Time share and shared ownership of property in Bulgaria
The Bulgarian property market is still relatively immature and has not yet developed a timeshare sector. Given the low price of property in Bulgaria, it is considered unlikely that timeshare arrangements will be demanded in the near future. However, shared ownership of Bulgarian property is a route many buyers choose to take.
In most cases, the safest route to shared ownership of property in Bulgaria is to form a Bulgarian limited company and divide the share capital between the directors, usually reflecting the proportion of capital each invested. The directors can be family members, spouses, friends, business partners or simply a group of investors keen to get onto the Bulgarian property ladder.
Forming a company to buy Bulgarian property
Forming a limited company to buy a property in Bulgaria is a commonplace procedure. Indeed, it is necessary for every purchase of Bulgarian property involving land, and it is neither complicated nor expensive.
The lawyer handling your purchase will be able to arrange for the company formation. Normally, this adds about 400-600 Euros to the costs of buying a property in Bulgaria, and takes about one month to be finalised. Once the company is registered and becomes the owner of the Bulgarian property, it is necessary to submit accounts each year for taxation purposes.
Giving up your share in a property in Bulgaria
If at some future time, you decide to withdraw your investment in the property in Bulgaria, the other directors (or even a new director) can negotiate to buy your shares. Your name would then be removed from the list of directors and you would have no further responsibility for the company or property. The company, meanwhile, remains the owner of the Bulgarian property and has to formally register the change of directors. This is usually done by a lawyer or accountant.
