Buying Process: 
Buying an apartment:
Buying an apartment as an individual is the simplest – and most common – route taken by most buyers. We can organise the whole transaction from start to finish, including appointing a Bulgarian lawyer (though you are free to appoint any lawyer of your choice), dealing with contracts, powers of attorney, opening a bank account, instalment payments, inspection visits, all your queries, all the way through to completion and then advice and assistance on rentals. You will find that many other property agents simply ‘lose interest’ once you have signed the contract and made your first payment, and you can find it very difficult to obtain a response from them. You are then left with having to deal directly with the Bulgarian Developer. We would never do this and pride ourselves on offering a tailored service to all our clients from very first individual meeting, through to completion and beyond. This process can take up to two years or more depending on the length of the construction period, if buying off-plan.
At the moment an individual can buy an apartment but you will need to set up a Limited Company if you are thinking of buying a house or land. So if you are buying an apartment, this can be done in your own name, but if you are buying a house – which is obviously set on land - then you will need to set up a limited company.
Setting up a company is a relatively easy process and we can organise this for you. The legal and other fees amount to approximately €750 Euro (£500). Once the company has been registered, the company buys the property and owns the land and you are the sole (or joint) owner of the company and therefore of the land.
Whether you wish to buy an apartment, house, villa or just land, we will be here to help and advise you from the point where you choose your apartment right up to signing the contract and making your first payment.
Our additional service to you: ( Optional )
After making your first payment we can tailor our service to fit your exact requirements. We have dedicated offices in both the UK and also in Bulgaria to deal with any query that you may have.
Quite simply, we will ‘hold your hand’ all the way through the process, right from making your first payment.
For this dedicated service we charge a flat fee of £500 inclusive, payable once the Preliminary Sales Contract has been signed. We consider this to be a fair and reasonable fee, and reflects the quality of service and depth of involvement we will show to you. You will find also that it compares very favourably with the standard fee in the business of 5% of purchase price.
If you have selected your apartment and wish to proceed, you are now ready to pay your reservation deposit.
The amount of the deposit may vary depending on the particular development but the amount is likely to be in the region of €1,500.
Once you have paid your reservation deposit, the price of the property is fixed and cannot change and it cannot be sold to anyone else. The Reservation fee is deducted from the purchase price of the property. It is important to realise that if you subsequently decide not to proceed with the purchase, the deposit is non refundable.
Stage 2
Preliminary sales contract:
When buying an off-plan property in Bulgaria, this contract will state the names and address of the Buyer and Seller, purchase price, total square metre size of the property, deadlines for completion of the various stages of the construction, and instalment payments. Payments are made in instalments, as the various stages of construction of the new building are completed by agreed dates. After Reserving, you will receive the Contract within 1- 2 weeks. Once you have read the contact, raised any queries, and are content to proceed, you will then sign and return the Contract. It is at this stage that you must make your first instalment payment. Therefore, the timescale is: once you have Reserved, you must have signed and returned the contract and made your first payment all within four weeks.
Stage 3
Installment payments
The first installment payment will be made by you within days of signing and returning the Preliminary Sales Contract. This payment will be made by Bank transfer from your Bank account to a designated account stipulated in the Contract. In many cases, we will have organised the opening of a Bank account in your own name in Bulgaria and the first payment will be made directly to that. In certain cases the payment is made directly to the Developer in Bulgaria. Whichever route is taken, the payment will eventually be received at the Developer’s Bank account and a receipt will be issued by the Developer. You will have a Bulgarian solicitor acting for you, which we can organise, and he or she will be in charge of the whole transaction, including processing the money transfer once it reaches your Bulgarian Bank account. To enable your lawyer to deal with your Bulgarian Bank, and to conduct the whole conveyance transaction, you will give him or her a Power of Attorney to do so. This is a legal document which we assist you in obtaining either in the UK, or on your initial visit to Bulgaria.
Subsequent installment payments are all stated in the Contract and it is your responsibility to ensure the payments are made on time and to the correct Bank account. All payments are in Euro’s.
Stage 4
Final contract:
When the building is completed a final contract is drawn up and both Buyer and Seller meet at the public notary office in Bulgaria, and the signing of the contract is witnessed. You do not have to be present if you have given your solicitor in Bulgaria a Power of Attorney. A date for final completion is agreed upon, and you should expect to receive the title deeds a couple of weeks after this date.
There may be some discrepancy between the actual price paid for the property, and the price on the title deeds. In Bulgaria, there is a ‘tax estimation price’ and a ‘purchase price’. The ‘tax estimation price’ is lower than the actual ‘purchase price’; this is for the purpose of taxation. Most Bulgarian property owners will want the lower taxation price written in the title deed, rather than the actual price that is being paid for the property.
You are now the owner of your Bulgarian property. You can now choose to arrange the rental of this through an agency, or you may decide that you wish to spend certain periods there yourself. Once you own a property, local annual taxes have to be paid. These are incredibly low in comparison to the UK The annual rate of tax on a house is 0.15% of the purchase price. So if you bought a house for £10,000 the annual tax payable would be £15. The only other tax you’re required to pay is refuse collection; this varies depending on the location and size of the property. It is generally quite reasonable – usually in the region of £10 - £20 p/a. If you buy an apartment, local taxes are still due, together with annual maintenance and management fees that will have been set by the developer and managing agent. Utilities such as gas, water and electricity, etc can be organised via the local municipal offices. All expenses listed above can be paid by direct debit from your bank account in Bulgaria.
Remember that it is the responsibility of every purchaser to carry out their own enquiries and investigations related to all aspects of buying property in Bulgaria. The above summary is simply that, and is not intended to be authoritative or comprehensive. If you are in any doubt, you should consult with your own legal, tax and other advisors.