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Property purchase

Foreign ownership

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. Although 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.

Setting up a company

To set up a Bulgarian registered company you need to engage a lawyer to draw up all the necessary papers, and open a Bulgarian bank account in which to deposit a minimum of 5000 leva (approximately €2,700). This is the foundation capital for the company which may be withdrawn once the company has been formed.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. The cost of this procedure varies from lawyer to lawyer but is usually around €430-€700. Once the company has been established, the procedure becomes the same as that required when buying an apartment.

Preliminary contract

Once you have chosen your property 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 backs out of the deal, the deposit will be returned – sometimes with a punitive sum attached depending on the contract).

Contract of purchase

Lawyers then perform checks on the property to ensure all is in order regarding title, building guarantees, etc. 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. Transfer deeds are then handed over and you become the owner of the property.

Costs and taxes

As well as the charge, if relevant, for setting up a Bulgarian company, buyers are liable for a series of taxes and fees when purchasing in Bulgaria. The following is a guide to these:

• Local authorities charge 2% of the declared sales value in tax, payable upon signing the final contract.
• The notary will charge around €210, but in the case of very expensive purchases will take that sum plus 0.1% of the declared value.
• Registering the deeds costs 0.1% of the declared value; drawing up the deeds in the first place will cost around €210.
• There is also a charge for translating the documents into English, which usually costs around €60.
  

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Documents and Reports

	Bulgaria country guide (995Kb)
	Bulgaria property buying guide (687Kb)
	Bulgaria property investment report (426Kb)
Documents and Reports

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