Purchasing Real Estate In Bulgaria: Step-By-Step Plan For Foreigners

Favorable investment conditions, low tax rates, and affordable prices make purchasing real estate in Bulgaria a lucrative option for foreign citizens. Familiarize yourself with legal and tax implications to ensure a safe deal. A thorough approach to purchasing, including thorough research and legal guidance, can help avoid issues with the National Revenue Agency and lead to beneficial investments.

Why Bulgaria?

Investing in real estate is a secure way to preserve capital. The resort areas of Bulgaria offer an attractive opportunity for a stable income. Many foreign investors aspire to own apartments by the sea. The increased demand is due to economic stability, optimal prices, beautiful nature, a favorable tax system, etc.

Buying real estate in Bulgaria is a sound and profitable investment if you're considering this option. Property can be rented or used for year-round living, considering that Bulgaria's popularity in tourism and business increases annually. This indicates that the real estate market in Bulgaria is among the most favorable options for future investments.

Initial Steps

Determine the intended use of the property before choosing suitable real estate offers. Consider your personal requirements and desired characteristics for future ownership when selecting a region.

For instance, city, village, and resort properties are perfect for year-round living. However, in resort areas, the lack of infrastructure may be challenging for families with children in the future. Big cities like Varna, Nessebar, and Burgas offer comfortable conditions for year-round living.

Property in a city or resort area is suitable for profitable investments that generate rental income. Pay attention to the location, distance from the sea, infrastructure availability, and housing comfort level. Sunny Beach, Nessebar, Ravda, or Saint Vlas properties generate higher rental income than ones in small towns and villages.

Consider personal preferences when choosing real estate in Bulgaria for seasonal holidays. Those looking for a relaxed holiday should consider small resort villages or the outskirts of major resort areas. Those into active and vibrant leisure should choose a property in Sunny Beach, Saint Vlas, or Ravda.

It's important to understand the peculiarities of the real estate market in Bulgaria before even considering purchasing residential property. After understanding the real estate market, the next step is to determine your budget and prioritize selection criteria. You can seek professional aid from agencies like Bulgaria Home. Such a solution can help you secure a suitable property from the available options on the market.

Legal Aspects Of Buying Real Estate In Bulgaria

Current legislation doesn't restrict foreign citizens from purchasing property without land. Foreigners can acquire ownership of the property with land by either opening a company in Bulgaria or leasing land from the state if they plan to buy a house or villa.

This is the standard list of documents for real estate purchases in Bulgaria:

  • ID;
  • Bulgarian/international bank account number (can choose either);
  • Family status certificate.

It's worth mentioning that using the assistance of a professional real estate agency to complete the transaction provides clients with the benefits of the qualified services of a lawyer. Additionally, foreigners receive the necessary documentation for real estate per current laws in the country.

Financial Considerations

Property owners must pay a property transfer tax. Foreigners must pay 3% of the property's assessed value as their mandatory tax contribution. The following mandatory payment after the property transfer tax is the value-added tax (VAT) at a rate of 20% of the price of the acquired residential property. The VAT amount may be reduced or waived in exceptional cases if the property is designated for year-round occupancy.

The property owner must pay a stamp duty equivalent to 0.1% of the housing value. This amount is paid during the registration of property rights at the Bulgarian Registry Agency. It's important to pay all taxes before registering property rights.

In addition to the taxes and fees required to complete a real estate purchase in Bulgaria, foreign investors should also factor in expenses for a notary, real estate agency commission, and other additional costs.

Choosing A Real Estate Agency In Bulgaria

It's important to choose a reputable real estate agency with a good reputation before buying residential property in Bulgaria. Choosing this option means that you trust the purchase of property to a reliable third party. These are the benefits:

  • Access to a catalog of real estate objects in all country regions.
  • Assistance in choosing a suitable option, checking the legal aspects of the property, gathering documentation, and visiting all authorities.
  • Qualified services of a translator, lawyer, and housing specialist.

Agencies with high ratings offer their clients services such as property inspection, legal document verification, and secure transactions to ensure the safety of the transactions. Thus, choosing trusted real estate agencies is a logical decision based on their advantages and security.

Inspection Of Real Estate Objects In Bulgaria

An important step before signing a preliminary contract is a thorough inspection of the residential property. The inspection includes several phases that help the future owner decide whether to purchase or decline the transaction. Company lawyers check the seller of the property, the right to ownership of the object, any encumbrances, and the possibility of third-party ownership, among other things.

Finalizing The Transaction

After selecting and inspecting residential property in Bulgaria, you can sign a preliminary contract, make a deposit, prepare documents for the transaction, formalize the contract with a notary, and complete the payment.

The real estate agency "Bulgaria Home" provides certified services for supporting real estate purchase and sale transactions in Bulgaria. You can contact us by phone, messenger, or email.