Before buying a property in Bulgaria, you need to clarify the purchase procedure, whether there are any mandatory payments and any restrictions. This will help you avoid unnecessary costs and problems. The process of registering the flat will go smoothly and quickly.
FREQUENTLY ASKED QUESTIONS (FAQ)
HOW TO CHOOSE A PROPERTY IN BULGARIA?
Before buying a property in Bulgaria, ask yourself the following questions:
The property can be purchased as a permanent home, a holiday home or for letting.
You can choose a home in the capital, in a large city, a small town, a seaside or mountain resort, or in a village in the heart of the country.
In Bulgaria, construction is continuing apace on studios, one-bedroom and two-bedroom flats, houses and townhouses. Quite often, people combine several flats to create a larger one with many rooms.
This is a very important question, as the owner’s expenses over the next few years will depend on the answer.
You can find answers to all these questions by sitting at home and reading forums. However, it is better to come to Bulgaria, visit different towns, and get to know what life is like in housing estates and ordinary residential blocks. This will give you the opportunity to talk to local people, assess the available options and analyse your own requirements. All of this will help you make an informed choice and buy the flat or house that suits you best.
WHAT IS THE PROCESS FOR BUYING PROPERTY IN BULGARIA?
The process of searching for and choosing a home takes a lot of time and resources. Once you have chosen the best option and weighed up all the pros and cons, you can buy it.
The purchasing process involves:
The buyer must provide personal identification documents. Should he or she be unable to take part in the transaction in person, his or her interests shall be represented by persons holding a notarised power of attorney. The seller, for their part, must provide documents confirming ownership, a cadastral plan, a tax valuation certificate and a certificate confirming the absence of encumbrances.
The parties confirm their intention to sell and purchase the flat, and to fulfil their payment obligations. The notary verifies the legality of the transaction and the documents submitted. At this stage, the parties complete declarations regarding their employment with state agencies, citizenship and marital status. The seller also completes a declaration confirming that they have no outstanding tax liabilities. A notarial deed is issued on the basis of the documents submitted. The notarial deed is equivalent to the contract of sale and guarantees the transfer of ownership.
The notarial deed is not valid unless the transaction has been registered. Registration is carried out by the notary as soon as the seller confirms that the buyer has paid 100% of the property’s sale price.
These are the main steps. However, once you have completed them, it is still too early to relax. The property you have purchased must be registered with the following authorities:
Property acquired by a foreign national who does not hold a permanent residence permit in Bulgaria must be registered. The documents must be submitted within 7 days.
The property must be declared within 30 days.
The new owner must be registered within 30 days.
Information regarding the new owner must be provided within 30 days.
Registration can only be completed if the owner provides a notarised deed.
WHAT ARE THE STEPS INVOLVED IN REGISTERING PROPERTY IN BULGARIA?
The registration of transactions plays a key role in the process of buying a home in Bulgaria. Incorrectly prepared documents can lead to the transaction being cancelled, fines and financial loss.
Stages in the registration of property:
The amount ranges from 1,000 to 5,000 euros. Upon receipt of the deposit, the seller suspends the sale of the property and begins preparing the documents required for the transaction. The amount is included in the price of the flat. It is important for the buyer to know that the deposit will only be refunded if the seller withdraws from the transaction.
Sometimes, at this stage, the buyer is required to make an advance payment, which may be 30%. This requirement most commonly arises when purchasing a property under construction from a developer. By mutual agreement between the parties, this stage may be omitted if the subject of the transaction is a second-hand flat or house.
WHAT ARE THE ADDITIONAL COSTS INVOLVED IN BUYING A PROPERTY IN BULGARIA?
In accordance with standard practice, all taxes and fees relating to the purchase of property in Bulgaria are borne by the buyer.
The costs associated with the acquisition of property are as follows:
The amount is determined by the local authority of the town or village where the transaction is registered. It is usually 1.5–3.5% of the price of the flat as stated in the notarial deed.
The amount is no more than 1% of the price.
It amounts to 0.1% of the property’s value.
In some localities, the involvement of a solicitor in the transaction is mandatory. They are responsible for preparing the notarial deed, resolving legal issues, checking documents, and registering a flat or house with the Registry Agency. In other cases, a solicitor may be engaged on a voluntary basis to verify the legal status of the property in order to avoid problems with its purchase, registration or future use. The solicitor also draws up the contract of sale. The average fee is 75–150 euros.
In accordance with the law, if one of the parties is a foreign national who does not speak Bulgarian, a licensed interpreter must be present during the transaction. The fee is between 50 and 150 leva. Many notaries are willing to accept a property agent with a good command of both Bulgarian and a foreign language as an interpreter. How this is handled depends on the notary’s practice.
ARE THERE ANY RESTRICTIONS ON BUYING PROPERTY IN BULGARIA?
Under Bulgarian law, citizens of any country may purchase property in Bulgaria.
At the same time, foreign nationals are not permitted to purchase land. The law prohibits the purchase of land on which a residential building containing an apartment that has been acquired is situated. Nor is it permitted to purchase land on which a private family home has been built.
Our agency will help you resolve this issue.
