BUYING A PROPERTY IN BULGARIA - A STEP BY STEP GUIDE

>Total purchase costs should not exceed 5% (including lawyers fees) however this could end up being more (in percentage terms) for an older and cheaper property in Bulgaria.

- Under Bulgarian law a foreigner cannot own land. If you wish to buy land or a house with a plot then you can circumvent this law by opening a Bulgarian company. The land (and house) can be owned by this company and a foreigner can have outright ownership of the company. The cost for setting up a company is relatively low (under 1000 Euros) and we can help you set it up. With new, off-plan developments it is not necessary to own part of the land or set up a company as buildings can be owned by foreigners.

>Property Acquired without Land
There is no need to set up a company. The apartment is acquired freehold and is owned directly by the acquirer. There is no need for the acquisition documents to be signed in Bulgaria or at a representative Embassy.

>Sale & Purchase Contracts
·Once you have selected your apartment and paid the reservation, you will receive a preliminary sale and purchase contract. Check all the details are correct before signing 2 copies; we recommend the use of an independent lawyer to review the contract before you sign.

>Construction & Final Completion
Usually there are one or more interim instalment payments to be made prior to the full completion of the property. We will notify you of the estimated payment dates. Upon completion of the property and payment of the final instalment, the transfer of title may occur. In Bulgaria, the property registry system works in conjunction with local Notaries. In order to take delivery of your property, you will need to sign the 'Notary Act'. This is a standard form document transferring ownership of the property into your name.
You will receive title deeds within 7-10 days of the Notary Act from the local council.
Note: If you are unable to attend the Notary Act in person, your legal representative may attend in your place. This individual will need to be a qualified Bulgarian solicitor in possession of a 'Power of Attorney' agreement. We are able to liaise with you to arrange this.

>Additional Acquisition Costs
Local tax: According to the Local Taxes and Fees Act, the tax payable upon the sale-and-purchase of an apartment is 2% local tax. The basis for calculating the tax is the higher of: The apartment's price as specified in the notary deed, and The tax evaluation of the apartment. Such tax is payable by the purchaser, unless the parties have agreed otherwise.
Notary fees
The notary fees are determined in accordance with the tariff for the Notary Fees. There are various charges but you should allow €1,500-€2,000.
Legal fee
Each lawyer or law firm is free to determine its fees, subject to certain constraints. There are also different schemes of determining the fees (e.g. on an hourly basis, a fixed fee etc.). The rates of the lawyers vary from €80 to €150 per hour. Total legal fees are estimated at €500-€600.

> Other Expenses
· Annual property taxes amount to 0.15% of the tax value of the property (usually significantly below the acquisition price); Maintenance of your property is covered by the Management Contract and is charged at a fixed rate in euros per square metre per year; and Waste-collection fees are determined when you register ownership with the local municipality; rates vary from region to region.

Remember to register your new property ownership with the local authorities after completion for rating purposes. This should be done within 60 days following completion.