How To Buy Property In Bulgaria

According to the Bulgarian Act on Foreign Investment, foreigners can buy buildings but not land. Therefore the most common method for foreigners wishing to own property is to register a company which then owns the land and the property. We expect the law to change within the short to medium term as Bulgaria opens its doors fully in line with its expected entry into the European Union.
Costs of registering a company
It can take between 2-4 weeks to register a company on your behalf, legal and administrative fees for registering a company are 750 Euro. This fee includes the clients obliged additional state and court taxes. The company does not need to operate but it is simply a tool to purchase the property. Once you have bought a property the company will be re-registered at the address of your new property.
When we register your company you must deposit a sum of 5 000 lv /1,800 GBP (apx) into your company bank account whilst the registration is being carried out. This money can then be withdrawn once the company is registered.
As within the UK there are a number of local transaction costs such as stamp duty that need to be paid by the purchaser.
The Local Property Tax is 2% of the purchase price. The National Registration Tax is 0.1%. The Notary (state certified) legalizes the deal and their fees are based on tables reflecting the purchase price and are typically less than 250 Euro.
Each year local council taxes must be paid that cover public lighting, refuse collection and so forth. These taxes are minimal and are typically less than 200 Euro.
A Preliminary Contract and a 10% deposit paid to the seller is normally expected to secure the property. If you do not have funds available here we arrange to have a bank account opened for you so you can send the monies required from the UK to complete the legal process.
Typically the transactions will be completed within one month of your returning to the UK.
Normally clients return to complete and to pay the balance on the property (90%) however transactions can be completed in your absence by using Powers of Attorney.
The commission of the estate agency is paid at the time of the preliminary contract.

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All offerings are subject to errors, omissions, change of price or withdrawal without notice.
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