Bulgaria Property Buyers Guide

It is important to work with a well established agent who will guide you through each step of the property buying process. Below is a general summary of the buying procedure for property in Bulgaria:

Using an Agent

Propertyshowrooms.com can provide you with a wide selection of properties for sale from our database. We will also recommend a good lawyer who speaks your language fluently and take you through all the legalities, some of which are different to those in the UK or other countries. If we cannot immediately offer you your ideal property, we will do our best to source it for you using our network of partners.

Making an Offer

When you have decided on a property in Bulgaria you will need to make a verbal offer through your agent for acceptance by the vendor. Once this is done, negotiations will 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 that you fully understand all the legalities and proceedings. Our agents will gladly recommend a good lawyer in Bulgaria who will carry out all 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 - similar to a stamp duty and 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 fees (excluding legal fees) would amount to nearly €1,300. For a deal where the property costs €100,000, fees would be around €2,400, and for a property valued at €200,000 they would total around €4,500. Traditionally these costs were split 50/50 by Bulgarians, however nowadays it is a subject of 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 Bulgaria Mortgages page for more information. Alternatively you can request a quotation for a mortgage from our experts.