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Purchasing property in Bulgaria from a bailiff by participation in an auction procedure

Purchasing property in Bulgaria from a bailiff by participation in an auction procedure

 

 

Step 1:

Organising a viewing of the property – contact with the bailiff;

Step 2:

Checking the documents for the sale – mandatory done by an attorney;

Step 3:

Drawing up and submitting a bid – 10% of the price has to be paid into the account specified by the bailiff. In a sealed envelope the client indicates the price that they offer for the property, and it cannot be less than the initial selling price.

Step 4:

On the day and in the place indicated as those for the public tender the bids will be opened. The person who has offered the highest price will be declared as the buyer, after which the people present at the auction are entitled to offer to purchase the property for a higher price.  The person who has offered the highest price after the bidding will be declared as the buyer.

Step 5.

Within two weeks after the auction the buyer has to deposit the price offered by them after deducting the 10% deposit paid. In case the client refuses to pay the selling price, the deposited money is not refunded. The bidders who have not been declared as buyers receive back the 10% deposit money.

Step 6.

After all, has been paid and after the periods for appealing the actions of the bailiff before court have expired, or if there have been appeals which have not been honoured, the bailiff will issue an order for assignment and this document shall be registered in the respective registry department; thus it will be shown that the property has a new owner. Apart from the selling price the buyer has to pay municipality tax for the acquisition of the property, the fee of the bailiff, as well as a registration charge to the Registry Department. If the order for assignment is not appealed and when it takes effect, then the process for acquisition of the real property at a public auction organised by the bailiff shall be completed.

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Tax Rates Bulgaria

TAX RATES IN BULGARIA

I. Corporate Profit Tax

10% flat rate

II. Personal Income Tax

10% flat rate

III. Dividend Withholding Tax

5% flat rate. After the dividend tax charge, the dividend income is free of any extra taxes.

IV. VAT

20% – general rule.

9% – for tourist accomodation.

0% – for financial services, old buildings, farming land and others

 

 

 

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Procedure for purchase of real estate properties in Bulgaria

Step 1: Determining the main parameters when choosing property – approximate budget and location;

Step 2: Selection of offers by contacting real estate agencies, agents, and property owners, review of real estate web sites, viewings, negotiations on the selling price;

Step 3: Legal verifications made mandatorily by an attorney and including: verification of property title, verification for land charges and encumbrances, checking documents, verification of the marital status of the seller – natural person or verification in the Companies Register if the seller is a juridical person, and other verifications, inspections and checks, if necessary.

Step 4: Signing preliminary contract, mandatorily in the presence of an attorney, containing a detailed description of the property, price and method of payment, deadline for signing the final contract (Title Deed), as well as payment of a deposit by the purchaser.

Step 5: Preparation of the required documents and declarations for completing the transaction before the Notary;

Step 6: Payment of the selling price with a bank transfer;

Step 7: Signing the Title Deed and transferring the possession of the Title Deed over the property; the transaction before the Notary is performed in the presence of an Attorney, who checks all documents; registration of the Title Deed in the Property Register with the Registry Agency;

Costs and expenses for transferring title:

– Municipality tax, which is approximately 3-4% on the material interest of transaction and is estimated by each municipality;

– Charge for registration into the Property Register – 0,1% on the specified material interest;

– Notary charge – it is estimated proportionately in a accordance with the material interest of the transaction, as follows:

Notary charge on specified material interest (in BGN)

Up to 100 BGN including      –                  30

101 – 1000 BGN                     –                   30 + 1,5% for the difference above 100 BGN

1001 – 10 000 BGN                 –                  43,50 + 1,3% for the difference above 1000 BGN

10 001 – 50 000 BGN.             –                  160,50 + 0,8% for the difference above 10 000 BGN

50 001 – 100 000 BGN.           –                  480,50 + 0,5% for the difference above 50 000 BGN

100 001 – 500 000 BGN          –                  730,50 + 0,2% for the difference above 100 000 BGN

For amounts exceeding 500 000 BGN –    1530,50 + 0,1% for the difference above 500 000 BGN, but not more than 6000 BGN

– Bank fees and charges;

– Fee for translation of the documents/for interpreter;

– Attorney’s fee – upon agreement (TBN);

– Commission for the agency – upon agreement.

Duties and obligations of the new owner

– To declare the acquisition of title over the property in the respective tax administration within 2 months after acquisition;

– To register as the property owner in the BULSTAT Register;

– To change the registration of the water and electricity meters in their name;

– To pay the annual tax for the property;

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Is starting a Business in Bulgaria a good idea?

Start Business in Bulgaria

Is starting a Business in Bulgaria a good idea?

 This is a question we often get on our website and phone lines. It is because people are wondering what made the country so popular to investors and business owners.

There are several reasons for this and with this article we would like to share our experience on the topic.

First is the country`s stable economic environment.

There has been a stable growth in the past 5 years in Bulgaria GDP. Furthermore, the country is one of the most efficient ones in employing the European Union growth stimulating economy programs.

