Additional costs when buying property in Bulgaria

Polina Stoykova from BULGARIAN PROPERTIES talks to Ulster TV about the real estate market in Bulgaria in 2006 and why it is great to buy a property here.

Although property prices in Bulgaria are very cheap compared to the rest of Europe buyers should be aware of the extra costs when buying a property.

Except for the purchase price the buyer will need to pay an agency commission which is about 3% of the property price but not less than 500 Euro. Then there is about 3% for stamp duty, taxes, solicitor fees and notary taxes for transferring the property in the name of the buyer.

If the property comes with a garden or with a bit of a land the foreign buyer must set up a Bulgarian limited company in order to be able to buy the land as at present foreigners cannot buy land in the country. The company formation fee is an extra cost which includes the solicitor’s fees. It is not a complicated procedure and the company is ready in 20-25 days and then the foreigner can buy the property they want. Usually the company’s lawyers are given a Power of Attorney by the buyer which means they pick a property and then go back home and in a month or so they are already the new owners.

As far as mortgages are concerned it is not easy for foreigners to get a mortgage in Bulgaria, so they buy properties in Bulgaria in cash.

Watch the interview with Polina Stoykova: