Residence Group Real Estate and Management company has opened a new office in Pomorie - 40 Prof. Stoyanov Str, next to Reiffeisen Bank
40 Prof. Stoyanov Str, Pomorie, Bulgaria
Tel/Fax: +359 596 2 30 13
Mob: +359 878 57 11 62
Mob: +359 878 57 11 63
    312-400-490
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RESIDENCE GROUP - REAL ESTATE & MANAGEMENT

How to buy property in Bulgaria 

Although there are some specific moments, which need to be considered, buying property in Bulgaria is not as hard as it might look. Playing the role of your agent, we from Residence Group Ltd will help and consult you during the whole process protecting you from any waste of time and money. We will do this without any commission from your side. You will only need to pay the notary taxes and the solicitor’s fee, who will consult about the legal aspects of the deal.  
 
The first step is defining your property requirements and budget. You can do this either online by choosing a property from our website or by coming into our office. You can always call or mail us if you need any explanation or additional information in order to find your most desirable apartment, house or investment opportunity.
At this stage if you have found the property you were looking for, it is not necessary to come to Bulgaria. If you are still not sure in your choice and would like to have a look at some of the properties personally, we will organize your visit to Bulgaria – assist you with a flight and hotel reservation, meet and send you off the airport.   
 
The next step is performing a viewing trip to the properties you have picked. We will organize transport to the specific locations; our team member will accompany and consult you during the whole time. 
 
Once you have chosen a certain property, the property buying procedure need to be finalized. It can be divided into three stages:  
1.               Reservation – it is usually about EUR 2000, which can be paid in cash or by a bank transfer. Paying the deposit fee guarantees that the property will be taken off the market and will be kept for you for about 2 weeks.
2.                Preliminary Sales Agreement – you will receive the signed and stamped by the developer sales agreement within a couple of weeks after paying the deposit fee. This contract is regulating the relationships between the buyer and the seller and includes some basic data of both of the sides – description of the property, price, payment methods, and final date for notary signing. The payment plans vary a lot but most commonly they are made as follows: 30 % after signing the sales contract, 40 % after finishing the construction (if the property is still not completed) and 30 % upon signing the notary deed. Of course we can always negotiate a plan that is most suitable for you.
3.               Notary deed – this is the final document verifying the right of ownership. It must be signed in the presence of a Notary after all the payments have been done. The Notary on the other hand presents the title deed in front of the Regional Court where all changes of the property circumstances are registered. The notary and government taxes are calculated at about 4% of the tax evaluation price and are paid during the transferring of the property at the Notary office. Usually in Bulgaria there is a difference between the market price and the tax evaluation price. The second one is formed for the needs of the tax administration and is about 30-40% of the real price of the property.  This is the price which will be written in the title deed. In some cases if you prefer the developers agree to write the full purchasing price.  
 
The next step of the purchasing process is declaration of the property at the local Municipality and National Income Agency which should be executed within 2 weeks of the notary transferring. Moreover, according to the Bulgarian Legislation all foreigners should register their new property at the National Registry Agency, where they will receive a certificate and a BULSTAT card. All these registration procedures will be performed by us in cooperation with the solicitors we are working with. They will also compose the title deed and represent your interest during the whole buying process and at the Notary office. Using the solicitors` services is compulsory in order to prevent any legal misunderstandings for which reason they charge about EUR 400 additionally for the whole deal.

After all registrations are done we will receive on behalf of you all the documents certifying your ownership right and send them to the address you specify.

 
If the property you buy is land or a house with adjacent land you have to set up a Limited Liability Company, which will be the official owner of the property. The company shareholder might be you, as well as anybody pointed out by you. The registration process takes about 2 weeks, while the only thing you have to do is to sign a POA to some of our solicitors in order to complete all registration procedures. According to the Bulgarian legislation there is a minimum capital requirement of BGN 5000 needed for the establishment of the company, of which at least 70 % has to be deposited into a bank account. After the company registration is completed you can withdraw the money from your bank account or use it for further purchases and investments. This is a standard procedure and part of our legal services for which the solicitor charges EUR 600.
 
Furthermore all companies registered in Bulgaria must present their balance sheets, annual accounts and prepare an annual tax report. These documents all must be submitted in the local Tax Office not later than 31-th March of each year. Your company is performing a kind of activity if you make any improvements on your property, related to partial or full renovation or reconstruction. If your company rents the property out and receives rental income it is considered as a functioning one. This means receiving or issuing, receipts, invoices, bank statements, paying the local fees and taxes – we work with qualified accountants who can prepare all the necessary documentation. Meanwhile we will keep you informed about your company financial status, incomes, taxes, expenses etc. The price for this service is  EUR 300 annually.
 

All property owners in Bulgarian are subject to the Tax Legislation and have to pay annual taxes. More about the taxes in Bulgaria you can read here.