Buying A Property In Bulgaria

Buying A Property In Bulgaria 4 Easy Steps

• Step 1 - Setup Your Company

• Step 2 - Make An Offer & Agent's Fees

• Step 3 - Preliminary Agreement

• Step 4 - Completion

Buying a holiday home or investment property in Bulgaria is not as difficult as you might think.

There are no restrictions on foreigners owning property in Bulgaria, although the ownership of land is presently restricted.

This means that direct ownership of an apartment is normally acceptable, but that direct ownership of a house is not permitted.

Of course, this does not mean that you cannot own a house or land in Bulgaria - simply that you will need to setup a Bulgarian limited company through which you will purchase the house and its land.

This may seem intimidating but is a well-established process that all estate agents and solicitors dealing with foreign buyers are very familiar with.

Step 1 - Setup Your Company

If you are planning to by a house in Bulgaria, rather than an apartment, it makes sense to setup your limited company before you start the search - that way there is one less potential delay further down the line.

Setting up a company will require you open a Bulgarian bank account and place a deposit in it, most of which you will be able to withdraw again afterwards.

Step 2 - Make An Offer & Agent's Fees

Once you have found a property in Bulgaria that you'd like to purchase, you negotiate the price and agree a sale verbally.

It's also customary in Bulgaria for buyers and sellers to split the agent's fees - typically 6% - between them.

While this is normal, it isn't guaranteed, so you should check what the arrangement is with the property you are buying. If you are buying a new-build property from a developer, of course, the situation will be different.

Step 3 - Preliminary Agreement

At this point you will be required to pay a 10% reservation deposit to the property agent and will need to engage a solicitor to draw up an initial contract of sale (preliminary agreement).

You will also need to ensure that the solicitor carries out all necessary legal searches and checks to verify the title of the property and to ensure it has no debts attached to it.

As in most European countries, in Bulgaria debts remain attached to a property even when its ownership changes.

The preliminary agreement will set out the terms and conditions of the sale and will be legally binding. Unless there are title or debt issues with the property, you will now be committed to completing the purchase.

Similarly, if the seller now withdraws, they will be obliged to pay you twice your deposit as compensation for the lost sale.

Step 4 - Completion

Once you have the results from the legal searches, you should be ready to complete.

Like almost all European countries, Bulgaria has a system of Notaries Public - public solicitors - whose job it is to oversee the transfer of properties and register the owners' details with the land registry.

At this point you will have to pay various fees and taxes for which you should allow approximately 5% of the purchase price. This includes:

Local Property Tax: approx 2%
National Registration Tax: 0.1%
Notary's & Solicitor's fees

If you are buying through a company you may also have to pay a corporate tax on the property transfer - you should ask the advice of your solicitor on this matter.

It goes without saying that you should ensure that you employ an independent, English-speaking solicitor to represent you throughout the purchase and should not sign any documents that have not been translated for you.

To read more on buying in Bulgaria pls see list below or your mortgage guide or home buying guide

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Value of Property	£
		(eg 125000)

Borrow How Much?	£
		(eg 92500)

Your Mortgage Type

First time buyer?		Yes No
Have you found property?		Yes No
Country

Sorry ! The amount you want to borrow is less than £25,000. This is the minimum allowed for a mortgage. But don't worry! You could get the money via a personal loan. I want a free no obligation loan quote Click OK No thanks. I will change my borrow amount to more than £25,000 Click Cancel

Read On

• Introduction

• Buying A Property In Bulgaria – 4 Easy Steps

• Should I Get A UK or Bulgarian Mortgage?

• Getting A Mortgage In Bulgaria

• Other Things To Consider Before Buying In Bulgaria

• Glossary of Key Bulgarian Terms

Buying Overseas Property and Mortgages

Read enough? Just want a quote? To get your best mortgage quote quickly and easily we can put you in contact with a recommended mortgage adviser. It's free, completely confidential and there's no obligation at all. Simply fill out the form below


Value of Property	£
		(eg 125000)

Borrow How Much?	£
		(eg 92500)

Your Mortgage Type

First time buyer?		Yes No
Have you found property?		Yes No
Country

Sorry ! The amount you want to borrow is less than £25,000. This is the minimum allowed for a mortgage. But don't worry! You could get the money via a personal loan. I want a free no obligation loan quote Click OK No thanks. I will change my borrow amount to more than £25,000 Click Cancel

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Buying A Property In Bulgaria 4 Easy Steps

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