Buying guide

Taking the first step to acquiring your property in Bulgaria may seem a difficult task, but the legislation in Bulgaria as a EU country makes the procedure of a real estate transaction in Bulgaria easy and almost the same like the procedures in other European Countries.

The important difference is that a Foreign Nationals are not allowed to purchase the actual land itself. They may however form a Bulgarian Limited Company through which the shareholders will acquire the land, and thus purchase and own their property this way. The process is very simple but involves navigating through a whole raft of Bulgarian legislative issues that involves a considerable paperwork. We at Eurobild ltd are here to guide you through this process using our own legal and financial team. This does not apply to foreigners who wish to purchase leasehold apartments.

The costs associated with real estate transactions are very low. As elsewhere in Europe, the transfer is the subject of Notary and Municipal (Local Authority/Stamp Duty) fees. These fees total approximately 3% of the value of the transaction and are paid to the municipality, where the property is located.

In addition to these statutory government fees clients, will have to pay solicitor's costs of between 1% and 3% of the declared price of any real estate transaction. However our clients can benefit from our low solicitor fees of between 0.25 - 0.5%.

Typically, owning property in Bulgaria has the added benefit of significantly lower running costs, compared to those in other European countries. The owner of a property must pay an annual property tax of 0.15% of the declared value of the property. This property tax also covers all waste-collection fees for your property.

If your property is situated in a residential complex the owner will normally pay a contribution to the Housing Association of 7euro per square meter (excl. VAT) per year - this provides for 24 hour security, cleaning, swimming pool, maintenance, etc. All foreign buyers purchasing real estate property must be aware that in Bulgaria there are such terms as "Government Tax Estimation Price" and "Purchase Price". The "tax estimation price" is for the purposes of real estate taxation and is often calculated by the municipality lower than the actual selling (purchase) price. Bulgarian property vendors will wish for the "Tax Estimation Price" be written into the title deed, and not the actual price which the buyer has agreed to pay. As a result of this common practice there may well appear to be discrepancies between the price written in the title deed and the actual cash consideration paid by the Clients.

We are opened to disscuss the matter with Clients who wish that the purchase price to be written in the property title deed.

We at Eurobild Ltd. will be more than happy to assist you and will be looking forward to hearing from you.

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