Buyer's Guide

Contents: The Buying Process Legal Advice Setting up company Visa Requirements Getting There The cost of living

The Buying Process

Apartments

Foreigners can purchase apartments in Bulgaria without the need to set up a LTD company, if no land is included in the sale of the property.

Villa Houses

In order for a foreigner to own the land upon which a villa house sits they must set up a limited company.

Land

In order for a foreigner to own land in Bulgaria they must set up a limited company, this can be arranged through this website.

It may seem a daunting task setting up a limited company in order to own the land upon which your villa house is sited. However, the hard work of finding the right people and advice has already been done for you. We aim to assist you in every way to ensure this process goes as smoothly as possible. Contact us for more details.

Land

If you are interested in buying land in Bulgaria for residential or commercial development please contact us with you requirements and we will endevor to find the land you are looking for.

Details below Only apply to properties where you own the land. This process does not apply when purchasing on apartment blocks where the developer retains the land. In this case the process is different.

Find the property you wish to buy.

We will check the legality of the documentation and permissions regarding the property

Establish a Ltd company, this will take approx 1 month ( when buying a villa house or land ) not required when purchasing apartments.

Place a 10% deposit and establish a pre-contract to secure the property and remove it from the current market.

Commission of 3% will now be paid to the estate agents, Negotiate a completion date with the seller

Under Bulgarian law any, foreigner purchasing property will have an officially appointed government translator present, to explain exactly what is written on all documents before you sign. There is a charge of around 30Lv for this service.

Sign for your new property at the government appointed notary office, at this point you will make the final payment and pay notary fee, (approx 0.5 % of the taxable value of your new property) along with municipal taxes of 2% We would recommend that you allow 6% to cover all commission, taxes and fees.

Notary Deals

Please note bghouses.com have no control over Notary Deals on properties or land. For more information, contact us

Legal Advice

Learn more about the legislation in Bulgaria

Since the introduction of the currency board in 1997, Bulgaria has been politically stable country with a developing economy and the preferential conditions and guarantees for foreign investors have generated excellent business opportunities and investment growth potential. Bulgaria real estate prices are by far lower than other destinations in Europe but the estimated acceptance of Bulgaria in the European Union provides unprecedented growth potential that will certainly boost the prices of the Bulgaria real estate in the near future. Bulgarian market or real estate is still unexplored and undeveloped to a certain extent, which makes it very attractive and profitable. It will probably be shocking for you how many strategic real estate properties are still waiting for their proprietor to appear and earn a fortune from their charm or natural beauty around. Bulgaria has one of the most liberal foreign investment laws in the region regarding Bulgaria real estate, as well as the foreign investors. According to the Bulgarian Constitution and legislation, foreign persons and companies can invest in real estate in Bulgaria either personally or through a local legal entity. Generally speaking, foreigners as persons can acquire only buildings but not land. Only Bulgarian citizens and legal persons (including such with foreign owner) can obtain the ownership of Bulgarian land. Therefore, the most popular and preferred by non-residents ways to become the real estate owners are:

As far as houses, villas, flats and limited ownership rights (the right of use, the right to build a house, etc.) are concerned, you can directly purchase them as a person.
When talking about Bulgaria real estate with land, you set up a company that will be the owner of the property. Setting up a company in Bulgaria is very easy. All you need is a good solicitor or barrister at law.

Of course, there are other ways to do it, like:

Establishing a joint venture with existing local companies;
Setting up a new venture;
Acquiring a company through privatisation;
Making a portfolio investment;

Foreign organizations have the right to open bank accounts denominated in a Bulgarian or foreign currency. There is also no limit to the company stake they possess. Moreover, there is a special regime of respect towards the foreign investors on the part of the Bulgarian legislative system, which is a gesture of tolerance to those, who are interested in Bulgaria and are willing to benefit from its future.

