[BUYING AND SELLING REAL ESTATE IN ROMANIA]
195
The board of directors, as well as the supervisory board, must hold quarterly meetings.
to the amount of their contributions to the company’s subscribed capital.
VII. Financing Financing is typically secured by way of bank loans. In most cases, banks will require securities (collateral) from the borrower. Securities or collateral may consist of one or more of the following: mortgage of immovable assets (typically, but not necessarily the real estate which is bought with the loan); mortgage of movable assets (bank accounts, receivables, shares, cars, etc.), assignment of receivables for guaranteed purposes or autonomous bank guarantees. VIII. Payments and Costs. Taxes Involved in Real Estate Transactions A. Asset deals: Related taxes The following fees are due in an asset deal involving real estate: (i) public notary fees for authenticating the SPA – up to 0.5% of the purchase price, (ii) Land Book registration tax – 0.5% of the purchase price for legal entities and 0.15% for natural persons. In practice, usually the purchaser bears all of the fees and taxes of the sale, but the parties may agree to split the costs between them. The seller usually pays the sale tax for sale of immovable property. VAT shall apply to the purchase price if the land might be buildable (according to the urbanism certificate) or new buildings are being sold (or parts thereof). Standard VAT is 19% but there
2. Formation
The main steps of the establishment of a joint- stock company are: a. Applying for and obtaining reservation of the joint- stock company’s trade name, b. Choosing a Registered Office, c. Drafting and submitting the joint- stock company’s constitutive documents to the Trade Registry, and d. Subscribing the share capital. Timing: Once all of the documentation is available, incorporation is completed within three (3) business days as of the filing of the registration with the Trade Registry so long as no issues are identified, or additional documentation is required. 3. Minimum registered capital The minimum share capital is RON 90,000 (approximately EUR 20,000).
4. Liability
The shareholders are liable for the obligations of the company up to a limit equal
ILN Real Estate Group – Buying and Selling Real Estate Series
Made with FlippingBook Online newsletter