The cost of buying property in Bulgaria
The cost of buying property in Bulgaria is considerably less than buying property in the UK. Indeed, low Bulgarian property purchase costs and a relatively simple buying process are among the many advantages of buying here. Typically, taxes and fees add 6-7% to the price of property for sale in Bulgaria.
Initial costs of buying property in Bulgaria
Once you have located your dream property in Bulgaria you have to pay a reservation fee. For off-plan apartments and villas, this is usually £500-£2500 , but most other property for sale in Bulgaria attracts a reservation fee of about £500.
The reservation fee holds your Bulgarian property until the preliminary contract is signed at which point a non-refundable deposit (minus the reservation fee) is paid. For off-plan property in Bulgaria, this deposit is 10-30% of the purchase price. For all other property for sale in Bulgaria, the deposit is 10%.
If you are buying off-plan property in Bulgaria, your deposit will be the first of a series of instalments scheduled to coincide with particular stages of the building process.
For all other Bulgarian property, a completion date (usually within one month) is confirmed in the preliminary contract and the balance of the purchase price will be due on that date.
Estate agents´ and lawyers´ fees relating to buying property in Bulgaria
When buying property in Bulgaria it is the purchaser who pays commission (usually 3-5% of the price) to the estate agent. Many agents quote a percentage fee, subject to a minimum of £350-£500, which is payable when the preliminary contracts are £signed.
They also charge a daily viewing fee of £30-£100 which they refund if you buy a Bulgarian property from them.
Some agents now prefer to offer complete packages that include flights, accommodation and transfers to view property for sale in Bulgaria´s coastal, mountain and rural areas, and may also include conveyancing and legal fees. Packages cost from £1,000.
If you prefer, you can employ an independent lawyer to liaise with the vendor of the property in Bulgaria, arrange a survey (extra £200-£300), undertake searches, draw up the preliminary and final contracts and register change of ownership. Assuming no significant complications, the fee would equate to about 1% of the price of your Bulgarian property, usually subject to a minimum of £200-£300. Notary fees add another 1-2%.
Bulgarian property taxes
On completion you have to pay a municipal tax (2% of the purchase price), annual local council taxes (0.15%) and an annual rubbish collection charge (less than £20).
You should also be aware that a 15% tax is levied on any income or capital gain made on a Bulgarian property owned by a foreigner.
Typical costs for a £40,000 property in Bulgaria (without land)
Non-refundable deposit : £4,000
Estate agent´s commission : £1,200
Survey : £200
Balance of purchase price : £36,000
Lawyer´s fees : £400
Notary´s fee : £200
Municipal tax : £800
Other taxes : £70
Total : £42,870
Buying Bulgarian property with land
When looking at property for sale in Bulgaria be aware that foreigners incur additional costs if they buy land. If you have to set up a limited liability company in order to purchase land and property in Bulgaria, your costs will rise by £400-£600. In addition, about £1,700 has to be held in a bank account until the company is registered, but can then be used to fund your Bulgarian property purchase.
