How to Buy a Property in Bulgaria

The Costin, you will have to make up your mind in regard
Although the property prices in Bulgaria are quiteto the characteristics of the property you intend
low compared to the other European countries,to buy.
there is still a wide variety of prices depending onBelow there is a list of property features you will
the property type and location (as a rule thehave to consider:
properties in Sofia and at the Black Sea are more1. Property type
expensive). The first thing you will need to figureDo you want a house or a flat? If you prefer a
out is how much you can afford to spend andhouse, should it be detached, semi-detached or
thereafter to determine the price range for yourterraced?
purchase. Apart from the actual price of theUnder the Bulgarian Act on Foreign Investments,
property, there are a lot of other one-off costsforeigners are not allowed to own land but may
you have to consider.own buildings. Foreigners wishing to own land can
The expendituresdo it by setting up a Bulgarian company to hold
There are some differences in thethe land. Bulgarian company incorporation costs
property-buying process in Bulgaria from those inless than £600. Bulgaria's ownership policy will
the UK. Below is the list of one-off costs whichbe harmonized with the EU in the future, most
provides you with a rough estimate of theprobably in 2007.
expenditures you will have to cover. It is advisable2. Property Features
always to take all eventualities into account whenDetermine what size the property should be
making your estimates.(keep in mind that bigger home mean higher
1. Depositheating costs). Decide on the number of
Usually you are required to put down at leastbedrooms and bathrooms, the face of the
10% of the price.building, whether you want a garden. If you are
2. Solicitorlooking for apartment, have you any preferences
You will need to employ a local solicitor, whofor the floor number.
speaks English, for all the legal aspects of buying a3. Old or new?
property. Some charge a flat rate, others aA new property will be more expensive to buy,
percentage of the property price (usually 1%).but with an old property high expenses might
We recommend to get some quotes beforeincur for repairs and improvements. There are
choosing one.also many properties that are sold "off-plan",
Solicitors in Bulgaria frequently represent bothwhich may be pretty favourable for you.
sides of a transaction, but are legally obliged to be4. Garage
diligent and fair.If you intend to have a car in Bulgaria, check
3. Preliminary contractwhether you have good parking facilities on the
Its cost is of around £100, with an extrastreet or if there is a garage.
£15 or so payable for a translation of theBulgarian Property-Hunting Resources
contract - remember that the English version isAfter having decided on your priorities, you can
not legally binding.start off looking for a property to buy. There are
4. Survey / Valuation Feedifferent resources for property listings.
5. Agency fees1. Estate Agents
Agency fees in Bulgaria are often split betweenIn Bulgaria the Estate Agents can advertise the
buyer and seller; a typical fee might be 6% withproperties and handle negotiations. Agents usually
buyer and seller each paying 3%. Sometimes thehave a wide range of properties available and can
buyer is responsible for the whole fee; would-beoffer detailed information. Buying property in
buyers should clarify beforehand precisely whatBulgaria should only be undertaken with good
percentage of the value will be the fee and forprofessional advice. It is essential to use a
what proportion of that fee he or she is liable.reputable real estate agent - the boom in what is
Occasionally - and this is most often the casea largely unregulated market has led to a huge
with new-build properties - the fee is included inincrease in the number of companies selling
the purchase price; again, though, the buyer isproperty, some of which may not have the
advised to find out if this is the case and, if so,experience or professional approach of longer
what proportion of the overall price pertains toestablished agencies. It is advisable to ask for
the fee as it may affect the resale value of thereferences from previous customers, particularly
property.other foreigners.
6. Stamp Duty2. Private sale
The government charges a tax based upon theSome property sellers prefer to handle their sale
property's purchase price. This is called countryprivately, by advertising locally. However a private
tax and it is the equivalent of the Stamp Duty insale may hardly be found. But the advantage of
the United Kingdom. This is a maximum of 2% ofthis kind of bargain is that there are not any
purchase price charged at completion.estate agent fees to be paid and you might end
7. Notary Feeup paying less. You have to consider that a
The notary puts on public record that the titleprivate seller might not deal with you in the same
deed has been signed in their presence andprofessional manner as an estate agent does.
understood by the parties concerned. The notaryEspecially when difficulties or delays arise, the
is further in charge of the submitting of the titlesituation can become a bit tense.
deed with the other related documents of the3. Online property listings
transfer to the cadastral and the propertyWhen you want to buy a property in Bulgaria and
register (land register).you want to get a quick impression of what's on
The Notary will pay registration and state feesthe market, the online property listings are very
collected previously from the buyer.convenient and helpful. It is usually possible to look
Registration confirms you as the legal owner offor properties according to features, price range
the property and registers you at that address.and location. Internet listings can be accessed via
The fee charged depends upon the price of theestate agents' home pages or independent
property (See Stamp Duty).property web sites. You should keep in mind that
8. House-hunting Expensesa photo posted on the internet might not give
Property-hunting can be quite a costly business.you an adequate impression of the property, so it
Expenses include money for travel to Bulgaria,is better to remain skeptical until you have
hotels and eating, and telephone calls.actually seen the property.
