[e.motion]

Originally Posted by geordie

As e-motion says see the beginning of the thread and how it started, which was e-motion banging about potential (supposedly real) discounts. In particular they raised the possibility of buying through a company and the fact that investor can reclaim VAT by buying through a company, which I believe is misleading benefit that I have to take issue with because it is not as clear cut as they outline. In the event that the company makes a profit (which I very much doubt is going to be possible in Bulgaria) the investor will be hit twice by tax, which eats up the benefit of doing it this way in the first place. First the company gets taxed on the profits it makes, then when the investor takes the remainder of the profits as a dividend they will be taxed on their dividend. So the VAT benefit is eaten away in tax. At the outset investors will also have to stump up the additional costs related to the set up of the company. Granted you can take certain costs off the taxable gain, but at the end of the day it is not as simple and clear cut as you have made out. But, then again nothing is simple in overseas property because it is an unregulated market that is not policed by a financial regulator so agents can spout these spurious claims without fear of being reprimanded. It is just another example of why investors should not take anything agents say at face value and always take legal and tax advice on their investments.

Geordie

What DO YOU know about Bulgarian taxes and laws. And do you know that you can put your own company into debt to you and not pay taxes at all. HIRE A GOOD LAWYER.