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.

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.

Bonjour Scanspeak,

Thank you for your contribution. I suggest you to share your information on the Bulgaria forum. This might help.

Please note that this thread is a year old.

Regards,

David.

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?

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

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.