Real Estate In Bulgaria
Since joining the EU in 2007, Bulgaria’s laws regarding the purchase of real estate is changing with regards to foreigners. Foreign nationals are allowed to own properties in Bulgaria, but not allowed to own land. This law is set to change however, as one of the EU ideals is that property and land ownership must be open to all. In order to buy land, you are required to incorporate a business in Bulgaria, and own the land as an asset of the company. This is a common occurrence, and the process is not complicated and generally takes up to four weeks. It does however incur an extra cost to buying the real estate.
When purchasing property in Bulgaria, it is a common practice to reserve the property that you wish to buy in order to keep it off the market. You will need to sign a reservation agreement and pay the seller a reservation fee. These fees vary, but are usually not more than about 3000 euros.
If using a real estate agent, the estate agent fees are generally split between the buyer and the seller, and this fee is typically around 6% of the cost of the property. A preliminary contract is then drawn up, and the buyer is expected to pay a 10% deposit. The solicitor then proceeds to check that all the taxes are paid, before processing the ownership title.
These include transfer fees, notary fees and legal fees. Typically, you need to budget for 4-5 % of the purchase price in fees and taxes. Buying real estate in Bulgaria is not dissimilar to buying in other countries with these few exceptions. There is a 15% tax on any income made on Bulgarian property.
Bulgaria is increasing in popularity for many foreign nationals looking to invest in real estate. Properties are still very good value, although they are on the increase. It has an ideal location; easily accessible by direct flights from most European countries.
Bulgaria boasts a great range of beautiful landscapes, from the beaches of the Black Sea to the many beautiful mountains dotted with ski resorts. Tourism has been on the rise over the last few years, and many investors are finding the buy-to-let investment lucrative. Travel agents throughout Europe are now offering Bulgaria as one of their top selling European destinations.