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Where is Bulgaria?
Bulgaria is situated in SE Europe. It is a quiet rural country about the size of England but with a population of only 8 million and is only a 2 ½ hours’ flight away from the UK. It is bordered by Romania to the North, the Black Sea to the east, Macedonia and Yugoslavia to the west and Turkey and Greece to the South. The capital is Sofia, which has a population of one million. Varna and Bourgas are the main towns on the coast.
What is the weather like in Bulgaria?
Bulgaria’s weather offers a hot Mediterranean type summer with temperatures climbing up to 37°C. Spring and autumn are mild and colourful.
How do I get there?
By daily direct flight from the UK to Sofia; charter flights are available throughout the summer and fly direct to Varna.
Bulgaria is situated in SE Europe. It is a quiet rural country about the size of England but with a population of only 8 million and is only a 2 ½ hours’ flight away from the UK. It is bordered by Romania to the North, the Black Sea to the east, Macedonia and Yugoslavia to the west and Turkey and Greece to the South. The capital is Sofia, which has a population of one million. Varna and Bourgas are the main towns on the coast.
What is the weather like in Bulgaria?
Bulgaria’s weather offers a hot Mediterranean type summer with temperatures climbing up to 37°C. Spring and autumn are mild and colourful.
How do I get there?
By daily direct flight from the UK to Sofia; charter flights are available throughout the summer and fly direct to Varna.
Could you kindly give me more information and explain the difference between Act 15 and Act 16 when buying a property?Many thanks.
I will try to explains as easiest as possible:
"Act 15" = Certificate 15 is a protocol, approved from the government/state with which the building/property will be transfered from the builder to the owner.
"Act 16" = Certificate 16 is a protocol, issued after Act 15 by the government/state, with which the builder certifies the building in front of the governmental authorities, after that the building enters into exploatation. Actualy this certificate Act 16 is the last stage of the building process.
I will try to explains as easiest as possible:
"Act 15" = Certificate 15 is a protocol, approved from the government/state with which the building/property will be transfered from the builder to the owner.
"Act 16" = Certificate 16 is a protocol, issued after Act 15 by the government/state, with which the builder certifies the building in front of the governmental authorities, after that the building enters into exploatation. Actualy this certificate Act 16 is the last stage of the building process.
How long will it take to buy a property?Generally it will take 3 weeks to buy a property. This is dependent on a number of factors, not all of which are in your control. Once you have decided on a property, contact will be made with the seller or his estate agent. The terms and conditions of the sale can be negotiated very quickly, depending on how easily we can instruct an independent surveyor to assess the property, which is our usual practice. It is important to have an accurate picture of the condition of the property, likely repairs that will be needed and its consequent value. Usually a surveyor can prepare a report within a week of instructions. The legal title to the property can be checked at the Land Register in a day or two. Searches with the local authority, trying to confirm the uses and building permissions associated with the property, will similarly take several days. The Preliminary Contract is then exchanged and a deposit paid. There is then a period of, at maximum, a few days while the money transfer is arranged and any final checks made. The sale will take place in front of a Notary at an agreed date and time.
Buying apartment -Do I need to setup company? No, is the short answer. However, buying houses or land and you will need to Set-up Company. Cost for company setup is approx. 600 Euro with annual return every year not to exceed 200 Euro.
Buying apartment -Do I need to setup company? No, is the short answer. However, buying houses or land and you will need to Set-up Company. Cost for company setup is approx. 600 Euro with annual return every year not to exceed 200 Euro.
Property Tax? Yes there is property tax and is paid annually based on 0.15% of the property value.
What level of capital growth can I expect on the value of my property?It is not possible to say with certainty how the property market will react in the future. However, the property markets of the Czech Republic and Poland, two of the most recent new members of the EU have risen by approximately 250% in the five years to today's date. Bulgarian property prices themselves have increased by 17% nationwide over the last 9 months. The increase of the value of a property depends on a number of factors, including the condition of the house, its location and the type of property.
Which are the preferred types of business organizations with foreign investment?
