Bulgaria - Buying property | Buying property in Bulgaria
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The Bulgarian government has recently put in place proposals to relax non-national property ownership laws, enabling foreigners to buy land and property quickly and easily.
Although with its introduction into the EU the laws will change, at present, foreigners are unable to buy land without setting up a limited company with the buyer as director. The process is relatively simple, takes around 2-4 weeks, and would cost in the region of £150. The company does not have to trade and is there purely to allow purchase rights. You would then be required to open a bank account and deposit £1,800 although once the company is registered, this amount can be withdrawn. Bank fees total around £33. Yearly council tax charges are usually less than £150. However, this is not necessary when buying an off plan property on a new development.
Buying property in Bulgaria however, is simple when buying from a development off plan. Once you have found a suitable property, a reservation fee should be paid to remove the property from the market. This can be as little as 1000 euros, after which you will receive an initial contract of sale.
In Bulgaria, buying property that is a resale, the buyer and seller usually agree to split the estate agent's fees (approximately 6% of the purchase price), although occasionally, the buyer may be expected to pay the whole fee - so it is best to check who is paying before making an offer on any property.
As you would with buying property anywhere, not just the Bulgarian property market , buyers should at this stage instruct a solicitor who will then undertake the necessary checks, upon which time the buyer will put down a 10% deposit. On completion of the property the buyer will pay the tax and notary fees which are approximately 3% of the purchase price including local property tax, notary fees and national registration tax.
VAT is generally exempt in transactions involving land and lease of property for residential purposes. However, levied at 20%, you should ask the agent if the property is exempt or if VAT is chargeable, if it is included in the purchase price.
For rental property, tax on the income generated is payable at 15%, and on selling the property a Capital Gains Tax of 15% is payable on any profit between the purchase and sale price. Many of our Bulgarian developments off plan carry a 5% rental guarantee, depending on location.
For anyone considering an investment or a holiday home in any of the ski or beach resorts, why not take advantage of our Viewing Trips to Bulgaria on which you will be able to take advantage of the knowledge of locals to introduce you to the various areas and property available.
We recommend using a Foreign currency exchange specialist when in Bulgaria buying property
Property for sale in some of the top resorts - Varna, Kranevo (Albena and Golden Sands Resorts), Balchik (golf village), & Ski property in Borovets. Beach resort, mountain ski retreat or City pad – the choice is yours! We guarantee that we can show you the widest range of quality, vetted properties available in Bulgaria.
