| Bulgaria has some of the most liberal foreign investment laws in respect to real estate and foreign investment. A general principle of such legislation and laid down in the constitution is that foreign investors have equal rights with Bulgarian nationals and legal persons when investing in the country.
This means that you can invest in real estate in Bulgaria either personally or by setting up a Bulgarian company, which you control completely (there is no restriction as to the extend of the foreign participation in a company, which will be or has already been incorporated - it can be 100 per cent). Thus: Flats, Houses, Villas, Chalets or any Building you can buy directly as an individual. As far as Bulgarian land is concerned you would need to set up a company of which you can be the solo owner or we offer to be a shareholder of the group who owns the plot and maintenance cost will be shared. That company will then be the owner of the land. This requirement to set up a company to buy land will most likely be abundant when Bulgaria enters the EU in 2007. According to the new legislation from 2014 there will be no restriction.
Setting up a Company in Bulgaria is very straightforward and we can certainly do this on your behalf.
Transfer Tax and Fees
When buying a real estate in Bulgaria a 2 per cent municipal tax is paid on the value of the transferred property. Donation of property and changing the title again is subject to 5 per cent tax payable by the donated person.
A notary transfer fee is payable for the transfer of property where notary certification is necessary - it depends on the value of the property, but it cannot exceed lev 3000. An additional fee of 0.1 per cent is charged for registration.
Real Estate Tax
The real estate tax is an annual tax and amounts to 0.15 per cent. It applies to land (but no agricultural and forests) and buildings. The tax is paid regardless of whether the immovable property is used or not.
Buying made Easy
As a one-stop shop we pride ourselves in our total service through every stage of the property buying process. Our aim is to make this experience as easy and as stress-free as possible.
We will initially advice you on the current status of the property market in Bulgaria and tailor your specific requirements to individual properties or property specifications and land sites, as well as offering honest advice on any that you may already be interested in. Viewing a property could not be easier: - you will be met on landing by an English speaking representative from our Bulgarian office, who will also accompany you to view and advice on properties that you are interested in. If required, we will organise accommodation and transport for you during your visit at cost price, as part of our service. Alternatively, we can take care of everything without you having to be there in person, simply by using a power of attorney through our reputable lawyer in Bulgaria and leaving the rest to us. Once you have found a property and agreed a price with the owners an initial contract needs to be drawn up and the property removed from the market. Using our reputable lawyer we will check with you through the title documents and the terms of contract. At the same time we will ensure that there are no debts or conditions on the title and make you aware of your positions regarding licenses and permissions. The final step is to sign the Notary Act (Contract to Purchase) before a Bulgarian Notary Public and then sign the Final Legal Contract.
And That's It!
From initial viewing to signing contracts, the whole process can be completed in one day!
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