Charlotte
21-01-06, 10:24 AM
Q0: Can foreign nationals own land in Bulgaria?
A0: Foreign nationals arent able to own land in Bulgaria directly - this law is liable to change in the next few years. Meantime this obstacle can be overcome by incorporating a business in Bulgaria and owning the land as an asset of the business.
more info >> <A class=url href="http://get.info.bg/properties/Dir.asp?id=20" target=_blank>http://get.info.bg/properties/Dir.asp?id=20
Q1: Can foreign nationals own property in Bulgaria?
A1: Yes foreign nationals can own property in Bulgaria.
more info >> <A class=url href="http://get.info.bg/properties/Dir.asp?id=20" target=_blank>http://get.info.bg/properties/Dir.asp?id=20
Q2: Where I can find more articles about bulgarian real estate market?
A2: We provide a lots of articles about bulgarian real estate market at our *** Bulgarian Properties *** portal.
more info >> <A class=url href="http://get.info.bg/properties/dir.asp?id=all" target=_blank>http://get.info.bg/properties/dir.asp?id=all
Q3: What are current property prices in Bulgaria?
A3: Property prices in Bulgaria are increasing all the time. Property still remains excellent value for the moment. A basic rural cottage can be purchased for as little as GBP 5000, but expect to pay significantly more for a property in one of the beach resorts or cities. Check the Property section to get an idea of what you can get for your money.
more info >> <A class=url href="http://get.info.bg/properties/dir.asp?r=bulgaria" target=_blank>http://get.info.bg/properties/dir.asp?r=bulgaria
Q4: How can be established an enterprise with foreign investment in Bulgaria?
A4: Foreign investment typically assumes one of the following forms: establishing a joint venture with existing companies; acquiring a company through privatization; setting up a new (green field) venture or making a portfolio investment.
Q5: Are there any restrictions on buying property in Bulgaria for a foreign national?
A5: There are no restrictions on buying property in Bulgaria for a foreign national. You can buy as many apartments in Bulgaria as you can afford!
Q6: How long does buying a property in Bulgaria takes?
A6: Buying a property in Bulgaria varies depending upon the type of property you buy (villa or apartment), also if the property is new or re-sale. For properties for sale with land you would need to incorporate a limited company in Bulgaria, which takes time. Generally it will take 3-5 weeks to buy a property.
Q7: What are the procedures when buying a property in Bulgaria?
A7: The procedures vary depending upon the type of property you buy - villa or apartment. Foreign nationals cannot own land in Bulgaria directly. This means that a lot of properties for sale in Bulgaria require limited liability company incorporation before you can proceed with a purchase. This law is likely to change in the near future to comply with EU legislation.
Q8: What is available on the market?
A8: The majority people who are buying property in Bulgaria are looking for holiday/second homes often with a view to retirement in later years.
more info >> <A class=url href="http://get.info.bg/properties/" target=_blank>http://get.info.bg/properties/
Q9: Are there any restrictions for foreigners?
A9: According to the Bulgarian Constitution foreign individual persons can buy buildings but not land. Therefore the most common method for foreigners buying property in Bulgaria is to set up a company which then owns the land and the buildings. We expect the law to change within the short to medium term as Bulgaria opens its doors fully in line with its expected entry into the European Union (2007).
Q10: What is the legal treatment of foreign investors in Bulgaria?
A10: -Equal rights for Bulgarian and foreign investors
-Priority of those international agreements that guarantee more favorable conditions for carrying out business activities by foreign legal entities
-Unlimited foreign participation in all types of business activity registered in Bulgaria.
Q11: Who and how can one obtain property rights over real estate in Bulgaria?
A11: Foreign nationals and foreign legal entities may acquire ownership title over buildings and limited ownership rights over property in the Republic of Bulgaria.
Q12: What are the living costs in Bulgaria? How much one pays for house insurance, gas, electricity, local and national taxes, to hire a gardener or a builder, to drive a car?
