Vat reduced to 5% on off plan purchases

[David howe]

Please note the Romanian Government is reducing Vat from 19% to 5% on the purchase of properties under 100,000 euro. If you are buying an off plan, please note you are not restricted to initial purchase price, plus 19% Vat. There are also other methods of making a saving when the property is in excess of 100,000 euro.

David Howe LLB. LLM

 

[Karl Wilkinson]

Please note the Romanian Government is reducing Vat from 19% to 5% on the purchase of properties under 100,000 euro. If you are buying an off plan, please note you are not restricted to initial purchase price, plus 19% Vat. There are also other methods of making a saving when the property is in excess of 100,000 euro.

David Howe LLB. LLM

Has this been confirmed or is it a proposal from the "incoming Government"???

 

[arena1]

Dear David and Karl,

I have just become a Member of the Forum today and have just read your e-mail about the Government reducing the VAT to 5% for off-plan properties less than 100,000 Euro. Has this definitately been confirmed as this will affect our last payment for our apartment in Bucharest.

Kind regards
Tina

 

[Karl Wilkinson]

Dear David and Karl,

I have just become a Member of the Forum today and have just read your e-mail about the Government reducing the VAT to 5% for off-plan properties less than 100,000 Euro. Has this definitately been confirmed as this will affect our last payment for our apartment in Bucharest.

Kind regards
Tina

Dear Tina,

Yes, this new tax code has been introduced as of January 2009. It offers a 5% VAT rate to "first time buyers" for property under 120m2 and 90,000 euro exluding TVA (at current exchange rates).

I am aware that this is only applicable to properties purchased after the new regulation was introduced. Therefore, not sure if you can take advantage of this reduction in tax payment, as this becomes a grey area in the new regulation.

It may be best to speak with your developer/agent, or better still contact an accountant for further advise.

Regards,
Karl

 

[arena1]

Dear Karl,

Many thanks for your reply, you have been really helpful.

Kind regards

 

[arena1]

Hi,

Is anyone on the forum in the process of buying an apartment in the Planorama Development in Bucharest, the whole process has been really quite frustrating with lots of delays. Does anyone know how the development is going at the moment, being as i can't actually visit Bucharest until later in the year.

Many thanks
Arena

 

[David howe]

Hi,

Is anyone on the forum in the process of buying an apartment in the Planorama Development in Bucharest, the whole process has been really quite frustrating with lots of delays. Does anyone know how the development is going at the moment, being as i can't actually visit Bucharest until later in the year.

Many thanks
Arena

I was out at Planarama last Friday, the building work is coming on well, the 1st block appears to be nearly complete. However, for those of you who bought through companies beware of current fiscal changes as this is going to increase your costs of ownership and reduce your rental income etc.

David Howe LLB. LLM

 

[arena1]

I was out at Planarama last Friday, the building work is coming on well, the 1st block appears to be nearly complete. However, for those of you who bought through companies beware of current fiscal changes as this is going to increase your costs of ownership and reduce your rental income etc.

David Howe LLB. LLM

Hi David,

Many thanks for your reply, its encouraging to hear that the building work is coming on well, its always such a worry when you can't visit the development regularly to see how things are going.

You mention current fiscal changes, could you let me know how i can find out about these to see what impact this will have on us if we try to rent out the apartment?

Do you think there will still be good demand for rental in the new developments, or do you think the market might be flooded? We have a Studio with a separate kitchen and Balcony, would you be able to give me any inidcation of what sort of rental we could expect the surface area is 45 sqm. I really wanted to sell on completion, but i suspect the values have dropped loads just like the UK.

Would really appreciate any information you might be able to help me with.

Regards

Arena

 

[paul lynch]

apartments delayed till march does any body have any additional news as to why and in your opinion do you think they will ever be completed the planorama development .

 

[paul lynch]

hello areana as i am also buying from planorama when you do visit can you please let me no how the project is comeing on thank you .

 

[David howe]

apartments delayed till march does any body have any additional news as to why and in your opinion do you think they will ever be completed the planorama development .

Dear Paul

Are numerous reasons why they have been delayed. However, more concering to me at the moment is the penalties and costs that people who biought in this project are paying for the companies they did not need.

Anyone currently in this development and needs remedial action on their company please contact as as a matter of urgency as it is disgraceful the fees and penalties people have paid because of a certain agents incompetence. One person who came to us had a story about being told they would have to pay 12,000 in administration costs and penalties or lose there property. Both stories were incorrect.

David Howe LLB. LLM.