The Greek Government tells the tax-burdened self-employed: “Go To Bulgaria”. Many, especially from northern Greece, have moved their business basis to neighboring Bulgaria for obvious reasons: 10% tax instead of 29%, low social security contributions, incentives. There is talk that 60,000 businesses have moved in the last seven years of austerity.
This is happening in the mortgage segment of the industry. The average mortgage inspection fee is $3 and the profit is “maybe” $1.50. The start-up cost is about $1,265 before the first inspection is performed. One Mortgage Order Mill (MOM) has inspectors wait 60 days to get paid. Most of the MOMs play lots of games and impose huge penalties called “chargebacks”.
Greek businesses are moving to Bulgaria because of the higher overhead costs. Mortgage inspectors are moving to commercial inspections because of the higher quality firms, higher fees and lower overhead costs.
Don’t play Mortgage Segment games!