Dear Ross
There was never any pro to setting up a company. The only pro was for the agent selling as they could create the illusion of a lesser price. You were either innocentlly or maliciously deceived
Get yourself a good lawyer, pay the VAT on the deposit you have paid reassign the contract into your own name and bin the company.
Reason I say that you need a lawyer as I have saw instances of companies buying and the contracts are ultra vires.
Rose Garden is one of the better off plans in Bucharest so you do not have to worry about your investment. However, I would if I was you take a good look at the agent you purchased from as he or she has does not know this market and you should be reluctant to have any further reliance upon them.
If you have any problems e mail me direct.
David Howe LLB. LLM
INVESTMENT ROMANIA - Investment in Romanaia, Property management, Due diligence, Renting in Romania
Quote:
Originally Posted by ross510
Hi David,
I have read a lot of negative material regarding the setting up of a company to purchase a property in Romania and I am now worried that I have made a huge mistake.
Currently I have signed a contract on a 1 bed off plan in the Rose Garden development, Bucharest, which is due to complete next year. When I first set this company up back in 2007 it was generally accepted that this route would mean that I would avoid paying the VAT. However, I now understand that the law has changed and that the company will now have to pay the VAT anyway (although I may be able to claim the VAT back). So as it appears that the major pro for going the company route has now been removed (i.e. not paying VAT) should I and could I now transfer the contract and therefore the purchase over to myself as an individual?
I presume that I could flip the contract over to myself as an individual as a straight forward sale at the same price as stated in the original contract. Obviously I would lose the amount that it has cost me to date to set up the company, the cost to disolve the company after the sale and the legal fees to transfer the contract, but I am thinking that this may be considerably less than I would lose in the longer term if I continue the purchase through the company.
I would really appreciate any advise that you can offer.
Many thanks,
Ross
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