SB Bulgaria: Can I insist at this stage that the full price goes on the title deeds?

[dariuscork]

Now I dont need any "I told you so experts", but basically the story is as follows:

I bought an apartment in Sunny Beach, Bulgaria for €76,000, I have receipts for same from banks and seller.

I received copy of title deeds which we have not yet signed from my power of attorney which states that the apartment cost €35,000, yet I have also the copy of preliminary contract which states clearly that the apartment is costing €76,000 this is the only document at this point in time that has ours and the sellers signatures on it.

Basically the question I am asking is what do I do from here I am returning to Bulgaria in June.

Can I insist at this stage that the full price goes on the title deeds?

 

[ringledman]

Re: Declare the full price!!

Too right! Why should the seller gain from declaring a lower capital gain at your cost? Get your solicitor to sort it out.

It will affect your future tax liability if you ever decide to sell. Thats if you can sell in an awful resale market that costal Bulgaria is.

 

[bacchus]

Re: Declare the full price!!

I recieved copy of title deeds which we have not yet signed from my power of attorney which states that the apartment cost 35000 euro

Would that not be the original price paid by the seller by any chance?

 

[Daddy]

Re: Declare the full price!!

Presume you have a BG solicitor acting for you in this purchase unconnected to the developer/agent.

I presume when you were buying that you were told the full purchase price was going to be declared on the title deeds which based on the Preliminary contract would appear to be the case.

It should be a simple matter to sort out via a solicitor but if you bought this for 76k and their declaring 35k on the deeds it would normally mean that you bought the apartment below the normal asking price. Cheaper price on deeds = cheaper asking price.
Full asking price = full price on deeds.

For pure interest where abouts did you buy in BG and was it a 1 bed and what was the size.
Sea view distance to beach ?
Wondering as I hold one myself.

 

[Martin77]

Re: Declare the full price!!

Now I dont need any I told you so experts,but basically the story is as follows I bought an apartment in sunny beach for 76000 euro,I have reciepts for same from banks and seller,I recieved copy of title deeds which we have not yet signed from my power of attorney which states that the apartment cost 35000 euro,yet I have also the copy of Preliminary contract which states clearly that the apartment is costing 76000 euro this is the only document at this point in time that has ours and the sellers signatures on it,so basically the question I am asking is what do I do from here I am returning to Bulgaria in June,can I insist at this stage that the full price goes on the title deeds?

This is well known "practice" in Bulgaria. From what I have read it is legal. It apparently saves the developer on value added tax. But as another poster already stated, if you accept this you would just be storing up problems for yourself for the future when you come to sell, as you would have to pay capital gains tax on the difference between the selling price and the original declared value, rather than the selling price and the actual amount you paid.

 

[dariuscork]

Re: Declare the full price!!

For pure interest where abouts did you buy in BG and was it a 1 bed and what was the size.
Sea view distance to beach ?
Wondering as I hold one myself.

Yes, 1 bed apartment in Sunny Beach, approx 70 metres from beach.