Buyer's guide

Buying Property in Bulgaria - Step by Step

The Bulgarian Real Estate market is not dissimilar to the Spanish one of thirty years ago, but moving faster and when Bulgaria became a member of the EU in 2007 it gained a greater impetus. All over Bulgaria you can see the blue starred flags of the EU going up so the process of buying property in Bulgaria will hopefully be simplified in the future but at the moment it's all very mechanical and needs a lot of legwork to put the bits together.

In reality it's three stages.

First stage and most difficult

Finding the Property That Takes Your Fancy

Like all other property websites we have an online property gallery that is forever changing. We are aware that it's really very difficult to get a good "feel" from such galleries on even the most sophisticated websites. What seems stimulating on screen often does nothing for you when you are there, whilst what seems to be bland on the screen can stimulate your imagination and interest when you see it. But please try to pick the properties you would like to view and send us the reference numbers. By doing this you give us a "feel" for what you have in mind and we can direct you to similar properties.

Arrange Your Visit

There are times when decent, but economical, accommodation is difficult to find. If you are able to let us know your plans in advance we can be sure to make the best arrangements for you! If you feel the need we will also be happy to greet you at the airport/station. Alternatively you could buy a package holiday to Varna and we will be happy to fit in with your itinerary. When you plan your visit please keep in mind that you need to allow about 2 days to view properties and 1 day to do the paperwork if you decide to buy. Please note: As the solicitor and Notary office aren't open on a weekend, make sure you are able to stay at least one weekday to do the legal paperwork. It is not usually feasible to view more than 4 or 5 properties in one day but we try our best to help you to find the best one for you.

Once in Bulgaria

Should you need it we can arrange car hire for you and our representative will accompany you to view the selected properties without charge. Or you can use our car for the viewing trips at the price of 0.30 Lev / about 12 p / per kilometer. This is to cover the petrol charges and wear costs of the vehicle and is fully refundable if you purchase property from Home Cottage Bulgaria.

Second stage - The Company

The second stage seems like a game the Bulgarian Government has set up to make sure future home owners in Bulgaria are solvent. Foreigners are not directly allowed to buy land in Bulgaria but they can register a Bulgarian Ltd company and in turn that company can own land. After you have a registered company you can buy from one property to million and one, there's no limit.

Setting Up of the Company

The setting up of the Bulgarian company really involves a lot of running around, accumulating fees for services, the names may change on the company documents but the process remains the same. In theory you can do it yourself but in practice you would be near insane by the time you finish. Everyone involved in the property sales will offer this service at prices ranging from £350 to over £1500 for the fur lined service. You will have to open a deposit company bank account and sign some of the documents for the company registration before a local official called Notary at a cost of about £15 and sign a document allowing your agent to work in your name. It's all written in Bulgarian of course and you have to have an official certified translator with legal constrains to be totally honest. They come with a smile which will cost you up to £40, ouch!

If you are a wise old owl then you sign a Power of Attorney for your agent or one of the solicitors we work with to set up the company for you. This is done before a Notary. Iliana is an officially recognised translator and will do all the translating that is need at the Notary. The price of the translation service is included in the fee.

Then all your documents are sent to the Commercial register. In about 2 to 4 weeks you will have the papers duly stamped a Bulstat registration done/ that means that your company will have an unique state number, a certificate for the actual state of the company and a stamp.

Please note

Credit cards are of not enough use for paying living expenses, fees or deposits etc. You will need to bring some cash or travelers cheques.

Should have any concerns about how much will be needed for house deposits and company formation costs please contact us and we will offer suggestions

Stage three - Becoming an Owner

Purchasing the Property

Well you went through stage one and found a property that fired your imagination in Bulgaria. In stage two you become the proud owner of a Bulgarian Company and now it's time for the finals. Once you have chosen which property to buy our lawyers will check the Title deed and all the Vendor's documents for ownership. You will instruct a Preliminary Contract to be drawn up and pay 10% deposit. This stops the seller gazumping in the last minute. The Initial/Preliminary Contact can be as flexible or as tight as you need it to be.

There is actually greater protection for someone buying a house in Bulgaria that we would have when buying in the UK. All purchases are signed before and registered through a Bulgarian Notary who dots every "I" and crosses every "t" to ensure that you are protected in your transaction. You will have to pay a Land tax / like stamp duty / and a Notary fee. Please note that the Land tax and Notary fee is dependant on declared value of property, which by mutual agreement between the buyer and the seller can sometimes be different from price entered on document sale.

The balance of price is paid in cash or transferred just before signing the deed. The agency fee is paid the same day. Most of our Bulgarian property sales are done within a month, but by giving Power of Attorney to your agent you do not have to return to complete

The Sale

We will then inform you that you are a brand new Bulgarian property owner. If some legal issue crops up it might take slightly longer. If a property deed isn't 100% in order our solicitors will cancel the sale. Fortunately this is very rare as we try and pre-vet properties and owners before offering to sale. If a sale is not concluded for legal reasons, you will receive a full refund of your deposit, without deduction.

Money Transfer

Payment of funds from UK or elsewhere to Bulgaria can normally be done from your local bank. The transfer takes up to 5 working days. Please give yourself plenty of time and transfer at least a week before the due date. When making a transfer please check the forms carefully even the slightest error sometimes can result and the payment not being made. This can be critical when making payment close to the deadline of the Preliminary Contract. Please be aware that although all our prices are quoted in Pounds Sterling the purchase and all the connected fees are paid in Euro or Leva. They could slightly vary depending on the exchange rate.

Our Fees

We put a lot of effort into supporting clients through the whole process and our fees are the fair compensation for our work. For properties up to £8000 we charge a flat rate of £500. Properties from £8000 to £15000 are charged 5% of the sale value. For more expensive properties the commission is negotiable.

When the Title deed is signed there is just one thing - to do, declaring the purchase with the Local Tax Office. This will put an end to the dance around the obstacles your agent and you have performed over the last month with amazing grace.

Just smile serenely, it's like going to the dentist without the physical pain!