BUYER'S GUIDE


The procedure of purchasing property in Bulgaria is simple and it includes the following steps:

Selecting the right property and understanding whether it is for sale, with or without the land. If the land is also to be purchased, a Ltd. should be registered;
Negotiating a final purchasing price with the owners;
After having specified the parameters, signing a preliminary contract;
Carrying out the usual checks by a lawyer - title deeds, construction permissions, certificate of the lack of property burdens (mortgages and injunctions), plans and the like according to the case;
Certifying the deal before a notary for the transfer of the ownership rights to you or your company.


The first stage in the purchase process is selecting the right property and determining the reason for purchase. Every investor wants to experience capital growth in the property but consideration needs to be given to any requirement for a monthly income through a guaranteed rental scheme or if personal use is overriding factor that determines property choice.

You should also make sure the property selected by you is still available. For this purpose, you should make an enquiry directed to us including the details of this property and we will answer it within 24 hours. If the property proves to be available, the Reservation Form should be sent together with our reservation fee which amounts to 2000 EUR (this fee is regarding properties in Bansko only), transferred to First Investment Bank – Bulgaria. The so paid reservation fee is not returned but it is deducted from the first installment amount. This is due after defining the payment plan at presenting the reservation receipt which you will receive from us immediately.

The next step is signing the Preliminary Contract and a Contract of Real Estate Management. These will be given to you within seven days after receiving the deposit and presenting the receipt for the paid fee. Make yourselves well familiar with these contracts and if necessary, contact us for more details, and then send us back the signed copies. This is to be done within 14 days, including the first installment, the way it is described in the Preliminary Contract. The Preliminary Contract is the legal document that details all aspects of the purchase and accompanies the purchase from reservation through to transfer of property ownership from the seller to the buyer and issue of the Final Contract.

At this point it is advisable to appoint an English speaking Bulgarian lawyer to conduct the legal checks concerning the purchase on your behalf.

If you decide to look at the real estate advertised by us and you plan a travel and a viewing trip, we will ensure full assistance and professional consultation. Together with our associates we can assist in making your arrangements to travel to Bulgaria to view property if required. Getting to Bulgaria is covered in a different section but booking hotels, arranging transfers or simply assisting with knowledge of distances between locations are areas in which we provide a service. If you have already planned a holiday in Bulgaria and wish to meet a representative whilst you are there this can also be arranged but it would be wise to give consideration to the selection of properties that are to be viewed prior to travelling.

Off-plan and re-sale apartments do not require a limited company to be formed. When an apartment is purchased, it is a freehold section of the building that is purchased which a foreign individual is permitted to own. It is also normal to purchase of a percentage share of the common area of the building together with the actual apartment area whereby the apartment owner becomes an owner in common of the building together with all of the other apartment owners. Annual maintenance charges are normally payable to a maintenance company which are to ensure the upkeep of the common parts of the building that are jointly owned by all parties.

Following reservation and satisfactory completion of the legal checks, the property is normally purchased through staged payments. These are percentage payments of the final buying price that become due either when certain stages of the build are completed or at pre-determined dates that are stipulated in the preliminary contract. Typically payments are due in the following amounts and stages:

1500 Euro Reservation Fee;
 30% on signing of the Preliminary Contract;
 20% on completion of foundation work;
 30% on completion of roofing work;
 20% on completion of build and at property transfer.

Once the property is completed then ownership becomes due to be transferred from the seller to the buyer. At this time the Notary Act (Notary Deed) needs to be signed by all parties in front of the Bulgarian Public Notary and the final payment is made. At this point a variety of taxes become due which amount to approximately 3-3.5% of either the purchase price or the tax evaluation price. The tax evaluation price is a lower price determined under Bulgarian law which is declared on the title deeds of the property. If you cannot sign the Notary Deed personally, we are ready to assist you. The prices we offer include VAT tax.

We will also ensure a property insurance and always timely and useful advice.

For all activities connected with the newly purchased real estate, we offer a Management Agreement as it is charged according to fixed annual prices in euros per sq.m. or according to the contract offered by the executive company.

The real estate becomes your own property after paying the last installment and its transferring with the assistance of a competent notary.

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