» Legal advice

According to the Bulgarian Act on Foreign Investment, foreigners are allowed to buy only buildings. This means that you can buy an apartment very easily. If you dream of buying house the law requires establishing a company. This is a process takes usually between 2 and 4 weeks and we will manage with all of the paperwork for you. We expect these restrictions to be revoked once Bulgaria enters the European Union.
The company does not need to operate but it is simply a tool to purchase the property.According to the Commercial Law foreigner citizens can form Limited Liabilities Company (LTD) by its two variants -EOOD - where the founder is one or OOD, where the founder is more then one person. These could be only foreigners or foreigners and Bulgarian citizens.
The person/persons will be liable for the company's obligations to the value of his/hers share in the company's registered capital. The shareholders conduct preliminary discussion on the commercial activities they intend to engage in. Based on their agreement, Articles of Incorporation are prepared and sighed by all shareholders. A dedicated bank account is opened to collect all share capital. The minimum share capital required is 5000 BGN (2600€). Shareholders at the time of the registration must have paid at least 1/3 of their respective shares. It is required that at least 70 % (3500) of the capital is raised at time of registration.
The company exists from the moment it is added to the Commercial Register of the district of where the company will be based. The entry is made upon issue of a district court decision for the incorporation. The following documents must be available at the time of the submission of registration application to the district court.

* Articles of incorporation
* Memorandum for appointment of Director/Directors
* Proof that at least 70 percent of the registered capital has been paid

Publication of the company entry in the Commercial Register does not complete the company formation, it announces to the general public the act of formation. The process of forming a company can take anywhere between a few days to 4 weeks.

Finally your new company (OOD or EOOD) will need to register immediately with the National Tax Register. Once the entire authorized /share/ capital has been paid up these funds can be accessed and withdrawn

LEGAL FEES

* For all fees and honorary of the lawyer who is leading the procedure – approximately 800 €.
* Authorized capital that is to be deposit with bank account 5000 BGN (2600 €), which can be withdrawn later.

Each year local council taxes must be paid that cover public lighting,refuge collection and so forth. These taxes are minimal and are typically less than 200 Euro.

ADDITIONAL COSTS TO BUYER - STATE FEES

* entering fee - 0.1 % from the value of the property
* local fee - 2% from the value of the property
* notary tax – it is calculated under a determined scale and is paid as percent from the value of the property

For example if the value is 20000 BGN, the total value of the due state fees is at about 600 BGN.

ACCOUNTING SERVICES

Once you have a company established you would need an accountant to take care for the documentation, taxes on the property, annual financial conclusion, etc. We can sort this out for you by recommending reputable accountant, who has been working at DEJA vU and has proven hers professionalism and loyalty. She is acquainted with the procedure and has long experience with foreign clients.

MORTGAGES

Mortgages are available in Bulgaria but they tend to be very expensive and difficult to obtain. The best option if necessary is to secure funding in your country.

OUR FEES AND SERVICES

Our real estate agency fee is 3% but minimum of 1000 Euro.We require our commission at the point we start the legal work leading to signing of the Preliminary Contract. This contract sets out the intention to buy with all the conditions of sale indicating the price and completion date. The Preliminary Contract also involves a payment of a 10% - 20 % deposit to the seller. The rest of the selling price are payable to the seller on the stage of concluding the deal.

TO ALL BUYERS

Your time here is absolutely appreciated. We know you are here on a holiday or business and do not waste your time viewing inappropriate property. We start the search before you arrive, and the personalized relationship we have started with you enables us to offer the best available properties.

IMPORTANT INFORMATION TO CONSIDER WHEN BUYING PROPERTY IN BULGARIA

* 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 North Properties in due term and not expect the property to be empty right after signing of the final contarct.
* All foreign buyers purchasing real estate property 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 much lower than the actual selling (purchase) price.
Most of the Bulgarian propety owners (vendors) wish that the "tax estimation price" 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 North Properties can not be responisble for it. If the respected property buyer wishes that the purchasing price is written in the property title deed they must notify us in advance and we will negotiate on this with the vendor of the property.

ACCOUNTING SERVICES

Once you have a company established you would need an accountant to take care for the documentation, taxes on the property, annual financial conclusion, etc. We can sort this out for you by recommending reputable accountant, who has been working at TopBGProperties and has proven hers professionalism and loyalty. She is acquainted with the procedure and has long experience with foreign clients.