In Bulgaria, foreign citizens can freely purchase property with minimal restrictions, especially since the country became a member of the European Union. The process of buying property can be straightforward if you know the key steps and legal requirements.
- Types of property and legal restrictions
- Apartments and properties without land: Foreigners can easily buy apartments and properties that do not include land (e.g., apartments in residential buildings).
- Property with land (houses, villas, plots): Foreigners who are not citizens of an EU member state cannot directly acquire land in their name. To circumvent this restriction, they can establish a Bulgarian company that owns the land. Through a company, foreigners can purchase plots, villas with adjoining land, agricultural land, and commercial properties.
- Procedure for purchasing property
- Preliminary contract
- Before the final deal, a preliminary contract is signed between the buyer and the seller. This contract specifies the main conditions of the sale – price, method of payment, deadlines, and other agreements. Typically, a deposit (usually 10% of the purchase price) is paid upon signing this contract.
- Property verification
- It is advisable for the buyer to commission a legal check on the property to determine if there are any encumbrances, mortgages, tax obligations, or other legal issues associated with it.
- Preparation of documents
- To finalize the purchase, a number of documents must be provided by the seller, along with relevant documents from the buyer.
- Notarial deed
- The main document that legalizes ownership of the property is the notarial deed. The transaction takes place before a notary, where the final purchase agreement is signed, and the remaining balance of the purchase price is paid. After signing the notarial deed, the notary registers the transaction in the Property Register.
- Fees and expenses
- When purchasing property, foreigners should also anticipate additional costs:
- Notary fees: These depend on the value of the property and are typically around 1-1.5% of the price.
- Registration fee in the Property register: Approximately 0.1% of the property’s value.
- Local acquisition tax: Varies depending on the municipality (1-3%).
- When purchasing property, foreigners should also anticipate additional costs:
- Opening a bank account and payment method
- Foreign citizens purchasing property in Bulgaria usually open a bank account in a Bulgarian bank, as payments for transactions are generally made through bank transfers.
- Property registration and taxes
- After registering the transaction in the Property Register, the owner must register the property with the municipality and file a tax declaration. The owner is obliged to pay property tax and waste collection fees each year.
- Hiring a Lawyer or Legal expert
- Hiring a lawyer or legal expert to assist foreigners can simplify the purchasing process and ensure the legal security of the transaction.
- Preliminary contract
Why trust us?
Our team has experience and expertise in real estate matters for foreign citizens and offers:
- Comprehensive assistance at every stage: From property selection to finalizing the deal.
- Legal verification of the property: We ensure that the property has no hidden encumbrances or obligations.
- Assistance with document preparation: We will prepare and organize all necessary documents.
- Consultation on legal and tax obligations: We provide clear guidance on local taxes and administrative requirements.
With our support, the process of purchasing property will be easy and transparent, allowing you to enjoy your new investment in Bulgaria.
