Bulgaria Country Guide
Click here to view our properties in this country
The Bulgarian real estate market is not dissimilar to the Spanish one of thirty
years ago, but moving faster and when Bulgaria becomes a member of the EU in 2007
it will probably gain a greater impetus. All over Bulgaria you can see the blue
starred flags of the EU going up so the process of buying property in Bulgaria will
hopefully be simplified in the future but at the moment it's all very mechanical
and needs a lot of legwork to put the bits together.
1. Finding Your Property
Like all other property websites we have an on-line property search that is forever
changing. We are aware that it's really very difficult to get a good "feel"
from searching on even the most sophisticated websites. What seems stimulating on
screen often does nothing for you when you are there, whilst what seems to be bland
on the screen can stimulate your imagination and interest when you see it. But please
try to pick the properties you would like to view and send us the reference numbers.
By doing this you give us a "feel" for what you have in mind and we can
direct you to similar properties.
2. Arrange Your Visit
There are times when decent, but economical, accommodation is difficult to find.
If you are able to let us know your plans in advance we can be sure to make the
best arrangements for you! If you feel the need we will also be happy to greet you
at the airport/station. Alternatively you could buy a package holiday to Varna and
we will be happy to fit in with your itinerary. When you plan your visit please
keep in mind that you need to allow about two days to view properties and one day
to do the paperwork if you decide to buy. Please note that the solicitor and Notary
offices aren't open on a weekend, so make sure you are able to stay at least one
weekday to do the legal paperwork.
3. Once in Bulgaria
Should you need it we can arrange car hire for you and our representative will accompany
you to view the selected properties without charge. It is also possible to use our
agent's car for the viewing trips at the price of 0.20 Lev / about 7 p / per kilometre.
This is to cover the petrol charges and wear costs of the vehicle and is fully refundable
if you purchase property from our agent.
4. The Company
Foreigners are not directly allowed to buy land in Bulgaria but they can register
a Bulgarian limited company and in turn that company can own land. After you have
a registered company you can buy from one property to million and one, there's no
limit.
5. Setting Up the Company
The setting up of the Bulgarian company really involves a lot of running around,
accumulating fees for services, the names may change on the company documents but
the process remains the same. In theory you can do it yourself but in practice you
would be near insane by the time you finish. Everyone involved in the property sales
will offer this service at prices ranging from £350.00 to over £1,500.00 for the
fur lined service. You will have to open a deposit company bank account and sign
some of the documents for the company registration before a local official called
Notary at a cost of about £15.00 and sign a document allowing your agent to work
in your name. It's all written in Bulgarian and you have to have an official certified
translator with legal constrains to be totally honest. This will cost about £40.00.
Our agent will offer you an all inclusive price for registering the company. The
registration could be started on your first visit if it's required. Allow a full
day for the legal proceedings. They will assist you opening a company bank account
where a small fee applies. You will need to deposit 5000 Lev, about £1,800.00 which
can be withdrawn once the company has been formed. Many clients use it to defray
final balance payment on their property purchase.
You can sign a Power of Attorney for your agent or a solicitor to set up the company
for you. This is done before a Notary. Our agent is an officially recognised translator
and will do all the translating that is needed at the Notary. The price of the translation
service is included in the fee.
Then all your documents are sent to the Court. In about two to four weeks you will
have the papers duly stamped, a Bulstat registration done, that means that your
company will have an unique state number, a Tax Office registration, a registration
at the National Insurance Institute, a certificate for the actual state of the company
and a stamp. Please note that some of the District Courts require extra police checks
that are done in Bulgaria for which you will need your birth certificate.
Please note
Credit cards are of little use for paying living expenses, travel costs or deposits
etc. You will need to bring cash or travelers cheques.
Should have any concerns about how much will be needed for house deposits and company
formation costs please contact us and we will offer suggestions.
6. Purchasing the Property
Once you have chosen which property to buy our lawyers will check the Title deed
and all the Vendor's documents for ownership. You will instruct a Preliminary Contract
to be drawn up and pay 10% deposit. This stops the seller gazumping at the last
minute. The Initial/Preliminary Contact can be as flexible or as tight as you need
it to be.
There is actually greater protection for someone buying a house in Bulgaria than
when buying in the UK. All purchases are signed before and registered through a
Bulgarian Notary who dots every "I" and crosses every "t" to
ensure that you are protected in your transaction. You will have to pay a Land tax,
which is like stamp duty, and a Notary fee. Please note that the Land tax and Notary
fee is dependant on the declared value of property, which by mutual agreement between
the buyer and the seller can sometimes be different from price entered on the document
sale.
The balance of price is paid in cash or transferred just before signing the deed.
The agency fee is paid the same day. Most of our Bulgarian property sales are done
within a month, but by giving Power of Attorney to your agent you do not have to
return to complete the sale.
If some legal issue crops up, the sale might take slightly longer. If a property
deed isn't 100% in order our agent's solicitors will cancel the sale. Fortunately
this is very rare as we try and pre-vet properties and owners. If a sale is not
concluded for legal reasons, you will receive a full refund of your deposit, without
deduction.
7. Money Transfer
Payment of funds from UK or elsewhere to Bulgaria can normally be done from your
local bank. The transfer takes up to five working days. Please give yourself plenty
of time and transfer at least a week before the due date. When making a transfer
please check the forms carefully as even the slightest error sometimes can result
and the payment is not made. This can be critical when making payment close to the
deadline of the Preliminary Contract.
When the Title deed is signed there is just one thing - to do, declaring the purchase
with the Local Tax Office.
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