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Legal information

Although purchasing property in Bulgaria is not too dissimilar from buying anywhere else it can be confusing and stressful as in any other country. For this reason our aim is not only to find the property that you are looking for, to give you advices in every step of the purchase, but also to defend your interests and complete all the legal procedures on your behalf.

Steps for buying a property in Bulgaria

Step one: Choose the best property
Choose the property you would like to purchase in Bulgaria through inspection or online. The property search option on our web sites is aimed at facilitaing and narrowing your search by specifying parameters like city, type of aproperty, number of bedrooms and price. Also on our web site we provide information about the main areas and cities on the Black sea coast to facilitate your decision. It is important for us to know what the aim of the purchase is: residential property, holiday property, investment or resale. We can offer you the best properties that match your personal requirements.

Step two : View selected properties
We will be at the airport to meet you if you prefer, we will arrange your accommodation and will arrange viewing trips to the selected properties at a time convenient for you. It is important to make an appointment before you travel, so we will have time to make all the arrangements.

Step three: Check the selected real estate
We will check the selected real estate, including court records double-check, mortgages etc.

Step four: Legal procedures for acquiring the selected real estate in Bulgaria
Currently there are restrictions on foreigners buying land in Bulgaria. 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. However you can buy an apartment in your name without forming a company.
For purchasers from non-Euro countries it is important to secure a rate for the deposit and for the completion of the purchase. You will be agreeing to purchase a property in Euro and the only way you can be certain that the price does not change is to forward- buy- the necessary Euro at the time you make your decision to purchase.

The whole purchasing process usually takes a month to be finalized
Once you have chosen your property, we will carry out a research on the selected real estate, including court records double-check, check for mortgages etc.

Property without land- apartment
Property with land- any other property
Sign a preliminary Purchase contract.
An agreed deposit ( usually rates at 10% of the cost of the property to be purchased ) is now paid, and a date is set for completion.
Estate agents fees are now payable.
If you are a foreign investor, we will help you to form a company.
Preliminary Purchase contract.
An agreed deposit is now paid ( usually rates at 10% of the cost of the property to be purchased ) , and a date is set for completion.
Estate agents fees are now payable.
The property is taken off the market.
On the settlement date agreed upon under the preliminary contract seller and buyer will appear before a notary public to settle the transaction.
You do not have be present in person provided you have authorized an attorney to represent you.

Execution of the deed.

Congratulations you are a property owner in Bulgaria


Step five: After sale services (optional)
We will help you with renting or managing the property on your behalf when you`re not in the country and we will advise you on possible re-sellingof the property etc.

Setting up a company

If you want to buy a property with land - we will help you to form a company , (this normally costs about £400 which includes government and solicitors fees) you will need to deposit 5000 leva into a Bulgarian Bank (this can be withdrawn once the firm has been formed). It takes 10- 15 working days to set a company in Bulgaria. For this procedure we will need a copy from your passport and we will prepare the rest of the documents. The type of company varies from a limited liability company with a single shareholder (with the suffix EOOD) to a limited liability company (with the suffix OOD). It is not possible to set up a company without registration of a head office (juridical address) on the territory of the state. Thus, property acquisition is compulsory.  You have choice to buy residential properties (apartments, houses, villas) or commercial properties (hotels, restaurants, etc.). It is no matter what the price of the property is. The property purchase is conducted in the name of the registered company. Then the transaction is certified at the notary's office, followed by registration at court and finally the title deed is issued.  There is no legal requirement  as to the number of founders, but the common practice is 4-6 people, who could be members of one or several families.  The scope of activities of the company may include various type of business from all economic fields. 

Information about property taxation in Bulgaria:

If any property is purchased or a new property is built (with available permit for use) every person (natural person or legal entity) is obliged to file a tax declaration within the term, set by the law, but no later than 60 days after the day of the property purchase.  If the property is a plot or a building with a plot and it was not made any changes recently, it is not necessary any annual declarations to be filed except the declaration aforementioned. The rate of annual property tax is calculated by the tax administrations using compound formulas( taking into account the location of the property, its price, depreciation, etc.) and send a written notice to the taxable person.

The simplified formula looks this way:
0,015% - property and land tax;  
waste-collection tax is diferent;
The tax may be paid on four equal installments.

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