jh385
New Member
Posts: 4
|
Post by jh385 on Sept 3, 2012 17:01:22 GMT 1
I had to setup a Croatian company to enable me to buy a property over there. Now that I've sold the property, I want to close the company as it's no longer needed (it has no liabilities, debtors, creditors or assets left)
Has anyone been through this before? - I've been quoted €10k to voluntarily liquidate the company, which seems high to me.
Is there an easy/cheap way to close down a Croatian company?
|
|
|
Post by crojoe on Sept 3, 2012 18:23:40 GMT 1
I had to setup a Croatian company to enable me to buy a property over there. Now that I've sold the property, I want to close the company as it's no longer needed (it has no liabilities, debtors, creditors or assets left) Has anyone been through this before? - I've been quoted €10k to voluntarily liquidate the company, which seems high to me. Is there an easy/cheap way to close down a Croatian company? Yes, wait! If your company has not been active for a while it might get automatically closed by the government. Seems they are in a rush to close any dormant company's before joining the EU. In fact, it was suppose to be finalized last month but they have extended the time line. No one can tell me how it is playing out. Another one of those great idea schemes with no landing gear or people about to explain how or when it will work.
|
|
|
Post by Madgolfer on Sept 5, 2012 6:20:32 GMT 1
jh385. I assume that your buyer did not want the company as well as the property? Has the legal status of the property changed since you bought it?
|
|
jh385
New Member
Posts: 4
|
Post by jh385 on Sept 6, 2012 12:42:54 GMT 1
Thanks for the replies so far. Closing the company is proving more difficult than selling the house! jh385. I assume that your buyer did not want the company as well as the property? Has the legal status of the property changed since you bought it? No, they didn't want to buy the company. The buyer was Croatian, so they could own the property directly. The legal status of the property hasn't changed since we bought it. (Well, there was a heritage or listed building status on it, which was removed before the buyer bought it) The house sale is now complete, all that we're left with is a company with no cash, no assets, and no debtors which isn't trading that we want to close down.
|
|
|
Post by gwen on Sept 6, 2012 12:45:43 GMT 1
Hi
As you sold the house without the company, can you please tell me what was the tax rate you had to pay on any profit??? I heard it is very high. I also had to set up company to buy and was told it would be very high tax rate if I found a buyer who did not buy it with the company
many thanks for any info.
|
|
|
Post by crojoe on Sept 6, 2012 13:36:55 GMT 1
Thanks for the replies so far. Closing the company is proving more difficult than selling the house! jh385. I assume that your buyer did not want the company as well as the property? Has the legal status of the property changed since you bought it? No, they didn't want to buy the company. The buyer was Croatian, so they could own the property directly. The legal status of the property hasn't changed since we bought it. (Well, there was a heritage or listed building status on it, which was removed before the buyer bought it) The house sale is now complete, all that we're left with is a company with no cash, no assets, and no debtors which isn't trading that we want to close down. Do you plan to stay in Croatia or leave? If leave, then just moth ball the company and make it dormant, then leave and don't worry about it. Once the tax office receives no books then they will consider it dormant. After about 4 to 10 years they will close it out of frustration. I don't think it is classed as criminal offense, or would see them try to repatriate you back to HR.
|
|
jh385
New Member
Posts: 4
|
Post by jh385 on Sept 6, 2012 13:51:51 GMT 1
As you sold the house without the company, can you please tell me what was the tax rate you had to pay on any profit??? I heard it is very high. We sold the house at a loss, so tax doesn't come into it. Although, as I understand it, if you sell at a profit you would be liable for corporation tax on that profit. (Not sure what the % is in Croatia)
|
|
jh385
New Member
Posts: 4
|
Post by jh385 on Sept 6, 2012 13:55:22 GMT 1
Do you plan to stay in Croatia or leave? If leave, then just moth ball the company and make it dormant, then leave and don't worry about it. Once the tax office receives no books then they will consider it dormant. After about 4 to 10 years they will close it out of frustration. I don't think it is classed as criminal offense, or would see them try to repatriate you back to HR. I don't actually live in Croatia, I'm in the UK (which was why I had to set up a company in the first place, as our solicitor told us foreigners were not allowed to own property directly, not sure if this is still the case) My main concern is exactly that, that the Croatian gov. will start levying fines etc. on the company, which will accumulate over a number of years until eventually they contact the UK tax authorities to recover the debt. It's the legal implications of not closing the company properly which has me concerned. Although at the rate the bank is taking fees and the cost of doing returns the company will be bankrupt before long without me even touching it!
|
|
|
Post by tourist on Sept 7, 2012 8:12:46 GMT 1
I am in the process of closing a company after selling my house to myself.
