Buyers Guide

Property Buyers Guide

This guide is to reveal in brief the whole process of purchasing real estate in Bulgaria.

Property in Bulgaria offers a good investment considering the long-term prospects for the country.
Whatever your budget, real estate in Bulgaria offers considerably better value for money than in other European destinations.

Choose the property you would like to purchase in Bulgaria through our web site.

Just remember: What we don?t have we?ll find it, if not we?ll build it for you!

Set up a company

As it will be a Bulgarian legal entity you may use it to acquire real property in Bulgaria (not required if purchasing an apartment as it has no or very minimal land ownership)

Signing the preliminary contract

Upon receiving cleared funds our solicitors will draft a preliminary contract containing all of the agreed details, money paid and setting out the terms and conditions of the deal. You will need to sign the contract in order to proceed with the purchase.

Deposit payment.

Upon signing the preliminary contract buyer will pay a deposit to seller thus establishing their commitment to purchase the property. In Bulgaria such deposit usually rates at 10% of the cost of the property to be purchased. If after signing the preliminary contract seller unreasonably refuses to sell the property, seller will have to refund twice the deposit to you, and vice versa, if after signing the preliminary contract you unreasonably refuse to purchase the property, you will lose the deposit you have already paid. Upon signing the preliminary contract and paying a 10%-deposit the real estate agent's fee will have to be paid as well. (BulgarianESTates? fee is 3% of purchase price but not less than 500 €)

Sale

There is usually a month between the exchange of the Preliminary Contract and the conclusion of the final sale documentation / the ?Notary Deed ?/. This time period is necessary in order for certain final property and legal checks on Title documents, Licenses and permissions, Debts on Title to be made.

The Notary Act

After setting up a company, bank account and completing all checks and searches you will need to pay the remaining balance for the property.? This is the final stage when you will complete the purchase and become the new owner of the property. You must confirm before the Notary Public the agreement to buy the property. The state and Municipal taxes must be paid, the full amount paid to the vendor and the title deed will be transferred into your company name.

Reporting property to tax authorities. It is to be done within two months of the date of the transaction settlement before a notary public.

Congratulations!

Please have in mind that properties appearing by the UK standards to be very cheap will almost certainly need work to be done to them in order to bring them up to western standards. Obviously the less expensive properties will be older style and perhaps more remotely located. Many of the cheap properties have their toilets built outside the house. ?Best BulgarianESTates? Ltd have teams of local builders who will do any type of work required.

Many new developments are being offered under construction (mostly in the sea and ski resorts), where properties may be purchased 'off plan'. In this case every vendor (normally a construction company) provides some extra terms of sale in addition to ?Best BulgarianESTates? Ltd terms of sale. They are normally set out in the preliminary contract.

IMPORTANT INFORMATION TO CONSIDER WHEN BUYING PROPERTY IN BULGARIA

The usual term for the old owners of the property to move out of it after completion of the sale is one month. This could be negotiated if the buyers require a shorter term. For this purpose, they should ask the assistance of ?Best BulgarianESTates? Ltd in due term and not expect the property to be empty right after signing of the final contract.

All foreign buyers purchasing real estate property must be aware that in Bulgaria there are such terms as "tax estimation price" and "purchase price". The "tax estimation price" is for the purposes of real estate taxation and is much lower than the actual selling (purchase) price.
Most of the Bulgarian property owners (vendors) wish that the "tax estimation price" were written in the title deed, and not the selling (asking) price that the buyers are paying, so due to this practice there might be discrepancies between the price you are paying and the price written in the title deed. This is because of various reasons and ?Best BulgarianESTates? Ltd cannot be responsible for it. If the respected property buyer wishes that the purchasing price were written in the property title deed they must notify us in advance and we will negotiate on this with the vendor of the property.