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.
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.
Note: 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 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 After that the 5000 BG Lev can be withdrawn and used as part of the payment for the property.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. 1800 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, 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:
•    entering fee - 0.1% from the value of the property
•    local fee - 3% 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 at about 600 BGN.

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.
Note: these figures do vary from region to region and are dependant on different variables including solicitors and house prices.
Declaration of the purchased property in the Tax office
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.

ACCOUNTING SERVICES

Once you have a company established you would need an accountant to take care for the documentation, taxes on the property, annual financial conclusion, etc. We can sort this out for you by recommending reputable accountant, who has been working at ACCORD and has proven hers professionalism and loyalty. He is acquainted with the procedure and has long experience with foreign clients.

MORTGAGES

Mortgages are available in Bulgaria but they tend to be very expensive and difficult to obtain. The best option if necessary is to secure funding in your country.


OUR FEES AND SERVICES

Our real estate agency fee is between 2% and 5% but minimum of 1000 Euro.We require our commission at the point we start the legal work leading to signing of the Preliminary Contract. This contract sets out the intention to buy with all the conditions of sale indicating the price and completion date. The Preliminary Contract also involves a payment of a 20% - 50 % deposit to the seller. The rest of the selling price are payable to the seller on the stage of concluding the deal.


TO ALL BUYERS

Your time here is absolutely appreciated. We know you are here on a holiday or business and do not waste your time viewing inappropriate property. We start the search before you arrive, and the personalized relationship we have started with you enables us to offer the best available properties.