NOTES

The usual term for the old owners of the property to move out of it after completion of the sale is one month. This could be negotiated if the buyers require a shorter term. For this purpose, they should ask our assistance in due term and not expect the property to be empty right after signing of the final contarct. All foreign buyers purchasing real estate property must be aware that in Bulgaria there are such terms as "tax estimation price" and "purchase price". The "tax estimation price" is for the purposes of real estate taxation and is much lower than the actual selling (purchase) price. Most of the Bulgarian propety owners (vendors) wish that the "tax estimation price" is written in the title deed, and not the selling (asking) price which the buyers are paying, so due to this practice there might be discrepancies between the price you are paying and the price written in the title deed. This is because of various reasons and our company can not be responisble for it. If the respected property buyer wishes that the purchasing price is written in the property title deed they must notify us in advance and we will negotiate on this with the vendor of the property!

Setting up a limited Company in Bulgaria

In order to purchase a villa house with land or land alone you will be required by Bulgarian law to set up a Ltd company, however, this process is very straight forward for U.K citizens.

The charge for the setting up of a limited company is 600 Euro, which includes all notary, taxes, and set up fees, in addition to these fees you will be required to deposit 2500 Euro into your own company bank account within Bulgaria. This is your starting capital, which can be withdrawn anytime following completion of the process and your company is registered and operational. Approx 1 month. This process requires you to visit Bulgaria in order to sign the initial contract, you will then be offered the opportunity to utilize power of attorney through a solicitor or person of your choosing. This person will then represent you during your absence from Bulgaria.

In order to maintain your company you will require the services of a Bulgarian accountant. Approx cost for running a villa house accounts are around 150 Euro per annum. These services will be offered to you as an integral part of the buying process.

Visa Requirements

Holders of UK passports do not require a visa in order to visit Bulgaria for a period of up to 30 days, extentions can be applied for whilst in Bulgaria.

Long-term visas
can be obtained from a Bulgarian Embassy in London. This visa is for foreign nationals who intend to apply for a long-term or permanent residence in Bulgaria. Processing can take up to 90 days due to popular demand for U.K residants. Prices can be obtained by clicking on the link below. Foreign nationals can obtain long-term or permanent residence in Bulgaria on several grounds. Investors intending trade within Bulgaria and retired people with pensions are among this group. Certain provisions may apply if you have a business in the UK or elsewhere in the EU. For further information visit www.bulgarianembassy.org.uk.

Getting There

British Airways and Bulgaria Air fly to Sofia all year round.

Flights direct to Varna and package holidays are available between May through to October through charter companies such as Thompson, Airtours, JMC and Balkan holidays see links below.

Direct flights times vary depending upon departure point, Manchester 3 hours15, and Gatwick 2 hours 45. It is however expected within the next twelve months that flights direct to Varna and Bourgas will be operating all year round. Flights out of season are available direct to Sofia with British Airways. Local internal flights can link you to Varna. Internal flights can be booked by email or telephone direct.

Airports:
www.sofia-airport.bg
www.varna-airport.bg
www.bourgas-airport.com

The cost of living

The cost of living in Bulgaria is very reasonable, a typical meal for two in a restaurant, three courses and a bottle of wine, will cost around 25-30 lv, 10 pounds.

A half litre of beer 0.42p;
A bottle of Bulgarian chardonnay approx ₤1.00;
A bottle of sparkling white wine 0.75p;
20 pack of cigarettes 0.50p;
1 litre Petrol 0.42p;
Big Mac meal ₤1.50p;

Household Bills

Property tax equivalent to U.K Council tax range from 50€ to 100€
depending on size and location of the property;
Electricity 0.05p per unit;
Water charges around 10-15Lv. ₤3.50-?5.00 per month;
Cable T.V ₤5.00 per month;
Mobile phone charges pay as you go 20p per minute;
Annual cost for running a house (approx) per year, 1100 Euro;
Purchase of a car (company owners only) 1990 Golf, 5000Lv or ₤1,800, + Government taxes, registration etc, so not everything in Bulgaria is cheap!;
V.A.T is 20%;
Corporation tax 15%;