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Bulgaria real estate legal advice
Since the induction of the currency board in 1997 Bulgaria has been politically stable country with working economy and preferential conditions for foreign investors. The prices of Bulgaria real estate are lower than a lot of other destinations in Europe but the estimated acceptance of Bulgaria in the EU provides unprecedented growth potential that will certainly boost the prices of the Bulgaria real estate in the near future. Bulgarian realty market is still unexplored and undeveloped to a certain extent, which makes it very attractive.
It will probably be shocking for you how many strategic real estate properties are still waiting for their owner to appear.
Bulgaria has very liberal foreign investment laws regarding Bulgaria real estate. In accordance with the Bulgarian Constitution and legislation foreign persons and companies can invest in real estate in Bulgaria either personally or through a local legal entity. Generally speaking, foreigners as persons can purchase only buildings but not land. Only Bulgarian citizens and legal persons can obtain the ownership of Bulgarian land.
Therefore, the most popular and preferred by non-residents ways to become the real estate owners are:
As far as apartments, houses, villas, flats and limited ownership rights are concerned, you can directly purchase them.
When talking about Bulgaria real estate with land, you have to set up a company that will be the proprietor of the property. It is easy to set up a company in Bulgaria. All that you need is a good solicitor or barrister at law.
Also there are other ways to do it, like:
Establishing a joint venture with existing local companies;
Acquiring a company through privatisation;
Making a portfolio investment;
Setting up a new venture;
Foreign organizations have the right to open bank accounts denominated in a Bulgarian or foreign currency. There is also no limit to the company stake they possess. Moreover, there is a special regime of respect towards the foreign investors on the part of the Bulgarian legislative system, which is a gesture of tolerance to those, who are interested in Bulgaria and are willing to benefit from its future. Last 2 Bulgarian governments are doing their best to attract foreign investors that want to buy Bulgaria real estate.
We are here to help and organize the whole process of acquisition for you from the start to the very end. The service will be undertaken by a Bulgarian lawyer, expert in Bulgaria real estate and specialists who will provide you with a professional help in the field you need, including:
Registrations of mixed and foreign companies;
Travel arrangements when arranging viewings of Bulgaria real estate;
Property management and real estate maintenance;
The best relation between price and quality of real estate achieved by professional negotiations;
Own transport for visits to the real estates in the country;
Important information to consider when buying PROPERTY IN BULGARIA
The usual term for the old owners of the property to move out of it after completion of the sale is one month. This could be negotiated if the buyers require a shorter term. For this purpose, they should ask the assistance of Bulgarian Property Reg Ltd in due term and not expect the property to be empty right after signing of the final contarct.
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" is for the purposes of real estate taxation and is much lower than the actual selling price.
Most of the Bulgarian propety owners want that the "tax estimation price" is written in the title deed, and not the selling price which the buyers are paying. 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 Bulgarian Property Reg Ltd. can not be responisble for it. If the respected property buyer wishes that the purchasing price is written in the property title deed they must notify us in advance and we will negotiate on this with the vendor of the property.
Costs For Buying Property in Bulgaria
1. State Fees
entering fee - 0.1 % from the value of the property
local fee - 2% from the value of the property
notary tax - it is calculated under a determined scale and is paid as percent from the value of the property
For example if the value is 20000 BGN, the total value of the due state fees is 588 BGN
Lawyer's honorarium - between 100-200 EUR depends on the deal
2. Commission for the agency- estate agent - 3% from the market price of the property, when the Agency headquarters are in the big cities and the Black Sea.
3. Local Taxes and Rates (after buying a property)
An owner of a building or a plot is obliged to pay an annual real property tax and waste-collecting fees. These are different in value and depend on the size of populated area and its situation in the country, the neighborhood, the sq. footage and the floor, the year and the type of the construction, extras in the interiors etc.
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