What actions should be taken as to purchasing a real estate in Bulgaria by a foreign person?
- Choose the property you would like to purchase in Bulgaria through inspection thereof or online
- A company will be registered in your name - as it will be a Bulgarian legal entity you may use it to acquire immovable property in Bulgaria (not required if purchasing a property with a building lease granted)
- A preliminary contract will be signed by and between buyer (or their attorney) and seller arranging all terms and parameters as to finalizing transaction (settlement date, price agreed, etc.)
- Deposit payment. Upon signing the preliminary contract buyer will pay a deposit to seller thus establishing their commitment to purchase the property. In Bulgaria such deposit usually rates at 10% of the cost of the property to be purchased. If after signing the preliminary contract seller unreasonably refuses to sell the property, seller will have to refund twice the deposit to you, and vice versa, if after signing the preliminary contract you unreasonably refuse to purchase the property, you will lose the deposit you have already paid. Upon signing the preliminary contract and paying a 10%-deposit the real estate agent"s fee will have to be paid as well.
- Transaction settlement before a notary public. On the settlement date agreed upon under the preliminary contract seller and buyer (or their attorney) will appear before a notary public to settle the transaction. By signing title and its filing with the relevant Regional Court"s Filing Office Records ownership of property will be transferred to the name of buyer and you will since then become a lawful owner of a real estate in Bulgaria.
- Reporting property to tax authorities. It is to be done within two months of the date of the transaction settlement before a notary public.
What is the full amount of costs I am supposed to pay in relation to acquiring a real estate in Bulgaria?
To purchase a real estate in Bulgaria, a foreign person should consider the following payments:
- The purchase price of the property
- The fee of the real estate consultant/agent
- Payable public and notarization charges relating to transfer of ownership of the property to be purchased (they are calculated for each specific case)
- Company registration expenses
- Travel expenses from the relevant country to Bulgaria
- Repair and reconstruction costs relating to the property after acquisition thereof to be individually estimated in each specific case depending on the property condition and customer views.
Can I possibly purchase the property I like ONLINE without having to come to Bulgaria?
Generally, we recommend our customers to visit Bulgaria and walk through the property they have chosen. If for any reason, however, you cannot arrange your coming to Bulgaria, we will assist your ONLINE purchase by providing pictures and detailed description of the property. If your wish, prior to preparing the required documents relating to your company registration and writing up ownership transfer documents we can arrange an expert assessment of the property you have chosen to be made for you by an independent assessor.
We have several customers now that have purchased real estates in Bulgaria in this way.