Can anyone help me with the costs involved in selling my apartment (Quadra Place) as i may look to cash in. I need to know the cost of the tax, lawyers, notaries and any other hidden extra's, i believe PS charge 5% commision on the sale and GRUPO FDP 3%.

Regards

Rob M

Sorry if this sounds harsh but wasn't this explained to you before you invested? Or shouldn't you have asked?

I learned the hard way here too - these costs must be programmed in when determining what Gain you might achieve from an investment. I was shocked when I found out the cost of exiting my overseas investments and won't make the same mistake again (ha ha! if only I was that smart)

Hi Rob,

You will need to pay a flat rate tax based on the value of your property, for most values you will be covered with 2-3% which will include your notary fee.

On top of this you should allow agents commission. Most agents charge 2-3% of the value of the transaction. Anyone charging more is ripping you off.

Other costs are usually minimal providing you intend to travel to Romania to sign all the paperwork.

Hope this helps.

Alan

Thanks for your help, i will have to have a better look at the figures and then decide if to hold or sell.

Regards

Rob M

The costs to sell apartments in Romania are as follows:
3% property value tax if you sell one apartment as an individual. If you sell another apartment there is 16% CGT as this is considered business activity. If you sell apartments as a company you pay 16% CGT. 1.000 EURO per transaction is legal cost payable to local lawyers. PS fee includes: local agent fee, advertising (both local and i-propertyassets website), local sourcing, management and coordination of local agents as well as advice and support from i-propertyassets. It all allows investors to close transactions without flying to Romania. It is true that local agent commission is 3%. However we believe that using our service guarantees the best market price for your apartments, which is not necessarily the case when you are dealing directly with other local estate agents who also charge buyers, which means they also represent buyers. We represent our clients only and we act in their best interest.

Stanislaw Staromlynski
stan@i-propertyassets.com

Stanislaw,

The taxes for individuals are not exactly as you say they are:

When selling a property in Romania the seller has to pay "profit tax" which is calculated as following (profit tax is charged on the selling price , not the actual 'profit')

In case the seller owns the property for less than 3 years

- 3% taxes on the first 200.000 RON (of the selling price!)
- 2% taxes on the amount surpassing 200.000 RON (of the selling price)

Example: 500.000 RON selling price (aproximately 135.000 EURO)
Taxes ( 3% x 200.000 RON ) + 2% x 300.000 RON) = 12.000 RON

NB: 12.000 RON is aproximately 3250 EURO

In case the seller owns the property for more than 3 years

- 2% taxes on the first 200.000 RON (of the selling price)
- 1% taxes on the amount surpassing 200.000 RON (of the selling price)

Example: 500.000 RON selling price (aproximately 135.000 EURO)
Taxes ( 2% x 200.000 RON ) + 1% x 300.000 RON) = 7.000 RON

NB: 7.000 RON is aproximately 1900 EURO

This is in accordance with the Romanian fiscal legislation 2008

In case the selling price is in EURO, the echivalent in RON for tax purposes will be calculated based on the exchange rate of the EURO/RON on the day the property is sold. Taxes are paid to the notary who transfers this money to the state budget.

Dear Stan,

Is the previous poster correct ? The post is very clear. As you know I am trying to sell my Apartment in Bucharest.

Regards

Romanian Fiscal Legislation (Codul Fiscal)

Capitolul 8.1. Venituri din transferul proprietatilor imobiliare din patrimoniul personal
(Capital 8.1 Generated Income gained from transfering personal property)


Art. 77.1 - Definirea venitului din transferul proprietatilor imobiliare din patrimoniul personal
(Definition of income of transfering personal property)


(1) La transferul dreptului de proprietate si al dezmembramintelor acestuia, prin acte juridice intre vii asupra constructiilor de orice fel si a terenurilor aferente acestora, precum si asupra terenurilor de orice fel fara constructii, contribuabilii datoreaza un impozit care se calculeaza astfel:

(At the moment of transfering any personal property or land title in writing and legally valid , the taxpayer owns a tax which is calculated as following)


a) pentru constructiile de orice fel cu terenurile aferente acestora, precum si pentru terenurile de orice fel fara constructii, dobandite intr-un termen de pana la 3 ani inclusiv:

(for buildings of any kind including land (with or without a construction on it), which came in the possesion of the current owner but not more than 3 years the following tax is due):


- 3% pana la valoarea de 200.000 lei inclusiv;
(- 3% until the value of 200.000 LEI)

- peste 200.000 lei, 6.000 lei + 2% calculate la valoarea ce depaseste 200.000 lei inclusiv;

(- the amount surpassing 200.000 LEI , 6000 RON + 2% on the sum surpassing 200.000 RON is taxed)
at 2%

b) pentru imobilele descrise la lit. a), dobandite la o data mai are de 3 ani :

(for property described at lit a , but in personal possesion for more than 3 years)

- 2% pana la valoarea de 200.000 lei inclusiv;
(- 2% until the value of 200.000 LEI)

- peste 200.000 lei, 4.000 lei + 1% calculat la valoarea ce depaseste 200.000 lei inclusiv

(-for the amounts surpassing 200.000 LEI, 4000 LEI (= 2%) + 1% calculated over
the amount surpassing 200.000 LEI)


Source: http: / /www .codul -fiscal .ro /?page _id=6

Sorry, for quoting it in Romanian/English , but this is the exact article (including the percentages as mentioned in my message in English) as specified in the Romanian Fiscal Legislation Law 571/2003 (completed and modified therafter)

Hello pserenity,

Our source of information confirms the posted information on taxes in Romania with the following comments:

a) the income tax, for the revenue gained when transferring personal property, in the percentages mantioned above, is to be paid by a natural person (individual), regardless of his/her citizenship, when transferring the ownership title over real estates located in Romania; the income tax is not to be paid by a legal person (i.e. Romanian company) which is required to cover the capital gain tax instead

b) the income tax is to be retained by the notary in front of which the sale-purchase agreement, having as object a real estate located in Romania, is to be signed (before the signing of such document)

c) the income tax represents a percentage to be related to the entire value of the estate and not to the obtained profit. The real estate’s “value” represents: a) the selling price, in case this price is higher that the estimated value of such property – as yearly announced by the Romanian notaries public congregation - . In case the price is lower than the estimated value announced by the notaries, the amount of the income tax is to be extracted by applying the percentages to the estimated value by the notaries.

I hope this helps.

Stanislaw Staromlynski
stan@i-propertyassets.com