The most common form of organization for foreign investors is a limited liability company. Other types are general partnership, limited partnership, joint stock company, sole proprietorship, joint venture, branch, holding, cooperatives, representative office. Limited liability companies, unlimited partnerships, public limited companies, limited partnerships, holdings and cooperatives are legal entities. Branches and representations are not independent legal entities: branches may engage in economic activities, they have their own property and compile a separate balance sheet; representations may not engage in economic activities
The most common form of organization for foreign investors is a limited liability company. Other types are general partnership, limited partnership, joint stock company, sole proprietorship, joint venture, branch, holding, cooperatives, representative office. Limited liability companies, unlimited partnerships, public limited companies, limited partnerships, holdings and cooperatives are legal entities. Branches and representations are not independent legal entities: branches may engage in economic activities, they have their own property and compile a separate balance sheet; representations may not engage in economic activities
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. Gas: the gas system network is not developed in Bulgaria yet. 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.
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. Gas: the gas system network is not developed in Bulgaria yet. 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 is the state of the Bulgarian real estate market?
Like everything else in Bulgaria, property is very good value. This is the result of a general neglect of Bulgarian asset markets (at the moment). Foreign investors in Bulgaria will profit in the long run.
Of course this depends on the price at which you buy. Property appraisal and valuation is an important element of our services. Knight International and Bulgaria-Property.com has a network of local contacts across the country who have negotiated the realistic prices that we offer on our properties.
Bulgaria is scheduled to join the EU in 2007. At the moment, the Bulgarian property market is off the map for foreign investors. We anticipate awareness of this market to increase as EU membership approaches. Plus, the present Constitutional restriction of foreign investment in land in Bulgaria is incompatible with EU membership. When this restriction is removed we expect much inward investment, which will cause an increase in the market's liquidity and its level.
Like everything else in Bulgaria, property is very good value. This is the result of a general neglect of Bulgarian asset markets (at the moment). Foreign investors in Bulgaria will profit in the long run.
Of course this depends on the price at which you buy. Property appraisal and valuation is an important element of our services. Knight International and Bulgaria-Property.com has a network of local contacts across the country who have negotiated the realistic prices that we offer on our properties.
Bulgaria is scheduled to join the EU in 2007. At the moment, the Bulgarian property market is off the map for foreign investors. We anticipate awareness of this market to increase as EU membership approaches. Plus, the present Constitutional restriction of foreign investment in land in Bulgaria is incompatible with EU membership. When this restriction is removed we expect much inward investment, which will cause an increase in the market's liquidity and its level.
How do I invest in property in Bulgaria?
The upturn in the Bulgarian economic climate, coupled with the preferential conditions and guarantees for foreign investors, has generated excellent business opportunities and investment growth potential. The imminent acceptance of Bulgaria in the European Economic Community, with full integration planned between 2006 and 2008, is attracting more and more foreign investors to Bulgaria, providing unprecedented economic growth potential.
In July 2000, Bulgarian Property Law was changed to remove the restrictions on foreign investment in Bulgarian land and property. In common with other European countries, the only remaining requirement is to register the investor or investing company in Bulgaria before any transactions can take place and capital invested.
Is there a law on foreigners buying property?
No, foreigners may purchase any type of property.
Is there a law on foreigners purchasing land?
Yes, in order for foreigners to buy land they must register a Bulgarian company.
How do I register a company?
Frightening as it sounds, it is quite a simple procedure that we can assist you with. Additional fees apply. The registration of a company takes about three weeks. Please be aware that as a company owner you will have certain obligations such as filing annual accounts. You will get assistance on every aspect of this.
What funds do I need to register a company?
5,000 leva (approx. GBP 1,750) for the capital of the company. This is the minimum amount required as capital for a company. This amount is paid into the bank in the company account at the start of the registration process and is kept there until the Court registration is issued. It is then transferred into a company current account and can be withdrawn or used as needed. Company registration fees. These include Government fees for the registration, solicitor's fees and registration fees for BULSTAT (Bulgarian Statistics). The fees vary according to Government decrees. Please enquire for up to date calculation. It will help a lot if you have the above amounts with you when arriving in Bulgaria, especially if you are coming for a short time as bank transfers take up to a week.
The upturn in the Bulgarian economic climate, coupled with the preferential conditions and guarantees for foreign investors, has generated excellent business opportunities and investment growth potential. The imminent acceptance of Bulgaria in the European Economic Community, with full integration planned between 2006 and 2008, is attracting more and more foreign investors to Bulgaria, providing unprecedented economic growth potential.
