Bulgarian property investment. Financial and legal information for buying property in Bulgaria
In some respects, buying a property in Bulgaria is pretty much the same as buying anywhere: the process is littered with financial and legal issues. In an emerging market like the Bulgarian property sector, there will always be some individuals who set themselves up as experts when they are anything but. Some will simply be inexperienced. Some may be downright crooked. This section aims to provide you with information so that you can avoid such traps, whether your purchase of Bulgaria property is for residential or investment purposes.
Financing your purchase of property in Bulgaria
Even though property in Bulgaria is cheap compared with the UK and other Western European countries, few buyers of Bulgarian property make a purchase from the change in their pocket. Unless you have a very fat piggy-bank, you will have to look at ways of financing your purchase.
Among the options are a Bulgarian mortgage, secured on property in Bulgaria, or a UK and international mortgage secured on your assets at home. The same choices apply if you are thinking of renting out your Bulgarian property, because Bulgarian buy to let mortgages, as such, do not exist.
Legal process for buying property in Bulgaria
Paperwork! It is an inevitable feature of any property purchase, anywhere. You will find it useful to know in advance what legal documents you will encounter during the process of buying a property in Bulgaria.
When you purchase Bulgarian property, you have to sign the title deeds in front of a notary official. He or she is one of the legal services you must engage when buying a property in Bulgaria.
Investing in Bulgarian property can be profitable but it is not without risks. Professional advice is always best to help you avoid problems caused by inheritance tax and currency issues. Both of these factors can cost you a great deal of money and this is not always understood by newcomers to the Bulgarian property market.
What else do I need to know about property in Bulgaria
Some knowledge of planning permission rules, property tax and registration is essential. If you are looking at renovating a building for resale you must ensure you do not fall foul of the former and risk your investment in Bulgarian property.
Protecting your pension in Bulgaria
If you are planning to retire and live on your pension in Bulgaria, you need to optimise this income and reduce your tax liability.
Taking professional advice is the best way to protect yourself when investing in property in Bulgaria. There are dangers, especially in such a new market, but steps can be taken to minimise them and allow you to enjoy your Bulgarian property investment.
