To purchase property in Bulgaria involves the setting up of a Bulgarian private limited company if the property has land with it. Usually, the agent can arrange the setting up of this for around £600. This Bulgarian company will be subject to Bulgarian tax but there are also UK tax implications from rental income from the property and from any profit from the sale of the property (though some of this tax can be offset against tax paid on the property in the first instance). Professional taxation advice is recommended to deal with these aspects.

The options available to purchase property in Bulgaria are numerous. Buying your property in Bulgaria outright is the most straightforward way, but be sure to keep enough funds back for any unforeseen circumstances. Mortgaging your existing home or taking out a second mortgage is often the chosen path. By taking this path, you present yourself as a cash buyer and therefore can usually drive a better deal. If you were to take out a Bulgarian mortgage in Bulgarian Lev, bear in mind that you may be exposed to currency fluctuations. The lending market in Bulgaria is still emerging and maturing for foreign investors, so it is preferable to use a UK lending institution at the present time.

Purchase Property in Bulgaria - The Buying Process

A notary deed is drawn up by a Bulgarian notary, which is the purchase contract - this is equivalent to 'sold subject to contract' in the UK. The notary will ensure that the vendor has the right to sell and that there are not any state financial reigns on the property which would prevent the sale from completing. Also, the buyer is checked to ensure that funds are available and other checks on both seller and buyer are carried out. Your appointed lawyer will make all the necessary checks on the property including title deeds, permissions, licences, debts and on the details of the contract itself. Once everything has been checked to the satisfaction of all parties, the contract is signed by both seller and buyer in from of the notary, who will then registers the notary deed with the land registry of the local court.

To purchase Bulgaria property, costs are levied on both buyer and seller. Both parties pay between 3 and 6% to the estate agent, though more may be charged if company set up and translation services have been used. Stamp duty is 2% of the purchase price and notary tax for the notary deeds and land tax are also charged at 2%.

Letting Property in Bulgaria