The total cost of lawyer, public notary, translator and newspaper adverts will be in the region of 13,000Kn.
It will take up to a year to complete but you can give power of attorney to the lawyer so everything can be done while you are in the UK. (so I am told)
The best thing is to contact a lawyer and get an estimate and a breakdown of events.
I started the liquidation process in April, everything seems to be going quite smoothly, just received RETT payment notification.
|
|
|
Post by sandybear124 on Sept 8, 2012 7:46:50 GMT 1
My wife and I are in the same situation, wanting to buy the property from the company and then close it down.
We are seeing a lawyer on Wednesday, 12 Sept and will be speaking to him about best thing to do. Last time we saw him he said there was no such thing as a dormant company in Croatia and most of the people he knew simply stopped making tax returns etc.
We didn't really go any further into this as at the time the new law regarding usage permits had been introduced (we do not have one for our property). Since that has now been relaxed we are about to start the buying process.
As we will still be owing a property in Croatia our concern is that we will be chased by the Croatian Government for not posting tax returns etc. The company is a D.o.o so not sure if that offers any protection as private owners.
jh385 - You say your company has no cash or assets. Are you still making tax returns and is the bank still taking fees?
Will post any further information we get from the lawyer and what costs he quotes for closing a company.
|
|
|
Post by francis on Sept 15, 2012 17:07:50 GMT 1
this is a problem for so many, i myself build a villa using a company, claimed back the PDV on build cost, now i am thinking of closing the company, I would have to pay the PDV back and the rett , what to do ?
|
|
|
Post by ricksf99 on Nov 15, 2012 11:17:56 GMT 1
We sold our apartment in Istria in January 2012 and need to close our Croatian Company. Just last week our Croatian accountant visited the Notary and we have been told it will cost a total of 7,500 Kunas and take 6 months to close our d.o.o. She added that she's heard of a new law coming into effect in January 2013 whereby any dormant company will be automatically closed after 3 months of inactivity. Typically Croatian, this is very vague, but we shall wait and see.
|
|
|
Post by crojoe on Nov 15, 2012 13:06:11 GMT 1
We sold our apartment in Istria in January 2012 and need to close our Croatian Company. Just last week our Croatian accountant visited the Notary and we have been told it will cost a total of 7,500 Kunas and take 6 months to close our d.o.o. She added that she's heard of a new law coming into effect in January 2013 whereby any dormant company will be automatically closed after 3 months of inactivity. Typically Croatian, this is very vague, but we shall wait and see. You are right. What you do is yank all your money out of your company account, or if you can even close the account. Then, just let it be closed automatically if it isn't. And get rid of your accountant. This is already in motion for dormant companies. Already two of us on this forum have had dormant companies closed automatically (which I'm happy about as was done for free). Actually, they didn't even tell me they where closing it, it just happened. If you live abroad then for sure just close up the bank account and leave it be to automatically closed. It will cost more then 7500 Kuna to close it legally.
|
|
|
Post by Madgolfer on Nov 15, 2012 15:27:00 GMT 1
Unfortunately its not so simple for those of us who own property with land. You cannot own land without a company.
We are also concerned in case anything comes up for foreigners who just let their dormant companies be struck off/ closed down.
Will it impact on any visa entitlements?
|
|
|
Post by crojoe on Nov 15, 2012 16:44:26 GMT 1
Unfortunately its not so simple for those of us who own property with land. You cannot own land without a company. We are also concerned in case anything comes up for foreigners who just let their dormant companies be struck off/ closed down. Will it impact on any visa entitlements? For sure, if you still have assets connected to the company then that's a whole other matter and one probably needs to keep doing books and somehow keep the company active. So strange that the government hasn't made an exit strategy concerning this unless they are looking at a land and property grab? I just don't get it since they want to join the EU and such an action would smack bam right up against a host of human right issues. I mean if say they grabbed your property because it was connected to a dormant company which they decided to close then I can't see it standing up in the European courts as being legal. I'm also surprised that foreign embassy are not really making an issue of this action considering it seems loads of foreigners own Croatian property via companies. Just another crazy law past in haste without any thought for consequences, unless it's deliberate?
|
|