Vat reduced to 5% on off plan purchases

Discussion in 'Romania property' started by David howe, Dec 4, 2008.

  1. David howe

    David howe New Member

    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
     
    Last edited: Dec 4, 2008
  2. Karl Wilkinson

    Karl Wilkinson New Member

     
  3. arena1

    arena1 New Member

    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
     
  4. Karl Wilkinson

    Karl Wilkinson New Member

    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
     
  5. arena1

    arena1 New Member

    Dear Karl,

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

    Kind regards
     
  6. arena1

    arena1 New Member

    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
     
  7. David howe

    David howe New Member

    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
     
  8. arena1

    arena1 New Member

     
  9. paul lynch

    paul lynch New Member

    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 .
     
  10. paul lynch

    paul lynch New Member

    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 .
     
  11. David howe

    David howe New Member


    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.
     
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