Frequently asked questions (FAQ)

Before buying property in Bulgaria, it is necessary to clarify the purchased procedure, obligatory payments and possible restrictions. This will help avoid unnecessary expenses, difficult issues. The real estate registration process will go smoothly and quickly.

How to choose property in Bulgaria?

Before you buy real estate in Bulgaria, answer yourself following questions:

  • Purpose of buying property. It can be purchased for permanent living, vacation or rental. 
  • Area of Bulgaria. Housing can be selected in the capital, in a big city, small town, in a resort settlement on the sea or in the mountains, in a village in the heart of the country.
  • Type of property. Studio, one, two bedrooms apartments, houses, townhouses are actively built in Bulgaria. It is common practice to combine several flats to get one with many rooms.
  • Where should real estate be located in a residential building or living complex. This question is very important, as owner’s expenses over the next few years depend on the answer.

One can answer all these questions sitting home, reading forums. However, it is better to come to Bulgaria, to visit different towns, to get acquainted with a way of life in living complexes, usual residential buildings. It will give a possibility to communicate with local people, to estimate resources and analyze wishes. All this will help make a reasonable choice and buy the apartment or house where it will be comfortable to live.

What is the process of buying property in Bulgaria?

The process of searching, selecting real estate takes much time and resources. Having chosen the best option and estimated all the advantages, disadvantages, you can buy it.
The purchase process includes

  • Making a deposit (pledge). The amount varies from Euros 1000 to 5000. Upon deposit receipt, the seller stops selling the property, begins preparing documents necessary for the deal. The amount is included in the apartment price. It is important for the buyer to know that the deposit will be refunded only if the seller refuses the transaction.
  • Signing a preliminary sales contract. Sometimes at this stage the buyer must make a prepayment, which can be 30%. Most often, this requirement arises when buying new housing from a developer. Upon parties’ agreement, if the subject of the deal is a resale property, this stage is omitted.
  • Notary deal registration, drawing up the necessary documents.

What are the steps of real estate registration in Bulgaria?

Transaction registration takes a special place in the process of buying housing in Bulgaria. Failure to prepare documents in a right way leads to the transaction cancellation, fines and loss of money.

Registration stages:

  • Preparation of the documents. The buyer must provide personal documents. In case he/ she cannot personally participate in the deal, their interests are represented by authorized people based on a notary letter of attorney. The seller, for his part, provides documents confirming ownership, a cadastral plan, tax assessment certificate and a confirmation, that there are no encumbrances.
  • Notary confirmation of the deal. The parties confirm their wish to sell and to buy the apartment, implementation of paying liabilities. The Notary checks the legality of the transaction and the documents submitted. At this stage the parties draw up declarations of employment in governmental agencies, citizenship, marital status. The seller also fills up a declaration confirming the absence of tax debts. A Notary Act is issued based on the submitted documents. The Act is the same as the sales contract and secures the ownership transfer. 
  • Deal registration. The Notary Act is not valid if the deal is not registered. Registration is implemented by the Notary as soon as the seller confirms that buyer paid 100% of the property sales price.

These are the main steps. However, having made them, it is early to relax. The property you have bought needs to be registered in following agencies:

  • Bulstat (Registration Agency). Property acquired by the foreigner without permanent residence permit in Bulgaria, is to be registered obligatory. The documents must be provided within 7 days.
  • Tax authorities. The real estate must be declared within 30 days.
  • Water supply agency. The new owner to be registered within 30 days.
  • Power supply agency. The information about the new owner must be provided within 30 days.

Registration is subject to the Notary Act availability.

What are the additional expenses when buying property in Bulgaria?

In accordance with generally accepted practice, all taxes, charges, fees for the purchase of housing in Bulgaria are borne by the buyer.

The costs for the acquisition of real estate are following:

  • Transfer ownership tax. The amount is determined by the municipality of the settlement where the deal is registered. Usually it is 1.5-3.5% of the real estate value indicated in the Notary Act.
  • Notary fees. The amount is not more than 1% of the price.
  • Fee for the deal registration in Bulstat. It is 0.1% of the housing value.
  • Lawyer’s services charge. In some settlements lawyer’s participation in the transaction is obligatory. It is his responsibility to draw up a Notary Act, to clear legal issues, to check documents, to register an apartment or a house in the Registration Agency. In other cases the lawyer is hired at will to check legal purity of the property, to avoid issues with buying real estate, its registration, future use. The lawyer also draws up a sales contract. The average charge is Euros 75-150.
  • Additional costs are connected with an interpreter. In accordance with the law, if one of the parties is a foreigner who does not know Bulgarian, a licensed translator must take part in the deal. The usual charge is Leva 50-150. In fact, many notaries accept a real estate broker with knowledge of Bulgarian and a foreign language to be an interpreter. The coordination of this issue depends on the practice adopted by a Notary.

Is there any restriction on buying property in Bulgaria?

In accordance with Bulgarian law, there are no restrictions as to citizens of which countries can buy property in Bulgaria. 
Still, the foreigners may not buy the land. The legislation forbids buying land where a living building with a purchased apartment is located. It is also not allowed purchasing a land where a private family house is built. 

Our Agency will let you know how to solve this issue.