money?

thejourney

h

BrokenArrows

thejourney wrote: »

I have a few questions on how Property Developer's make money ?

How do they avoid a double tax?

Build property
Sell for more than building cost to build.
Profit!

Seems pretty straight forward.

What do you mean double tax?

riemann

thejourney wrote: »

I mean does the company pay 12%, and then your salary from your company is 42% tax?

Successful property developers don't pay tax

srsly78

thejourney wrote: »

I mean does the company pay 12%, and then your salary from your company is 42% tax?

Corporation tax is paid on profits. So an easy way to avoid it is to not make any profit. An easy way to make no profit is to pay out all profits as bonuses etc.

srsly78

thejourney wrote: »

very clever. Thank you. So there is no profits on bonuses?

Your question makes no sense. It's like asking if there are apples on oranges.

Profits are something a company makes, money left over after paying expenses and wages etc.

Bonus/salary is something an individual gets. They pay income tax/prsi/usc on this as appropriate.

Company is a different legal entity than an individual. Actually this is all assuming the developer is using a company, maybe they might act as a sole trader - in which case none of this would apply.

dashoonage

Take out a huge loan from a bank
Stick up the bones of a few houses down the back of a field.
Declare bankrupt
Move to Spain
Turn off the auld mobile phone
Be grand

#Profit.

srsly78

Even better:
Pocket all the vat money
Buy vineyards and pink shirts etc
Get elected to Dáil
Declare bankruptcy