Another reason is the taxation system.

Bulgaria currently has the most advantageous tax jurisdiction in the world. With a flat corporate tax of 10% and a flat income tax of 10% business owners can rest assured that they are best optimizing their taxes.

This gives them the opportunity to reinvest a large amount of their taxes payable and thus gain a significant competitive advantage over their immediate competitors. As a comparison in most Central and Western Europe corporate tax can reach as much as 60%.

Having a stable economy and a beneficial tax jurisdiction are major factors but not enough for most.

The last factor is the stable banking system.

As part of the European Union Bulgaria`s banking system was subjected to a stress test. One that was passed by all banks without any issues. Furthermore, all banks were showed to be highly liquid and able to sustain any form of outside pressure.

These three factors have made Bulgaria a preferable place for people to start or move their business.

How can this be achieved if you are not in Bulgaria?
By choosing a reputable partner such as Bulgarian Law you will be able to complete the whole incorporation process remotely. Our dedicated team of lawyers, accountants and economist with over 20 years of experience can assist you every step of the way.

Let us help you take your business to the next level. First consultation is always free of charge for you. Contact us.

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How can you optimize your taxes?

How can you optimize your taxes?

How can you successfully optimize your taxes? A very popular question among recent times. With corporate and income tax in some European countries reaching 50+% businessman and wealthy individuals alike are interested in these options.

First thing one should look at is the economic environment.

Security of your business and funds should be your number on priority and therefore this should be the first thing to look at. Furthermore, ensuring that your investment is safe is tied to the economic environment and the banking system.

Bulgaria`s economy has been steadily growing for the past 5 years. Something that should show anyone interested in the countries tax system that their funds and reputation would not be tarnished.

Second factor that is just as important as the economy is the banking system.
All Bulgarian banks recently went through an extensive stress test. The aim of which was to test for the banks liquidity and whether they are prepared to sustain large amounts of withdrawal request from their liquidity pool.

Bulgaria currently has the most advantageous tax system in Europe.

With a flat corporate tax of 10% and a flat income tax of 10% the country currently offers the best conditions for businesses.

Having the ability to legally save and optimize a large portion of your taxes will give your business a major advantage over your competitors. Furthermore, it will exponentially increase your growth rate.

The next question that arises is “How can this be done”? You need to choose a professional legal partner that can assist you in this new venture. Therefore, you can move your business to Bulgaria without even having to visit the country.

At Bulgarian Law we have 20 years of experience and a dedicated team of solicitors, lawyers, accountants and economist. We are always up to date with all legislative changes and can assist with all your corporate needs. Contact us, the initial consultation is always free of charge for you.

 

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Things to know before opening a company in Bulgaria.

Things to know before opening a company in Bulgaria.

So what should you know before opening a company in Bulgaria? We would like to cover the main points that have made Bulgaria such a popular destination for businesses and individuals alike.

First and foremost, it is the economic environment.

For the last 7 years Bulgaria`s economy has been steadily growing. Something that should be of utmost importance to every business owner. This means that your business and funds are safe.

The second factor is the Bulgarian banking system. Recently the European Central Bank completed a stress test to which all banks were subjected to. This showed that the banking system in Bulgaria as a whole is liquid enough to sustain any significant imbalances.

Perhaps the most interesting subject is the taxation system.

Bulgaria currently has the most beneficial tax system for business. With a flat corporate tax and a flat income tax of 10% this will allow your firm to get ahead of all your competitors.

In most Western countries corporate tax can get up to 50+%. Having the opportunity to completely legally save 40% of your profit and reinvest it back into your business will give you a great advantage in front of your competitors. Furthermore, By doing this you will exponentially increase your growth rate.

Now that we have gone over the main things one needs to know. The next question is how can you execute such a decision?

Thankfully thanks to modern advances in internet security and e-government systems you can now complete the whole process remotely without ever having to visit Bulgaria.

This means that by choosing the right professional and reputable partner you can incorporate a company, handle all your accounting needs, open a bank account with one of the biggest banks in Bulgaria and resolve any legal inquiries that may come up.

Here at Bulgarian Law we have a dedicated team of lawyers, solicitors, accountants and economists with over 20 years of experience in the field.

Let us help you make the best decision for your business. The initial consultation is always free of charge. Contact us.

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Obstacles when opening a company in Bulgaria.

Obstacles when opening a company in Bulgaria.

What are the main obstacles when opening a company in Bulgaria? We would like to cover the main issues that may arise in front of a business owner that has decided to execute such a decision.

The main issue as with most important decisions is information.

One needs to be fully informed about the legal requirement and regulations already in place. Are you allowed to facilitate the process remotely, can you be the director and owner of you company, which bank to use, what are the accounting standards etc.? These are some of the questions that one has to be familiar with.

The next question that comes to mind is why should you be interested in such a decision?

