Frequently Asked Questions
What is the procedure to purchase a property in Bulgaria?
By law foreigners in Bulgaria are not allowed to purchase land as physical persons. Therefore if you are buying a property that includes land you need to set up a company. We provide such an assistance of setting companies for our clients.
The service costs 600 Euros as total. The price includes country and court taxes, lawyer's service and paper work. All you need to do is to sign a few papers (either in Bulgaria in front of a notary or in your country in the Bulgarian Embassy.
In order to start the purchase you need to place in a deposit of 10 % (in some cases 15 % might be required) of the property price which money is to be paid to the owners and secure the property by signing a preliminary contract with them for a certain period of time until the company is set up and the property can be transferred on your company name- therefore paid all out to the owners.
Could you assist with any building work on the property if necessary? What would this cost me?
Yes, if the property you have chosen needs repairs we will be more than happy to offer the services of our professional building team who have rich experience in renovating and building properties from the scratch. You can check some of their projects in our Renovations section.
We will be able to renovate your Bulgarian property or build a brand new one at EU standards. If you have chosen a certain property and need an exact estimation please contact us and we will be happy to assist.
Legally wise- how easy is it to invest in Bulgarian properties for foreign investors?
In relation to Bulgarian real estates the Bulgarian law is pretty welcoming to foreign investors. Basically as a foreigner you can only own a building a physical person but not a property that includes land.
The only way to purchase land as a foreigner is as a juridical person, therefore you need to set up a company on which name the ownership will be transferred and by owning the company you own the property too.
What is the procedure of establishing an enterprise with foreign investment in it?
To set up a company in Bulgaria is not as complicated as it sounds as long as you have a professional and reliable solicitor to assist you with it. Other options would be:
- Establishing a joint venture with existing local companies;
- Setting up a new venture;
- Acquiring a company through privatization;
Are there any additional costs included?
No, the prices of Bulgarian properties advertised on our website are final prices including our commissions and fees.
An additional cost could be the 600 Euros for setting up the company (unless you already have one registered).
From this year there is a change in the law for local and notary taxes for properties and it is not the same % for each Municipality anymore. The Municipalities will define the taxes so they will be different for the different areas. They will vary between 2 and 5 % from the property price. This amount could be paid with the last payment. Please contact us if you would like to book a viewing trip with us!
Is there a limit in the number of the participants in the enterprise?
No, the number is unlimited.
What would be the most common types of business organization that have foreign investors' participation in it?
That would be a limited liability company. Other types are general ownership between partners, limited ownership between partners, joint-stock company, sole ownership, joint venture, branch, holding, cooperatives, and representative office.
Limited liability companies, unlimited ownerships between partners, public limited companies, limited ownerships between partners, holdings and cooperatives are legal entities.
Branches and representations are not independent legal entities: branches can take part in economic activities, they have their own property and compile a separate balance sheet; representations may not engage in economic activities.
What about the life in Bulgaria? Is it expensive is to live in Bulgaria?
Bulgarian standard of living is a lot lower than most of the western countries.
Here are some sample prices of common items (NOV 2007):
- Monthly rent in Sofia city (2 Bedroom apartment) - 400 Euros
- City transport tickets in the capital - 0.45 Euros
- Taxi prices in Sofia - 0.30 - 0.40 Euros per kilometer
- Bread - 0.45 Euros
- Marlboro cigarettes - 1.60 Euros
- Restaurant bill for two - 15 Euros
- Sofia daycare for a month - 150 Euros
- Internet service for a month - 12 Euros
- Coffee in a Bulgarian restaurant - 0.50 Euros
- Cinema ticket in the capital- 3.00 - 5.00 Euros
- Beer at a nice city bar - 1.50 - 2.00 Euros
- Petrol- 1.30 Euros
- Diesel- 1.35 Euros
- House insurance per year 150-200 Euros having in mind the kind of house it is.
- Car insurance- depending new or old, but for a new one it is around 900- 1600 Euros annually
More about Bulgarian Properties DB Ltd:
Bulgarian Properties DB Ltd. is a real estate company registered in Bulgaria under the Identification number of: 131519624; with address of registration: Mladost Distr., Bl. 467, Sofia, Bulgaria, 1715, our office is located at Bul. Alexander Stamboliiski 74, Ap.9 Zip code 1000.
We have local agents all over the country who collect offers and meet the owners in person. Very soon we will be able to cover the whole country as our main goal is to give our clients bigger choice in their search for Bulgarian properties and give the best service we are capable of.
Fees and charges:
Besides the property price there are other expenses like: local taxes; notary fees; running different checks on the property and etc... and they usually come out between 2- 5% on top of the price.
The commission for our services covers the expense of some main things that we provide in order to assist you in the process of buying a property.
Things like: being your representative and defend your rights in negotiations with owners and developers; lawyer`s services and legal advises; check of all documentation prior signing anything on your behalf; providing all the necessary documentation; costs for constant contact with the clients and etc.
We organize viewing trips for our clients to see a selection of properties. In case of using our company car for the purpose we charge 0,30 Euros per km which is approximately 0,23 GBP per km. This charge is to basically cover our petrol expenses and others on the vehicle. The charge is refundable in case you purchase a property through us.
We also provide management and maintenance services for your property, such as renting out and looking after. Please contact us for more information.