Bulgaria » The Purchase Process

According to the Bulgarian Constitution, foreign individual persons can buy buildings but not land. Therefore the most common method for foreigners buying property in Bulgaria is to set up a company which then owns the land and the buildings. This law is expected to change within the short to medium term as Bulgaria opens its doors fully in line with its expected entry into the European Union (Jan 2007). This historic restriction is one of the reasons why property in Bulgaria is so competitively priced compared to Western and Central Europe.

There are no restrictions on buying property in Bulgaria for a foreign national. You can buy as many apartments in Bulgaria as you can afford. Buying a property in Bulgaria varies depending upon the type of property you buy (villa or apartment), also if the property is new or re-sale.

For properties for sale with land you would need to incorporate a limited company in Bulgaria, which takes time. Generally it will take 3-5 weeks to buy a property.

There are several stages to buy property in sunny beach. If the property you intend to buy comes with land then you will need to register a Bulgarian Ltd. Company to own the 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 title to the land. Forming the company is relatively straightforward. The expenses are between EUR 500 - 700 to form the company.

 

Without land it is generally accepted that the purchasing of an apartment does not require you to set up a company, as it has no or very minimal land ownership. In such cases you can own only a right to construct, which property right is enough for the ownership of an apartment.

Sometimes difficult in Bulgaria, particularly so as a foreigner, but as applies any where it is normally wise not to proceed without some form of debate on the price. Check other similar properties in the area and what they have been or are being sold for.

The Buying Process Stages

• When you have agreed to purchase your broker will draw up a Preliminary or Primary Contract setting out all 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.
• Verbal Agreement to purchase this pre-empts the drafting of the Preliminary Contract. You also need to check on title deed document, licensees and permissions, debts on the title, terms of the contract.
• Confirm in front of the Notary Public the agreement to buy the property. This is the final stage when both buyer and seller meet with the Notary Public and complete the transfer and pay the state and Municipal taxes due on the transfer.
• Don't forget to take out Insurance against normal insurable risks just as you would at home.