Bulgaria - Buyers Guide

A good agent is essential when you buy a property in Bulgaria. We can provide you with a selection of properties for sale from our database and can recommend a good lawyer (who speaks your language fluently) to take you through all the legalities some of which are different to those in the UK or other countries. If we do not have your ideal property we will do our best to find it for you using our network of offices.

Making an Offer

When you have decided on a property in Bulgaria you will need to make a verbal offer through us which will need to be accepted by the vendor. When he has done this negotiations can proceed. At this stage a lawyer should be appointed by you to formalise the agreement.

Appointing a Lawyer

It is wise to appoint a lawyer who is fluent in your language so you understand properly all the legalities and exactly what is happening. We can recommend a good lawyer who can carry out the necessary checks on the property and complete the legal requirements of the sale.

The Purchase

First of all, the buyer should sign a preliminary contract for the purchase of the estate and pay the owner a sum of 10% of the total purchase price as a down- payment. Usually these contracts are signed while the owners prepare themselves with the necessary documents for the signing of the Title Deed before a Public Notary.
After a certain period of time (usually one month), the buyer pays the remaining 90% of the purchase price and obtains a Title Deed for the ownership of the property.

Expenses For Property Purchase in Bulgaria

2% State tax- Something similar to a stamp duty, to be calculated on the purchase price.
Notary Fee- Calculated in accordance with the price stated in the Title Deed. Expect to pay approx €350.00 on a typical 2 bed apartment
Land Registry -0.1% of the value
Legal fees -Expect to pay 1% of Property value in most cases
An example:
If the property costs €50,000, all these fees (except legal fees) would come up to nearly €1300, for a deal where the property costs €100,000 they are around €2400, and for a deal where the property costs €200,000 they would be around €4500. The usual practice was (when the deal was between two Bulgarians at least) that these expenses are be covered 50/50 by the parties. Nowadays, it is a subject of an agreement between the vendor and the buyer.

Factors to be Aware of

In order to avoid paying excessive amounts of Capital Gains Tax (which can amount to as much as 30% of the real purchase price), it is likely that the current owner of the property will not want to declare the real price of the property on the Deed of Transfer. The Title Deeds will therefore display a lower figure than the actual price you paid for the property. This situation will have its financial consequences, such as not having official documents for the real money you spent plus liability for higher taxes if you decide to sell the property afterwards and declare its real value. You will need to consult your broker/lawyer on this and all aspects of the deal to avoid any eventual misinterpretations or oversights.

Financial Services

Mortgages can be arranged for your property purchase in Bulgaria. We recommend visiting our Mortgages in Bulgaria page for more information. Alternatively you can request a quotation for a mortgage from our experts