1.Find a property . We can arrange viewing trips with English speaking guides and drivers
2. If you want to buy land as well, take into consideration that you’ll have to register a company as the law still doesn’t allow the purchase of land by foreigners.So you purchase via your own Bulgarian Limited company .This changes in 2014 (Not required to purchase apartmentrs)
3. If you do not want to acquire the land, then you directly move to the next step, i.e. negotiate the price of the property.
4. Then you can sign a preliminary contract and the property will be removed from the market.
5. The next step is to carefully check the title deed documents, licences and permissions, debts on the title and terms of contract.
6. From there you proceed to signing of the contract of purchase and confirming in front of a notary public the buying of the property. Here you will have pay 4% of the purchase price for Stamp duty Notary fees approx €250 . and 20% VAT if it is not expressly included. Most are not.
7. If you have completed all the previous steps, it means that you are already an owner of property in Bulgaria.
8. Do not forget to insure you property after the purchase.
Who can form a Limited Liability Company & how?
A foreign or Bulgarian person (judicial or physical). The company owners will be liable for the company's obligations to the value of his/hers share in the company's registered capital. Articles of Incorporation are prepared & signed by all shareholders.
A company bank account is opened to collect all share capital. The minimum share capital required is 5,000 leva. Shareholders at time of registration must have paid up at least one third of their respective shares. It is required that at least 70% (3,500 leva) of the capital is raised at time of registration. The company exists from the moment it is added to the Commercial Register of the district court of where the company will be based. The entry is made upon issue of a district court decision for the incorporation. The following documents must be available at the time of the submission of the application to the district court:
1. Articles of incorporation;
2. Memorandum for appointment of Directors;
3. Proof that each shareholder has paid at least one third of its interest, but not less than 10 leva;
4. Proof that at least 70 per cent of the registered capital has been paid.
The Bulgarian State Gazette is the official paper within which all Bulgarian legislation is published. Publication of the company entry in the Commercial Register does not complete your company formation, it announces to the general public the act of formation. The process of forming your company can take anywhere between a few days to a few weeks. Finally, your new company will need to register immediately with the National Tax Register Authority. The costs involved are: 3,500 leva = 70% share capital.
Administrative costs (payable to the state & registration court) are 250 leva (just over £70). This is the minimum capital that you need to raise for registration. Once the entire share capital has been paid up these funds can be accessed and withdrawn. Allow betwen EUR 500 - 700 for charges relating to the formation and registration of your company.
Property Tax (Simular to the UK Stamp Duty)
Disclaimer IMPORTANT PLEASE READ
Euro Property Agents & Property Links take all reasonable care to ensure that the information contained on this website is accurate, however, we cannot guarantee its accuracy and we reserve the right to change the information on this website (including these terms and conditions) at any time. You must therefore check these terms and conditions for any such changes each time you visit this website. To the best of our knowledge, the information contained within this website is accurate. Whilst we take reasonable care to ensure its accuracy, Euro Property Agents makes no representations or warranties of any kind with respect to this website or the content contained on it, including any text, graphics, advertisements, links or other items. We will not be liable to any customer or member of the public for any information supplied on this website. Our website is, provided on an "as is" basis and we do not make any representations or warranties if such information subsequently proves to be inaccurate or out of date. Neither Euro Property Agents nor any other contributor to this website make any representation or gives any warranty, condition, undertaking or term either expressed or implied as to the condition, quality, performance, accuracy, fitness for purpose, completeness or freedom from viruses of the content contained on this website or that such content will be accurate, up to date, uninterrupted or error free Euro Property Agents assumes no responsibility and shall not be liable for any damage to, or viruses which may infect, your computer equipment or other property by reason of your access to, browsing or use of this website. In no event shall Euro Property Agents be liable for any damages, losses, injuries or claims or any direct, indirect, incidental, consequential damages of any kind (including but not limited to lost profits, data or savings) howsoever arising (including, but not limited to, as a result of Euro Property Agents negligence) in connection with the use of this website; or the copying or use of any information or material contained in or referred to in this website; or any failure or delay of the use or inability to use any component of this website. Any references to financial services does not constitute any form of financial advice.
The owner of a building or land in Bulgaria has to pay a property tax. The tax is equal to 0.15% of the book value of the property. There are no local taxes for arable land. The owners also have to pay waste-collection fees which are determined when the ownership is registered with the municipality, which should be done within 60 days of completion.
Value Added Tax
Transactions with land and lease of property for residential purposes are exempt from VAT (Value Added Tax), all other real estate transactions are subject to VAT of 20% if the seller is VAT registered. The buyer is entitled to a VAT refund, provided that it is registered for VAT purposes.
Real Estate Agencies
The Real Estate Agencies have varying charges for their services - from 3% of the purchase price to about 10%! Some agencies can also set up a “minimum” commission which does not depend on purchase price. Some agents may also charge for the viewing of the properties.
IMPORTANT NOTICE: Under Bulgarian law all foreign visitors should, within 48 hours of arrival in Bulgaria, register with a local police station, stating in writing the address at which they will reside during their stay If staying at a hotel or in private accommodation, the hotel management/hosts have the responsibility to register them at the local police station.
Bulgaria has now become a member of the European Union, The Bulgarian property market presents very good possibilities for potential investments which can be quite profitable in the long-term.
There are diverse offers on the market which can meet different requirements and often have considerably better value for money than in other European destinations.
Most of the people looking for property in Bulgaria usually want to find holiday home but the number of investors who buy property in order to profit in the long term is also increasing.
If you start to consider buying a property in Bulgaria you have to take into consideration the following points:
To the best of our knowledge the following information is correct but we recommend taking independant legal advice before purchasing property abroad
9. Remember to register your new property with the local authorities within 60 days following completion of the deal.
10, Register for BULSTAT within 7 days of signing at Notary (Fees apply)
What can be found on the market?
The prices for a villa close to the sea can be as much as £500,000 and for a renovation project in a rural area they can be around £7,000. In many cases though, you will have to make some refirbishments in order to have the usual standards of living. In all cases, it is advisable to personally visit the property and not to buy it after judging only the photos.
You can also consider the purchase of a new development under construction, which is now wide spread practice, especially in the capital, in ski resorts and on the coast. Properties may be purchased 'off plan' In Bulgaria VAT is 20% on all new built property
Law on foreigners owning property in Bulgaria
According to the Bulgarian Constitution, foreign individuals can buy buildings but not land. Therefore, the most common method for foreigners buying property in Bulgaria where they also wish to own the land is to set up a company which then owns the land and the buildings. The law is expected to change on this within the short to medium term with the expected entry of Bulgaria into the European Union (2007). This historic restriction is one of the reasons why property in Bulgaria is so competitively priced compared to Western and Central Europe. Current amendments to the constitution will allow citizens of countries with which Bulgaria has agreements on land sales to buy land in 2007 when the amendments would come into effect, while EU citizens will have the right to buy land in 2014. In the meantime a company is still required for land ownership.
If your purchase includes land a Limited Liability Company will need to be formed