Property Buying Guide for Bulgaria

Located in the southeastern corner of the European Balkan peninsular and bordering Greece, Turkey, Romania, Macedonia, and Serbia, Bulgaria has been a politically stable country since 1997 when the currency board was introduced. It has a fast developing economy that offers excellent business opportunities and investment growth potential in view of the favorable conditions that exist for foreign investors.

Good Value for Money

At present, the real estate prices in Bulgaria are lower than those in other countries of Europe, but there is scope for unprecedented growth and a boost in the real estate prices in the near future. Moreover, real estate is still undeveloped and unexplored to a great extent and offers great prospects for investors. Property in Bulgaria definitely offers better value for money than in other places of Europe.

If you are planning to buy property in Bulgaria, you can look for a holiday home or a second home where you can settle down after your retirement. You could also buy property for investment to make a capital gain in a short or long period of time, depending upon your capacity to hold on to your investment.

Procedure for Buying Property in Bulgaria

The process of buying property in Bulgaria is similar to buying property in any other European country, to a large extent. It is not as complicated as you might imagine it to be. The following steps would enable you to get a property in Bulgaria without many hassles.

1. Be Aware Of Restrictions For Foreigners: A person with Bulgarian citizenship can buy any property without restrictions, but a foreign national will be bound by special formalities and restrictions. The restrictions relate to the type of the property that can be acquired. There are no restrictions for foreign private and legal entities to acquire the right of ownership over buildings and limited property rights over immovable property. The right of ownership is regulated by the conditions of an international contract. However, there are no restrictions on the type and number of apartments or houses that can be bought. Any person who establishes a company in Bulgaria can buy any property without any restrictions, except that the property should be in the name of the newly registered company.
2. Choose a Property: As a first step, you would have to choose a property that you wish to buy. It is essential to entist the help of a reputable real estate agent because they would be able to guide you through all the relevant laws, formalities, and restrictions. They would also be able to give you information on the different properties that might match your requirements. If you decide to buy a brand new or off-plan property, you must only deal with a reputable developer. It is important not to be fascinated by an artist’s impression of what you are going to get, but to see for yourself some of his/her previously completed work.
3. Bargain Hard: When you have located a property that you would like to buy, it is important to negotiate with the seller on the asking price. It is a good idea to look around at similar properties in the area and get an idea of what should be a fair price. You can then make an offer at a price that would suit your budget and would seem to be fair.
4. Engage a Lawyer: Once you have made the offer and if it is accepted, you can agree to buy verbally and your real estate agent would take it further from there. You should engage the services of a lawyer at this stage, making sure that they are independent of the seller and your estate agent.
5. Sign A Contract: The next step is to sign a contract, but before signing you should get it reviewed by your lawyer to ensure that all the conditions of sale are included. You would also need to pay a deposit, ranging between 10 percent and 20 percent of the agreed purchase price, so that the property is taken off the market. This deposit is non-refundable if you withdraw from the sale, but it will be refundable if the vendor withdraws from the sale or if the conditions of the sale are not met. The remaining amount will have to be paid in periodic installments until delivery, or according to the terms agreed upon with the seller.
6. Check and Survey: While buying any property in Bulgaria, it is very important to ask your lawyer to check the title deeds and the licenses and permissions required to buy or sell. It is also essential for your lawyer to ensure that there are no outstanding debts on or legal claims against the property. The terms of the final contract should also be checked thoroughly. In the case of a resale property, you should get a surveyor to check the building quality and to make sure that there is nothing wrong with the land or the property.
7. Sign the Final Contract: The final contract is signed by both the vendor and the purchaser at the office of a notary public and in his/her presence. At this stage, the final balance of the purchase price has to be paid to the vendor. The transfer of the property would be deemed to be completed. State and municipal taxes would also have to be paid at this stage.
8. Pay the Fees and Taxes: The transfer fees rate varies between 5.3 percent for the market value of up to 10,000 euros of a property to 4 percent for a market value above 60,000 euros. The fees for property acquisition range from 2 percent to 4 percent of the property value, which has to be paid by the company. The exact value differs in each municipality in Bulgaria. However, this amount is included in the transfer fees. The registered owner of any immovable property will also have to pay annual real estate tax according to the rates announced by the municipality each year. However, agricultural land is not subject to any tax.
9. Take Possession: You can take possession of the property after the above formalities are over. If, however, the property is still under construction you would have to wait until its completion. If a completion date is mentioned in the contract and if you do not get the property until after the previously agreed contingency period, you are entitled to compensation from the developer.
10. Get Insurance: It is important to get your property and its contents fully insured in view of the possibility of a theft or burglary. The windows should be fitted with proper security bars and all forms of security precautions should be in place in your property in Bulgaria.

Buying a property in beautiful Bulgaria is more or less similar to buying a property in any other European country. However, in order to be fully aware of the various formalities and laws, it is important and necessary to engage the services of a reputable real estate agent and a lawyer.