In July 2000, Bulgarian Property Law was changed to remove the restrictions on foreign investment in Bulgarian land and property. In common with other European countries, the only remaining requirement is to register the investor or investing company in Bulgaria before any transactions can take place and capital invested.
Is there a law on foreigners buying property?
No, foreigners may purchase any type of property.
Is there a law on foreigners purchasing land?
Yes, in order for foreigners to buy land they must register a Bulgarian company.
How do I register a company?
Frightening as it sounds, it is quite a simple procedure that we can assist you with. Additional fees apply. The registration of a company takes about three weeks. Please be aware that as a company owner you will have certain obligations such as filing annual accounts. You will get assistance on every aspect of this.
What funds do I need to register a company?
5,000 leva (approx. GBP 1,750) for the capital of the company. This is the minimum amount required as capital for a company. This amount is paid into the bank in the company account at the start of the registration process and is kept there until the Court registration is issued. It is then transferred into a company current account and can be withdrawn or used as needed. Company registration fees. These include Government fees for the registration, solicitor's fees and registration fees for BULSTAT (Bulgarian Statistics). The fees vary according to Government decrees. Please enquire for up to date calculation. It will help a lot if you have the above amounts with you when arriving in Bulgaria, especially if you are coming for a short time as bank transfers take up to a week.
What about guzumping?
Although rarely, it may happen that you would agree the purchase details with an owner and then find out that they are withdrawing from the deal for one reason or other. Unfortunately, there is very little an agent can do to make an owner sell their property when they don't wish to do so, or change their mind. Some property owners have put their property up for sale with more than one agent, sometimes for different prices. An attractive property may draw interest from several buyers at the same time, and with different agents. If you have managed to negotiate a lower price with the owner, another client may offer them the full asking price and tie them down with a contract immediately. In this case, our advise is: Do not compete. Do not allow anybody to exercise any pressure over you to purchase. In order to make sure there are not going to be any unpleasant surprises, the buyer and the vendor sign a Preliminary contract for the purchase-sale, in which the conditions of the final deal are clearly stated. The preliminary contract states, amongst other things, the price agreed and the date of the completion of the deal. At the signing of the preliminary contract the buyer pays to the vendor 10% of the price of the property with which both parties are bound to the conditions of the contract. There are penalties for the party that decides to withdraw from the deal at this stage. There hasn't been such a case in our experience.
Do I need a solicitor?
It is entirely up to you. Although you are not required to have one, if it would make you feel more comfortable, you can hire a solicitor. Normally the Estate agent does all the work on behalf of both the vendor of a property and the buyer. And, before you ask, there is no conflict of interests as the purchase-sale of a real estate is a voluntary contract into which both parties enter by their own free will. The role of the Estate agent is to, firstly, meet both parties, then to co-ordinate them and assist both with the formalities in order to complete the deal successfully and to fulfill both parties' wishes. We employ the services of a solicitor, a specialist in the real estate, to assist us in our business, on a daily basis, so we have got you covered!
What do I get to say I am the new owner of the property?
The sale of a property is completed before a Notary who witnesses the final contract for purchase-sale. This is a legal requirement. The Notary checks the paperwork of both vendor and buyer and makes sure that the sellers are the ones they say they are, that they are indeed the owners of the property and they have the right to sell it, that the property has no mortgages and other encumbrances that may prevent the new owner from exercising his rights and makes sure that both parties are entering into the contract by their own free will. And, last but not least, that the price for the property has been paid. The new owner gets a Title deed which is issued by the Notary and registered with the Entry office at the local Courts. The Title deed is signed by both vendor and buyer, and the Notary.
What is the cost of living like in Bulgaria ?
This is the main attraction for people coming to Bulgaria. An average salary is £150 per month. Four persons can generously eat out with wine for less than £10. Property and land is very cheap to purchase compared to other European countries.
How safe is the country ?
You are less likely to become a victim of crime in Bulgaria than in the UK. Street crime is rare but as in all countries you always have to be aware of your surroundings. Bulgaria is basically a peaceful, law abiding and trouble free country.
What type of facilities do you find in Bulgaria?
English style supermarkets have sprung up due to demand. Most items purchased in the UK can be found here.
There are private English speaking schools and nurseries.
Communications (telephones, internet access etc.) exist even in the smallest village.
