Legal Advice and Services

Bulgaria has one of the most liberal foreign investment laws in the region regarding Bulgarian real estate as well as foreign investors. According to the Bulgarian Constitution and legislation foreign persons and companies can invest in real estate in Bulgaria either personally or through a local legal entity. Foreigners can acquire as physical persons only buildings but not land. Only Bulgarian citizens and legal persons (including such with foreign owners) can obtain ownership of Bulgarian land.

Therefore, the most popular ways for becoming real estate owners are as follows:
• As far as flats and limited ownership rights (the right of use, the right to build a house, etc.) are concerned, you can directly purchase them as a physical person.
• When buying real estate with land - houses, villas, plots and others foreigners must set up Bulgarian companies that will be the owners of the properties. Setting up a company in Bulgaria is very easy and our lawyers will be able to do this for you. Read more about company formation and fees

Important notice: Exceptions to this rule are now applicable to EU physical and legal persons. They are allowed to buy houses with gardens and regulated plots of land in Bulgaria on their own names as physical persons.
The Treaty of Accession of Bulgaria to the EU allowed Bulgaria to keep the prohibition for EU physical and legal persons to buy land in Bulgaria for up to 5 years. The 5-year term has now finished and since 1.01.2012 all EU persons are allowed to buy plots in Bulgaria (all plots that are withing the zoning of the settlements, houses with gardens and ideal parts of the land coming with apartments) without any restrictions.
About buying agricultural land in Bulgaria

LEGAL SERVICES WE PROVIDE INCLUDE:

• Free preliminary legal consultations
• Company registration
• Preparation of the documentation necessary for the purchase or sale of a property in Bulgaria
• Verification the ownership of the property
• Checking for encumbrances
• Tax advice
• Drawing up agreements and preparing notary deeds
• Checking all documents related to the deal including those drawn up by third persons (for example the documents for presenting the deal before a notary public), so that we are sure your interests are protected
• Representation for purchase or sale of a property if and when necessary
• many other legal services upon request

The legal services we offer are carried out by qualified and certified lawyers part of our team.

Contact Ivaylo Vlahov, Head Lawyer

WHY BUY PROPERTY IN BULGARIA?

Bulgaria is already an established member of the European Union and the country’s development perspectives are very positive. Let us mention a few facts about our small but dynamic and stable open economy:

• One of the lowest level of sovereign debt in Europe
• The lowest tax rate in Europe – 10% corporate and income tax
• The cheapest labor force – the minimal salary is 477 Euro
• Fixed rate of the local currency (Bulgarian lev) to the Euro at an exchange rate of 1.95583 levs for 1 Euro
• Currency board with a plan to join the Eurozone in 2025
• Equality for foreign investors as everyone can register a company in Bulgaria and buy real estate
• Modern legislation harmonized with the legislation of the European Union
• and many other factors that provide great possibilities for economic development and for doing business in Bulgaria in the years to come.

IMPORTANT INFORMATION TO CONSIDER WHEN BUYING PROPERTY IN BULGARIA

• All foreign buyers purchasing real estate must be aware that in Bulgaria there are such terms as "tax estimation price" and "purchase price". The "tax estimation price" is for the purposes of real estate taxation and is usually lower than the actual selling (purchase) price.

Please note that some of the Bulgarian propety owners (sellers) wish that the "tax estimation price" is written in the title deed, and not the selling (asking) price which the buyers are paying. You should be aware that this practice is illegal and is subject to penalties. If the 'tax estimation price' is written in the title deed, there will be discrepancies between the price you are paying and the price written in the title deed. Bulgarian Properties Ltd. is against this practice and cannot be held responsible if the buyer and the seller agree to put a lower than the actual price in the title deeds.

• The usual term for the old owners of the property to move out of it after completion of the sale is one month. This could be negotiated if the buyers require a shorter term. For this purpose, they should ask the assistance of BULGARIAN PROPERTIES Ltd. in due term and not expect the property to be empty right after the signing of the final contarct.

If you have any questions regarding legal issues or the real estate market in Bulgaria, please send your enquiry

Legal information when buying and renting properties in Bulgaria

Read about the Tax Conditions for Property Investors 2011/2012

Other legal and tax articles