bosco
Junior Member
Posts: 10
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Post by bosco on Mar 3, 2006 12:21:36 GMT 1
I bought my house through a company as it was the easiest way and thought I may do a bit of renting. Since then I've completely lost interest in prostituting my house over the internet and would rather have it to myself so I can spend endless evenings drinking Karlovacko and watching Tatijana Juric ( )on the telly. The question is does a comapany have to carry out some kind of business and/or generate any income or can I let it stand idle (aside from the obligatory tax returns) could I just state that the company 'business' is capital growth. Any experts out there ?
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Post by mambo on Mar 3, 2006 21:44:45 GMT 1
As long as you fulfill all the obligations it should not be a problem. They may ask you why you keep it in a company, but that is not their business. And if they really start making problems you can always say that you cannot find anybody who wants to rent it for the price you are asking.
But, make sure that you file all the appropriate documents in time, that you have your bookkeeping in order etc and that you pay whatever you have to pay in time.
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ianl
Full Member
Posts: 80
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Post by ianl on Mar 3, 2006 22:17:58 GMT 1
If you buy by the company route, are you obliged to keep it in a company for ever more? Can you sell it to yourself again? - or if you do that are you back in the queue for permission again?
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bosco
Junior Member
Posts: 10
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Post by bosco on Mar 4, 2006 10:51:18 GMT 1
Applying for permission wouldn't be the problem as my company and I could wait. I'd just be concerned that I'd end up paying 5% transfer tax AGAIN ! Or would I ?
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Post by mambo on Mar 4, 2006 15:11:02 GMT 1
Selling the house is of course possible, but.................
If you sell it too soon they will regard it is 'trading' for which you will need to be registered. If you are not registered as a real estate agent (buying and selling houses) then you have a problem. E.g. last year we bought a truck in Germany, wanted to use it in Istria, but maintenance (or better the service of the dealer) turned out to be a pain in the ass. We decided to sell the truck, but that was not allowed because we were not registered as official car dealers !!!
You can of course try it and get away with it, but chances are someone is going to catch on and then you have problems.
This country has rules that really can make you laugh..............and cry.
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ianl
Full Member
Posts: 80
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Post by ianl on Mar 4, 2006 20:14:03 GMT 1
What, so if I buy something and then try and sell it again, that's illegal?
Not much chance of ebay getting off the ground or car boot sales then!
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Post by Carol on Mar 4, 2006 21:49:33 GMT 1
Bosco - regarding your question. There is such a thing as a "dormant" company. You can declare your company as dormant to the tax authorities, get minimal book keeping services (cost c. €200 per year) and that's it. If you need a Split based, email-using, english speaking accountant who charges exactly this amount, then feel free to contact me and I'll give you the details of the one our company setup clients use. carol@aplaceindalmatia.com
And yes - you would be the 5% tax all over again if you sell it to yourself. Better to keep it in the company, and when you decide to sell, sell everything - company and house as a package. There are certain tax advantages...
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Post by nelson on Apr 30, 2006 19:36:15 GMT 1
Is it true that you need a Croatian co-director for the Company to exist ? If so, how do you get someone to do it. More cost presumably ?
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Post by mark2 on Apr 30, 2006 19:53:46 GMT 1
That is not true, you can open a Croatian company with one OR two UK directors and zero employees. It is quite simple, don't be put off by the many scare-mongers
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Post by nikh on May 1, 2006 20:28:54 GMT 1
true , you only need a local director if you set up your company remotely
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Post by Carol on May 2, 2006 21:07:08 GMT 1
sorry to contradict you NIKH, but you don't even need a Croatian director if you set up your company remotely. You simply do not need to factor in the director's whereabouts or nationality at all. My firm sets up companies regularly for our clients, and we do it remotely about 50% of the time often making the person living abroad a director.
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Post by irac on May 3, 2006 6:46:29 GMT 1
Carol's right on this, the Director doesn't need to be resident in the country, and can sign their punomoc/power of attorney over to their bookeeper, or they can put someone on the books for 100kn per month (about 165kns with taxes) and be seen as having a working company.
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Post by mambo on May 10, 2006 12:24:39 GMT 1
The director does not need to be a resident, that is true, but unless the law has changed the director has to be physically present in the notary office to sign that he becomes the director and that the company can be registered. We lost almost a month because of this, the lawyer first told us that we did not have to be present and then later changed that we had to physically show up at the notary. It was not possible to sign at a notary office in another country.
Has this law changed or is it again the usual story...............they have no clue about the law themselves and that is why the law is interpreted in many different ways ?
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Post by nikh on May 10, 2006 13:55:56 GMT 1
Hi! Carol Not a contradiction me thinks more like a different interpretation or way of doing things.As usual nothing is black and white. I checked this with the notary yesterday again. According to what Im being told and she may be wrong but as I deal with this person directly and the guy I use sets up companies on a daily basis and we have had no problems Im assuming all is well. Carol you may have a working relationship as we do and they work with you and that may be different to ours.As mambo says different ways of doing the same job as no one is really certain of the interpretation. However, the law is the law and the notary knows what they need, maybe different notary will give a different story??!!We do what ours says and what the companies office says. The Director needs to be nominated and there to sign and present documents , this Director doesnt need to be a shareholder,afterwards you can name who you like and hand over all running to your bookeeper or another, their are running costs and they should be paid and not scrimped upon and a good reputable bookeeper has a rate that is based on there associations . The remote shareholders have to also write a special power of attorney over with the necessary protections included,to allow someone to sign on their behalf, but according to our notary this must be a nominated director of the company, our notary makes these as she needs them to satisfy her requirements. A bank account needs to be opened and share capital put into it, I was never happy sending money to anyone I didnt know and the notarised accounts stopped this gamble. As we saw last summer money can go astray very easily. It is still even a little more complicated than i am saying and this is only and overview of how it can be done as you need to keep yourself well protected. One more thing, when you are setting up a company it is a business and not to be taken lightly it is not just a means to purchase a property. Some lawyers are expert in this field and others are not and therefore you will find lots of interpretations depending on the expertise of the lawyer in this regard. In fact as I was leaving the notaries office I met the lawyer we use to use for company set up as well and asked him the same questions and he shook his head laughing and said , how many times do I have to tell you the same thing and he repeated what she said.Our notary started to laugh and shake papers at me saying , foreigners need to stop trying to beat the system and instead join it. But if you can do it Carol, well done! How quickly can you set up a company l? We have lots of clients that need this done and i would be more than happy to pass some your way,.Contact me via pm if you would prefer.By the way I am not an expert on this I am just repeating what I am being told by the officials that do this.
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irk
New Member
Posts: 3
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Post by irk on Aug 28, 2006 14:50:13 GMT 1
Can anyone recommend an english speaking Accountant in South Dalmatia, preferable Dubrovnik Region together with typical costs ?
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