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Post by chapelbites on Sept 16, 2006 13:10:38 GMT 1
Having set up a Croatian company we will be obtaining a license to let for next year. We are looking at our options for property management as we still live in the UK. Can the company use the services of a private individual for this if they are established as what we would refer to as a "sole trader" or can we only use the services of another company for this?
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Post by mambo on Sept 16, 2006 13:51:33 GMT 1
If you want to be able to deduct these costs you have to deal with an official company. If you would simply pay a private person they will not accept it as cost for the company.
You could of course have that person work as an employee, but I fear that this will become too expensive. The only other way would be to simply not enter these costs into the books, but pay them privately. You cannot deduct them, but in the long run it will be a lot cheaper than hiring some company.
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Post by Carol on Sept 16, 2006 14:55:30 GMT 1
I'd heard that the law has been tightened up and now you must have evidence that someone is doing the property management work. As mambo descibes it can either be an employee or contracted out, but privately paying someone isn't an option any more. Other way is to get a business permit and do the work yourself. Without solving this question, i had understood that a rental licence would not be issued (and you can't let legally without a rental licence). I haven't seen the legislation though, so i could be wrong. Does anyone know the definitive answer?
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Post by Carol on Sept 16, 2006 14:57:22 GMT 1
Sorry I should have added the logic for the change above viz.
A company cannot be active without activity involving the work of a live human being somewhere down the line.
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Post by irac on Sept 16, 2006 16:32:47 GMT 1
Having set up a Croatian company we will be obtaining a license to let for next year. We are looking at our options for property management as we still live in the UK. Can the company use the services of a private individual for this if they are established as what we would refer to as a "sole trader" or can we only use the services of another company for this? If you have someone local you can trust, someone to look in on the place etc, then the best thing to do is the following. Pay them a minimum wage per month, as little as €20, and give them the rest of an agreed payment each time you're over. Basically you'll be putting them on short term contracts (3 month renewable) and have a book-keeper that will put in the basic minimum per month and pay it out. It's how the majority of companies here operate, esp the big ones and chain shops (Konzum, Lovric etc). It's very straight forward and negates having to pay ott (at times) for a management company.
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