Buying a property
This can be done through:
- a real estate agency
- direct contact with the seller
Property involving ownership of land
If the property that you intend to buy is sold together with the ownership right to the land, you will have to register a company /Ltd/ which as a legal entity as per the Bulgarian legislation will be the official owner of the land. This has to be done because at the present moment foreign persons cannot acquire ownership rights to land as per the Constitution of the Republic of Bulgaria.
Property without ownership of land
It has been generally adopted that when a foreigner buys a flat, this does not necessitate for a company to be incorporated because the flat involves a minimal part of land /ideal shares of land/.
If you buy a property through a real estate agency, you will have to sign a preliminary contract which will specify the main terms and conditions and you will have to make an initial payment of the price /including a commission/.
Enquiries about the property
When a property is bought, it is needed for an enquiry to be made about its status:
- Title deed proving the ownership right
- Licences and permits
- Debts related to the title
- Terms of the contract.
Purchase from an investor /developer/
If you buy a property from an investor /developer/, they will have to present you the following documents:
- Title deed
- Valid drawing of the plot
- Design visa
- Building permit
- Approved architectural designs
- Draft preliminary contract for purchase and sale of the property
- Certificate of good standing of the company – investor.
Finalizing the deal
The two parties – seller and buyer – appear before a notary for the notary formalities related to the deal to be performed and payment of the relevant municipal and government fees and taxes.
If you are busy or cannot travel for the completion of the deal, you can authorize a lawyer to represent you on the day of signing the deal. This is common practice nowadays because of the dynamic and busy lifestyle of our customers.
The title deeds can be collected from our office or sent by mail – this depends only on your requirements. Normally, title deeds are ready a few days after the deal was closed.
Regardless of the fact whether you make the deal through a real estate agency or directly from the seller, it is recommended to hire a lawyer to make all necessary enquiries and procedures.
To contact a lawyer, use:
http://www.vezenkova.com
http://www.dpc.bg
The prices are final and include VAT. You will also have to pay notary charges and local tax, calculated on the sale price (approximately 3-3.5% of the property rice).
Each owner of property in Bulgaria pays annual tax on buildings and local tax which are calculated on the basis of the floor space of the property.
PURCHASE PROCESS
1. Chose your flat.
2. Fill in the reservation form.
3. Send a reservation fee of 1000 euros.
4. Chose a payment schedule.
5. Contact a lawyer (or us) to examine the contracts.
6. Initial payment and signing of the preliminary contract have to be made within 30 days as of signing the reservation form.
Additional expenses related to the purchase that you have to bear in mind:
1. Approximately 1% оof the flat price will be the lawyer’s charges payable for examination of the property’s status.
2. Between 2-3% of the flat price will be the municipal and notary fees which have to be paid when the flat is completed.
3. About 150 euros are the annual fees payable for garbage disposal.
4. About 7 euros per sq. m. are the annual fees for maintenance of the property.
5. An insurance of the furnished flat may cost you between 200-450 euros per year.
6. Low fees for registering the utility services for the provision of water and electricity on your name.
These fees may be subject to future changes.
