Procedure for purchase of real estate properties in Bulgaria

Procedure for the purchase of a Real Estate Property 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;