Perhaps you are already informed about buying a property in Bulgaria. There is a lot of information on the Internet about this, but in brief:
According to the Bulgarian Constitution, foreign individuals can buy residential premises, but not land. A change in the law is expected, which will allow of this, but there are no timeframes set officially with regard to this change yet.
Therefore, the easiest way is to set up a Limited Liability Company, which has its own advantages. Your liability shall be up to 5 000 Bulgarian levs /minimal threshold to register a Ltd company /. The process of registration usually takes about 7 working days, and after that your company may own title to properties and land in Bulgaria.
In details the process can be described with easy 6 steps as follow:
1. Find your property
There are many real estates on the web selling properties in Bulgaria, so take your time finding the right property for you. Check the reputation of the region, town. Don't forget : location, location, location.
If you’re considering buying brand new or off plan property in Bulgaria check out the reputation of the developer. Where possible buy from a developer who has a good reputation and where you can see completed examples of his work.
2.With or Without Land
If you’re buying an apartment it is usual for it to come without land therefore you do not need to worry about the fact that under the current constitution foreigners cannot directly hold title to land. If you’re buying a villa, chalet or house you will need to register a Bulgarian Limited Company and this will then own the property and the land on which it sits. The most real estates are offering that service. Price range 300-1000 euros.
3.Agree a Purchase Price
Be prepared to negotiate a little with the asking price, nothing is fixed in stone in terms of property prices in Bulgaria so have a look around at similar properties in the area and get a feel for what is a fair asking price and make an offer at a level you’re comfortable with.
Once you’ve made an offer to purchase and have had your price accepted you can verbally agree to buy and your real estate agent can get the ball moving. At this point, if you haven’t already instructed a lawyer you should do so and it should be a lawyer independent of your vendor and estate agent as you need to ensure your lawyer looks after your interests only.
4.Surveys and Searches
This is an incredibly important step and one that should not be overlooked or rushed when buying property in Bulgaria. Your real estate agent may offer to conduct the title searches etc., for you but it is preferable to have your lawyer check the title deeds, check that all licences and permissions to buy/sell are in place, ensure there are no outstanding debts on or legal claims against the property and to check the terms of the final contract.
5.Signing the Preliminary Contract
This contract should be reviewed by your lawyer before you sign it and it should contain all the conditions of the sale. Once signed it’s customary to pay a 10% deposit which is non-refundable if you withdraw from the sale, refundable (with penalty) if the vendor withdraw.Clearly should stay the date for final contract (signing the deed) as the date of taking possession of the property.
6.Signing the Final Contract
Both the purchaser and the vendor meet at the offices of a notary public and sign the final contract in his presence. At this stage the transfer is complete and state and municipal taxes are due as is the final balance of the purchase price if you’re buying a completed property. If you’ve bought off plan the payment terms will have been detailed in the contract and you will likely make the first of a series of stage payments that will continue throughout the build process. Don't forget you have 2 months after signing the deeds to declare the property in the tax office. Also change the bills for electricity and water into your name.
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