Innovative property investments
Investment Property in Bulgaria
Buying Guide
Buying Process
Buying with land
As stated above, any foreigner wishing to buy a property with land (i.e., anything other than an apartment) in Bulgaria is required to set up a Bulgarian-registered company to do so.
This was still the case at the time of writing and will be for some time; though the government is obliged to remove this law as part of the country's EU accession treaty, it will not do so until 2014, to allow time for an easy transition between systems.
The new law, when in place, will allow land purchases by individuals; the procedure will then be the same as for those now buying apartments as detailed below.
Setting up the company
To set up a Bulgarian registered company one must engage a lawyer to draw up all the necessary papers, and open a Bulgarian bank account in which to deposit a minimum of 5000 BGN (approximately 1,900 GBP).
This is the foundation capital for the company which may be withdrawn once the company has been formed.
Registering a company usually takes around a month but can take much longer, so be prepared for a wait.
The cost of this procedure varies from lawyer to lawyer but is usually in the vicinity of 300-500 GBP.
Once the company has been established, the procedure becomes the same as that required when buying an apartment.
Buying without land
Having selected his or her property of choice (and made enquiries of the owner in the case of a resale property, including fixing a purchase price) a preliminary contract is drawn up and signed by both parties and a deposit (normally 10%) is paid to the owner or developer.
The contract will outline the security for that deposit (i.e., if the building does not complete or if the owner reneges on the deal, the deposit will be returned - sometimes with a punitive sum attached depending on the contract).
Lawyers then perform checks on the property to ensure clean title, building guarantees etc.
This can take some time but good lawyers should be able to finish the checks within a month.
Assuming all is in order, a final contract of purchase is drawn up (naming the newly-formed Bulgarian company as the buyer, if land is being bought) and signed in front of a notary.
At this point the balance of the purchase price is paid over to the vendor (note that in the case of off-plan purchases the final signing does not take place, and the balance is not paid, until the building is completed).
Transfer deeds are then handed over and you become the owner of the property.
Key facts
Until the law is revised following EU accession, to purchase property with land, foreigners need to set up a Bulgarian registered company to do so. To buy an apartment freehold and, in the future, any property:
- Select your property of choice and fix a purchase price
- A deposit (normally 10%) is paid and both parties sign a preliminary contract
- Your lawyer performs checks on the property to ensure clean title, building guarantees etc., which takes about a month
- A final contract of purchase is drawn up and signed before a notary, the balance paid and the transfer deeds handed over
- You become the owner of the property
Downloadable Reports and Documents
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