Q: What is the law on foreigners owning property in Bulgaria?
According to the Bulgarian Constitution, foreign individual persons can buy buildings but not land. Therefore the most common method for foreigners buying property in Bulgaria is to set up a company that then owns the land and the buildings. The law is expected to change within the short to medium term as Bulgaria opens its doors fully in line with its expected entry into the European Union (2007). This historic restriction is one of the reasons why property in Bulgaria is so competitively priced compared to Western and Central Europe.
The most popular form of engaging in business in Bulgaria is via a Limited Liability Company (OOD).
Q: Who can form a Limited Liability Company & how?
A foreign or Bulgarian person (judicial or physical). The person/persons will be liable for the company's obligations to the value of his/hers share in the company's registered capital. The shareholders conduct preliminary discussions on the commercial activities they intend to engage in. Based on their agreement, Articles of Incorporation are prepared & signed by all shareholders.
Q: What are transfer fees when buying a property in Bulgaria?
There are notary and municipal fees, connected to the process of buying property in Bulgaria. The notary fees are paid on the higher of the market price or the book value of the property at varying rates, specified in a special notary chart. In addition to this 2 % municipal fee on the market price or book value is paid to the municipality, where the property is located.
Q: Is there Value Added Tax on transactions with land and lease of property?
Transactions with land and lease of property for residential purposes are exempt from Value Added Tax /VAT/. All other real estates transactions are subject to VAT, which is 20 %. The buyer/ lessee is entitled to a VAT refund, provided that it is registered for VAT purposes.
Q: Do UK citizens need visas to Bulgaria?
Holders of valid ordinary UK passports do not need visa for a visit to Bulgaria for a period of up to 30 days within each period of six months.
A visa is needed only if:
Their stay in Bulgaria should exceed 30 days, or
They require multiple entry visa for a longer period of time or a long - term visa.
You must register with the nearest police station within 48 hours of arrival. If you are in a hotel or on a package holiday, this will be done for you. If you are staying in a private house, you will need to do it yourself. You may be able to extend your stay in Bulgaria beyond 30 days by applying at the local passport office. Foreigners who stay or intend to stay longer than six months may acquire permission for temporary residence for up to one year that may also be extended. Any foreigner wishing to stay on the basis of an employment contract must acquire a work permit from the local Labour Office
Q: What is the full amount of costs I am supposed to pay in relation to acquiring a real estate in Bulgaria?
To purchase a real estate in Bulgaria, a foreign person should consider the following payments:
- The purchase price of the property
- The agent fee of "Best BulgarianESTates" Ltd.
- Payable public and notarization charges relating to transfer of ownership of the property to be purchased (they are calculated for each specific case and generally rate at about 3% of the property cost with the maximum being BGN 3,500 (about £ 1,250). In addition, 2% of the market value of the property is paid to the municipality in which the real property is situated upon completion.
- Company registration expenses rating at 450 €
- Travel expenses from the relevant country to Bulgaria
- Repair and reconstruction costs relating to the property after acquisition thereof to be individually estimated in each specific case depending on the property condition and customer views.
Q: What is your agent fee?
The agent fee is not included in the price of the property. The commission is 3 % of purchase price but not less than 500 € and it is due on the day of signing the preliminary contract.
Q: Currency regulations import and export
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 Leva is pegged to the Euro, and enjoys local convertibility. The export of Leva is prohibited, but foreign businesses can repatriate profits and capital in foreign currency. Companies can maintain both Leva and foreign currency bank accounts. Currency exchange can be effected through either the Commercial Banks or the Bureau de Change.
Import controls - Most goods can be imported into Bulgaria without restriction. All exports to Bulgaria are subject to pre-shipment inspection.
On the same day, June 30, representatives of the Nessebar municipality would decide whether to permit construction in Irakli, one of the last wild coastal regions in Bulgaria.
Ecological organisations already said they would organise protests in Nessebar. They previously carried out a ... Find more
