Buying real estate abroad is always accompanied by certain complexities and requires a deep understanding of local laws. But in Bulgaria, everything is as simple, straightforward, and stable as possible, which makes this country attractive to foreign investors. If you consider all the peculiarities of the legislation and study your rights and obligations, then any risks are excluded. For the convenience of buyers of real estate companies, BulgariaDom provides consulting services, assistance in the execution of documents, and after-sales service. Let's consider the step-by-step process of buying real estate in Bulgaria.
Preparing to buy real estate in Bulgaria
The first step to buying real estate in Bulgaria is to choose a suitable property and check it thoroughly. Potential buyers are advised to familiarize themselves with the market value of properties in the region of interest and verify the legality of construction. It is essential to check whether the seller has all the necessary documents, including title deeds and building permits.
Basic laws and requirements for making a purchase
The laws of govern the purchase of real estate:
- Property. Establishes the general rules of ownership and disposal of property, defines the types of property suitable for foreigners, and the conditions under which it is possible to obtain them.
- Notarial acts. All transactions must be concluded in the presence of a notary who verifies the documents and confirms the parties' identities.
- Land. Restricts the right of foreigners to purchase land plots. Allows purchase only through registration of a legal entity in Bulgaria, but there are exceptions for EU citizens.
In addition, several requirements for the buyer are considered, including proof of financial reliability. The buyer must prove the possibility of making the purchase and paying the necessary taxes and fees.
A purchase permit is issued; in certain situations, an additional agreement from the Bulgarian authorities is required.
Stages of buying real estate
The process of buying real estate in Bulgaria involves several basic steps:
- Signing a preliminary agreement and making a deposit.
- Verification of documents and ownership.
- Registration of the transaction with a notary and complete payment.
- Registration of the ownership right in the local cadastral office.
To make a purchase, you need to have these documents:
- Notarized sale and purchase agreement.
- Extracts from the land register.
- Certificate of the tax status of the object.
- Technical passport.
- Proof of identity of the seller and the buyer.
A power of attorney and spousal consent to the transaction are executed if necessary.
Taxes and obligations of real estate owners in Bulgaria
Bulgaria property owners face various taxes and obligations that must be considered when owning a home. Here are the main ones:
- Property Tax. Owners must pay an annual tax, which varies depending on the location and type of property. Typically, it ranges from 0.01% to 0.45% of the property's tax assessment, which may be significantly lower than the market value.
- Tax on income from renting out real estate. The tax rate for individuals is 10% of net income.
- Tax on the purchase of real estate. A tax is levied on the purchase, about 3-4%. The exact amount depends on the municipality.
Additionally, certain obligations for the owner apply, as this keeps the property in perfect condition and avoids pollution of the surrounding area. This includes maintaining the property in good condition according to local regulations. Ignoring this rule may result in fines.
Owners must notify the tax authorities of real estate transactions, including sale or purchase. All transactions must be registered with the local cadastre to recognize ownership officially.
After-sales service and support from BulgariaDom
BulgariaDom offers a wide range of after-sales services, including legal support, property management assistance, and rental and resale advice. Cooperation with us will help new owners avoid many problems related to the maintenance and operation of real estate abroad.
Buying a home in Bulgaria will be a profitable investment and provide a stable income if you consider the subsequent rental of the object. It is essential to carefully prepare for buying real estate and use the services of trusted professionals to make the investment successful and safe.