175 euros. My bill for "owning a business" 2012

#1 29 March 2012 11:34:50

Pastirka
Pastirka
Manchester

175 euros. My bill for "owning a business" 2012

In process of securing title deeds.  Family want 760 levs for expenses.  My lawyer wants 175 euros for my business tax 2011/2012.  I don't own the house yet.

Please bloggers, any comparisons out there or similar experience.

thanks

#2 15 April 2012 15:25:26

ianinbg
ianinbg
Sevlievo, Gabrovo

Re: 175 euros. My bill for "owning a business" 2012

At first glance a rip off. You are presumably buying their house so why do they want expenses? How long have you had your company? 175 Euros is too much just for accounts but you are probably stuck with it until you  can get the deeds and everything in your company name. Then you can ditch the lawyers and find a friendly accountant.

#3 02 September 2013 13:42:58

Scanspeak
Scanspeak
Sofia

Re: 175 euros. My bill for "owning a business" 2012

Look up your contract with the lawyer before to do anything. Generally speaking, if a business has no income, so no profit, there`s no corporate tax/dividents to be paid. Unless you rent the house and your income has been greater than the costs incurred, there is no business tax.

#5 05 September 2013 09:02:37

worldlywanderer
worldlywanderer
Svirachi

Re: 175 euros. My bill for "owning a business" 2012

I find this thread somewhat confusing since it suggests sharing something on the Bulgaria Forum yet it appears on the Bulgaria forum. It does, however, raise a couple of moot points worth developing:

1. Even if it is the case that a company pays no tax if it generates no profit there is still a cost involved in submitting accounts. Since there is no need for an EU citizen to form a company to own property of any description (from 1st January next) then there is no need, when buying from a non-Bulgarian, to buy the company which currently owns a property and a positive financial disincentive for so doing.

2. If an individual owns a property and lets it on an occasional basis will it be necessary to form a company to deal with the rental or can the profit simply be declared as part of personal income?

3. Since here will be no limit on the number of houses, apartments, hectares of land etc. which an EU citizen can own there is the potential to obtain income from rental on any part of a portfolio and even on he sale of agricultural or forestry produce. Is it permissible in Bulgaria, as it is in Britain and other parts of the EU simply to trade in one's own name and declare profits as personal income or is it ESSENTIAL to from a company?

#6 05 September 2013 10:55:56

sihemt
sihemt
Yambol

Re: 175 euros. My bill for "owning a business" 2012

Now, people from the EU can buy a house without buying the company that owns it because you owner of the company that sells the house, we did it for somone.
If you're retired and rent your place then it's less then you don't pay much for the income because we asked our accountant 2 years ago and she says it's about 4 Lev to pay each month.

I always ask my lawyer and accountant for any info, they know better.

Sihem

#7 05 September 2013 12:16:26

Scanspeak
Scanspeak
Sofia

Re: 175 euros. My bill for "owning a business" 2012

worldlywanderer wrote:

2. If an individual owns a property and lets it on an occasional basis will it be necessary to form a company to deal with the rental or can the profit simply be declared as part of personal income?

You include this in your annual tax assessment form as income from rentals. Many bulgarians don`t do it ( they rent without an actual contract ) so hard for the authorities to prove you`re running a rental business.

Law was changed if I remember correctly and if from the EU, you don`t need to form a company to be able to purchase property here. You don`t need a company to run a small-medium portfolio of properties to rent. If you have many, its better to register as the numerous properties would attract the attention of the tax authorities.

Hope this helps.

Last edited by Scanspeak (05 September 2013 12:17:07)

#8 10 September 2013 12:14:05

Re: 175 euros. My bill for "owning a business" 2012

There is a possibility for you to avoid those taxes in future. But it takes some time about the solution.
1.The first thing that you have to do is to check if the company has any financial obligations, which can be taxes, if you have hired any employees you have to clear the social securities for them as well as the social securities for the manager(in case that he/she is obliged to pay social securities);
2. The second step is to check if as I understand correctly the property that is owned by the company has any property encumbrances, such as taxes, mortgages, unpaid bills;
3.After you do that you have to go to your lawyer/ hire another one so that he can make the sale of the property (draft all the documents, represent you in front of the tax authorities and notary)But you have to pay the notary fees as well as fees for the tax evaluation of the property, fees for blueprint of the property and taxes. After that the lawyer should reduce the capital of the company so that he can reduce the amount of the property, but there are costs for submitting the documents in the Commercial registrar;
4. Finally you will begin a procedure of liquidation of the company, which takes around 7 months.
After you do all those steps you will have to pay only the taxes of the property, mind that the whole procedure take between 10 days- 1 month for the property sale and 7 months for the liquidation of the company.
I am sorry for the situation that you are in but this is the only solution of it, so that you won't have to pay taxes for the property and corporate tax.
I hope I was helpful to you.

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