How long will it take to buy a property?
Generally it will take 3 weeks to buy a property. This is dependent on a number of factors, not all of which are in your control. Once you have decided on a property, contact will be made with the seller or his estate agent. The terms and conditions of the sale can be negotiated very quickly. The Preliminary Contract is then exchanged and a deposit paid. There is then a period of, at maximum, a few days while the money transfer is arranged and any final checks made. The sale will take place in front of a Notary at an agreed date and time.
What documents are required for purchase, sale?
To carry out the sale of property SELLER should have the following documents:
1. If the seller is a person should present identification if the seller is a legal entity - a document certifying its registration established by law.
2. Document certifying its right of ownership of property - deed or other document specified in law.
3. If you sell residential property that is under construction, the seller should submit the necessary construction documents certifying the legality of the work.
4. Property tax assessment.
5. Sketch of the property.
6. Certificate of absence or presence of burdens on the property.
7. Should the seller be represented by proxy is necessary notarized power of attorney.
Can I make a deal for buying a property without my presence at the deal?
Yes, if you are busy and when you have no possibility to travel for finalization of the deal you can make a power of attorney to the lawyer or to us so we will represent you at the day of the deal. This is a normal practice now a day because of the busyness also the dynamic life of our clients.
Taxes in BULGARIA
Salary tax - The current salary tax in Bulgaria is 10% of the monthly salary. Real estate tax is paid by both citizens and organizations. The tax is 0.15% of the value of the property per year. The value is based on application 2 of the Law concerning local duties and taxes. The tax for buildings and apartments is also based on the value of the property and is also 0.15%. However, if the property is the home of the family, the tax is reduced by one half. The tax must be paid regardless of whether the family is using the property or not! The tax for rented houses, apartments, etc. is paid by the owner of the property. Owners of property in Bulgaria also pay a Refuse tax. In accordance to the place of residence, city, town or village (that evaluation is done by the local authorities) the tax is between 0.1-0.3percent of the value of the property and is paid together with the real estate tax.
Where and when declaring property?
According to the Law on Local Taxes and fees each new acquired property - a building or part of a building is declared within two months from the date of the notary act. If purchased residential property and building in which it is not yet permission to use / Act 16, the declaration shall be made within two months from the date of issuance of such authorization. Declaration on Article 14 of Law on Local Taxes and fees shall be filed in the appropriate subdivision of the tax office - in which the property. Declaration of property can be made from one owner with a statement or any co-owner, in separate statements. Upon submission of the declaration are copies and a title deed, permission for use of the building and other documents certifying the accuracy of entries in the declaration. The declaration may be made by a person authorized by the owner. The declaration has to be filed once. If you subsequently have made any change in the circumstances it is submitted corrective statement.
Could a foreigner buy a property in the Republic of Bulgaria?
Under Bulgarian law foreign citizens can freely buy buildings or parts of buildings but can not acquire ownership of land. This prohibition requires foreign nationals to buy land registered by their companies. Foreigners may register under Bulgarian law firms that can be Ltd., Ltd.,EAD AD or otherwise. The most frequently registered type of company has foreigners Limited Liability Company. This company can be registered by one or more persons. The minimum capital required for the formation of this company is 5000 BGN.
Can your property be FOR RENT and under what conditions?
Given that the owner or owners not to use the property and wish to give third parties seasonal or year-round rentals, it is possible and will carry their good income over the period of granting it. Such service is already offered in each complex in the resort towns, but can be done by the owner or his representative. It is recommended that the lessor and lessee to conclude a lease with the right data out of both sides, kind of giving property term of the contract, the rental amount, manner and time limits for payment of rent and other terms protecting both sides in any incorrect execution of commitments.
Do I have to register a limited company if I want to buy an estate?
The answer is " NO". Foreign individuals can buy the buildings, but not the land. Company is needed when you want to buy the freehold. The company registered of a foreigner in Bulgaria can buy land also buildings as a juridical person. For the foreign people the registration in Bulgaria of Ltd. Company is the best choice when the foreigner wants to buy land here.