Hi,
I'm buying an apartment in Bulgaria. The developer is also giving a portion of the land with this apartment for free (nasty developers keep the land and then will charge you ground rent in the future). They plan on selling you the company which has the land and the apartment as part of this company. However, I wil end up paying coporation tax in Bulgaria when I sell on this company. I'm worried that when I bring the money back to Ireland I will get stung with Capital gains tax also.
My proposal to the developer is that they transfer the land for free to me as part of the company and transfer the apartment at full price under my personal name (in Bulgaria you need a company to buy land but not for an apartment). If I sell on the property I'll pass on the land for free and just sell the apartment as a private sale. As Ireland and Bulgaria have a double taxation agreement and the capital gains tax in Bulgaria is 21% I think I won't have to pay any CGT in Ireland.
Can you please let me know your opinion.
Thanks,
Ian
I'm buying an apartment in Bulgaria. The developer is also giving a portion of the land with this apartment for free (nasty developers keep the land and then will charge you ground rent in the future). They plan on selling you the company which has the land and the apartment as part of this company. However, I wil end up paying coporation tax in Bulgaria when I sell on this company. I'm worried that when I bring the money back to Ireland I will get stung with Capital gains tax also.
My proposal to the developer is that they transfer the land for free to me as part of the company and transfer the apartment at full price under my personal name (in Bulgaria you need a company to buy land but not for an apartment). If I sell on the property I'll pass on the land for free and just sell the apartment as a private sale. As Ireland and Bulgaria have a double taxation agreement and the capital gains tax in Bulgaria is 21% I think I won't have to pay any CGT in Ireland.
Can you please let me know your opinion.
Thanks,
Ian