What do you need to know about buying property in Bulgaria?
Buying a property in Bulgaria is a fairly simple and straightforward experience. Foreigners can buy buildings, rights to build, and other land related rights such as the right of use & passage, but they cannot own land in the country directly.
Thus, for purchases of land, a foreign buyer must first set up a limited liability company in whose name the purchase can be made. Then this company can buy and own both the building and the land freehold for it. The restriction on land ownership may be revised upon Bulgaria's acceptance in the EU, which will drive property prices up.
We offer full assistance with the formation of a company in Bulgaria. It is a routine operation which entails legal fees for setting up, government and solicitors fees totalling approximately 600 EUR (420 GBP). Upon forming the company, the owner will need to deposit 5000 leva (GBP 1730) into a Bulgarian Bank. This deposit can be withdrawn once the Ltd Co has been formed. An already formed limited company can own more than one property. We also offer peace of mind accounting services to complement the company formation.
Property buying process step by step:
1. Browse our website, select the properties that interest you and communicate with our staff if you need guidance in your choice.
2. Once you select your property, place a deposit in order to reserve it. The deposit usually starts from 1000 EUR (700 GBP) payable by cheque, bank transfer to our UK bank account, debit or credit card payment over the phone, or in place at either our UK or one of the Bulgarian offices. Your reservation fee is non-refundable, but it will be deducted from the purchase price of your property. Upon receipt of your reservation fee we will take the property off the market for a 30 day period which is the expected time for completion of the purchasing process.
3. Arrange your viewing trip if you wish, either yourself or with the help of our staff. Let us know your arrival date, any additional service you may require, and preferred dates for the viewings.
4. If buying a property with land, set up a Bulgarian registered company in your name in order to purchase the property. This usually does not apply if buying a flat or off-plan for new built properties. Please contact us for detailed explanation and assistance with the process.
5. Contacting the Developer/Seller or his solicitors (for example, any questions regarding the preliminary contract, completion date, payments, maintenance, etc.) (it is strongly recommended that this is done by your solicitor).
6. Preparing the documents for the deal and undertaking property research (detailed check of the property’s title documents, building permissions, debts on title, etc., normally done by your solicitor). Your solicitor will give you details about this in respect with your individual case.
7. Preparing and signing the Notary deed (this is normally done by your solicitor). At signing, a State Tax (Stamp Duty equivalent) and notary fees less than 3.5% of the purchase price are payable. Full property payment may also be expected please refer to your preliminary contract for payment details.
8. Registering the property in the tax authorities and BULSTAT register (this is normally done by your solicitor). Please note that within 7 days of signing the title deed, the foreign buyer (if he/she is purchasing property as an individual buyer, not through a Bulgarian Limited Company) should register for statistical purposes at the local BULSTAT registry office. This registration is to identify the investor in front of the Bulgarian authorities. The buyer should also submit a tax registration form within 2 months after the acquisition.
This stage completes the process and makes you the proud owner of your new Bulgarian property!
Important notice:
All foreign buyers purchasing real estate property must be aware that in Bulgaria there are such terms as "tax estimation price" and "purchase price". The "tax estimation price" (similar to "ratable value" in UK) is for the purposes of real estate taxation and is often much lower than the actual selling (purchase) price.
Most of the Bulgarian property owners (vendors) wish that the "tax estimation price" (ratable value) is written in the title deed, and not the selling (asking) price which the buyers are paying, so due to this practice there might be discrepancies between the price you are paying and the price written in the title deed. This is because of various reasons and Balkan Dream Properties is not responsible for it. Even if the property buyer wishes that the purchasing price is written in the property title deed we can not guarantee that this will be accepted by the vendor.
Please note: A currency conversion has been applied to this property, please check with Balkan Dream Properties for the current market price in GBP.
We have prepared these sales particulars as a general guide to give a broad description of the property. They are not intended to constitute part of an offer or contract. We have not carried out a structural survey and the services, appliances and specific fittings have not been tested. All photographs, measurements, floorplans and distances referred to are given as a guide only and should not be relied upon for the purchase of carpets or any other fixtures or fittings. All details should be checked and confirmed by your Solicitor prior to exchange of contracts.
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