One of the main reasons are taxes. With a flat corporate tax of 10% and a flat income tax of 10% Bulgaria is currently the most beneficial tax jurisdiction within Europe. Having a company in Bulgaria would allow you to optimize your turnover. Being able to reinvest a large amount of your extra profits back into the company will put you ahead of your immediate competition.

Furthermore, business owners receive a Bulgarian bank with full internet banking access. This gives them the change to access the EU banking system freely.

So how can you overcome these obstacles?

You can choose to partner with a reputable company with experience in the field.

At Bulgarian Law we have 20 years of experience and a team of lawyers, accountants, barristers and economists. Our legal and accounting team are up to date with all legislative changes and will guide you every step of the way.

Contacts us now and let us help you make the best decision for your business. The first consultation is always free of charge for you.

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Advantages and Disadvantages of a Bulgarian Company

Advantages and Disadvantages of a Bulgarian Company

What are the advantages and disadvantages of a Bulgarian Company? This is a questions that we get asked a lot on our website and contact form.

So in this article we would like to go over the main advantages and disadvantages that you may face when thinking about opening a company in Bulgaria.

First of all it is the economic environment.

The Bulgarian economy has been steadily growing for the past 5 years. This should show investors that both the economy and fiscal policy are moving at a steady and predicable pace. Something that is of an utmost importance for business owners.

The second major factor are taxes. With a flat corporate tax of 10% and income tax of 10% the country is currently the tax haven of Europe.

Therefore, by registering a company in Bulgaria business owners and investors can take advantage of this favorable taxation system. And by doing this gaining a significant competitive advantage over their competitors.

Furthermore, business also open an international bank account at some of the larges Bulgarian banks. Only the business owner and individual gain access to it through online banking giving them the opportunity to access the European financial system.

So what are the disadvantages of such a decision?

If you do not speak the language or you are not familiar with the legal system a move of this kind may seem worrisome. However, there are legal companies who are experienced and offer clients the service to incorporate a company in Bulgaria remotely without the clients even having to visit the country.

At Bulgaria Law we have 20 years of experience in the field and a dedicated team of lawyers, accountants, solicitors and economists. We can help you at every step of the way.

Let us assist you in making the best move for your business. Contact us

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Why are international bank accounts becoming so popular?

Why are international bank accounts becoming so popular?

Is there a reason as to why international bank accounts are becoming so popular? This is a question that we often get on our website and phone lines.

Therefore, in this article we would like to briefly go over the main points as to why this is the case. And if you should consider Bulgaria as a place to open a bank account in.

First of all, Bulgaria`s macroeconomic environment is stable with a steadily growing GDP.

This is an important factor that should be noted as the bank security is closely tied to the macroeconomic factors and the countries monetary policy.

Another point worth mentioning is the fact that as with all European Union member bank deposits up to 100 000 Euros are 100 percent guaranteed by the government.

Furthermore, Bulgaria`s national currency the Bulgarian Lev (BGN) is pegged in value to the EURO (EUR). This means that its fluctuations and value are highly predictable.

As Bulgaria is currently a tax haven within Europe it also presents another interesting opportunity. Because of the low income tax and corporate tax, it offers account holders the chance to minimize their tax expenses by redirecting their international incomes to their Bulgarian Bank Account.

So the next question is how can his be achieved?

Here at Bulgarian Law we have 20 years of experience in field. Our team of lawyers, accountants, solicitors and economist are up to date with all legislative changes.
This allows us to offer our clients the possibility to open a bank account without ever having to visit Bulgaria personally.

Does this sound like something you may be interested in? Let us make you the best decision for you and your business. Contact us.

The initial consultation is always free of charge for you.

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Should you set up company in Bulgaria?

Should you set up company in Bulgaria?

Should you be interested to set up company in Bulgaria? This is a questions that we get frequently on our website and contact forms.

Therefore, we would like to share what are the main advantages of having a company in Bulgaria.

First of all let us look at the macroeconomic environment of the country.

 Bulgaria`s GDP has been growing steadily since 2012.

As part of the European Union the Bulgarian government also receives support in terms of any structural reforms that need to be made. This has led the country to have a stable and predictable economic environment. Something that should be important for all business owners.

Furthermore, perhaps the most valuable asset that Bulgaria has is its favorable tax system.

The country has a flat corporate tax of 10% and a flat income tax of 10%.

This provides companies that are set up in Bulgaria with a great competitive advantage compared to their European rivals. Having an extra 30-40% of revenue stream that can be reinvested back into the business. Allowing them to grow at a much faster rate.

Now that we have seen why a person or a company should be interested in setting up a Bulgarian company what is the process?

Thanks to advances in internet security and e-government systems it is now possible to complete the whole process online.
This is done with the help of professional law companies with experience in the field. Choose your partner with great care. There are plenty of untruthful firms that lack the expertise or integrity to be your long term partner.

Here at Bulgarialaw.co we have 20 years of experience in the field. Our team consists of lawyers, barristers, accountants, economists and solicitors.

Let us help you make the best decision for your business. The initial consultation is always free!

Contact us and take your business to the next level.