Purchasing Property in Bulgaria
The
following payment terms apply when purchasing property in Bulgaria
- 2000 Euro
Reservation Deposit
- 40 % upon
signing a Preliminary Contract of Sale
- 40 % in
two or three payments until the completion of Complex
- 20 % upon
completion and signing Title Deeds
The Reservation
Deposit
This needs to be paid as soon as they find the property to take it off
the market and the fix the price as property is selling very quickly.
Deposit is payable by travellers cheques, cash or bank transfer as the
developers, lawyers and agents do not normally take credit cards as their
usage is not widespread. When paying the reservation fee our lawyer will
open a bank account for you in a Bulgarian bank
- The prices
quoted for in Bulgaria include VAT
- All properties
are freehold
- There
is no need to incorporate a Bulgarian company unless buying a villa
with it's own land
10 Year
Building Guarantee
All new build properties in Bulgaria come with ten years building guarantee.
The Bulgarian national standards require this. This is written in all
Preliminary Contracts.
Payment
Protection
Most of the developers work with banks who finance the building works
of the development, however some companies have other financial sources,
but now the construction business in Bulgaria is very lucrative and all
developers are abiding the contracts they sign in order to keep a good
reputation because they plan to launch many new projects.
Nevertheless
lawyers check all their companies' documents very strictly and we make
every effort to protect you the buyer
In Bulgaria
there are not such bank and insurance policy guarantees but as they are
joining EU in 2007 this practice should be introduced very quickly
Legal
Fees and Taxes
There is a fixed rate deal with a good English speaking lawyer that is
recommend to clients. This is usually €450 for all the searches,
legal work etc. at completion and can include a power of attorney agreement
if the purchaser is unable to travel to Bulgaria in person.
Local taxes
and notary fees total approximately 5% of the Notary price (property tax
value)
As in many countries in the Balkan region the Notary price is based on
a local tax evaluation conducted by the municipality, which is usually
four times lower than the price paid
Some of the
developments share the cost 50/50 with the purchaser. As such clients
should budget a maximum of 3% in addition to their purchase price. In
cases where the municipality places lower Notary prices, these taxes are
obviously much less.
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