How SOL to prove income for credit?

How SOL to prove income for credit?

 

Question:
Hello!

Please clarify the following case: Ltd. with two partners, and we both want to apply for a mortgage loan. Accordingly, we must be employed. And here is the question, after we are on contracts, should we continue to pay insurances for self-insured persons, or only under the contract, ie. both types of insurance remain or only those under the contract.

Thanks!

 

Answer:

Hello,

Given that you are the owner, there is no way to "self-appoint" an employment contract in your company (we pay attention to the term employment contract). The bank really wants you to prove to them that you have some income. There are two options:

- Management contract. You can sign a Management and Control Agreement with you. Ie while you cannot "self-appoint" an employment contract, you can "self-appoint" a Management Contract as managers in your company. In this case, you will no longer owe social security contributions as self-insured persons, but the company will owe social security contributions, which, depending on the activity, may be significantly higher than the social security contributions you currently pay as self-insured persons. On the other hand, your salaries and social security contributions will be recognized as an expense of the company, which will reduce the company's profit and you will pay a lower profit tax at the end of the year. In any case, in monetary terms, you will pay more as employed on a Management Contract than as self-employed persons, but at least you will be able to prove that you receive income as individuals.

- If your company has generated a profit over the years, you can distribute this profit as a dividend among the owners. This will be your proven income and most banks are willing to lend for such income.

We hope we have been helpful.

Greetings!