we have bought a n off plan 4 bed 3 bath villa in Bucharest which should complete in december. We set up a company to purchase the property whic is in the northern part of Bucharest.

We are considering selling the property prior to completion. has anyone sold property in Romania or know how we can obtain information regarding:

1. what % is paid for capital gains tax
2. is there an amount or % profit that you are allowed to make before paying
capital gains tax.
3. Is VAT payable on an off plan property which is re-sold prior to completion.
4. If we sell before completion as part of a company can we re-claim the VAT from
the government as part of the company we have set up.

any help or guidance is greatly apprecaited.

1. what % is paid for capital gains tax

16% flat tax is taxed on profit which the company makes in a fiscal year
(which includes profit on real estate)

2. is there an amount or % profit that you are allowed to make before paying
capital gains tax.

no, but if during a fiscal year you have paid expenses on behalf your company, you
can offset this agains the profit made on your property (as profit tax is paid on profit
made within your company during a fiscal year)

3. Is VAT payable on an off plan property which is re-sold prior to completion.

Yes, when you re-sell, you actually are having to sign a new purchase agreement
between your company and the buyer (be it a company or an individual) and you
have to invoice the seller in Romanian LEI which will need to include VAT and this
VAT being payable to the Romanian state budget


4. If we sell before completion as part of a company can we re-claim the VAT from
the government as part of the company we have set up.


You can offset VAT payments made (when you bought) and VAT payments received
(when you sell) (to my knowledge this applies for a fiscal year)


Al though I am not an accountant I tried to answer your questions to the best of my abilities. It is always advisable to ask an account for a 2nd opinion

thank you for answering these questions. I have had mixed responses from the accountant about these issues. we are currently looking for a new accountant.

just one last question if we sell prior to completion can we reclaim the VAT through out company?


also are you aware of any 80% mortgages available based on the current price of the property and not the purchase price?


thanks

I have bought and sell my apartments with a spanish company called Kategora.

They are really reliable and speak good English.

Do you have experiences with other companies ?

Kind regards

thank you for this information about the spanish company I will try to contact them for guidance.

I have only experience with the developer in romania and they have not been very helpful to date.

I wish you could get good help with them.
I did

Regards

i hope so too if you could give me their ebmail or email contacts that would be great.

really apprecaite your help and support

cheers
thelma

The posting of contact details on the Property Secrets Forum is not allowed, as stated in the Terms & Conditions.

This is to protect our members.