Buying property in Bulgaria - the process of purchasing Bulgarian property
Once you have found your dream Bulgarian property, you will find the process of buying property in Bulgaria straightforward and speedy. Unless you are buying off-plan, you will probably be the happy owner of your property in Bulgaria within four to six weeks of reservation.
Finding a property in Bulgaria
The first step to buying property in Bulgaria is to get funding in place before you even start looking at what is currently available. If you know exactly how much you can spend, you will not waste time and money looking at Bulgarian property with too high a price tag.
You will need to decide how you can raise the necessary funds for buying a property in Bulgaria and, if you need to borrow money, whether a UK or Bulgarian mortgage is best for your circumstances.
Once your funds are organised, you can start the enjoyable task of finding the right property for you. You will need to consider the type of Bulgarian property, the location and the area in which you want to live.
Negotiating and reserving your Bulgarian property
Unlike in the UK, Bulgarian property is usually advertised at the price the vendor expects to receive. Price negotiation is relatively rare when buying property in Bulgaria but it is not insulting to barter a little if you believe the price is inflated.
A reservation fee of £500-£2,500 is usually requested when buying property in Bulgaria. This secures your Bulgarian property until the preliminary contract is signed.
Legalities of buying property in Bulgaria
You will need to engage a lawyer when buying property in Bulgaria to check the title deeds, licences and permissions, and ensure there are no outstanding debts or legal claims against your new Bulgarian property. This normally takes about five days.
The lawyer will next draw up a preliminary contract. You have to pay a deposit of 10-30% (minus any reservation fee) when you sign it. This deposit is non-refundable, unless the vendor fails to meet his obligations or if certain conditions are not met. Once paid, your Bulgarian property is taken off the market.
Foreigners are not allowed to directly own land so, if you are buying property in Bulgaria with land (ie a house rather than an apartment), you will need to set up a limited company. This is a standard procedure for buying property in Bulgaria and is uncomplicated and reasonably inexpensive. Your new company, rather than you as an individual, becomes the owner of both the Bulgarian property and the land.
Unless you are buying a brand new property in Bulgaria, the building should be surveyed for structural stability and build quality.
The penultimate stage to buying property in Bulgaria is signing the final contract in the presence of a notary public. If you are buying a completed Bulgarian property, the balance of the purchase price and some taxes become due. If you are buying off-plan property in Bulgaria, you usually pay the first instalment at this stage.
The notary registers your name as the owner of the property in the local land registry.
Taking possession of your new property in Bulgaria
If your Bulgarian property has previously been occupied, you will have to negotiate the date on which you expect to receive the keys. Usually this is a few weeks after completion. However, if your property in Bulgaria is vacant, you can probably move straight in. With the process of buying property in Bulgaria completed, you can relax and enjoy your new home.
