The Process and Expenses Involved in Buying a Property In Bulgaria
At the present time, 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. The process is straight-forward we have helped over one hundred of our clients set up Bulgarian limited companies and we will talk you through the process now. The company will buy the property and will own the land. You will be the owner of the company and, respectively, of the land. Our lawyers will help you set up the company and will do 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 goes like this:
1. With our help and support you will set-up your Bulgarian company. You may do this in person or by authorising us through a Power Of Attorney.
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 After that the 5000 BG Lev can be withdrawn and used as part of the payment for the property.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 fees for the setting up of the limited company, these fees include lawyers’ fees who prepare 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, to close and to withdraw payment from your account.
And that’s it your company is prepared. Now you are ready to buy your 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 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, Notary fee is dependant 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.
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 different variables including solicitors and house prices.
Our Commission and Our Commitment to You
Our charge for finding you your dream property and providing you with a stress and hassle free purchase is 3% of the purchase price or a minimum of € 500. The commission is paid once the property has been secured for you, at the same time as the signing of the preliminary agreement. However, our commitment to you does not stop there. We are not like other estate agents; we understand that buying in a foreign country can be a daunting process so for our clients we will:
Check the legality of ALL documentation - We take pride in knowing that our clients trust us and we earned that trust because we check absolutely everything on your behalf. This includes a full check on property ownership documents, land sketch, securing proper title deeds.
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.
Declaration of the purchased property in the Tax office – Changing the name of utility bills (admin costs not included)
Translating Notary deed into English – Our translators are fully trained in their translation skills, 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 are with you all the way along this process and we will be here after if you need us. |
