How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3132
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I would like some advise on a piece of land in Bulgaria that

Customer Question

I would like some advise on a piece of land in Bulgaria that I bought with my expartner some years ago.

Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
There does not, on the face of it seem to be anything fishy going on here. The only Bulgarian taxes on property are a 2% annual charge, rather akin to council tax in the UK and a small levy, about 20 quid pa for waste disposal. What you are paying indicates a property value of some 19K. Frankly, it does not seem an awful lot.
I suggest that you approach another local professional with a view to selling up if you have no further use for it, There is no Capital Gains Tax in Bulgaria, but any gain made is counted as income.
I do hope I have shown you a way forward.
Customer: replied 2 years ago.

We paid about £4000 for the land. We called ourselves a holiday company hoping to use it for campers but we never used it at all or made any earnings at all. We have nothing done on the land eg no waste disposal. There is an uninhabital shed on there. Water is supposed to be connected but none has ever been used. I cannot understand why we pay £400 when we were told the tax would be about £12 per year. Is there a way that we can desolve the "business" and neither of us has use for it now, or can afford to keep paying. What would happen if we just stop paying the yearly fee and say they can keep the land.

Expert:  bigduckontax replied 2 years ago.
It is the municipal tax payable on all property in Bulgaria. Please don't shoot the messenger.
What is it worth today? If the gain is significant why not just sell and be shot of the whole problem. Just pass it to a more pro-active agent to dispose of it. If you just stopped paying I assume that the local authority would foreclose on the property in the longer term. Remember Bulgaria is in the EU so any long term debt could chase you in the UK.
Customer: replied 2 years ago.

Don,t want to shoot the messenger. Just trying to understand it all....So even though it a piece of land that generates no income what so ever, it is still classed as property? Land is not selling in Bulgaria or so we are being told, and I guess we would be selling at a loss, which we are prepared to do. But there just aren,t any buyers.

Customer: replied 2 years ago.

I still do not see why we are paying £400 for land worth only £4000, you said yourself that it would seem to be worth £19,000 for that kind of yearly figure.

Expert:  bigduckontax replied 2 years ago.
I am so sorry, the Just Answer system binned my last post.
The situation is, I agree, regrettable and you have been well and truly caught by Benjamin Franklin's oft quoted dictum that in life there are but two certainties, death and taxes.
I derived that 19K from 400 pa less the 20 @ 2% grossed up. Of course, there may well be local agent charges included in the 400.
Here is the advice from Global Property Guide:
'Owners are liable to pay real estate tax on their Bulgarian property. The tax base is the assessed value of the property as calculated by the local tax authorities. The tax rates are set by the municipalities where the property is located .' Of course their valuation may not have been correctly taken into account.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3132
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

So if there valuation was not correct....wouldn,t that be classed as being fishy? I feel we were duped as we only expected to pay the £12 as first told in the beginning when we bought it. How do we know if they have the correct value of our land or not? Sorry but if I ask the company these questions they never answer me.

Expert:  bigduckontax replied 2 years ago.
It does appear that you are being given the run around, but let us suppose that from the 400 we deduct the 20, the 2# ***** on 4000 (80) leaving 300 which does not seem excessive for local management fees in this day and age.
Customer: replied 2 years ago.

No perhaps it does not seem a lot for management...but to me they don,t do anything for it ...That is my point. It seems as if I have to just lump it then. Nothing more I can do or nowhere else to go with it.

Expert:  bigduckontax replied 2 years ago.
Ah well, how many management companies operate in this way, the majority. It's just a case of grin and bear it; at least the charges are very modest.
Sorry to be so negative, but there is simply no other solution. Most EU economies are in the doldrums at present.
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.
Customer: replied 2 years ago.

Thankyou for the advice. Regards Jean.

Expert:  bigduckontax replied 2 years ago.
Delighted to have been of assistance, Jean.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions