When purchasing property abroad, it is important to recognize any possible pitfalls that could be involved and be fully aware of what to expect. Find out below some important factors to be taken into consideration.
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:
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.
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.
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.
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.
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.
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.
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.
Get the latest property and investment opportunities direct to your inbox for FREE (you can unsubscribe anytime)
Bulgarian Holiday Rental Portal Captures Tourism Growth
Bulgarian Tourism Sector Forecasts 8.5% Growth in 2015
Bulgarian Property on the Rebound
Bulgaria's Bansko Best Value for Ski Holidays
Bulgarian Property Buoyed by Foreign Investment
A Bright Outlook for Bulgarian Property
All property news from Bulgaria
Subscribe to our RSS Feed
Fill out a requirements form and our experts will help you find a great selection of properties for sale in Bulgaria.
Help me find property in Bulgaria
Considering a property purchase in Bulgaria or need to transfer currency to/from Bulgaria?
Save Thousands in Currency Transfers
When considering a buying property in Bulgaria, you are well advised to get expert mortgage advice from a mortgage broker.
Get a mortgage quote in Bulgaria
Owners Direct is one of the UK's leading direct from owner rental websites and the first choice for holiday home owners who want a cost effective and easy way to fully book their properties.
Find out more
If you own or are about to purchase property in Bulgaria, you get an insurance quote using our online insurance quote form.
Get Insurance in Bulgaria
Do you have your British assets covered by a will?
Do you have your movable foreign assets covered by a will?
Have you made plans to protect your family in the event of your death?
Get more information on Wills
Everything you need to know about transferring your UK Pension is in our downloadable guide.
Get more information on Pensions
Stara Zagora Property
Veliko Turnovo Property
Subscribe to our newsletter and keep up to date with the latest and best investment opportunities around the world!