quote:

Originally posted by louis friend:
My accountant is romanian. I knew people in Bucharest that were able to recommend me an accountant I was comfortable with.
But perhaps you should ask yours about the possibility of having your company declared inactive. It can save you a lot of hassle and some money.

I was wondering how people were planning on going about the renting out part in Bucharest. Because I needed to make some money immidiately, I've only had experiences with short term rentals.
Long term sounds like less hassle but I don't know how easy it is and how long it takes on average to find a tennant.

How much do you pay your accountant, and what does he do exactly? The cheapest I found was 70 eur and the most expensive, 200 eur. But I am still looking for one.

I bought my apartment through 'Right Move Abroad' - and has thus far taken four months and I'm still yet to get to the stage of signing the contracts. Been through all the hastles of PoA, translation, currency problems, etc. etc. many times over - I think even TRMA didn't quite realise how much hasstle buying in Romania would actually turn out to be!!

My accountant costs 60 EURO per month, a sum of money I hadn't really factored into the equation in all honesty.... I can give you their details if you wish...

I found one for 150 euros per year!

Do you know that Planorama contractor filed for bankrupcy? Here's the article:

Planorama contractor files for bankruptcy
Autor: Ziarul Financiar | Data: 28 Mai 2007

Yapitek SRL, the general contractor of the Planorama residential complex (www.planorama.ro), which is located in the Doamna Ghica area of Bucharest, has entered into bankruptcy procedures, the debt collection company Urban si Asociatii (Urban and Partners) announced via an e-mail on Friday night. According to Urban (www.urbannews.ro), which quotes data published in the Insolvency Bulletin and communicated by the legal liquidator and the Bucharest Court of Law, Yapitek had debts worth 7.5 million euros. The contractor also had contracts worth 47.6 million euros. The legal liquidator designated by the Bucharest Court of Law, Cris Consult SRL, says the debtor must urgently submit a restructuring plan, with a view to "making the company's activity profitable, and to be re-included in the economic circuit," Urban states in the email.

I have contacted TRMA about this and they seem to be under the impression that this is a storm in a teacup & nothing to worry about (supposed to by nothing more than a supplier trying to overcharge for some insulation) I am not so sure whats going on - all rather confusing, and what with the ridiculasly high tax but on companies I'm not 100% sure this is all a good idea!

I am going to Bucharest next week to sign the contract. I bought with Euro Habitat directly (880 Eur/sqm instead of 1000 euros with The Right Move Abroad).

hey guys,

Been to a property fair while i was in Ireland, and i found a really nice development in Bucharest. It's called English Village, and a house there is almost at the same price with an apartment in the Planorama project.
Planorama kind of scared me, because i've heard of the problems they had.
Just a week ago i was contacted by the ppl from the English Village, and it seems that i have to go there to sign all the docs, etc. But to own a house i have to have my own company set up there which is kind of a drag.
Anyway, for a certain fee, they said that they wd take care of this aspect also.

Anyway, i'm really pleased with this possible prospect, the project looks really good and they said that i would get a really good return on my investment in case i would decide to sell after a while.

If any of you ppl have heard anything about this project please post. Keep u updated.

until the next time,
Michael

If you need a good accountant, let me know. You should know that most profes. over there have different price for local and foreigners. The one I found (it was difficult, I should admit) is very professional and have very reasonable prices.

Is their anybody out their who has or will be effected by the change in the Romanian Fiscal code wef now. Those who buy as a company will be charged VAT at 19.5% thus increasing the up front cost of any apartment by 19.5%!!!

I understand that this VAT is refundable, but seriously how easy is this going to be to do??

When i bought my apartment i bought the apartment as a person and the land associated with it through the company.
This can save you some money now especially if there is some flexibility in how much of the price is allocated to the land and how much to the apartment.
I'm not much of a tax expert so this might be a silly question but does this change have consequence for when you buy as a company or sell as a company or both?

louis

Mr Bungle, there are companies that specialise in getting VAT back, type in on google, get back my VAT and you will see some companies, or refund my VAT, or VAT refunds.

Remember Romania is an EU country so there should be some redress. Alternatively you if you are setting up a business, then if you earn so much through rents etc, and add VAT on top - actually best speak to an accountant!

There are some really nice, good places in Romania, the germans and austrians have been going for years, Brasov, and it is not cheap.

Romania has alot to offer, and it will the tiger economy of Europe I believe. The people are educated, and were the first to throw out the Russians, in Timisoara, in 89, it used to be a rich country, with oil and had a positive history until the 20th century. They do a lot of trade with the germans and italians. And over the last 10 to 15 years, the germans, and especially the italians went in big and brought up alot of the land.

