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The Process and Expenses Involved in Buying a Property In Bulgaria

The Process and Expenses Involved in Buying a Property In Bulgaria

Until 2012, after Bulgaria joined the EU in 2007, as a foreign national in order to be able to buy a house with land you need to set up a Bulgarian limited company. This is because foreign nationals are not permitted to own land in Bulgaria prior to EU membership.

This may seem a lot of hassle but there is no need for concern. With BG Home Services Ltd. the Bulgarian property purchase process is a straight-forward procedure. Over the past years we have helped hundreds of our clients set up Bulgarian limited companies and we would like to briefly present you the most important steps of the process, now. The established company will buy the property and will own the land. You will be the owner of the company and, respectively, of the land. Our solicitors will assist you set up the company and will complete all the necessary procedures to obtain the property on your behalf.

NB: Not required when purchasing apartments – as you are not purchasing the land, just the apartment

The process steps are listed below:

1. With our expert help and support you will set-up your Bulgarian company. You may do this in person or by authorising us to do this through signing a Power Of Attorney. (This would need to be signed and stamped at the Bulgarian Embassy in London or in Bulgaria)

2. 5000 BG Lev needs to be deposited into a company bank account - this is the starting capital of your company. It stays there until registration – for about 4-5 days. After that the 5000 BG Lev can be withdrawn and used as part of the payment for the property.

3. 600 Euros are the fees related with setting up of the limited company. These charges include lawyers’ fees including expert check and preparation of all the documents for the company, go to different services to register it and arrange all procedures and documents, plus all papers officially translated and stamped into English and posted back to you.

4. 100 Euros - bank fees and charges to open, close and to withdraw payment from your account.

Once they are successfully completed your company is prepared and started. Now you are ready to buy your Bulgarian dream property. We will then proceed and acquire the property ownership rights for you, checking all the legal documentations and ownership papers and then you become the new owner.

Once you have registered a Bulgarian company you can use it in the future for different business activities or for other property purchases.

Additional Expenses

Please note that you must pay all other conveyance fees related to buying a home in Bulgaria and only the solicitor can state the exact amount for your chosen property. This will include:

- Land/Property tax
- All lawyer fees
- All notary fees
- All court taxes

Land tax and Notary fee both depend on the declared value of property, which by mutual agreement between buyer and seller can sometimes be different from the price entered on document of sale. If both buyer and seller agree, it’s quite common for a lower declared price to be entered on the Contract of Sale. This can lessen the Capital Gains Tax liability for the seller and save the buyer a considerable amount in Land Tax, especially on the more expensive properties. Unless customer advice different the government valuation tax will be written on the deeds.

If you wish us to give you an estimate of what these may cost e-mail us with the reference number of the property and we will give you an example.

NB: these figures do vary from region to region and are dependant on different variables including solicitors and house prices.

Our Commission and Our Commitment to You

Our charge for finding you your dream Bulgarian property and providing you with a stress and hassle free purchase is 3% of the total purchase price or a minimum of 587.50 euro. The commission is paid once the property has been secured for you, at the same time as the signing of the preliminary agreement.

Securing the property & organising the preliminary agreement -

If you are personally in Bulgaria to secure the property, then a 10% deposit and preliminary contract must be signed. If you wish to reserve a property from the UK we will place your 10% deposit for you and sign the preliminary contract on your behalf.

NB: Once a reservation deposit is paid EITHER in the UK or Bulgaria you will normally have 30 days in which to complete the deal (with agreement of the seller this can be extended). The deposit is non-refundable unless the seller breaks the contract.

Signing for your new property

This is done at the government Notary office. The final payment will then be made and the Notary fee.

NB: The Solicitor and Notary state these fees, they depend on the value of the property entered into the final deed.

Translating Notary deed into English

Our translators are highly qualified and with years of experience in legal translation. We will get all documents stamped by the government department that puts a legal requirement on us to make sure the translations are absolutely correct. Giving you total confidence that you understand and are fully aware of what you are buying.

We will take you through each step of the process and we will be here after if you need us.

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