Bulgaria
Finding a reputable law firm in Bulgaria can be a minefield - why not let The International Property Law Centre LLP take the stress out of the legal aspects of your Bulgarian property purchase.
The International Property Law Centre LLP provides specialist Bulgarian-speaking lawyers, who can help you with your property purchase in Bulgaria, via a step by step guide. Our independent team of solicitors offer a straightforward alternative to the complexity of sourcing legal services overseas, saving you valuable time and money.
Why not make the procedure of buying your property in Bulgaria as stress free as possible by instructing The International Property Law Centre LLP to handle your conveyancing. The practice offers not only a comprehensive Bulgarian conveyancing service, but also assistance in a wide range of legal matters, in your chosen jurisdiction.
Whether a property is being bought for investment, a holiday home, or a retirement home, current prices are exceedingly low, but they are set to rise. The continued growth in tourism is fuelling the price rise as foreigners realise that Bulgaria is a desirable alternative to Spain, Portugal or Greece as a holiday destination.
There are many areas to consider when buying a property and obviously it helps if you can narrow your search. There are many areas to choose from depending on the circumstances and requirements of the particular buyer:- The Black Sea Coast, the ski resorts of Bansko, Pamporovo and Borovetz, the mountain regions of Rila, Rodophi or Pirin and the Capital Sofia.
The mortgage market is also developing in Bulgaria and this is likely to cause a great surge in demand for Bulgarian property.
Restrictions on foreigners buying property
There are still restrictions on foreigners buying land in Bulgaria, but these are due to change in the near future once Bulgaria joins the EU.
At the moment, a foreigner can buy buildings as an individual, so if you are buying an apartment, this can be done in your own name, but if you are buying a house, which is obviously set on land, then you need to set up a Bulgarian Limited Liability Company. Setting up a company is a relatively easy process.
Once the company has been incorporated, it buys the property and owns the land. You are the sole owner of the company and respectively of the land.
The company does not have to operate or trade; it is just tool to enable you to buy property. Each year it will be necessary to declare the company accounts and this can be organised by a chartered accountant.
A minimum of 5,000 Bulgarian Leva needs to be deposited (approximately £1,700.00) in your company’s bank account. This is the minimum capital required by Bulgarian law to establish a limited company. This is just your starting capital and it can be used for the initial deposit and any fees incurred.
Basic Legal Procedure
Detached property with land
If the property you intend to buy comes with land then you will need to set up a Bulgarian limited company to own that land. The reason for this is that at present, the Bulgarian constitution states that a foreign person may not own title to land. The company that you own will then legally own the title to the land. Forming the company is relatively straight-forward and we can assist with this.
Property without land
It is generally accepted that the purchasing of an apartment does not require you to set up a limited company. In such case, you can purchase the construction right over the land, which at completion will automatically convert into the ownership right over the apartment.
When you have agreed to purchase a property your lawyer will draw up a preliminary or primary contract setting out all of the agreed details and stating the initial deposit amount to be paid (normally 10%).
Upon signing the preliminary contract, it should be made conditional that the property is removed from the market. It is extremely important that you use the expertise of an independent lawyer to undertake the initial searches and checks on title deed documentation, licences and permissions, debts on the title, and the terms of the contract.
Completion of the purchase takes place in front of the local Notary Public. This is the final stage when both the buyer and the seller meet together and complete the transfer. The buyer usually pays for the completion expenses, which include the notary’s fee, local tax equivalent to the UK stamp duty and the registration charges.
Following completion the buyer has to apply for personal tax numbers (Bulstat), register the property for council and garbage tax and connect the property to the utilities.
What next?
If you are thinking of buying a property in Bulgaria why not talk to an expert in international law who can help you avoid any pitfalls. Please contact us to discuss your purchase or call us now on 0844 578 5003.
The International Property Law Centre LLP
London Office: Frazer House, 32-38 Leman Street, London E1 8EW.
Tel: 0844 578 4003. Fax: 0844 578 4001.
(Telephone from abroad: +44 (0)207 173 6180. Fax from abroad: +44 (0)1482 240 192.)
Hull Office: 14 Scale Lane, Hull HU1 1LA.
Tel: 01482 224 900. Fax: 01482 240 192.
(Telephone from abroad: +44 (0)1482 224 900. Fax from abroad: +44 (0)1482 240 192.)
Email: info@iplc.co.uk
Regulated by the Solicitors Regulation Authority.
Registered address: 14 Scale Lane, Hull HU1 1LA.
The International Property Law Centre LLP is registered in England number: OC337700.
A list of the members of the LLP is displayed at the registered office as above.
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