The land is the key to romania, it has some very fertile agricultural land. And prices have shot through the roof.

To romanians now, the country is expensive, but if your investment is done right, ie. you dont get tourist rates, you should be able to get a deal. It depends what you want. eg. Ski, Country, Beach etc.

Mortgage products are always improving, it has alot of penetration still to do in the market, so with more money flowing the prices will only rise, as will the debt. A net inflow of capital from the EU will be spent on social projects.

Corruption and Legal reform improving, it is not perfect but with the right people a good potential investment. eg. buy to let, buy to remortgage in a few years, buy and build and sell. Development, lifestyle complexes for upmarket romanians. Some are pretty well off.

I heard that The Right Move Abroad did not sell 70 apartments in Planorama and they are on the market again, sold directly by EuroHabitat this time. Anybody knows what happened?
This is quite surprising as i went on their web site some time ago and they were showing that they sold everything.

I am looking somebody who could domiciliate the company I have created to buy Planorama. The apartment will - normally - be ready this summer. Therefore, this is just an admin procedure.

quote:

Originally posted by Goldberg Global:

Romania has alot to offer, and it will the tiger economy of Europe I believe. The people are educated, and were the first to throw out the Russians, in Timisoara, in 89, it used to be a rich country, with oil and had a positive history until the 20th century. They do a lot of trade with the germans and italians. And over the last 10 to 15 years, the germans, and especially the italians went in big and brought up alot of the land.

The land is the key to romania, it has some very fertile agricultural land. And prices have shot through the roof.

To romanians now, the country is expensive, but if your investment is done right, ie. you dont get tourist rates, you should be able to get a deal. It depends what you want. eg. Ski, Country, Beach etc.
off.

What are you talking about???

Romania was the last to remove the communist regime!! Hungary, Czech Republic and Slovakia, Bulgaria all did it before Romania.

Do you know any of the history of Romania before 20th Century? Tell me, when were the 2 unifications between the 3 Romanian provinces (do you even know their names)?

Are you talking about the Romanian germans or about the germans themselves?

Everybody and their dogs seem to become specialists in Romania nowadays...

Who gives a shit about the history of Romania? We are there to make money and not to teach Romanian’s history at the London Business School!!!

I've got exactly the same reservations at how easy it's going to be to claim the VAT back.I too have bought in Planorama thru TRMA.At the moment I can't get anyone from there to reply to my emails with the queries and concerns I have. Anyone else got the same probs? The 'hosting' of my romanian co.is another factor which was not explained to me and an additional expense. Can we claim these expenses back thru the developer I wonder! Would be interested to hear of anyone elses experiences so far.

The situation in Romania is untenable for numerious reasons, the hosting fees are legal extortion, the VAT is bordering on impossible to claim back, accountancy fees are increasing and are silly money and pointless. On top of that the EURO has nose become so strong against the UK£. I too have purchased in Planorama thru TRMA but I won't be paying any further installments as its better to cut your loses....

After making some more enquiries re the VAT situation I've been told people are just selling with VAT added rather than having the hassle of trying to claim it back..again not sure how this would work as property would then be being sold at two different prices- those without VAT and those with.Planorama is now due to complete in Feb 09,think I'll sell on completion and will be glad when it's over.

quote:

Originally posted by Walms:
After making some more enquiries re the VAT situation I've been told people are just selling with VAT added

If you believe that, then they really saw you coming .

Not bought in Rom but a value judgement would be that the VAT refund probably works OK as a process. VAT processes tend to be rigidly enforced on most places nowaday (whether in demanding payment or giving refunds).

But, you are also right to regard it as a risk that many would prefer to avoid - particularly if you don't know the basis of the law and how the processes work etc.

Hello everybody.
I`m from Bucharest, and I`ve also invested in a 3 rooms flat in Planorama (T4 tower). I recently have been on the site, the things are moving. There are some delays, but they have to pay penalties (0,02% per day). They had problems with the constructors; I think you are aware of that. Right now Danya Cebus is the new constructor, and it seems they are ok. They hired Chinese people, I can`t believe that Romanians are working abroad….
The best news I can give to you, is that the prices rose with 70% in comparison with beginning of 2007.

I queried the penalty clause as Planorama is 6 months behind schedule-now due to complete Feb 09 but was told the developer will not be liable as the delay was caused by the harsh winter weather!!

The completion date in my case is 31st of August 2008. But it is obvious they`ll not succeed to respect the deadline in my case too. A realistic completion date is eoy. I`ve questioned my agent about the penalties. He said that it will be no problem, and the penalties will compensate the last payment (which is due at the completion date).
Anyway, it`s a good investment.
It is expected the prices will rise even more, in that case because the rising prices of construction materials (concrete with 15%, steel with 20%).