Buying property in Bulgaria is different to purchasing a property in the UK but can still be safe, secure and pain free.
The Law
Bulgarian law currently stipulates that only Bulgarian entities (a person or a Bulgarian company) can purchase land. Therefore if you want to buy land, or a villa with a garden, you must create a Bulgarian company. This is a simple process and we can assist you in creating a company, if you so desire, it can cost up to £500 though.
However, there is no need to go to the expense of creating a company if you are purchasing an apartment. When you buy an apartment, you buy a part of the building and as such there is no need to create a company. This part of the building is freehold and there is no lease, the apartment is yours forever, or until you sell.
UK citizens can open Bulgarian bank accounts. All you require to open a bank account is your passport and whatever deposits the bank may require.
The Process
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Buying an ‘off plan’ apartment in Bulgaria is essentially the same as buying in the UK. There is an initial contract signed by all parties, which is basically an obligation to build on behalf of the developer and an obligation to buy on behalf of the client.
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This contract will set out timescales and prices and will be produced by the developers solicitors. It will have been checked by the agent and the client will also have the opportunity to obtain their own legal advice before signing.
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The difference arises upon project completion. In Bulgaria, an independent solicitor, known as a ‘Notary’ is appointed by the Government to act on their behalf. The Notary oversees transfer of ownership and ensures that the correct details are entered onto the property deeds.
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In essence, the client (passport in hand) and a representative of the developer will sit down with the notary, who will issue the deeds once they are sure everything is correct.
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This is not meant to be a full explanation of property law but simply a guide to the basic process.
Bulstat Number
There has been a change to property ownership in Bulgaria. Please find below a brief summary;
1. All foreign citizens, who acquire property in Bulgaria after 11.08.2005 need to apply for a BULSTAT number (something like a taxpayer ID number) WITHIN 7 DAYS of registering the title deed(s).
2. For this purpose, a Power of Attorney will be mandatory. We can arrange these at the time of completion. However, there will be additional fees associated with the BULSTAT registration.
Taxation
Unfortunately, we are not qualified to provide advice on personal taxation. However, please find a link below to information on Bulgarian tax law currently available on the net.
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