Buyer's Guide
This buyer's guide will reveal in brief the whole process of purchasing a real estate in Bulgaria. It is designed to give you on overview of what is involved and what you can expect when purchasing a property in Bulgaria.
Most of the people who are buying property in Bulgaria are looking for a holiday home, often with a view to retirement in later years, but there are an increasing number of investors who are buying properties with a view to making a capital gain in the future.
The first step you should do when you have decided to buy a property in Bulgaria is to determine its location, whether it will be a house, a villa, an apartment or land plot. Have a look at the properties on our website and when you find something that suits your taste and needs send us an email or call at the office. It is possible to buy a property without coming to the country - we will give you full information about the property and will send you all necessary documents.
Law
Bulgaria has one of the most liberal foreign investments laws regarding Bulgarian real estate and according to the Bulgarian Constitution and legislation foreign persons and companies are able to invest in real estate in Bulgaria personally or through a local legal entity. In other words foreigners as persons can acquire only buildings but not land.
- If you want to buy a house, a villa or an apartment you can directly purchase them as a person.
- If you want to buy a property with land you must set up a company that will be the owner of the property. Fortunately it is not very difficult to set up a company and our lawyers will help you with the procedures.
Preliminary contract
Once you have found your property ct , you have to sign a Preliminary Contract and pay a deposit on your property. The Preliminary Contract contains details of all the relevant terms and conditions, monies paid and any other information relating to the property transaction. The contract is drawn between the Buyer and the Seller - the owner of the property.
The deposit is usually around 10 % of the selling price and ensures that the property will be removed from the market and won't be sold to anyone else. Usually the deposit is non-refundable unless the Seller withdraws from the contract or cannot provide a clear conveyance of the property in question to the Buyer.
Signing the Notary Deed
This is the final stage when both Buyer and Seller meet with a Notary Public and complete the transfer of the property and pay the state and municipal taxes due on the transfer. The Notary Deed or the Notary Act, as it is also known, is an official declaration that you have agreed to buy the property. It is the last step after which you will complete the purchase and will become a legal owner of the property after the performing of the formalities relating to the sale at the notary and its entering in the State Property Register.
Most of the Bulgarian property owners wish that the "tax estimation" price will be written in the Notary Deed and not the selling 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 Notary Deed. This is because of various reasons and "Kramar" Ltd cannot be reasonable for it.
Transfer taxes
In Bulgaria, as in the other European countries, the property transactions are subject to tax. It's important for you to add these charges into your financial planning.
The transfer fees include a municipal fee, registry fee and notary fees.
The municipal fee is around 2 % of the market price; it is paid to the municipality where the property is located.
Bulstat registration?
The purchase of real estate by foreign citizens in Bulgaria should apply for BULSTAT registration within 7-days after the notary transaction with the Registry Agency (RA). This obligation proceeds from the new BULSTAT Register Act that came into force at the end of 2005. BULSTAT registration should be required for property owners who are:
* Foreign individuals who are not permanent residents of the country. If the registration is not performed in the required term, the law foresees a penalty up to 700 BGN (approx.EUR360) for individuals and up to 1000 BGN (approx. EUR 520) for the legal entities.
The Registry Agency issues special BULSTAT ID cards identifying the foreigner as owner of Bulgarian property