There is a well-maintained network of public transport accessing all towns and villages for a very reasonable price.
Are the banks safe to use?
Yes, most Bulgarian banks are affiliated with international banks and offer excellent interest rates for foreign or local currency. We at Holiday Property use Bulgarian Ibank which is one of the most efficient banks when it comes to serving foreign clients, has reasonable charges and offers e-banking. For details visit www.ibank.bg
In conclusion:
Overall, Bulgaria is at the same stage Spain and France were to the British in the late eighties and early nineties. Cheap property and low living costs. If you are thinking of coming to Bulgaria to purchase property, start up a business or just enjoy a holiday then as with most things you have to be extremely careful on whom you deal with.
Although rarely, it may happen that you would agree the purchase details with an owner and then find out that they are withdrawing from the deal for one reason or other. Unfortunately, there is very little an agent can do to make an owner sell their property when they don't wish to do so, or change their mind. Some property owners have put their property up for sale with more than one agent, sometimes for different prices. An attractive property may draw interest from several buyers at the same time, and with different agents. If you have managed to negotiate a lower price with the owner, another client may offer them the full asking price and tie them down with a contract immediately. In this case, our advise is: Do not compete. Do not allow anybody to exercise any pressure over you to purchase. In order to make sure there are not going to be any unpleasant surprises, the buyer and the vendor sign a Preliminary contract for the purchase-sale, in which the conditions of the final deal are clearly stated. The preliminary contract states, amongst other things, the price agreed and the date of the completion of the deal. At the signing of the preliminary contract the buyer pays to the vendor 10% of the price of the property with which both parties are bound to the conditions of the contract. There are penalties for the party that decides to withdraw from the deal at this stage. There hasn't been such a case in our experience.
Do I need a solicitor?
It is entirely up to you. Although you are not required to have one, if it would make you feel more comfortable, you can hire a solicitor. Normally the Estate agent does all the work on behalf of both the vendor of a property and the buyer. And, before you ask, there is no conflict of interests as the purchase-sale of a real estate is a voluntary contract into which both parties enter by their own free will. The role of the Estate agent is to, firstly, meet both parties, then to co-ordinate them and assist both with the formalities in order to complete the deal successfully and to fulfill both parties' wishes. We employ the services of a solicitor, a specialist in the real estate, to assist us in our business, on a daily basis, so we have got you covered!
What do I get to say I am the new owner of the property?
The sale of a property is completed before a Notary who witnesses the final contract for purchase-sale. This is a legal requirement. The Notary checks the paperwork of both vendor and buyer and makes sure that the sellers are the ones they say they are, that they are indeed the owners of the property and they have the right to sell it, that the property has no mortgages and other encumbrances that may prevent the new owner from exercising his rights and makes sure that both parties are entering into the contract by their own free will. And, last but not least, that the price for the property has been paid. The new owner gets a Title deed which is issued by the Notary and registered with the Entry office at the local Courts. The Title deed is signed by both vendor and buyer, and the Notary.
What is the cost of living like in Bulgaria ?
This is the main attraction for people coming to Bulgaria. An average salary is £150 per month. Four persons can generously eat out with wine for less than £10. Property and land is very cheap to purchase compared to other European countries.
How safe is the country ?
You are less likely to become a victim of crime in Bulgaria than in the UK. Street crime is rare but as in all countries you always have to be aware of your surroundings. Bulgaria is basically a peaceful, law abiding and trouble free country.
What type of facilities do you find in Bulgaria?
English style supermarkets have sprung up due to demand. Most items purchased in the UK can be found here.
There are private English speaking schools and nurseries.
Communications (telephones, internet access etc.) exist even in the smallest village.
There is a well-maintained network of public transport accessing all towns and villages for a very reasonable price.
Are the banks safe to use?
Yes, most Bulgarian banks are affiliated with international banks and offer excellent interest rates for foreign or local currency. We at Holiday Property use Bulgarian Ibank which is one of the most efficient banks when it comes to serving foreign clients, has reasonable charges and offers e-banking. For details visit www.ibank.bg
In conclusion:
Overall, Bulgaria is at the same stage Spain and France were to the British in the late eighties and early nineties. Cheap property and low living costs. If you are thinking of coming to Bulgaria to purchase property, start up a business or just enjoy a holiday then as with most things you have to be extremely careful on whom you deal with.