A12: It's not possible to compare living costs in Bulgaria and Western Europe. Living costs in Bulgaria are extremely low! For example the food is generally twice cheaper than UK. House insurance: around 100-200 . EURO per year depending on the type of house, together with the belongings and furniture inside. For a property of price 30,000 . EURO insurance against theft, flood and fire costs about 125 . EURO per year with a decent insurance company like Allianz. Gas: the gas system network is not developed in Bulgaria yet. People here mostly use electricity to cook. For heating: there are central heating systems in the big cities: monthly costs for a 2-bedroom apartment around 120 . EURO. In the small places people use charcoal and wood, which is even cheaper way to heat a house. For electricity, when used for cooking, light or hot water one pays about 30 . EURO monthly. Local and national taxes for owning a property: depending on the place where the property is located, the most expensive area is the capital Sofia, where the annual taxes of 2 bedroom apartment are around 150 . EURO per year, but the rest of the country is around 80 . EURO per year.
To employ a gardener or maintenance man or builder you will not pay much. The average salary in Bulgaria is 200 . EURO per month.
Q13: Where I can find map of Bulgaria?
A13: We have great online collections of maps of Bulgaria and Bulgarian bigest cities and regions (follow more info link).
more info >> <A class=url href="http://get.info.bg/visit/Dir.asp?d=0-11-Maps_Collection" target=_blank>http://get.info.bg/visit/Dir.asp?d=0-11-Maps_Collection
Q14: How much should we expect to pay for an acre of land in Bulgaria?
A14: It is strongly depend of location of land. The land close to Black Sea, in biggest cities or biggest ski resorts are most expensive than in countryside.
more info >> <A class=url href="http://get.info.bg/properties/Dir.asp?t=land" target=_blank>http://get.info.bg/properties/Dir.asp?t=land
Q15: I want to buy property in ski resort? Where I can find such offers?
A15: A lot of ski property offers for properties in mountains and ski resorts you can find at our <A href="http://get.info.bg/faq/"/properties/"">*** Bulgarian Properties *** real estate portal.
more info >> http://get.info.bg/properties/Dir.asp?r=property_in_mountain (http://get.info.bg/properties/Dir.asp?r=property_in_mountain)
Q16: If our property is only going to be occupied for about two months of the year, do we really need to get good security for the rest of the time?
A16: Yes! It is best when you have special alarm system and private property protection which costs € 13-25 per month. There are few very professional companies in Bulgaria providing such service.
Q17: Because Foreign nationals arent able to own land in Bulgaria directly, which are the preferred types of business organizations with foreign investment?
A17: The most common form of organization for foreign investors is a limited liability company. Other types are general partnership, limited partnership, joint stock company, sole proprietorship, joint venture, branch, holding, cooperatives, representative office. Limited liability companies, unlimited partnerships, public limited companies, limited partnerships, holdings and cooperatives are legal entities. Branches and representations are not independent legal entities: branches may engage in economic activities, they have their own property and compile a separate balance sheet; representations may not engage in economic activities.
Q18: If I buy a house, does this mean that I own the land too?
A18: YES, if you become the owner of a property after having registered a company, this means that you are the legal owner of its plot of land too. Subsequently, you are entitled to do whatever you wish with this property, including selling it, renting it out, etc.
Q19: Do I have to register a company if I want to buy an apartment?
A19: No. Foreign individuals can buy the buildings, but not the land. Company is needed when you want to buy the freehold.
Q20: Can I purchase property without coming to Bulgaria?
A20: Yes, but it is stronly recommended our first to view the property. It is also possible to buy using power of attorney.
Q21: What are transfer fees when buying a property in Bulgaria?
A21: There are notary and municipal fees, connected to the process of buying property in Bulgaria. The notary fees are paid on the higher of the market price or the book value of the property at varying rates, specified in a special notary chart. In addition to this 2 % municipal fee on the market price or book value is paid to the municipality, where the property is located.
Q22: Who can form a Limited Liability Company and how?
A22: A Bulgarian or foreign person (judicial or physical). The person/persons will be liable for the company's obligations to the value of his/hers share in the company's registered capital. The shareholders conduct preliminary discussions on the commercial activities they intend to engage in. Based on their agreement, Articles of Incorporation are prepared & signed by all shareholders.
Q23: Is there Value Added Tax on transactions with land and lease of property?
A23: Transactions with land and lease of property for residential purposes are exempt from Value Added Tax /VAT/. All other real estates transactions are subject to VAT, which is 20 %. The buyer/ lessee is entitled to a VAT refund, provided that it is registered for VAT purposes.
Q24: What is standard commission fee for real estate agent?
A24: Standard fee that broker collect is between 2% and 3% (usually 3%) but there is minimal fee independent of value of the property.
Q25: Is it safe to invest in Bulgarian property?
