Bulgarian Real Estate: Legal Advice

If you have any questions regarding legal issues or the real estate market in Bulgaria, please send your enquiry

Bulgaria is already an established member of the European Union and the country’s development perspectives are very positive, our natural resources are more attractive than ever. Let us mention a few facts about our small but dynamic and stable open economy:

• The lowest level of sovereign debt in Europe – only 18% of GDP
• The lowest tax rate in Europe – 10% corporate tax and income tax
• The cheapest labor force – the minimal salary is 140 Euro
• Fast rate of increase of export, even in the conditions of a global economic crisis
• Fixed rate of the local currency (Bulgarian lev) to the Euro at an exchange rate of 1.95583 levs for 1 Euro
• Currency board which allowed our country to be more stable and less affected by the economic crisis
• Equality for foreign investors as everyone can register a company in Bulgaria and buy real estate
• Modern legislation harmonized with the legislation of the European Union
• and many other factors that provide great possibilities for economic development and for doing business in Bulgaria in the years to come.

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 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 - houses, villas, plots and others all foreigners must set up Bulgarian companies that will be the owners of the properties. Setting up a company in Bulgaria is very easy and our lawyers will be able to do this for you.

Read more about company formation and fees

Based on our rich experience in the field of real estate we have set up a system for comprehensive servicing of our clients.

The legal services we offer include:
• Free preliminary legal consultations
• Assistance with the documentation necessary for the purchase or sale of a property
• Verification the ownership of the property
• Checking for encumbrances
• Tax advice
• Drawing up agreements and preparing notary deeds
• Checking all documents related to the deal including those drawn up by third persons (for example the documents for presenting the deal before a notary public) so that we are sure your interests are protected
• Representation in the process of concluding a property deal, if needed
• and all other related legal services.
The legal services we offer are carried out by certified lawyers.

Contact our lawyers

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 usually lower than the actual selling (purchase) price.

Please note that 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. You should be aware that this practice is illegal and is subject to penalties. If the 'tax estimation price' is written in the title deed, there will be discrepancies between the price you are paying and the price written in the title deed. Bulgarian Properties Ltd. is against this practice and cannot be held responsible if the buyer and the seller agree to put a lower than the actual price in the title deeds.

If you have any questions regarding legal issues or the real estate market in Bulgaria, please send your enquiry

Legal information when buying and renting properties in Bulgaria
Read about the Tax Conditions for Property Investors 2011/2012

Other legal, tax and visa articles

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