How to buy an apartment in Bulgaria through CasaBG – Bulgarian Property Ltd.
Firstly, to buy an apartment in Bulgaria, you do not need to register a Ltd company as this is only needed when you are buying land or a house. For apartments you are actually buying the right to build (not the land) that’s why company formation is not required by law. There is no reason to worry about that, as once you’ve bought the apartment you will have legal document for ownership – Notary title deed which is issued by a legal Notary, practicing in the area where the apartment is located.
The steps for buying are:
1. Once you’ve chosen the resale apartment that you like to buy through us, the standard way to reserve it is by putting down a 2000 GBP/EUR reservation deposit and this amount will take the property off the market. The reservation fee is not refundable if the buyer pulls out, and is deductible from the total agreed price of the property.
2. Once the apartment has been reserved, we require a scan showing the buyer’s passport details and their home address information – this is required so that a preliminary contract can be prepared by our lawyers. In this contract is described everything regarding your purchase, payments and also penalties – for you, if you are late with the payment and also for the seller if they delay. At this stage, buyers are welcome to find a lawyer to represent them; however one is not required by law so it is the buyer’s choice. By signing of the Preliminary contract the buyer has only the right to receive the ownership over the property when all the installments have been transferred to the seller, but the seller remain the owner of the property till signing of the Notary deed for transferring the ownership.
3. Usually 4-6 weeks after the reservation you will need to transfer the price of the apartment into the seller’s bank account.
4. Once all the payments are made, the property will be transferred into your name in the local Notary in Bulgaria. For this also you will either need to either give someone Power of attorney to represent you, or you can fly to Bulgaria yourself. You will then be issued with a title deed, and this document shows that you are now the new legal owner.With signing the Notary deed – the title deed for ownership of the property – the buyer becomes the full owner of the property and assumes all related rights and obligations
5. After the deal you will need to register the property in the Local Tax department so that you are registered as the new legal owner. Also according to the Bulgarian Law you will need to register in the Bulgarian Statistics Institute (BULSTAT) and take a BULSTAT card. You need to do this within 7 days after the purchase but don’t worry, we can arrange everything.
When buying a property in Bulgaria, buyers needs to be aware that they are obliged to pay taxes in relation to both the acquisition of the property (property transfer tax) and the continual ownership of the property (annual property tax, rubbish tax) as well as tax on any income derived from this property (income tax).
You will need to pay around 4% of the declared value to cover all of the notary and state fees and taxes as well as a fee to a Bulgarian lawyer.
Upon signing this ownership document the buyer is obliged to pay property transfer tax to the amount of 2 % to 4% of the value of the property to be purchased depending on the policy of each municipality (usually the tax rate is 2,5 %). For example, if the purchase price of the property is EUR 100 000 EUR and the tax rate is 2,5 % of EUR 100 000, the property transfer tax will amount to EUR 2500. Upon signing the Notary deed the buyer is also obliged to pay Notary fee according to the prescriptions of the Notary and the Notary Activity Act (NNAA). The exact amount of the notary taxes is defined in Notary Taxes Tariff as follows: Certified material interest in BGN Notary fee in BGN
Under 100.000 – 15.000 BGN
From 100. 001 to 1,000.000 15.000 plus 1.5 % for the amount over 100.000
From 1,000. 001 to 10,000 28.5 plus 1 % for the amount over 1, 000
From 10,000. 001 to 50,000 118.5 plus 0.5 % for the amount over 10, 000
From 50,000. 001 to 100,000 318.5 plus 0.2 % for the amount over 50, 000
Over 100,000 418.5 plus 0.1 % for the amount over 100,000 but less than 3,000
The VAT due is 20 % after the paid taxes and fees for the transfer have been discounted.
There is no VAT on land transfer deals. Upon signing the Notary deed the buyer pays Land registry fee of 0.1% of the price of the property the total amount for which is roughly 1% of the price of the property. Thus the total transfer expenses related to the purchase of a property are approximately 3% of the price of the property and include the property transfer tax, the Notary fee and the Land registry gee.
For your convenience, we are mentioning all necessary documents for the notary procedure:
1.Draft notarial deed for transfer of property
2.Documents identifying the participants in the proceedings
3.Letter of authorization if agent represent one of the parties
4.Documents certifying the property right
5.Declarations by the parties certifying their civil, marital and property status
6.Declaration by the person who acquire the property certifying the origin of the funds, in case the value of the estate is over 15000 euros
7.Declaration by the interpreter that his translations are reliable
8.Certificate for tax assessment and paid taxes
9. Receipt for paid local tax for acquisition of real estate
After the buyer is already the owner of the property by signing of the Notary deed for the title, every year the owner is obliged to pay annual property tax, including council tax and tax for the rubbish. The size of these annual taxes is determined by the tax experts each year and depends on the size and the location of the property as well as on other factors.
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The central office in Bulgaria:
- Address: Our office is Based in complex Magic Dreams , Opposite Super Market Mercury.
- Yurta Under Road , St. Vlasii Str. Sveti Vlas, Burgas 8256 , Bulgaria
- GPS: 42°42’47.3″N 27°44’46.2″E
- Email: firstname.lastname@example.org
- Email: email@example.com
- BG Phone: 00359 876 777 592 (Bulgarian and Russian language & Italian )
- BG Phone: 00359 889 868 092 ( Italian and Russian language )
- UK Phone : +44 7429 991 28 (Bulgarian and Russian language & Spanish)
- Norway Phone +47 92 093 397 ( Bulgarian and Norwegian language & Russian
- Skype: casabg.kiril.kalev / casabg.velina.kaleva
Customer service office working – Monday to Sunday 09: 00h. at 21: 00h