The procedure of buying a property in Bulgaria
Bulgaria has very liberal foreign investment laws. The Bulgarian Constitution and legislation reads, that foreign persons and companies can purchase real estate in Bulgaria either personally or through a local legal entity.
Foreigners as persons can acquire only buildings without land.
A building with land can be acquired, if your origin country is a part of Shengen zone.
If you are a foreigner and want to purchase a flat or apartment, you can directly buy them as a person. You only need your passport or ID document .
When buying a property in Bulgaria the agreement of the spouse in needed and this is certified, by filling Declaration for marital status at the day of the Notary transfer .This can be done personally or by Power of Attorney.
Another declaration for civil status is signed at the Notary.
The purchasing process:
- When the desired property is selected, a reservation deposit of 1000 -1500 Euros is paid to the Seller or the builder to book the property. The reservation fee is usually valid one month, and within that time all documents for the sale and signing of the preliminary contract have to be prepared .In 70 % of the cases the preliminary contract is signed on the day, when the deposit is paid. Exceptions occur, when we are dealing with a resale property and the seller has not left a power of attorney for sale.
- First installment from the purchasing price has to be paid usually within 30 days after the deposit (the installment may vary between 30% to 50 % , depending on the agreement between the Buyer and the Seller
- When all the installments are being paid a Title Deed is signed in front of the Public Notary.
- If buying a property off line the Title Deed is signed once the building is completed.
The preliminary contract The preliminary contract is the first official document between the buyer and the seller that settles their agreement for the purchase and sale of the property. The contract contains the main details that will later appear on the final official document The Title Deed (details of the seller and buyer, details of the property, price, terms and ways of payment,etc).The preliminary contract does not transfer the ownership to the buyer ,it only settles the obligations of the two parties ,until the Title Deed is received.
The preliminary contract has to be written in two originals -one for each of the Parties. When signing the contract the buyer originally has to pay to the seller from 30-50 % of the value of the Property. The preliminary contract is not signed in front of a Notary, but has legal force. When the buyer is a foreigner, the contract is composed in two languages (f.g. English and Russian).This contract is the first very important document, that accompanies the purchase of a property, so do not forget to record there all verbal agreements !!!
All changes to this contract, apply only, if they are in written from -an Annex to the contract
The Tiitle Deed – This is the final purchasing contract, signed in front a Notary. This is done when the purchasing price is fully paid to the seller. In advance we book a day and time with the Notary Office, and present a project of the Title Deed, as well as, all the needed documents ,accompanying the sale to be checked by the Notary.
On the day of the Notary transfer of the ownership all government taxes and expenses are paid from the Buyer in Bulgarian Levs.
Two days after signing the Title Deed, the original document is received.
According to the Bulgarian law, within two weeks after receiving the Title Deed, it is obligatory to register the property in all the relevant government offices /the territorial tax inspection office , cadastre,etc./.This originally is concern of the lawyer of the agency , accompanying the purchase.
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