Head of real estate and commercial law practice
Specialist in the field of commercial law and process. Real estate, construction support; land law and protection of property ownership.
Support for buying an apartment or house in Bulgaria
Buying real estate in Bulgaria is an important process that involves a number of legal steps. Housing in Bulgaria will be a good investment in your life if you know how to properly inspect it before purchasing, correctly conclude a contract and pay taxes in the appropriate amount. We will talk about all these and other subtleties in this article.
Why should you choose Bulgaria for purchasing real estate?
Bulgaria is becoming increasingly popular for Ukrainians, as it offers various types of real estate at prices affordable for most. In addition, Bulgaria is also attractive to foreigners:
- low cost of living;
- a simplified process of obtaining a residence permit (buying real estate is the first stage in this process);
- wonderful climate and nature.
Where is it better to buy an apartment or a house in Bulgaria?
Depending on whether you plan to live in Bulgaria permanently or choose it for seasonal recreation, it is worth considering different regions of the country. Therefore, for accommodation, we recommend considering such options as:
- Sofia (capital);
- Varna (sea resort);
- Burgas (for family life);
- Plovdiv (cultural center of the country).
Important! If you want to buy a property in Bulgaria and then rent it out on a permanent basis to foreigners on vacation, you should also pay attention to such resorts as Sunny Beach, Nessebar, Sveti Vlas and Ravda. In general, our lawyer can help you find a property that meets your needs by interacting with proven Bulgarian partners (developers) at favorable prices.
What are the main subtleties of buying a home in Bulgaria?
Tax burden and additional costs for purchasing a home
Purchasing a home always involves not only paying the cost of the property itself, but also other mandatory payments (taxes and commissions). The main taxes paid by a foreigner when buying a home in Bulgaria are as follows:
- property transfer tax (during registration of ownership) – 2-3.7% of the cost;
- registration fees – 1-1.5% (notary commission) and 0.1-0.2% (fee for entering information into the relevant register);
- value added tax (may be reduced or completely canceled, as notified by the seller of the home) – 20%.
The above are one-time costs that are paid at the time of concluding a purchase and sale agreement and the execution of such an agreement. At the same time, there are other payments that will be paid for the further ownership of an apartment, a house in Bulgaria, in particular, a maintenance fee (from 8 to 15 euros per sq. m. per year).
Documents required for concluding a purchase and sale agreement
Purchasing real estate in Bulgaria requires the preparation of a package of documents, which is large for the seller and much smaller for the foreign buyer. Therefore, the buyer will only need a foreign passport, a bank account statement from a local bank in Bulgaria and a certificate of marital status, while the seller will need:
- a notarial deed of ownership of the real estate;
- a certificate of the estimated value of the apartment, house;
- a certificate from the cadastral service with technical information about the object;
- certificates of the absence of debts for taxes, maintenance fees (maintenance fees, respectively) or utilities.
The procedure for paying for an apartment or house
It is worth emphasizing right away that payment for real estate is made exclusively in non-cash form, in particular to confirm the legal settlement under the agreements between the parties. As a general rule, the procedure for such payment provides for:
- an advance payment from the buyer (10% of the total cost) to reserve housing;
- the main payment by transferring funds from a Bulgarian bank account on the day of signing the contract.
Support for the purchase of an apartment or house in Bulgaria by a lawyer: what does the whole procedure look like?
Buying real estate in Bulgaria for Ukrainians is clearly structured and looks like this:
- Stage 1. Selecting and checking the property. Here it is recommended to order a consultation with a local lawyer (to understand what set of rights and obligations will pass to you after buying an apartment, house) and take care of conducting a legal audit of the purchase and sale agreement and the seller’s identity. The lion’s share of such an audit will be a proper check of the documents prepared by the seller (originals or notarized copies);
- Stage 2. Opening an account in a national bank and making a 10% deposit for housing reservation. To make this type of payment, you first sign a preliminary deposit agreement and pay from 2,000 to 3,000 euros (on average). Find out how to properly open a bank account and how we can help during a consultation with our relevant specialist;
- Stage 3. Signing the main agreement and notarization. Approximately one month after the reservation, the main signing takes place. At the same time, the buyer also pays all the payments that are left to him according to the agreements. Finally, the notary also registers your ownership within the next week and issues you with the corresponding certificate later. The last step will be to obtain a Bulstat – the identification number of the foreigner-owner of the property.
Why should you contact a real estate lawyer from our company?
Contacting a qualified lawyer is the key to the success of purchasing an apartment or a house in any country. The procedure has its own nuances and risks, and therefore legal support will help protect your interests and ensure the legality of the concluded agreement. Support from our specialist includes the provision of:
- introductory consultations;
- legal inspection of the property;
- legal analysis of the purchase and sale agreement;
- preparation of necessary documents;
- assistance in opening a bank account;
- support in the notarial process.
A real estate lawyer has up-to-date information about all changes in the procedures for purchasing an apartment or house in Bulgaria, and therefore guarantees the legality of the purchase. To find out the cost of its support and receive legal advice – please fill out the form below.
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