Country Buying Guides - Bulgaria

The conveyancing process

• Independent Lawyer
It is essential to use an independent lawyer with a legal knowledge of both the English and Bulgarian legal systems, who are able to translate the documents and explain the terms to your full understanding.

• Due Diligence
It is important to carry out due diligence on the property you are purchasing in order to ensure there are no encumbrances on the property. Your independent lawyer will do this on your behalf.

• Restrictions
At this moment in time non nationals are only allowed to purchase property in Bulgaria as an individual, if you are wishing to purchase land it must be done through a limited company. This includes a house, which is obviously set on land, but not an apartment which is not. Your independent lawyer will help you through the process of purchasing land through a company.

• Reservation receipt
This should be received from your agent after your reservation fee has been paid. It should contain a description, the location and cost of your property, the reservation amount and how long your property is reserved for.

• The Notary Public
After your lawyer has checked the final contract of sale and confirmed that all is correct. The contract needs to be signed and witnessed by a notary in the presence of all parties. It is common for a Power of Attorney to be used, which effectively gives someone the power to sign the contract on your behalf. A Notary fee is applicable and is around 2% of the property price. Also payable at this stage is a local tax of 2% of the purchase price.

• The Register of Real Estate
In order to become the legal owner of a property in Bulgaria, as in England, the proprietor has to be duly registered on The Registry Agency. This process of Registration can take a week or up to a month. In order to be valid this transaction must be documented in writing, confirmed and notarised by a notary. There is a small registration fee of 0.1% of the property purchase price.

• Inheritance
Most foreign legal systems’ inheritance law is different to our system, hence it is extremely important to use your independent lawyer to help you make a will so that in the unfortunate event of your passing, your wishes and not the word of the law is followed.

• Costs and Fees
In Bulgaria both the vendor and the purchaser pay estate agent fees, this can amount to 3% - 5% of the property value. Also in Bulgaria there is a municipal tax (stamp duty) this is currently 2% of the purchase price.

In Assocation With The International Property Law Centre LLP