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Post by mirabelle on May 9, 2007 20:17:13 GMT 1
Has been mentioned to us that selling property owned by company, ie therefore selling company, can be not straightforward – more complicated than selling property owned as individuals. Reasons cited include necessity to “prove” no debts outstanding.
Is taxation situation much different on shareholders vis a vis individuals selling (ignoring 3 years "living in" exemption) ?
Has anybody experience in or comment on this situation?
[[Is it fair to say that UK/US/Euro standard audited company accts do not prevail here as trustworthy or acceptable? (discounting that UK rules on small companies may take audit requirements away)]].
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Post by Carol on May 9, 2007 20:24:06 GMT 1
my experience.. when we do this it involves half a day's due diligence at the accountants. usually straightforward, especially if the company's only activity ever was to buy the house. What is more complicated is findign the solution for repaying or cancelling the company's debt to the former owner. Its not that difficult but you have to know what you aer doing. As for the estate agent, I find it involves more handholding than normal transactions but that is all.
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Post by mirabelle on May 10, 2007 12:01:35 GMT 1
Thanks Carol. Another scenario on this theme is that buyer wants property but not company. So can it be assumed that only difference is that purchase money would go into company and shareholders could wind company up? Sounds straightforward, and may make property sale easier, but what does winding up company entail in HR?
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Post by mambo on May 10, 2007 21:28:36 GMT 1
It is a pity that the offshore industry does not exist yet in Croatia. Then you could simply sell your company to the bank and you get the money. Only possible of course when there is only money in the company, no other assets.
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Post by rijekafan on May 31, 2007 13:03:40 GMT 1
The flat I am selling is owned by my company. I had no idea about the extra paperwork. As far as I know I have to provide a statement as close to settlement time as possible that says there is no money owing on the house. Thanks for the heads up ,I guess its just another issue that my beloved accountant has to deal with.
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Nick
New Member
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Post by Nick on Dec 28, 2007 21:10:17 GMT 1
It is not hard. You sell the 100% share of the company. The most work to be done, is done by your accountant. Pay attention that you will revaluate your property within your company and therefor you will make a big profit. Without any annually forwarded costs (what is the proper name for that in english?) you will be left with a big profit and then pay all profit taxes.
Next thing to be aware of is that, at the time of purchasing the property, you registered the loan from you (yourself) to your Croatian company with the Croatian National Bank. This eases the process of repatriating your loan back to you in the end.
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Nick
New Member
Posts: 8
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Post by Nick on Dec 28, 2007 21:11:21 GMT 1
The cost off selling your 100% share in your the company holding the property is almost the same as setting up a new company. the cost increases dramatically if the shareholders are more than one.
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Cam W
Full Member
Posts: 96
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Post by Cam W on Jan 13, 2008 4:02:12 GMT 1
We did this exact thing. We (foreigners) purchased a Croatian company from (foreigners) in order to purchase the property we were interested. It just made more sense to do it this way. Otherwise the previous owners would have had to dissolve the company and then we would have had to set up a new one - pain. We just had the courts change the company papers (of course after having our lawyer review the companies paperwork). It took less than 20 days for everything to go through and transfer over. Our lawyer said it was one of the easiest deals she had the pleasure of working on.
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