PURCHASING INFORMATION 

Foreign Ownership in Bulgaria

Under the Bulgarian Act on Foreign Ownership, foreigners may not own land, but may own buildings. It is therefore very easy to purchase an apartment, and follows a similar procedure to say, Spain.  Currently foreigners are able to own land by setting up a Bulgarian company to hold the property for them, and this is the method used to purchase a house with land. For house purchases, the law is due to be removed before full EU membership in 2007.  Company incorporation costs around £500.

Financing your Purchase

We are now able to offer mortgages for Bulgaria, with the following criteria:

Full status mortgages

Repayment only

Maximum 70% loan to value

Interest Rate: 7.5%

Minimum loan: €40,000

If you would like more information on Bulgarian mortgages, or about remortgaging in the Uk to finance your purchase please contact us and our mortgage specialist will be happy to assist you.

The Buying Procedure

The buying procedure is fairly simple.  Once you have reserved a property you will receive an initial or preliminary contact of sale.  If you are purchasing off-plan then this is the stage that your initial deposit will be due.  Your solicitor will then perform the standard checks on the property such as title documents, licenses, debts on the title etc.  Upon completion a Notary Act (purchase contract) is signed in front of a Bulgarian Notary Public.  If land is included in the purchase a company will need to be set up after reservation.

Closing Costs and Taxes

Closes costs amount to approximately 3% of the purchase price.  This includes transfer tax, notary fees and court recording fees.

The relevant taxes payable for maintaining a property in Bulgaria will vary from person to person, due to property location, income and other factors.  There is a double taxation treaty between the UK and Bulgaria so you will only be taxed once on any income earned from renting out your property.  We are not qualified to provide tax advice and would refer you to the following websites:

http://www.worldwide-tax.com/bulgaria/indexbulgaria.asp

http://www.rowbotham.com/knowledgenet/countryprofiles/bulgaria.pdf

Viewing the Properties

We have proprty consultants in Bulgaria who can show you around the properties and areas, and go through the buying procedure with you. ( see the section on Inspection Tours) You can fly to  Sofia, Varna or Bourgas from most UK airports.  During the summer season good value package holidays are also available.

Management Fees

Typical management fees for a Bulgarian apartment are around €5.00 - €6.00 per square metre per year.  Eg. for a 60m2 apartment the management fee will be €330 (£220) per year.  Discounts are often available if you pay 3-5 years in advance.