Participants in a buy-to-sell operation: capital, agreed return and settlement
Record who puts money into an operation without owning the property, what you agreed to pay them and what the result leaves each one; settle it when the property is sold.
Participants and co-owners are not the same
A participant puts money into the operation and is paid out of its result, but does not appear on the deed (in Spain, typically a "cuentas en participación" agreement). Co-owners are recorded as owners of the property, with their ownership percentage; participants are recorded on the Sale tab, in the Participants view.
What the participants earn comes out of the result first; what is left is split between the owners.
Participants and their terms are visible only to the owner and the editors of the property. A viewer never sees them, and their contact and bank details are stored encrypted.
Capital and agreed return
For each participant you record the capital committed and each payment actually made, with its date. Keyio shows how much is still to be paid in.
The return can be any mix of four things: a percentage of the result; a single return on the capital paid in, whatever the time it stays in; a yearly interest rate, counted by days on each payment from the day it was made; and a fixed amount, which you can label with what it pays for (works management, for example). If the participant has a percentage, you can also say that they bear losses: if the operation loses money they take their share of the loss, up to what they paid in. The percentages of all participants cannot add up to more than 100%.
Under "Terms of the split" you choose whether the return on capital, interest and fixed amounts are paid first, as one more cost, before the percentage is shared, and an optional withholding on what each participant earns.
Before the sale: the forecast
While the property is not sold, the view shows what each participant and you would get at your target price, with interest counted up to today. It moves as you record expenses or change the target price.
"PDF statement" produces a document for one participant with their payments, their terms and their figures. It never includes data about the other participants.
Settling once it is sold
Once the sale is recorded, "Settle" calculates the final figures from the recorded sale price and expenses and freezes them. Before settling you can adjust by hand what a participant is paid, with a note explaining why; the adjusted figure is marked as such.
A settled participant can no longer be edited. If something was wrong, "Reopen settlement" unlocks it so you can correct it and settle again.
Participants and the tax estimate
For a company-owned property, what the participants earn is deducted from the result before the corporate tax estimate. For an individual it is not deducted from the capital gain by default; you can turn that on under "Terms of the split" if your tax adviser confirms it applies to you. In both cases the result after tax is shown net of what the participants are paid.
Keyio does not calculate the tax each participant pays on what they receive.
The agreement with your participants and its tax treatment are yours to settle with your lawyer and tax adviser. Keyio does the arithmetic of what you agreed.