9. Removal Fees (if not only a holiday home)Arrange a viewing
Doing the removal yourself is time-consuming andIf you have the chance you have to go and see
stressful. If you decide to employ a company,the property with your own eyes. Check the
ask around for quotes first.property you view for:
Find a Property in Bulgaria- General Condition (fixtures and fittings, layout
After having calculated how much you can afford,etc.)
you can start on the most exciting part of the- State of Repair (insulation, heating, plugs,
property-buying process: selecting your futureplumbing etc.)
property.- Structural problems (dampness, cracks in walls
But before you start spending your nights diggingor ceilings, crooked doors, damaged foundations
through piles of Bulgarian property web sites andetc.)
looking at estate agents' brochures, it is advisableIf you have no possibility to go to Bulgaria to
to sit down and think about what exactly youview the property that interests you, you may
want. Property-hunting is exhausting andrequire more pictures of certain features of the
time-consuming, and you can save yourself a lotproperty. Also you may ask for the things that
of work and energy by deciding on certainare not described in the advertisement as fixtures
prerequisites before starting out on the actualand fittings, insulation, heating, plugs, plumbing, etc.
property search.Reservation
Choosing the location and the neighbourhoodOnce you have determined which property you
Make sure you select an area you feelwish to buy, you can reserve it either by phone,
comfortable in, and which suits your personalpost or e-mail. You may be required to pay a
needs. If you are going to spend only yourreservation fee, which is refundable, and the
holidays in Bulgaria, then maybe you will prefer aproperty will be reserved for you for a certain
property in a ski or sea resort. If your intention isperiod of time. If the property is sold via Estate
to retire in Bulgaria, then a small village may beAgent you have to call them to secure the deal.
suitable for you. But it is a must to check thePreliminary Contract and deposit
infrastructure in the region. The same is theThe next step will be the sign of the preliminary
situation if you are thinking of purchasing acontact and the payment of the deposit. The
property in Bulgaria for part-time retirement.deposit may vary from 10% to 20% of the
If you are a young, childless professional, youpurchase cost.
might want a lively pub scene in the area,Survey and Valuation
whereas if you are an overworked parent of twoYou are basically conducting a mini-survey and
children, a good school and a playground might bevaluation every time you view a property. It is
more important to you.also advisable to have a more in-depth inspection
Anyway in Bulgaria there is a place for everybodyand valuation done in order to assess the
- quiet lovely villages with animals and gardens, orproperty's condition and find out whether the
undisturbed mountain villages, or lively cities, orhouse is actually worth its price.
luxury sea or spa resorts. Here are the essentialThe Conveyance
points to consider when choosing your futureAfter your offer has been accepted, the
location and neighbourhood:conveyancing process starts. This includes all the
1. The Priceslegal and administrative issues that have to be
Find out what area you can afford a decentaddressed when a property is transferred from
property in by looking at the prices of propertiesone owner to another. The common practice is to
sold recently in different locations.hire a solicitor or a licensed conveyancer to deal
2. Your feelingswith the legal aspects. Hiring a professional solicitor
Make sure you feel comfortable in that location.has become cheaper and his services are well
3. Distance and transportworth the money.
You can arrive in Bulgaria by plane, by car, by busWhat the conveyancing process involves Before
or by train. The major airports are in Sofia, Varnathe exchange of contracts:
and Bourgas. From there you can take a bus or a- Checking the "title deeds" of the property to
taxi to your final destination. For more informationfind out whether it really belongs to the seller
you can see Arriving in Bulgaria. So when you- Establishing the property's legal boundaries
choose your property's location consider how you- Putting together a list of fixtures, fittings and
would get to there and how long it would takecontents to establish what is to be included in the
you. The best possibility is that your futuresale
property is close to the major airport and the- Preparing a enquiry form for the vendor to find
road infrastructure is in good condition.out about any material or structural defects they
4. Local Amenitiesare aware of
What you need depends on your lifestyle and- Surveying local authority plans for details on
preferences. Look out for shops, public transport,upcoming developments that could influence your
leisure' facilities like pubs and clubs, children'sproperty's value
activities, parks etc.- Negotiating with the seller any repairs or
5. Schoolschanges to the offer
If you have kids, find out what is the situation- Advising you on the draft contract for sale
with the local schools.prepared by the vendor's solicitor Exchange of
6. Crime ratecontracts:
Find out the crime rate in the region.- Arranging the date for the completion and the
7. Condition of the region and neighbourhoodexchange of contracts
Keep in mind that the state of the houses in your- Handing over the deposit Completion:
neighbourhood influences the value of your own.- Handing over the keys and title deeds
The resort regions are likely to be more fancy- Paying stamp fees and notary fees
than the ordinary villages.Completing the Sale
8. Local Authority ServicesThe completion date, which has been set in the
Find out how often the waste is being collected, ifcontract, is the day the house becomes officially
the road infrastructure is regularly maintained, ifyours.
the gardens and parks are kept in good conditionFor further information on Bulgarian properties or
etc.any aspect of property buying process, visit the
Choose a Propertynew Find Bulgarian Property Portal.
In addition to deciding what area you want to live