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FAQ

How foreign investors can acquire a property in Bulgaria?

What are the guarantees for foreign investment in Bulgaria?

How long will it take to buy a property in Bulgaria?

What about Notary?

Is it necessary to come in Bulgaria to purchase a property there?

What are the regulations for the import and export of currency by foreign citizens?

What are the living costs in Bulgaria?

Is it safe?

What are the fees and commissions?

Is the deposit refundable if the buyer desists from purchasing?

Could you help me if I want to renovate the property or to build a house?

What is the local feeling towards foreigners owing property?

What about Taxation in Bulgaria?

What if I want to buy a property in a certain region of Bulgaria and there are no such properties available at the moment?

Q: How foreign investors can acquire a property in Bulgaria?
A: Foreign nationals and foreign legal entities may acquire ownership title over buildings and limited ownership rights over property in the Republic of Bulgaria. Therefore if foreign citizens want to invest in property in Bulgaria, they must register a Bulgaria based company. As soon as the company is registered any properties / property in Bulgaria can be purchased to the company name. The most common type of organization for foreign investors is a limited liability company. Other forms are companies limited by shares (joint stock companies), joint enterprises, business associations, general partnerships, limited partnerships, and sole proprietorships.
The law does not limit the extent or amount of foreign participation in companies. Foreign individuals and companies can open unlimited number of accounts in any Bulgarian bank, in any hard currency or the local Bulgarian currency. There is very serious talking that soon the main law in Bulgaria, the Constitution will be changed very soon, so that all foreigners who wish to acquire property in Bulgaria will be able to do this personally, so registering a local company will not be needed.

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Q: What are the guarantees for foreign investment in Bulgaria?
A:

National Treatment
Most Favoured Nation Status
Priority of International Treaties
Legal Guarantees against Adverse Changes in the Law - the provisions of the Law that have been effective at the moment of making the investment, should be applied for any foreign investment executed before the changes of the legislation setting up legal normative restrictions for the foreign investment.
Protection Against Expropriation - real estate property owned by a foreign person can be expropriated only on lawful grounds, for especially important purposes of the State that can not be satisfied otherwise.

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Q: How long will it take to buy a property in Bulgaria?
A: Generally it will take 3 weeks to buy a property. This is dependent on a number of factors, not all of which are in your control. Once you have decided on a property, contact will be made with the seller or his estate agent. The terms and conditions of the sale can be negotiated very quickly, depending on how easily we can instruct an independent surveyor to assess the property, which is our usual practice. It is important to have an accurate picture of the condition of the property, likely repairs that will be needed and its consequent value. Usually a surveyor can prepare a report within a week of instructions. The legal title to the property can be checked at the Land Register in a day or two. Searches with the local authority, trying to confirm the uses and building permissions associated with the property, will similarly take several days. The Preliminary Contract is then exchanged and a deposit paid. Then there is a period of a few days while the money transfer is arranged and any final checks made. The sale will take place in front of a Notary at an agreed date and time.

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Q: What about Notary?
A: A notary is responsible for drawing up the purchase contract. The notary will require proof that you are buying an unencumbered property and that you have funds to do so. He will require proof of ownership from the seller, a declaration from the seller that they have paid all the obligations to the state, a certificate showing the tax authorities evaluation of the property. Both the seller and the buyer must make declarations of their civil, family, and property status.
On the day of purchase the notary registers the notary deed in the regional courts register of immovable properties.

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Q: Is it necessary to come in Bulgaria to purchase a property there?
A: If you decide not to leave the UK and you want us to purchase your property and set up a company on your behalf then we need: a copy of your passport, your full address, the chosen name for your company, 10% deposit for the property, 3% our company commission, the share capital of 5,000.00 BGN and 500.00 EURO (company set up fee).

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Q: What are the regulations for the import and export of currency by foreign citizens?
A: Foreigners may export and import Bulgarian banknotes and coins in circulation to the amount of up to BGN 10,000 / the currency unit in the Republic of Bulgaria is the Bulgarian Lev or BGN. 1 lev = 100 stotinki/. Sums exceeding this amount may be imported and exported only with a permit by the BNB (Bulgarian National Bank), valid for a period of up to 90 days of its issuance date.
    The foreign persons may export convertible (hard) currency in amounts that do not exceed the amount of the foreign currency they had imported and declared. They can import unlimited amounts of foreign currency, which is to be declared. Upon crossing the state borderline of the Republic of Bulgaria passengers may import and export commodities that in type, quantities, and value are not of a commercial nature. These do not include objects the passenger carry for personal use and consumption objects.
    Exchange controls are the responsibility of the Bulgarian National Bank (BNB). The Bulgarian Lev is pegged to the Euro, and enjoys local convertibility. The export of Lev is prohibited, but foreign businesses can repatriate profits and capital in foreign currency. Companies can maintain both Lev and foreign currency bank accounts. Currency exchange can be effected through either the Commercial Banks or the Exchange Bureau.
    Import controls - Most goods can be imported into Bulgaria without restriction. All exports to Bulgaria are subject to pre-shipment inspection.