A25: Yes:
- The Bulgarian Economy is growing steadily - Strong growth in industrial production, employment and credit has resulted in high GDP growth over the last few years;
- Bulgaria Property prices are relatively low
- Relative security - Bulgarians forever moan amout petty crime, yet crime levels in most towns and cities, Sofia included, are incomparably low by comparison with major world cities.
- Low Currency risk - The Lev has been pegged to the Euro since its introduction at a fixed rate equivalent to 1 EUR to Lev 1.9558. From 1997 the Lev was pegged to the DM at a rate of 1 Lev to 1 DM.
more info >> <A class=url href="http://get.info.bg/Properties/dir.asp?id=50" target=_blank>http://get.info.bg/Properties/dir.asp?id=50
Q26: Are there cheap Bulgarian properties on the market? What are average prices for property in big cities in Bulgaria comparing with cities from other countries?
A26: Yes. You can find a lots of cheap Bulgarian Properties. Bulgaria Property prices are relatively low - Property in the better residential areas of Sofia sells for around €1,000 – 1,200 per square metre (roughly £67 – £82 per square foot). To give regional comparisons, the best residential property in Zagreb, Croatia sells for €2,200 – 2,500 per square metre, in Belgrade, Serbia €2,000 – 2,200 per square metre, in Romania for over €1,500 per square metre and in Athens, Greece for €7,600 – 8,800 per square metre. It is clear that Bulgarian properties are significantly cheaper than many other countries in the Europe. If you compare with London, property in a number of residential areas (such as Knightsbridge, Kensington and Chelsea) can sell for approximately €16,000 per square metre (£1,000 per square foot).
more info >> <A class=url href="http://get.info.bg/properties/" target=_blank>http://get.info.bg/properties/
Q27: Can I rent my Bulgarian property?
A27: A good quality ski chalet or seaside villa can generate excellent short-let yields. There are many websites that manage the marketing and provide reservations systems for ski chalet rentals.
Q28: Are mortgages available on Bulgarian properties?
A28: Mortgages are available on the Golf & Beach resort. With this exception, mortages are impossible to obtain on Bulgarian property for non-Bulgarian citizens.
Q29: What is rhe cheapest way to finance my purchase of a home?
A29: You can use Mortage. If you are form the UK - UK has the most efficient and competitive mortgage market in Europe, and the cheapest way to finance the purchase of a home overseas is by selling or re-mortgaging a UK property. (Re-mortgaging means withdrawing equity from a property whose value has increased by increasing the mortgage on it.)
Acquiring a mortgage from a UK bank based on a Bulgarian property, or from a Bulgarian bank based on a Bulgarian property, will be both more complicated and more expensive (higher APR) than re-mortgaging a UK property.
Q30: What is Currency regulations for import and export?
A30: Foreigners may export and import Bulgarian banknotes and coins in circulation to the amount of up to BGN 10,000 (about 3500 GBP). Sums exceeding this amount may be imported and exported only with a permit by the BNB (Bulgarian National Bank), valid for a period of up to 90 days of its issuance date.
The foreign persons may export convertible (hard) currency in amounts that do not exceed the amount of the foreign currency they had imported and declared. They can import unlimited amounts of foreign currency, which is to be declared.
Upon crossing the state borderline of the Republic of Bulgaria passengers may import and export commodities that in type, quantities, and value are not of a commercial nature. These do not include objects the passenger carry for personal use and consumption objects.
Exchange controls are the responsibility of the Bulgarian National Bank (BNB). The Bulgarian Leva is pegged to the Euro, and enjoys local convertibility. The export of Leva is prohibited, but foreign businesses can repatriate profits and capital in foreign currency. Companies can maintain both Leva and foreign currency bank accounts. Currency exchange can be effected through either the Commercial Banks or the Bureau de Change.
Import controls - Most goods can be imported into Bulgaria without restriction. All exports to Bulgaria are subject to pre-shipment inspection.
Q31: When selling a property in Bulgaria, what are the laws for example on taxation and bringing your money back into the UK?
A31: It is beyond our competence (please if there is anybody who can answer - let email us at bgproperty@europe.com) but:
Foreigners may export their profit but they must declare the origin of the money and must show a document from Tax administration for paid taxes about this incoming. There are different Tax lows for individual persons and for the companies.
Q32: I have bought an agricultural plot. Can I make a building there and what are the laws for building on this land?
