Final Costs based on Tax value vs Purchase Price -
Afternoon all, hope somebody can help with this one?
I am in the final stages of completing my deal in Bansko. My lawyer has given me two options on the final costs including taxes, etc. One is based on the full purchase price and one is based on only the tax value of the apartment.
Obviously the second option is cheaper and the most obvious route on the face of it. However i am concerned that there may be impications in choosing the cheapest option at some point further down the line.
Doeas anyone have any advice on this subject and can explain why I would be given two options of expenses to pay?
many thanks
Steve
Afternoon all, hope somebody can help with this one?
I am in the final stages of completing my deal in Bansko. My lawyer has given me two options on the final costs including taxes, etc. One is based on the full purchase price and one is based on only the tax value of the apartment.
Obviously the second option is cheaper and the most obvious route on the face of it. However i am concerned that there may be impications in choosing the cheapest option at some point further down the line.
Doeas anyone have any advice on this subject and can explain why I would be given two options of expenses to pay?
many thanks
SteveSteve,the less you declare at time of purchase,the less tax the developer pays to the state.Thats the way most of them prefer .If you decide to sell you will be hit for capital gains tax on the difference between the declared purchase price and selling price.declare the full purchase price at purchase and you will only pay the CG on the difference.bulgaria now has no time limit for qualifying for capital gains,The 5 year rule was dropped 2 yrs ago ,Hope this helps.
If you are ready to stick to the "Bulgarian system" it may not be bad to declare the purchase at the tax evaluation price. You save fees. But then the next buyer - if you are planning to resell in the foreseeable future - should also accept this procedure.
If you buy for your own use and have no plans to resell the best way to go is for a lower price on the title deed. In all other cases you should spend more money and insist on the true price.
From-the-viewpoint-of-a-developer-ly,
Frank