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Bulgaria Buying Guide

Our Guide to buying property in Bulgaria brings together our considerable knowledge and experience to provide you with information on what you need to know. It is not meant to be a full explanation of Bulgarian property law but a guide to the basic process.

Summary of the Buying Process :

Step by Step

After checking availability reserve your chosen property.
You will be expected to pay up to a 'Reservation Fee' to remove the property from the market usually within 7 days. This will ensure the developer removes the apartment from the open market.
At this stage you might choose to travel to Bulgaria on a viewing trip
You receive an initial contract of sale – more usually called a preliminary contract.
It is advisable to perform the standard checks using a reputable Bulgarian Lawyer
Sign the Final Legal Contract and Notary Act (Contract to Purchase) in front of a Bulgarian Notary in Bulgaria (more usually done by your appointed lawyer)
Complete Bulstat registration (again done by your appointed lawyer)

Please note that the final Notary Act is not signed until the building is completed in the case of "off plan" developments. All our off-plan developments do not require company incorporations and when you buy an apartment, you buy a section of the building. This section of the building is freehold and there is no lease, the apartment is yours forever, or until you decide to sell.

Buying off plan

Buying an ‘off plan’ apartment in Bulgaria is essentially the same as buying in the UK and means reserving a property on a new development before the property is completed, often before construction has started. Buying ‘off-plan’ can prove a fantastic investment and prices are extremely competitive at this early stage as potential investors only have floor plans and artist impressions of the finished development to view. You then have the option of selling straight away upon completion for a profit, or you can hold on to your property for further rental/ capital growth whilst having a great holiday destination to visit.

Foreign Ownership

Under the Bulgarian act on Foreign Ownership, foreigners are allowed to buy buildings but not land. Foreigners can however own land by setting up a Bulgarian company. This restriction is simply avoided by setting up a Bulgarian company that owns the land. To summarise:

No land ownership for foreigners in Bulgaria.
Foreigners can own buildings.
Foreigners wishing to own land can do so through incorporating a company.
Bulgarian company incorporation costs less than £300.
Bulgaria’s ownership policy will be changed in line with the EU in the future.

The Contract

Buying ‘off plan’ in Bulgaria is essentially the same as buying 'off plan' in the UK. A preliminary contract signed by all parties (similar to ‘Sold Subject to Contract’ in UK') is drawn up to cover the purchase of the property. It is known as the” preliminary contract” because both parties effectively promise to enter into a final contract to buy and sell the property. After verbal agreement and all the necessary details provided, the contract will be drawn up by the developer’s solicitors and will set out a payment plan, prices and the terms and conditions agreed. At this stage, the agreed deposit – normally around 30% of the purchase price – is paid to the seller and such contracts will also detail scheduled payments thereafter, up to and including the completion date in front of the Notary. There will be penalty clauses contained in this document in the event of either party withdrawing from the sale or purchase after this contract is signed. We advise you to obtain your own legal advice before committing to any significant financial transaction.

Deposit

A deposit is usually required upon signature of the contract. There is no limit for this & it may vary but be prepared to pay around 30% of the total value of the property.

Completion/Notary Act

Final legal transfer of the property is different to that of the UK. Either the client or by granting a Power of Attorney - his appointed lawyer can sign the Notary Act (Contract of Purchase) in attendance of a Bulgarian Notary – a legal entity who is duty bound to check every detail and document. The Notary Deed is equivalent to our “Title Deed” and is the important document transferring ownership of the property. If you decide to sign the notary deed yourself you will require independent legal representation and a legally authorised translator with you to ensure that transfer of ownership takes place. Please note, in the case of off-plan developments, the final Notary Act is not signed until the building is completed. The client is responsible for these extra costs which will typically account for 3% of the purchase price:

Notary fees, document translation and legalisation costs
Country Tax (the equivalent of the Stamp Duty in the United Kingdom). This is a maximum of 2% of purchase price.

Download our Bulgaria guide.
It's in PDF format and is 2.1Mb.

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