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Q: What are the living costs in Bulgaria?
A: It's not possible to compare living costs in Bulgaria and Western Europe. Living costs in Bulgaria are extremely low! For example the food is generally twice cheaper than UK. House insurance: around 100-200 EURO per year depending on the type of house, together with the belongings and furniture inside. For a property with price 30,000 EURO insurance against theft, flood and fire costs about 125 EURO per year with a decent insurance company like Allianz. Gas: the gas system network is not developed in Bulgaria yet. People here mostly use electricity to cook. For heating: there are central heating systems in the big cities: monthly costs for a 2-bedroom apartment around 120 EURO. In the small places people use charcoal and wood, which is even cheaper way to heat a house. For electricity, when used for cooking, light or hot water one pays about 30 EURO monthly. Local and national taxes for owning a property: depending on the place where the property is located, the most expensive area is the capital Sofia, where the annual taxes of 2 bedroom apartment are around 150 EURO per year, but the rest of the country is around 80 EURO per year.
To employ a gardener or maintenance man or builder you will not pay much. The average salary in Bulgaria is 200 EURO per month.

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Q: Is it safe?
A: The crime rate is very low and statistics compare very favourably with all other European holiday destinations.

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Q: What are the fees and commissions
A: Please read about our charges here.

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Q: Is the deposit refundable if the buyer desists from purchasing?
A: Unfortunately we cannot offer a refund if you decide not to purchase a certain property as the deposit will have already been paid to the vendor to secure the property. If the vendor pulls out of the deal you can transfer the deposit to purchase another property offered by us. Our commission is non refundable.

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Q: Could you help me if I want to renovate the property or to build a house?
A: We work at a fine quality and very reasonable prices. We have building teams on the territory of the whole country and it will be our pleasure to assist you to build your new house. We work with one of the best specialists in the country. They can build any type of house you want. We can prepare architectural plans, and make all the necessary calculations for you. Then we can build the house fully corresponding to your requirements and preferences. If you buy resale property we will help you to renovate and furnished it.

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Q: What is the local feeling towards foreigners owing property?
A: The Bulgarian people are very happy to see people bringing wealth and foreign investment to their communities. Obviously it is very important to try and be friendly and fit in with the local community.

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Q: What about Taxation in Bulgaria?
A:

VAT:
The amount of VAT in Bulgaria is 20% with some exceptions. Some deals are free of VAT /land purchase, shares purchases, etc /. Some are with VAT in smaller amount.
TAXATION OF THE INDIVIDUALS:
The taxation of the annual incomes of the individuals in Bulgaria is in accordance with the following progressive table:
Annual income Taxation
Till 1560 levs. Free of taxes
from 1560 levs to 1800 levs. 10% for the income over 1560 levs.
from 1800 levs to 3000 levs. 24 levs + 20% for the income over 1800 levs.
from 3000 levs to 7200 levs. 264 levs + 22% for the income over 3000 levs.
over 7200 levs. 1188 levs + 24% for the income over 7200 levs.
The dividends accounted from Bulgarian companies in benefit of the shareholders in the respective company will be taxed with "final tax" which is always in amount of 7%. These incomes, after the taxation with 7%, will not be included in the total income described in the table above.
TAXATION OF THE COMPANIES:
The companies pay "corporative tax" in amount of 15% of the net income for the respective year /annual basis/.
TAXATION IN ACCORDANCE WITH THE REAL ESTATE OWNERSHIP
The taxation of the real estate assets is 0.15% of the tax valuation per annum. The valuation is in accordance with addendum No 2 of the Law for the local taxes and fees.
Also the owners of real estate properties have to pay fee for the treatment of the trash, which fee is different for the territory of every one municipality. The fee is defined every year by the municipality's council.
TRANSFER ABROAD OF THE INCOMES, REALIZED IN BULGARIA
The foreign investors can repatriate their incomes realized in Bulgaria without any restrictions after they prove that all due taxes regarding the mentioned incomes in Bulgaria are paid.

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Q: What if I want to buy a property in a certain region of Bulgaria and there are no such properties available at the moment?
A: We have thousands of properties in different areas in Bulgaria. If you are interested in some particular area and we do not have anything suitable for you at the moment, we send our representative for this same region and within several days we have many interesting offers for you, from which you can choose.

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