After you decide to move to Bulgaria, it does not matter if it’s just for a few months during the year or permanently, you may see the convenience of having your property in Bulgaria.
We all know that buying a property is an important step, and to avoid later problems, take into consideration this factors:
Regulations for purchasing property in Bulgaria could differ from your home country (is your responsibility to understand the country rules and regulations)
The way of doing business could be different from how is done in your home country
Take the time to find the right property for you, don’t let others rush you into the decision process, think right and analyse all the pros and cons, buying a property in Bulgaria is a big step
Get all info need, do your homework, similar properties values, characteristics and other details
highly advisable to engage a lawyer (to represent your interests during the purchase process) who’s familiar with property buy/sale before paying any money or signing a contract
Buying the real estate in Bulgaria won’t automatically make you obtain a residence permit (Non-EU citizens) although if you are a physical person investing more than 600.000 levs (around 300.000 EUR) in property, you can apply for residency by investment
Be sure the house you are buying has the “Usage permit” or Act 16, without this permit; you can’t legally rent the property or subscribe to the utility companies.
Required Documents need for buying selling property in Bulgaria |
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| 1. Document of ownership of the property – the document of ownership of the property, which legitimizes the seller and previous title deeds.
Most common ownership documents: 2. Certificate of Tax Evaluation of the property – issued by the tax office at the location of the property. The Certificate of Tax Evaluation of the property must have an address identical to the address of the property as per the title deed, otherwise, the respective administration must issue a Certificate of Identity of Addresses. 3. Certificate of Marital Status of the seller(s) showing the marital status of the owner (co-owners) as of the date of acquisition of the property. 4. Certificate of Marriage if the seller is married. 5. In the event that the property is not acquired during the marriage, it is not considered MPC (matrimonial property community), but if the property is the registered address of the spouse, a statement is to be filed as per Art. 26 of the Family Code evidencing the consent of the spouse to the sale. The same applies to property acquired by inheritance, donation, and others which are not MPC. 6. In the event that real rights are registered for the property, in order to execute the sale transaction the user must abandon the real right established in their favour – this is carried out by filing a statement for waiver of the right of use. It must be executed at the notary’s office and is subject to registration. If the user is deceased, an excerpt of the Death Certificate must be submitted. 7. In the event that the property is subject to partition – the respective document (contract, judgment), duly registered at the Registry Agency. 8. Sketch of the property, in the event of transfer of land (land plot, yard or part of the yard on which the property/apartment is built). It is issued by the technical service in the district where the property is located and is valid for 6 months. 9. When the property was received as an inheritance – Certificate of Inheritance, Death Certificate of the ancestor, will. 10. In the event that the seller(s) is divorced, the court judgment for the dissolution of the marriage in divorce is to be presented. 11. The specific cases require different documents tracing the history of the property and proving the right of ownership. 12. Certificate of Encumbrances on the property- issued by the Registry Agency, enclosing all documents of the ownership – from the first title deed to the last one, in the case of inheritance –Certificate of Inheritance as well. In the event that the property includes land or parts of land, a sketch of the property must also be enclosed. 13. In the event that the seller is unable to attend the performance of the deal personally, he/she is legally entitled to authorize a third person to represent him/her by means of a Power of Attorney. This Power of Attorney must specifically describe the representation rights granted by the authorizer to the authorized. The Power of Attorney is to be notarized – with certification of the signatures affixed and the content of the document. The Power of Attorney must enclose a notarized declaration under Art. 25, para. 7 of the Notaries and Notarial Practice Act (NNPA) and a declaration under Art. 264, para. 1 of the Tax-Insurance Procedure Code (TIPC). 14. Identity document, other documents individualizing the buyer and the seller (identity cards, certificates of good standing, if the party under the transaction is a legal entity – a decision of the competent authority). 15. When the deal concerns the transfer of a property in a newly constructed building – the relevant documents from the builder/investor – building permits, architectural design and distribution of land, use permit – Act Form 16, etc. 16. Other documents depending on the specifics of the deal. Taking into consideration the diversity of options, it is recommended that the documents on the transaction held by both parties should be checked by your lawyer. info from: Registry Agency at the Ministry of Justice of the Republic of Bulgaria |
Once you’ve found a home in Bulgaria that you plan to buy, and agreed on the selling price, you will need to take the following steps:
Sign a preliminary contract and pay a deposit.
Sign the notary act and make the final payment.
The buying process is generally straightforward and can complete within a few weeks.
For Non-EU/EEA citizens
If the property has land (i.e. is anything other than an apartment) and you are not an EU or EEA citizen, you will have to form a limited company to begin your purchase. Property with land includes all houses with gardens, flats/apartments that include ‘ideal’ parts of land, offices and commercial properties.
Citizens of EU states may own property and land in Bulgaria at the same terms and conditions as Bulgarians
Under Bulgarian law the transfer of property rights, as well as the establishment of limited rights in rem in respect of real estate is done by way of a formal agreement (generally referred to as a “Notary Deed”), executed by the parties and a duly qualified Notary Public authorized to act within the region of location of the property.
Transfers of ownership or limited rights in respect of real property are subject to registration with the relevant Real Estate Registry. The legal owner of the property is considered to be the person registered in the Real Estate Registry.
It usually takes a few weeks to complete the procedures needed to register a property.
TRANSACTION COSTS |
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| Who Pays? (normal circumstances) | ||
| Transfer Tax | 0.10% – 3% | buyer |
| Notary Fees | 0.10% – 1.50% | buyer |
| Registration Fees | 0.10% | buyer |
| Real Estate Agent´s Fee | 2.50% – 3%
2.50% – 3% |
buyer
seller |
| translator’s fees | Normally 30 levs | buyer |
| Costs paid by the buyer | 2.80% – 7.60% | |
| Costs paid by the seller | 2.50% – 3% | |
While we hope that this information is useful, please be aware that it is not intended to be the only guidance for prospective buyers to follow when considering making a purchase.
