Buying property in Bulgaria

Bulgarian map source: Lonely planet guide to Bulgaria

Buying Property in Bulgaria

Property in Bulgaria has appreciated at considerable rates over the past several years. Although the market is slowing as prices catch up to the rest of Europe, there is still considerable room for growth over the next few years, particularly with Bulgaria’s ascension into the EU in 2007. For a foreign investor or owner interested in purchasing property in Bulgaria, there are a number of things to know about this country and the real estate process.

Property can be of widely varying quality and it is very important to work with a reputable broker or agent. If at all possible, you should view the property in person to make sure it is as advertised. Laws for representatives and representation of property in Bulgaria are not as up-to-date as in other EU countries, so there are a high number of unscrupulous dealers.

Foreigners can own apartments or condos in Bulgaria without any restrictions. If you want to own land property, however, that is restricted to those who are citizens or who have a business, which will own the land, in Bulgaria. This law will change in 2014, but setting up a business is actually fairly easy. Experienced Bulgarian lawyers can take care of this process for you without too much difficulty. There is a minimum investment in your company bank account of 5000 levs, about £1700. Even if you are not forming a company, using a reputable lawyer can ensure that the process goes as planned.

How to set up a Bulgarian company

Setting up a limited company in Bulgaria is such a normal process that it is now a relatively easy process. Many Bulgarian estate agents will do this for you as part of the service. After all it is to their benefit as buyers cannot proceed without the creation of the company. You will need to consider the cost of this service and like most things it varies from agent to agent.

Once registered your company gives you bargaining power it can put you in an excellent position as you are ready to buy. It demonstrates to the seller that you are a serious buyer that can buy a Bulgarian home relatively quickly.

Your ownership rights are the same as if you bought the property as an individual. Whoever owns the company also owns the land.

Once you have found a property and agreed upon a price, you typically put 10% down to secure the property. You have 30 days to complete the transaction, during which time you or your lawyer takes care of due diligence, such as searching the property records. The transaction is completed when funds are transferred and the Notary Act is signed. This transfers the Title Deed to you, the new property owner. In addition to any fees for forming a company, transaction fees usually run about 5% of the property costs.

When visiting Bulgaria, citizens of EU countries have the right to stay in the country for 3 months out of every six. If you are retiring, it is fairly easy to obtain residency. For most cases, you simply have to provide documents proving you are, indeed, retired.