrepreneurs is slightly higher compared to the mortgage lending of employees. In this bank, it is 12.65-14% with an initial deposit of 20-25%. However, the rate may increase for a number of reasons (low down payment, long loan periods, flaws in business transparency). Mortgage in Good Finance imposes the following basic requirements for borrowers leading entrepreneurship:
- standard set of personal documents with copies (passport, military ID for men under 27 years old, TIN, etc.);
- extract from EGRIP;
- tax return for the last reporting period (for the general taxation system), for the last year (for the simplified scheme) or for two years (for UTII). Under the patent scheme, it is necessary to negotiate individually with the bank;
- not necessarily, but it is highly desirable to have at least some business experience. Individual entrepreneurs who started their business yesterday are advised to wait for a bit;
- at the time of mortgage loan repayment, the borrower must be no older than 65 years;
- PI can buy the same residential real estate objects as hired employees;
- if business implies licenses and permits, everything will be required;
- Of course, the general and most important requirement is business transparency, which allows you to quickly and accurately assess the level of income that a business brings to a businessman.