What is the law on foreigners owning property in Bulgaria?
"Foreign nationals and foreign legal entities may acquire ownership title over buildings and limited ownership rights over property in the Republic of Bulgaria.
Foreign individuals cannot own land (this is a Constitutional prohibition). However, the Foreign Investment Law removed the restrictions on acquisition of land by locally-registered companies with foreign participation. By setting up or joining a company incorporated under the Bulgarian legislation foreign persons can acquire full land ownership rights including ownership rights on agricultural land."
[From Bulgaria Foreign Investment Agency website.]
(http://investbg.government.bg/)

What about taxes?
Most of the Bulgarian property owners wish that the "tax estimation price" (rateable value) is written in the title deed, and not the selling (asking) price which the buyers are paying, so due to this practice there might be discrepancies between the price you are paying and the price written in the title deed. This is because of various reasons and we can not be responsible for it.
For further information, please refer to this PriceWaterhouseCoopers Bulgaria Real Estate Summary or Comprehensive Tax Guide to Bulgaria (http://www.rowbotham.com/knowledgenet/countryprofiles/bulgaria.pdf)

Are there any restrictions on buying property in Bulgaria for a foreign national?
There are no restrictions on buying property in Bulgaria for a foreign national. You can buy as many apartments in Bulgaria as you can afford!
How long does buying a property in Bulgaria takes?
Buying a property in Bulgaria varies depending upon the type of property you buy (villa or apartment), also if the property is new or re-sale. For properties for sale with land you would need to incorporate a limited company in Bulgaria, which takes time. Generally it will take 3-5 weeks to buy a property.
What is available on the market?
The majority people who are buying property in Bulgaria are looking for holiday/second homes often with a view to retirement in later years.
What are the living costs in Bulgaria? How much one pays for house insurance, gas, electricity, local and national taxes, to hire a gardener or a builder, to drive a car?
It's not possible to compare living costs in Bulgaria and Western Europe. Living costs in Bulgaria are extremely low! For example the food is generally twice cheaper than UK. House insurance: around 100-200 . EURO per year depending on the type of house, together with the belongings and furniture inside. For a property of price 30,000 . EURO insurance against theft, flood and fire costs about 125 . EURO per year with a decent insurance company like Allianz. People here mostly use electricity to cook. For heating: there are central heating systems in the big cities: monthly costs for a 2-bedroom apartment around 120 . EURO. In the small places people use charcoal and wood, which is even cheaper way to heat a house. For electricity, when used for cooking, light or hot water one pays about 30 . EURO monthly. Local and national taxes for owning a property: depending on the place where the property is located, the most expensive area is the capital Sofia, where the annual taxes of 2 bedroom apartment are around 150 . EURO per year, but the rest of the country is around 80 . EURO per year.
To employ a gardener or maintenance man or builder you will not pay much. The average salary in Bulgaria is 200 . EURO per month
What are Currency regulations for import and export?
Foreigners may export and import Bulgarian banknotes and coins in circulation to the amount of up to BGN 10,000 (about 3500 GBP). Sums exceeding this amount may be imported and exported only with a permit by the BNB (Bulgarian National Bank), valid for a period of up to 90 days of its issuance date.
The foreign persons may export convertible (hard) currency in amounts that do not exceed the amount of the foreign currency they had imported and declared. They can import unlimited amounts of foreign currency, which is to be declared.
Upon crossing the state borderline of the Republic of Bulgaria passengers may import and export commodities that in type, quantities, and value are not of a commercial nature. These do not include objects the passenger carry for personal use and consumption objects.
Exchange controls are the responsibility of the Bulgarian National Bank (BNB). The Bulgarian Leva is pegged to the Euro, and enjoys local convertibility. The export of Leva is prohibited, but foreign businesses can repatriate profits and capital in foreign currency. Companies can maintain both Leva and foreign currency bank accounts. Currency exchange can be effected through either the Commercial Banks or the Bureau de Change.
Import controls - Most goods can be imported into Bulgaria without restriction. All exports to Bulgaria are subject to pre-shipment inspection.
What kind of tax I owe for my property in Bulgaria?
Amount of taxes and fees varies from the place where the property is located in Bulgaria. For the properties owners there are 2 kinds of tax - property tax (is paid annually based on 0.15% of the property value - the valuation is made from tax department and is different from market price) and annual fee for garbage transportation (it is calculated based on value of the property and depends of place and municipality - vary from 1.6 to 5 per 1000). If you have industrial land - this mean you have registered company there in Bulgaria. In this case you must declare activity and incoming (and taxes if you have incoming) to the end of March!
Should I wait until 2006/2007 to invest?
Absolutely not!!! The market will show gains in 2007-2009 for sure. However, the large gains are to be made up to 2007. Then Bulgaria will be member of European Union and prices will rise to levels similar to other European countries! Follow link more info to find cheap and low priced Bulgarian Properties!
What is the local feeling towards foreigners owing property?
The Bulgarians are warm and friendly people in spite of difficulties in their life. Bulgarian people are very tolerant - there is not hostility between different nationality, religions or cultures. The Bulgarians are happy to see people bringing wealth and foreign investment to their communities especially if the foreigners are not stuck-up with their riches.
I have bought house in Bulgaria but I am living mainly in UK and use it only in summer. Who I can use who can care about my property while I am outside Bulgaria?
Most of Real Estate Agencies offer Care Contracts for property owners (ask your agent when you buy your property). The prices are dependent from services included in contract and Real Estate Agency but usually start from 100 EUR to 500 EUR. In Property Care Contract you can include services as:
- represent you to Tax Administration (documents, taxes, accounting services)
- Regular payments as electricity, water and other communal fees
- Communication with company for security of your property, key holding, monthly photo of your property, etc.
I have transferred my final payment to the developer & should be signing final contract next week. When the notary taxes need to be paid?
You need to pay the notary taxes at the day of signing the final contract in front of the notary. The notary fees are fixed in BG levs and they are according to a Notary Tarriff.
Is there VAT on transactions with land and lease of property in Bulgaria?
Transactions with land and lease of property for residential purposes are exempt from VAT. All other real estate transactions are subject to VAT, which is 20%. The buyer/ leaser is entitled to a VAT refund, provided that it is registered for VAT purposes.
Do I need a Solicitor for property bargain?
You will need an advocate/notary and we do recommend you take unbiased legal advice. It is their legal obligation to make sure all documents are correctly issued and correct.