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Buying Process |
Properties Without
Land
1.Agree a price
2.Engage a solicitor to undertake checks on Title Documentation, Licenses and Permissions, Debts on Title, Terms of Contract, Gov't taxes etc
3.Sign a preliminary contract
4.Pay a deposit to secure the property (usually 10 )
5.Pay the remainder of the purchase price
6.Obtain a Title Deed (Notary Act)
Properties With Land
1.Agree a price
2.Engage a solicitor to undertake checks on Title Documentation, Licences and Permissions, Debts On Title, Terms of Contract, Gov't taxes etc
3.Engage a solicitor to assist you in registering a company (foreigners are currently not allowed to own land)
4.Sign a preliminary contract
5.Pay a deposit to take the property off the market
6.Pay the remainder of the purchase price
7.Obtain a Title Deed (Notary Act)
Setting up a company
According to the Bulgarian act on foreign investment, foreigners can
buy buildings but not land. Therefore the most common method is to set up a
company which then owns the property. We can organize the entire process
from start to finish together with all aspects of conveyance and we will
guide you through the maze of Bulgarian property law.
The most appropriate types of companies for carrying out business in Bulgaria are: a private
limited company, a public limited company, a single private limited company,
a holding branch office. The most common form of company set up by
individuals is a PRIVATE LIMITED COMPANY.
Private Limited Company (a limited liability company)
A private limited liability company maybe founded by one or more persons,
including foreign, natural or legal
persons. The minimum foundation is 5000 Leva, at least 70of the capital must
be paid up on foundation. Contribution to the foundation capital maybe paid
in cash or in kind.
A single person private limited liability
company is called "EOOD". It is owned by a natural or a legal person, the
sole shareholder exercises the powers of the general meeting and the
Managing Director or the board of Directors is appointed to run the company.
A private limited company must prepare a balance sheet and a financial
statements each year.
Need to pay:
600 euro to register you with a Bulgarian limited company. This price includes:
- All lawyers fees
- All notary fees
- All court taxes
- Registration of company in court, tax office, statistics office
- Tax card, Bulstat card, company stamp
- Courier charges if any.
Notary Fees
The notary fees are paid on the higher of
the market price or the book value of the property at varying rates
specified in a special chart and is around 0.5 of the price. In addition 2
percent of the tax value of the property is paid to the municipality where
the property is
located.
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