Purchasing property in Bulgaria can be as easy or as hard as you care to make it. There are certain laws, applicable to property purchase, which need to be clarified.
The text below serves to enlighten you, in that respect.
And remember:
If you choose the right agent; the process will be a breeze! So choose us for the easy option!
All information below is changing.
Many developers are offering a full service which includes the entire process and procedures …this is in an effort to make buying easier in Bulgaria. This has a positive effect and makes life a lot easier for the purchaser.
You must employ a lawyer to see the process through,
a good agent will provide this service also. Engaging the services of
a lawyer who will be experienced, and who knows what is required to
fulfil your individual needs.
If you choose to buy an apartment, no matter where it is (in Bulgaria) then you need not read the rest of this page.
However; if your choice of property is a house, which stands on it's own plot or simply a plot of land without a domicile, then the circumstances change, considerably.
The problem here lies in the fact that foreigners are not allowed to buy land in Bulgaria.
There is a way around this:
In order to be able to buy land in Bulgaria you must set up a limited company, registered in Bulgaria.
Once you have done this, the plot of your choice can be bought through the auspices of the company.
A good agent will do this for you. All you need to do is name the company and it will be set up, using the Lawyer who is attached to the agency.
There are however conditions, in law, which govern this process.
You have to sign the relevant court documentation and the directors (of the company) have to deposit a sum of money in a Bulgarian bank. (70% of 5000leva Minimum).
Therefore a bank account has to be set up.
Once the deal has been completed, however the money can be withdrawn or it can be used to finance the property. All of this can be achieved relatively painlessly and from the comfort of your armchair. You may not even have to stump up the money to open the business bank account ! but this will be dependant on your choice of agent at the out set.
The process of buying can begin before of course, with the choice of a property from the web for example but the process described above can only be completed in Bulgaria.
If it is timed right however the legal requirements can be settled in a couple of days and lets face it, it's no real hardship to go to such a place.
It has to be said also that the process of company set up does take some time though this is only measured in weeks. The process can be sped up if you decide to visit Bulgaria and sign the papers in front of the notary.
In this way the company could be registered through the courts in a few days and your property will be yours much sooner.
There are fees to be paid but these will be a percentage of the purchase price of the property and will be levied by the notary. There also taxes to be paid in lieu of the property value.
There will also be a lawyer's fee, which will be charged by him/her for the service he/she provides.
The newly formed company will also carry a tax burden with it and a tax return has to be submitted annually (31st March).
If the company you have set up is trading then you will have to pay taxes on profits declared. If however you have set up the company simply to buy the property and will not be trading. Then it will be necessary to inform the authorities about this.
It is advisable to employ an accountant for the purpose and you will be charged an annual fee to be fixed by him/her.
If you choose the right agent all of this can be taken care of for you. (for full service charges see FEES)
To make things run more smoothly you will be asked to give the lawyer power of attorney to represent you but this power will cease on the finalization of the purchase.
There is no need to worry about any of this, it will enable the whole process to run more smoothly.
Vat at 20% is levied on all new build properties guided by the valuation of the Notary Act.
The final stage of purchase takes place after all checks have been completed (by the lawyer) and monies have been paid.
At this stage you will have to appear before the notary public, to sign the agreements and contracts in person. (contact us for details)
After this the property is effectively yours ALLELUJAH!
We cannot advise on matters related to tax matters affecting you on sales of your own property. These are matters which should be taken up with the proper authorities.
If you choose to buy an apartment, no matter where it is (in Bulgaria) then you need not read the rest of this page.
However; if your choice of property is a house, which stands on it's own plot or simply a plot of land without a domicile, then the circumstances change, considerably.
The problem here lies in the fact that foreigners are not allowed to buy land in Bulgaria.
There is a way around this:
In order to be able to buy land in Bulgaria you must set up a limited company, registered in Bulgaria.
Once you have done this, the plot of your choice can be bought through the auspices of the company.
A good agent will do this for you. All you need to do is name the company and it will be set up, using the Lawyer who is attached to the agency.
There are however conditions, in law, which govern this process.
You have to sign the relevant court documentation and the directors (of the company) have to deposit a sum of money in a Bulgarian bank. (70% of 5000leva Minimum).
Therefore a bank account has to be set up.
Once the deal has been completed, however the money can be withdrawn or it can be used to finance the property. All of this can be achieved relatively painlessly and from the comfort of your armchair. You may not even have to stump up the money to open the business bank account ! but this will be dependant on your choice of agent at the out set.
The process of buying can begin before of course, with the choice of a property from the web for example but the process described above can only be completed in Bulgaria.
If it is timed right however the legal requirements can be settled in a couple of days and lets face it, it's no real hardship to go to such a place.
It has to be said also that the process of company set up does take some time though this is only measured in weeks. The process can be sped up if you decide to visit Bulgaria and sign the papers in front of the notary.
In this way the company could be registered through the courts in a few days and your property will be yours much sooner.
There are fees to be paid but these will be a percentage of the purchase price of the property and will be levied by the notary. There also taxes to be paid in lieu of the property value.
There will also be a lawyer's fee, which will be charged by him/her for the service he/she provides.
The newly formed company will also carry a tax burden with it and a tax return has to be submitted annually (31st March).
If the company you have set up is trading then you will have to pay taxes on profits declared. If however you have set up the company simply to buy the property and will not be trading. Then it will be necessary to inform the authorities about this.
It is advisable to employ an accountant for the purpose and you will be charged an annual fee to be fixed by him/her.
If you choose the right agent all of this can be taken care of for you. (for full service charges see FEES)
To make things run more smoothly you will be asked to give the lawyer power of attorney to represent you but this power will cease on the finalization of the purchase.
There is no need to worry about any of this, it will enable the whole process to run more smoothly.
Vat at 20% is levied on all new build properties guided by the valuation of the Notary Act.
- All foreign buyers purchasing real estate property need to know that when buying a property in Bulgaria they will come across terms such as "tax estimation price" and "purchase price". The "tax estimation price" is for the purposes of real estate taxation and is much lower than the actual selling (purchase) price.
- Most of the Bulgarian property owners (vendors) want the "tax estimation price" written in the title deed, and not the selling (asking) price which the buyers are paying.
- Beause of this practice there might be discrepancies between the price you (as a purchaser) pay for the property and the price which is written in the title deed.
- There are various reasons for this ( it is general practice ) and NO BULL BULGARIA cannot be held responsible for it.
- If the respective property buyer wishes to have the purchase price written into the property title deed then they must signify this in advance and we will negotiate this point with the property Vendor.
The final stage of purchase takes place after all checks have been completed (by the lawyer) and monies have been paid.
At this stage you will have to appear before the notary public, to sign the agreements and contracts in person. (contact us for details)
After this the property is effectively yours ALLELUJAH!
We cannot advise on matters related to tax matters affecting you on sales of your own property. These are matters which should be taken up with the proper authorities.
