raza
Junior Member
Posts: 22
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Post by raza on Jan 18, 2007 10:34:58 GMT 1
has anybody got any information on how the ministry of justice is dealing with previous applications to buy which were lodged with the ministry of foreign affairs. have they issued new application numbers yet for their inherited list. is there anyway of obtaining up to date info on progress of specific applications-ie is there a dedicated email address or telephone number/contact /website that can be acccessed to get this info. does anyone know how long it will take to deal with the backlog. any information would be appreciated
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Post by Carol on Jan 18, 2007 18:43:10 GMT 1
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Post by rijekafan on Feb 3, 2007 18:11:41 GMT 1
The best way is to buy a place through a company and then apply for permission to privately own later. This can take up to two years.
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Post by Carol on Feb 4, 2007 5:19:05 GMT 1
except that way you will pay stamp duty two times because first it would be your company which owns it and later you personally would buy it from your company.
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Post by mirabelle on Feb 4, 2007 20:40:41 GMT 1
also undersatnd that capital gains "free" time does not start until permissions given (for live in owner) personally (not company) so can we live long enough for the 3 years to begin?
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Post by rijekafan on Feb 5, 2007 10:48:05 GMT 1
I stand corrected. You are right about the double stamp duty whack. Aussies cant personally own places so I forgot about that.
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Charles
Full Member
www.aplaceindalmatia.com
Posts: 75
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Post by Charles on Feb 5, 2007 21:22:09 GMT 1
A recent official Ministry of Justice (MoJ) document throws some interesting light on the timescales. Previously, individuals had to seek permission to buy from the Ministry of Foreign Affairs (MoFA) but a new law was passed on the 25 July 2006 transferring this responsibility to the Ministry of Justice, ostensibly to speed up the process. Receiving permission had been taking anything up to 18 months.
A recent assessment of the process (15 January 2007) by the MoJ shows how slow the process is. The process was finally moved to the MoJ on the 20 October 2006 and 3,111 outstanding requests were passed over from MoFA. In the interim, the MoJ had received 288 requests direct. Up to the 15 January, there were 5,627 applications outstanding, a rise of 2,328. The Ministry had started solving 1,971 of which there had been 479 solutions (they don't distinguish between acceptances and rejections), 993 requests for further documents and 499 requests made to local authorities to establish reciprocity (incidentally requests have come in to establish reciprocity with Brunei, the Philippines, Indonesia, the Congo and Venezuela amongst others!). Despite the addition of 6 extra staff it would appear that the process will still be a slow one for the foreseeable future!
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raza
Junior Member
Posts: 22
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Post by raza on Feb 22, 2007 13:15:19 GMT 1
thanks charles for the information. is there an email address or telephone number that can be contacted direct to gain the up to date status of individual apllications? anf further information on the current situation/projected timescales would be welcome thanks in advance
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Post by bheywood on Mar 2, 2007 15:59:21 GMT 1
The best bet is to hassle your lawyer into chasing them up; my wife and I tried on our own and although we're two years into Croatian nightclasses we couldn't progress further without better language skills!
It does all come through in the end, though. We bought in September 04 and got our permission through late 06. It then took 2 further months for our local authorities to give their stamp of approval, but we paid our 5% last month and now officially, officially, officially own our house.
Those still waiting - don't despair. And don't worry about the CGT either. After all, you're not one of those rapacious developers who only bought to make a quick buck, are you...?
Ben
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Post by brianmcc on Mar 4, 2007 20:01:46 GMT 1
Hello Raza, You can contact the MOJ on the following number, 00385 1371 0779. They will only accept calls from foreign owners on Wednesdays. You must have your case number (Upe). The MOJ will give you your new case number as they have created their own numbers which will be different from your old case number that you got from the MFA. Hope this helps
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furio
Junior Member
Posts: 25
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Post by furio on Mar 27, 2007 15:29:55 GMT 1
Hi,
I just recently purchased a property with a company. The transaction had to be done quickly because of highly motivated seller. Actually the truth in this case and I got a well good lawyer to sort things out. So after doing a bit of research after the fact, of course, I realize it would be better off for me to own as an individual due to the exhorbanant cost of bookkeepers and property management.
So to sum up I am looking to sell the property to myself out of the company. I understand that the stamp duty will be applied twice but aside from that what other pitfalls and costs are there? Is there anyone out there who has actually gone this route and can pass on their experience?
Thanks for the help.
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furio
Junior Member
Posts: 25
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Post by furio on Mar 27, 2007 15:47:34 GMT 1
Let me just add my intention overall is to have the property as a vacation place and not for income generation
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Post by Carol on Mar 28, 2007 8:51:28 GMT 1
Hi Furio ... I don't know anyone who has done the transaction you are describing. If you do decide to do it though, it seems like a good idea to keep your company active until your MoJ permission arrives as the company is now the owner and it will help things if you do decide to sell the property completely before your MoJ permission comes through (currently taking 2-3 years). If it helps I can give you the contact details of an accountant who speaks english and will do the book-keeping for a dormant company for €200 per year. On top of that there is another €100 of taxes.
Send me an email to carol@apid.co.uk if you would like the details. She is based in Split, but you won't need to visit her, will you?
Why do you need property management at all?
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furio
Junior Member
Posts: 25
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Post by furio on Mar 28, 2007 13:23:38 GMT 1
Hi Carol thank you for your reply.
I personally have no real need for property management.
I was told by my accountant that I as the owner of a company do not have rights to use the company owned property and would have to rent like any other visitor. That being said new rules for 2006 say that a company without employees must use a registered rental agency to run the letting. So from what I know to do things legally would mean I have to go through a property management company. I also know the tourist authorities are becoming much more strict on unregistered use of holiday properties.
I also wouldn't mind letting friends use the property (actually precludes the need to have to contract with anyone to check on the place)
Do I have an accurate perspective on the situation?
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Post by nikh on Mar 30, 2007 15:58:39 GMT 1
Yes very accurate, if you pm me, we did this so i can tell you what we did but i would advise speaking to our bookeeper as every situation is different and she knows this topic well as once done once and all that. If you become a dormant company that means that you cant rent to yourself or anyone else, the contracts in this are quite tricky and we are looking at this for some other properties we are in volved in, in relation to Directors of the company etc.when I know more I can let you know. Also you could check with the guy in SPlit that does licencing pm me for his details as he is working on some of these issue now in relation to contracts with the lawyers nd bookeepers and Inspector as wel as tax office direct and he did mention something about a change in law that might be helpful.You will have a problem regarding being a private owner and rental licence and taxation. the law changed and has become quite complex. If yo have friends satying under teh law this means that they are considered to b paying guests and tt must be paid by the owner ie you. tt office now linked to tax office and therefore income is seen as being earned if its not the owner in residence and is taxable at a set amount. You need some very good advise before you jump as it is very complex.
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