A large European agricultural trading business was seeking to acquire farmland in Romania.

A recent law had been introduced in Romania where the consideration paid for the purchase of agricultural land was subject to tax.  Although this was primarily a tax for the seller, the buyer was concerned it could be secondary liable if the purchaser did not pay.   The buyer was therefore insisting on an indemnity for the tax, but the seller was not willing to provide this as it wanted a clean exit.

We worked together with the buyer and local advisors to assess the secondary risk and offered a tax policy.  The seller shared in the cost for the insurance as it was happy the buyer had found a solution without the seller having to give the indemnity.