The Buying Process

Together with the hundreds of Bulgarian properties for sale here you could find interesting information about the property law in Bulgaria, the Bulgarian tax system,  legal procedures, financial details of the property investments in Bulgaria and furnishing your new Bulgarian property.

To apply for a mortgage in Bulgaria you could buy Bulgarian real estate through a loan on mortgage lent by a Bulgarian bank.

Taking the first step to acquiring land or property in Bulgaria may seem a difficult task. The bringing into line of Bulgarian legislation with that of the European Union makes the procedure of a real estate transaction in Bulgaria easy.

The important difference is that Foreign Nationals are not allowed to purchase the actual land itself. They may however form a Bulgarian Limited Company through which the shareholders will acquire the land, and consequently purchase and own their property this way.

This does not apply quite in the same way to foreigners who wish to purchase apartments or parts of larger developments as this process should have been processed by the developer and when purchasing an apartment you automatically become a percentage owner of the land in which it is situated.

The communist system used centralised systems and a lot of bureaucracy. The systems and bureaucracy mean that there are very accurate records of land ownership.

The system is far better than in Spain, Cyprus, France and other EU countries. Notary acts determine the real owner and there are good systems in place to check debts on land and property. Nowadays the Notary Publics have a live database so that they can check the up to date information from the land registry when a change of ownership takes place.

If the Government decides to build a motorway through your home, they must as in the UK offer either:-

• The market value
• Or relocate you to a similar property

Fees

The costs associated with real estate transactions are very low. Compared to Europe, the transfer is the subject of Notary and Municipal (Local Authority/Stamp Duty) fees. These fees total approximately 3 % of the value of the transaction and are paid to the municipality, where the property is located.

In addition to these statutory government fees clients will have to pay solicitor's costs of between 1% and 3% of the declared price of any real estate transaction.

"Government Tax Estimation Price" and "Purchase Price"

All foreign buyers purchasing real estate property must be aware that in Bulgaria there are such terms as "Government Tax Estimation Price" and "Purchase Price".

The "tax estimation price" is for the purposes of real estate taxation and is often calculated by the municipality lower than the actual selling (purchase) price. Bulgarian property vendors will wish for the "Tax Estimation Price" be written into the title deed, and not the actual price which the buyer has agreed to pay. As a result of this common practice there may well appear to be discrepancies between the price written in the title deed and the actual cash consideration paid by Clients. If Clients wish that the purchase price to be written in the property title deed they must notify estate agents in advance and will attempt to negotiate with the vendor of the property on your behalf.

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