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Post by Nicola on Jun 1, 2004 12:03:05 GMT 1
Can anyone explain why an agent would want to push purchase through the Co route? I know they want a quick sale (for their fee) but my understanding is that I can complete just as quickly through the private route if I'm willing to buy pending Ministry permission.
Have I got this wrong?
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Post by hamster heaven on Jun 2, 2004 6:13:37 GMT 1
i think it takes 3-6 months to complete transaction with MoFA versus company route which is a lot faster (2-4 weeks i think) according to martin's wellesly book. you should buy it.
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Post by Nigel on Jun 2, 2004 16:42:58 GMT 1
Don't go down the Company route until you have talked to a good Accountant, the tax implications could make it a regrettable move. Estate Agents who try to push Company sales have (in my opinion) a hidden agenda.
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Post by LawyerHr on Jun 3, 2004 16:09:43 GMT 1
Estate agents try to push this route because it is a faster way to completion. Nothing else. Ups I almost forgot, to charge you the setting up!  Relating to approvals, it takes some time, but they are always granted, specially if you know someone to push it through a little bit faster, it's no problem. Relating to the tax implications, unlike mentioned before, there should be non of serious issue. The co will pay the land tax, and not you peronaly, alhought there isn't a big difference. ;D |
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Post by Nicola on Jun 4, 2004 10:04:21 GMT 1
I assume therefore if I pursue the private route I will be exposed to the possibility of the vendor selling to someone else during completion time. Do they have to refund just my deposit or double it if this happens?
Note I did buy Martin's book but I've lost it!
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Post by bangarda on Jun 4, 2004 10:59:40 GMT 1
I have been told that it can take up to eighteen months to get the purchase approval from Zagreb, in the meantime we complete the purchase of the property, having a 'lean' on the property deeds, until the approval happens, only then do we take full ownership? We hope to buy in Istria  Our solicitor in Croatia felt buying as individuals was a better option. But he also said that should we rent the property, and gain an income - we will have to file tax returns by the 1 April annually. |
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Post by hamster heaven on Jun 5, 2004 5:48:30 GMT 1
Don't go down the Company route until you have talked to a good Accountant, the tax implications could make it a regrettable move. Estate Agents who try to push Company sales have (in my opinion) a hidden agenda. actually, there are tax benefits to selling as a company! according to martins book. have an accountant take care of the books and rent it out occassionally to show some income. the cons are the cost and time to set one up. about $5k euros (of which you get 3k back as part of liquidity in company). and of course, the speed to which you can own, is big. i myself am looking into the company route. the company route takes 3-6 months. |
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Post by hamster heaven on Jun 5, 2004 5:54:11 GMT 1
actually, there are tax benefits to selling as a company! according to martins book. have an accountant take care of the books and rent it out occassionally to show some income. the cons are the cost and time to set one up. about $5k euros (of which you get 3k back as part of liquidity in company). and of course, the speed to which you can own, is big. i myself am looking into the company route. the company route takes 3-6 months. I'm american btw. martin's book is geared towards brits. there is a possible double taxation issue which, if british, you need to look into. can one not declare it? possible but if you refinance your UK for one in croatia, that may not be possible. martin says and quotes the times prop article about house of lords ruling. i've got a $150k euro max budget.....i'm not sure what the prices are now for coastal places in Dalmatia (omis, brac, etc). Is this still feasible for a old place that needs work or 'doing up". btw, i can't stand concrete and the Craots seem to go nuts for concrete. Must the former communist influence....cheers... |
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Post by Nigel on Jun 5, 2004 17:14:36 GMT 1
All im saying is talk to a Pro before going down the company route. The British tax man will chase you off the face of the earth if he thinks he can get your money. I read that Indians who now live in Britian are being taxed by the British tax man on property they still own in Bombay!!!
PS If you break the pre-agreement you lose your deposit, if they break it they have to pay double.
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Our solicitor in Croatia felt buying as individuals was a better option. But he also said that should we rent the property, and gain an income - we will have to file tax returns by the 1 April annually.