Bulgarian Real Estate: Legal Advice

Information on getting a Bulgarian Residence is available here...

Since the introduction of the currency board in 1997 Bulgaria has been a politically stable country with a developing economy and the preferential conditions and guarantees for foreign investors have generated excellent business opportunities and investment growth potential. Bulgaria real estate prices are still lower than other destinations in Europe which makes the country very attractive and profitable.

Bulgaria has one of the most liberal foreign investment laws in the region regarding Bulgarian real estate as well as foreign investors. According to the Bulgarian Constitution and legislation foreign persons and companies can invest in real estate in Bulgaria either personally or through a local legal entity. Generally speaking, foreigners as persons can acquire only buildings but not land. Only Bulgarian citizens and legal persons (including such with a foreign owner) can obtain ownership of Bulgarian land.

Therefore, the most popular ways for becoming real estate owners are as follows:

• As far as houses, villas, flats and limited ownership rights (the right of use, the right to build a house, etc.) are concerned, you can directly purchase them as a person.

• When talking about Bulgarian real estate with land, one must set up a company that will be the owner of the property. Setting up a company in Bulgaria is very easy. All you need is a good solicitor or barrister at law.

Of course, there are other ways to do it, like:

• Establishing a joint venture with existing local companies;
• Setting up a new venture;
• Acquiring a company through privatisation;
• Making a portfolio investment;

Foreign organizations have the right to open bank accounts denominated in Bulgarian or foreign currency. There is also no limit to the company stake they possess. Moreover, there is a special regime of respect towards foreign investors on the part of the Bulgarian legislative system, which is a gesture of tolerance to those who are interested in Bulgaria and are willing to benefit from its future. The Bulgarian government is doing its best to attract foreign investors to our economy, including such that want to buy Bulgarian real estate.

We are here to help and organize for you the whole process of acquisition from the start to the very end. The service will be undertaken by a Bulgarian lawyer, expert in Bulgarian real estate and sby pecialists who will provide you with a professional help in the field you need, including:

• Registrations of mixed and foreign companies;
• The best relation between price and quality of real estate achieved by professional negotiations;
• Property management and real estate maintenance;
• Travel arrangements when arranging viewings of Bulgarian real estate;
• Own cars for visits to properties around the country;
• Advice on any topic that grips your attention

IMPORTANT INFORMATION TO CONSIDER WHEN BUYING PROPERTY IN BULGARIA

• The usual term for the old owners of the property to move out of it after completion of the sale is one month. This could be negotiated if the buyers require a shorter term. For this purpose, they should ask the assistance of BULGARIAN PROPERTIES Ltd. in due term and not expect the property to be empty right after the signing of the final contarct.
• All foreign buyers purchasing real estate must be aware that in Bulgaria there are such terms as "tax estimation price" and "purchase price". The "tax estimation price" is for the purposes of real estate taxation and is much lower than the actual selling (purchase) price.
  Most of the Bulgarian propety owners (sellers) wish that the "tax estimation price" is written in the title deed, and not the selling (asking) price which the buyers are paying, so due to this practice there might be discrepancies between the price you are paying and the price written in the title deed. This is because of various reasons and Bulgarian Properties Ltd. can not be held responsible for it. If the respected property buyer wishes that the purchasing price is written in the property title deed they must notify us in advance and we will negotiate this with the seller of the property.

Information on getting a Bulgarian Residence is available here...

If you have any questions regarding real estate in Bulgaria, please send your enquiry

Read about the Tax Conditions for Property Investors 2008/2009

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