Hi David,

I have read a lot of negative material regarding the setting up of a company to purchase a property in Romania and I am now worried that I have made a huge mistake.

Currently I have signed a contract on a 1 bed off plan in the Rose Garden development, Bucharest, which is due to complete next year. When I first set this company up back in 2007 it was generally accepted that this route would mean that I would avoid paying the VAT. However, I now understand that the law has changed and that the company will now have to pay the VAT anyway (although I may be able to claim the VAT back). So as it appears that the major pro for going the company route has now been removed (i.e. not paying VAT) should I and could I now transfer the contract and therefore the purchase over to myself as an individual?

I presume that I could flip the contract over to myself as an individual as a straight forward sale at the same price as stated in the original contract. Obviously I would lose the amount that it has cost me to date to set up the company, the cost to disolve the company after the sale and the legal fees to transfer the contract, but I am thinking that this may be considerably less than I would lose in the longer term if I continue the purchase through the company.

I would really appreciate any advise that you can offer.

Many thanks,
Ross