Because Bulgaria is currently so popular with Bulgaria property investments, the property buying process in Bulgaria is becoming simpler. In order to purchase anything other than an apartment in Bulgaria, a foreign investor must first establish a limited company. It is not possible for a foreign investor to buy land in Bulgaria and although this rule is set to change when Bulgaria joins the EU, in reality this situation is unlikely to change before 2010.
Buying Off Plan- Buying an 'off plan' apartment in Bulgaria is essentially the same as buying in the UK and means reserving a property on a new development before the property is completed, often before construction has started. Buying 'off-plan' can prove a fantastic investment and prices are extremely competitive at this early stage as potential investors only have floor plans and artist impressions of the finished development to view and developers are keen to sell to minimise risk and to provide the project with some forward momentum. You then have the option of selling straight away upon completion for a profit, or you can hold on to your property for further rental/ capital growth whilst having a great holiday destination to visit.
A step by step buyers guidance:
1) Property Selection
Make a shortlist of the locations and properties which interest you. You should have a clear idea of what you wish to achieve from your investment - e.g. buy-to-let, personal, short/long term etc. Our Bulgaria Real Estate agents will help you if you have any questions. 2) Complete a reservation form
Complete a reservation form to take the desired property OFF market. Pay a €1000 reservation fee. The reservation fee is non-refundable,it will be deducted from the purchase price of your property upon receipt of the first instalment. 3) Will you set up a company?
According to the Bulgarian law the Property Act and the Foreign Investments Act, foreign physical and also juridical persons such as companies, cannot acquire the ownership of land in the country. However, they are permitted to acquire the ownership of houses, villas or apartments. Foreigners can acquire land by setting up a Bulgarian registered company / LTD. / then open a local bank account. AMG Property Group can arrange everything for you. 4) Sign the preliminary contract of property sale in Bulgaria
Once you have selected your apartment and paid the reservation, you will receive a preliminary contract of sale. Use an independent lawyer to review the contract before you sign. The procedure of transaction Bulgaria properties is not much different than the procedures in the other European countries. Within 3 weeks of your reservation, the initial deposit must be paid after deduction of the reservation fee. Further payments must be made on time, depending on the terms of the contract on your particular development. 5) Optional Inspection trip
We will be more than happy to assist you booking your inspection trip. 6) Construction phase
We regularly update our website with construction updates throughout the build process. This will allow you to monitor the progress of your property. 7) Final completion
Most "Off-Plan" purchases adopt a schedule of instalments. There are one or more instalment payments to be made prior to the full completion of the property. Upon completion of the property and payment of the final instalment, the transfer of title will occur. The Bulgarian property system uses Notaries and a Notary Deed in order to transfer the ownership of buildings and/or land.
Upon completion of the property and prior to signing the Notary Deed, the local municipal council conducts a tax assessment of each property. This valuation represents the minimum value that must be reflected on the Notary Act. It is this value that at a minimum must appear on the Notary Deed in property transactions in Bulgaria.
You will need to sign the ‘Notary Deed’ in front of a Bulgarian Notary. This is a standard document transferring ownership of the property. You will receive title deeds within 7-10 days of the Notary Deal from the local council. You should also arrange for the property to be registered at the Tax Office in Bulgaria within 1 calendar month. We can advise you about this.
Your legally appointed representative can sign on your behalf if you are unable to be present in Bulgaria to do this by yourself. This individual will need to be a qualified Bulgarian solicitor in possession of a ‘Power of Attorney’ agreement. We can assist you to arrange everything.
Notary fees The notary fees are determined in accordance with the tariff for the Notary Fees. There are various charges but you should allow €1,500-€2,000. Legal fee- total legal fees are estimated at €500-€600. Local tax According to the Local Taxes and Fees Act, the tax payable upon the sale-and-purchase of a property is 2% local tax.
The basis for calculating the tax is the higher of:
· The apartment's price as specified in the notary deed, and
· The tax evaluation of the apartment in Bulgaria.
8) Insurance
Buildings & Contents Insurance do not cost a fortune and are highly advisable! AMG Property Group offers you comprehensive property insurance advice and insurance management. For more information please contact us.
Áúëãàðñêè 
