Thursday, July 12, 2007
VAT when buying properties in Romania
A very common question asked by investors when purchasing Romanian property is whether they will have to pay Value Added Tax when purchasing a Romanian property. This has been a very thoroughly discussed issue as the Fiscal Law has recently changed in Romania and old regulations have now been replaced with new and... unclear ones. Payment of VAT depends on a multitude of factors, however the bottom line is that foreign buyers purchasing real estate via a Romanian company will not have to pay VAT, or rather they pay VAT by Law, but because of a regulation called "double taxation avoidance", this payment does not have to be actually fulfilled. What investors should take into account is that this rule might change in the future (Romanian legislation does change very easily) and this might have effects for all those investors who haven't yet fulfiled all payments due for their property (off-plan apartments for instance). You can get more information on this subject on www.RomanianLawOffice.com
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