Bulgaria: Setting up company

Anyone any experiences in setting up comapny in bulgaria to buy land/villa. What is the procedure and costs..? Any helpfull feedback appriciated.

Costs depend on where you are and who you use. We charge 650 Euros for whole process. You need to first choose a company name (something that translates easily and can be pronounced here in Bulgaria!), then check it is available, then register it, pay certain taxes and fees for set up, place advert in State Gazette about company formation, give someone power of attorney to register your company (as you are not in Bulgaria to do this and even if you are need to speak and write the language), open a deposit account for company, place in 5000 BGN to show you have some working capital, complete rest of paperwork (management agreement for company, specimen of signature, company objectives etc), register actual company, change deposit account to current account so you can access money, get Bulstat card (tax ID) and company stamp.

If you are buying through an agent here, they should arrange all this for you.

Rachel

thanks for the replies guys.... according to my agent i dont need to set up company and they are using a "right of use " aggrement to get round this but my solicitor has problems with this and advised me to set up company, which they can help me with for 650euro..
I heard about the law changing but not for a few years yet..unless i am misinformed..?

Please be careful. The government has passed a bill to say that they will allow foreigners to own land in the future as they ahd to for EU accession but there is a period for them to implement this and could be several years. You definitely still need a company to buy a house/land. If your agents are trying to get round this, do not use them. A right of use agreement means you will not own your house/land, only have the right to use it. You need a company - set one up and dumpy your agents.

Rachel

I not a tax expert on this point and could be wrong so check with a tax expert but you should be very careful in setting up a company to buy property anywhere in the world as any proceeds, dividend cash etc from a company whether irish or foreign are subject to income tax under irish law even if the proceeds are not returned to ireland. This includes the proceed of the sale of the property so you could be liable to Irish revenue for at least 43% tax. There is a double tax agreement with Bulgaria so any tax paid in burgaria can be offset against the tax due in ireland but at least 43% of any gain (cash received from company) you make will be taxed

I would caveat the above by saying "it depends" if you set up a foreign company, the residence of the company depends on the residence of the Directors and where the management of the company is done - if done correctly no Irish tax on the company - however, if you are an Irish resident and domiciled in Ireland any funds extracted from the company to you will be taxable in Ireland.

You need to take professional advice on this!!!!!!!!!