Buying Process of Bulgarian Property.

The buying process of Bulgarian property usually takes between 1 and 2 months.

1. Viewing Fee: We charge 30 eurocent per km refundable in case of eventual completion of a deal within 6 months. For more than five consecutive days of property viewing a volume discount will apply to the viewing fee.

2. Company Registration Fee: EUR 200. Foreign citizens cannot purchase land in Bulgaria. Instead, they are supposed to register a company that can possess the property. This is the most common legal method to enable foreign citizens to purchase land. The fee includes all court and notary taxes, lawyer taxes, translations, etc . No company registration fee is required for buying of an apartment without land!

3. Property Transfer under the Company's Name: Additional small charges depending on the type of property and the price written on the notary deed (they are around 4% of it) such as notary fees, purchasing property tax, stamp duties, etc. (For example, for a old normal size rural house they are between EUR 200 and EUR 500.) They should be paid separately by the purchaser.
Agency Commission: 2% of purchase price with minimum fee of EUR 500.

Total Fees: 2 % of the purchase price, plus ownership change tax, plus additional EUR 200 for company registration in case there is a land with the property. If a third party solicitor or attorney is used, the fee is 2% of the purchase price for the brokerage service. The commission of 2% do not apply to properties that are marked with a NO COMMISSION sign.

4. Additional Expenses:

Checking of legibility of all documentation involved in the purchase done by a qualified lawyer: 100 EUR

To act as your legal representative in the country: 100 EUR

5. Expenses after the purchase:

If you are using our company the following applies:

a) If you are not using our Property Management Service:

Registration of the property in the local municipality for tax reasons: 50 EUR (you are obligated to register your property not later then two months after the purchase, otherwise you will be penalized by the municipality.)

Change of electricity bill holder including all expenses involved: 30 EUR

Change of water bill holder including all expenses involved: 40 EUR

Preparation and submission of the year tax form done by a qualified accountant if your company has no other activity apart from the one involving the property 180 EUR (with all expenses involved)

b) If you are using our Property Management Service: (cost 200 EUR)

In this case you will only pay for the actual expenses realized in connection with each issue (you will pay between 20% and 50 % less for each service).For example preparation and submission of the year tax form with all expenses involved will be 130 EUR. All invoices will be presented. Mainly your choice depends on how often you will use our services each year. All prices will be agreed with you in advance.

You can use another agent for your property and company management, if you prefer.

The process could be seen more clearly on the following diagram.

Please note that it is not necessary for the client to come to Bulgaria to purchase a property. We can set up a limited ownership company on behalf of the client and buy the property in his company’s name. We will need a copy of client's passport, full address, power of attorney notary sealed, a 10% property deposit, agency commission of 2 %(min EUR 500), EUR 200 for registration of limited ownership company, and property transfer taxes of about 4% of the price written on the dead (incl. notary taxes, notary fees, municipal tax, and stamp duty), 100 EUR for checking of legibility of all documentation and 100 EUR to act as your representative in the country. When the company formation process is completed before the actual deal in front of the notary the rest of the purchase price should be paid.

Please note that these taxes vary with time and the client will be notified accordingly. Before the notary act we will need the rest of the purchase price.

Our company's lawyer Margarita Krasteva with 25 years experience in Bulgarian Law and solid reputation will be happy to give you free legal advice and assist free of charge if any difficulties arise.

Buying Process of Bulgarian Property - A Detailed Explanation

1. Select a property. Initially you can use our website and eventually you can come to Bulgaria to see the property. We can arrange individual trips to the sites.

2. Sign an agency (brokerage, intermediation) contract. Please note that at present foreigners can own buildings but not land in Bulgaria. This law is under review and is expected to be abolished, but at present foreigners can only own land by registering a company in Bulgaria and only through it to acquire legal land ownership. Most often the company is set as a limited liability company (Ltd). We will register the company and include the registration in our basic agency contract The whole process of registration usually takes 2 weeks at most.
As soon as you make your choice you need to sign an agency contract with us, put a deposit and authorize us to organize and finalize the deal. Our total fee in the contract is 2% of the purchase price plus all property transfer taxes (usually 4% of the price written on the deed). Often tax estimation price is 2-3 times lower then the purchasing price, depending on the type of the property. If you are buying a property without land (or if you have registered a Bulgarian company already) you will have to pay 2% of the purchase price + the taxes for transferring the property. If you are buying a property with land - the additional 200 EUR are for the registration of the company (see the above note). Please note that commission may vary for some properties but this is always announced accordingly.
The deposit (at least 10%, which is negotiable with the seller) is necessary to take the Bulgarian property out of the market for about 30 days (also negotiable with the seller). By the end of this period you should start the purchasing process and pay the rest of the price. The deposit and the agency commission (2% with minimum fee of 500 EUR) are not refundable in any case of failed purchase because of the buyer's fault. The deposit and our agency commission must be paid together when we sign the contract. You can pay total price without deposit as we will treat it like reservation deposit.
All deposits and fees can be paid cash or into our bank account in pounds, euros or BG levs. We will negotiate the payment method with you to match your requirements.
If you wish to use third party solicitor or attorney chosen by you to do the remaining job our commission in the agency contract is 2% from the purchase price for the brokerage service only.

Steps	Costs	Beginning of the process and Estimation time
1. Agency contract with us (contract to support you through the whole process of buying a property in Bulgaria)	Taxes for transferring the property+200 euro for registration of LTD , plus 2% of the purchase price, plus 100 euro for checking documentation and 100 euro to act as your representative or only 2% from the purchase price if you want to use other solicitor	After you choose a property or properties
2. At least 10 % deposit to take the property out of the market	The deposit is subtracted from the final price	Together with previous
3. Company foundation capital, deposited in your company's bank account and can be withdrawn in full as soon as the registration is completed.	10 lv. (5 EUR)	During the process of the registration of the company and takes maximum 4 weeks
4. Completion of the deal and signing the title deed (notary act).	The rest of the property price	Maximum 1 week after the registration of the company or whatever is the deal with the owner
SUMMARY	taxes for transferring the property + 200 euro for registering a LTD, plus 100 euro for checking documentation and 100 euro to act as your representative 2% agency fee The price of the property paid to the owner OR Only 2% of the purchase price if you wish to use other solicitor chosen by you	Maximum 5 weeks after you choose a property or properties or whatever is the deal with the owner

4. Signing of title deed (notary act) before a notary. At this moment the price of the property is paid to the owner. After the signing you will receive the ownership documents. The Buying Process of Bulgarian property is completed. You will become an owner of Bulgarian property.

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