Property Buyers Guide
This guide is to reveal in brief the whole process of purchasing real estate in Bulgaria.
Properties in Bulgaria offer a good investment considering the long-term prospects for the country. Whatever your budget, real estate in Bulgaria offers considerably better value for money than any other European destination.
Choose the property you would like to purchase in Bulgaria through our web site.
Just remember: What we don't have we'll find it, if not we'll build it for you!
• Viewing Trip
Our agency does not charge Viewing Fee. All you have to pay is 25 euro cents per kilometer. If you buy a property using our services the amount paid for the transport will be considered as a part of the commission determined by the BulgarinEStates Ltd but not more than 125 Euros per each property you purchase.
• Set up a company
In the case of buying real estate with land, all foreigners, with the exception of EU and EEC citizens, must register a Bulgarian company (preferably LTD), which will be 100% owned by them and will be the owner of the property.
Currently company formation could even take one month, because of some new bank regulations regarding the law on anti-money laundering measures.
If you buy an apartment or a house without land, the company is not needed and everything is made out to an individual.
• Deposit payment
Upon signing the order contract with us the buyer should pay a deposit thus establishing their commitment to purchase the property. In Bulgaria such deposit usually rates at 10% of the cost of the property, but it can also vary. If after signing the contract seller unreasonably refuses to sell the property, he will have to refund the deposit to you, and vice versa, if after signing the contract you unreasonably refuse to purchase the property, you will lose the deposit you have already paid. Upon signing the order contract and paying the deposit the real estate agent's fee will have to be paid as well. (BulgarianESTates Ltd fee is 3% of the purchase price but not less than 1000 €)
There is usually one month between the deposit payment and the conclusion of the final sale documentation
(the Notary Deeds). Тhis period it is required to prepare all necessary documents for the transfer as well as checks for the legal status of the property and the lack of obligations.
• The Deeds(Notary Act)
After setting up the company, you will need to pay the remaining balance for the property. This is the final stage when you will complete the purchase and become the new owner of the property. You must confirm before the Notary Public the agreement to buy the property. The state and Municipal taxes must be paid, the full amount paid to the vendor and the title deed will be transferred into your company name or to you.
Please have in mind that properties appearing to be very cheap by the international standards will almost certainly need a major renovation in order to bring them up to modern standards. Obviously the less expensive properties will be older style and perhaps more remotely located. Many of the cheap properties have their toilets built outside the house. BulgarianESTates Ltd have a team of qualified builders who will do any type of work required(check out our Before&After section)
Many new developments are being offered under construction (mostly in the sea and ski resorts), where properties may be purchased 'off plan'. In this case every vendor (normally a construction company) provides some extra terms of sale in addition to BulgarianESTates Ltd terms of sale. They are normally set out in the order contract.
IMPORTANT INFORMATION TO CONSIDER WHEN BUYING PROPERTY IN BULGARIA
The usual term for the former owners of the property to move out of it after completion of the sale is one month. This could be negotiated if the buyers require a shorter term. For this purpose, they should ask the assistance of BulgarianESTates Ltd in due term and not expect the property to be empty right after signing of the final contract.
All foreign buyers purchasing real estate property must be aware that in Bulgaria there are such terms as "tax estimation price" and "purchase price". The "tax estimation price" is for the purposes of real estate taxation and is much lower than the actual selling (purchase) price. Most of the Bulgarian property owners (vendors) wish that the "tax estimation price" were written in the title deed, and not the selling (asking) price that the buyers are paying, so due to this practice there might be discrepancies between the price you are paying and the price written in the title deed. This is because of various reasons and BulgarianESTates Ltd cannot be responsible for it. If the respected property buyer wishes that the purchasing price were written in the property title deed they must notify us in advance and we will negotiate on this with the vendor of the property.