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Post by ingram62 on Jun 14, 2005 18:14:18 GMT 1
I am about to purchase my second property in Istria, and again the estate agent who is organising the transaction has said it is to my benefit for a lower purchase price to be put on the contract, she says this is to my advantage as, I am buying through a company, I have to convert my euros into Kunas and then back into Euros and I will save on the exchange rate loss if it is for a lower amount.
Is this common practice in Croatia.
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Post by Peter Ellis on Jun 15, 2005 20:35:27 GMT 1
Whilst the practice is illegal, it certainly happens quite a lot and her argument has some merit. The vendors like to do it because it minimises their PDV liability but you should be aware that if it is discovered you could be liable. It also has CGT implications although I would need to check as to whether that is applicable for companies.
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Post by ingram62 on Jun 16, 2005 18:29:36 GMT 1
Peter
Thanks for your reply, and you may not remember but we met you in Jersey. My estate agent is implying that it
is me that is gaining and not the seller but as both people I have purchased from have wanted to put a reduced price on the contracts I am sure there must also be a benefit for them.
Thanks
Elaine
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