BojovLaw

2014-08-13 09:24:17 UTC

Q1. What is available on the market?

A1. The market offers large variety these days – from residental properties – houses, villas, apartments - to holiday temporarly used second homes – summer or winter. Also, in many different areas of the country retirement villages are being developed, which because of the nice weather conditions in the country are highly attractive to foreign visitors.

Q2. Is it better to buy off plan apartment in Bulgaria? 

A2. Ordinary buying off-plan property in Bulgaria is more attractive because new apartments and houses are built to a higher standard with more facilities on the complexes that appeal to foreign buyers and holiday makers. Other reason to buy off-plan is because the new property will not be built for another 12-24 months and you are buying into a development at an early stage - it is cheaper and in some cases buyer can require additional extras for the interior or room disposition. The prices for similar properties for sale in Bulgaria would be significantly higher, as the past trend showed a good capital growth for properties in Bulgaria.

Q3. How long would it take to actually become an owner of a property in Bulgaria?

A3. Buying a property in Bulgaria varies depending on the type of property one buys (a house or an apartment), also on the fact whether the property is purchased off-plan or completed. Generally it would take 3-5 weeks to buy a completed estate.

Q4. What are transfer fees when buying a property in Bulgaria?

A4. There are notary and municipal fees, connected to the process of buying property in Bulgaria. The notary fees are calculated as a percentage of the purchase price. Depending on this the transfer expenses may vary between 3.5 to 4.5%.

Q5. What kind of tax should I owe for my property in Bulgaria?

A5. Amount of taxes and fees are based on the property location in Bulgaria. Properties' owners are liable to two kinds of tax - property tax (paid on annual basis on 0.15% of the property value - the valuation is calculated by tax department and is much lower than market price) and annual waste collection tax (it is calculated based on value of the property and depends on location and municipality - vary from 1.6 to 5 per 1000).

Q6. Can I rent my Bulgarian property?

A6. A good quality ski chalet or seaside villa can generate excellent short-let yields. There are many successful companies that manage the marketing and provide reservations systems for ski chalet rentals.

Q7. How much should we expect to pay for an acre of land in Bulgaria?

A7. It is strongly depend of location of land. The land close to Black Sea, in biggest cities or biggest ski resorts are most expensive than in countryside.

Q8. Can I purchase property without coming to Bulgaria?

A8. Yes. It is strongly recommended to have a trusted person to act on your behalf under power of attorney.

Q9. I have bought an agricultural land. Can I make a building there and what are the laws for building on this land?

A9. Necessary actions depend of type of the building you want:

• If you want to build house: First - You must change the status of the land. If it is a large area you can change the status of part of the land only (for example 300m2) where you want to build. Then you need permission from Municipality's head architect (you must give him document for ownership, plans, schemes, etc.).
• If you want to build small extensions (log cabins, etc.) you do not need any permission and changing the status of the land.

Q10. Do I need a Solicitor for property bargain?

A10. You will need an advocate/notary public and we do recommend you take independent legal advice. It is their legal obligation to make sure all documents are correctly issued and truth.

Q11. What are the stages of process when I buy property in Bulgaria?

A11. In general the steps are:

1. Choose property: Select your property from Internet or other source or give your preferences for property to a Real Estate Agency and they will select properties by your criteria
2. Negotiations and inspection visit: assure of condition of selecting property. Would be a good idea to arrange a trip to look at the properties and the investment opportunities
3. Start of legal procedures, concerned the checking of the property /mortgages/
4. Preparation of all necessary documents for signing the Preliminary contract. At this stage, first charges occur: deposit payable to the owner which normally varies between 10 and 30% depending on the property.
5. Sign the final contract in form of Notary Deed: This is basically the last stage of the purchase process where the ownership of the property is transferred and balance of the purchase price paid to the owner. At this final stage, the Notary expenses must be paid.

Q12. Are there any after purchase actions which are required by the legislation?

A12. Yes, the new owner (а foreign citizen) is obliged to register in the Bulstat Register within 7 days after the notary deed is signed. Then in some areas of the country – a registration of the new owner has to be arranged in Cadastre Agency. After that a tax registration of the property in the local council has to be arranged as well.

Q13. What is a condominium?

A13. A set of rules (legal rules, internal regulations and resolutions of the general meeting), governing relations between homeowners in a building where there are architecturally distinct individual units (apartments / offices) owned by different owners.

Q14. What is a maintenance charge?

A14. Remuneration paid outside utility costs, in favor of a natural or legal person who is assigned to work on maintenance of common areas in the building.