A32: The necessary actions depend of type of the building you want:
If you want to build house: First - You must change the status of the land (it is no so easy and may cost a lot). If it is a large area you can change the status of part of the land only (for example 300m2)where you want to build. Then you need permission from Municipality head architect (you must give him document for ownership, plans, schemes, etc.).
If you want to build small extensions (log cabins, etc.) you do not need any permission and changing the status of the land.
Q33: I have bought a house with plot. Can I make upgrade of it? What are the laws if I want to demolish current house and build new one?
A33: You need planing permissions for building (from Municipality head architect) independently of type of building project ( new building or additional storey) except in cases this is temporary building (small extensions, log cabins, etc.)
If it is repairs only (painting, change of tiles, pipes, glasses, etc. - without changing of building area) - you do not need any extra permissions from architects or government institutions.
Q34: We have bought a property in Bulgaria 80 km from town of Varna. At the moment we can only visit this property once a year. Please can you advise on how we can pay rates, electricity, water and insure the property without paying out large sums for property management which we don`t really need?
A34: There are no so many options:
Most of the Banks in Bulgaria support this kind of service. You must create Bank account for attendance of your communal consumptions (water, electricity, mobile and hospital phones). There are some documents required like: your last invoices and/or documents for ownership, etc. (it is depending from the Bank / service and you must ask the Bank staff about this). In this case - regular (once per month) the bills will arrive to the Bank and will be served from the your Bank account. The Government Tax for your property can be paid entire year long and you can pay it during your stay in Bulgaria. The same is for the Insurance of the property. Most of the Bulgarian Banks have Internet Banking and you can transfer to/from your bank accounts via Internet.
Via Payment Portal <A href="http://www.epay.bg/" target=_blank>Epay.bg but it is in Bulgarian language. There you must register your debit/credit card(s) and then you can make payments to Electrical company, Water support company, Tax Administration, etc. It will be more difficult for you!
Q35: Is it better to buy off plan apartment in Bulgaria?
A35: Ordinary buying off-plan property in Bulgaria is more attractive because new apartments and houses are built to a higher standard with more facilities on the complexes that appeal to foreign buyers and holiday makers. Other reason to buy off-plan is because the new property will not be built for another 12-24 months and you are buying into a development at an early stage - it is more cheaply and in some cases buyer can require additional extras for the interior or room disposition. The prices for similar properties for sale in Bulgaria would be significantly higher, as the past trend showed a good capital growth for properties in Bulgaria.
Q36: What kind of tax I owe for my property in Bulgaria?
A36: Amount of taxes and fees varies from the place where the property is located in Bulgaria. For the properties owners there are 2 kinds of tax - property tax (is paid annually based on 0.15% of the property value - the valuation is made from tax department and is different from market price) and annual fee for garbage transportation (it is calculated based on value of the property and depends of place and municipality - vary from 1.6 to 5 per 1000).
more info >> <A class=url href="http://get.info.bg/properties/Dir.asp?id=105" target=_blank>http://get.info.bg/properties/Dir.asp?id=105
Q37: Should I wait until 2006/2007 to invest?
A37: Absolutely not!!! The market will show gains in 2007-2009 for sure. However, the large gains are to be made up to 2007. Then Bulgaria will be member of European Union and prices will rise to levels similar to other European countries! Follow link more info to find cheap and low priced Bulgarian Properties!
more info >> <A class=url href="http://get.info.bg/properties" target=_blank>http://get.info.bg/properties
Q38: What is the local feeling towards foreigners owing property?
A38: The Bulgarians are warm and friendly people in spite of difficulties in their life. Bulgarian people are very tolerant - there is not hostility between different nationality, religions or cultures. The Bulgarians are happy to see people bringing wealth and foreign investment to their communities especially if the foreigners are not stuck-up with their riches.
Q39: What are the conditions to register a Private Limited Company in Bulgaria and how long is the process?
A39: Private Limited Company (a limited liability company) - "OOD" - it is a commercial company with share capital owned by its members whose liability is limited to the amount of the capital subscribed. A private limited liability company may be founded by one or more persons, including foreign natural or legal persons. The minimum foundation capital is BGL 5,000 divided into shares with nominal value of BGL 10 each and at least 70% of the capital must be paid up on foundation. Contributions to the foundation capital may be paid in cash or in kind. The statutory bodies of the private limited companies are the general meeting of shareholders, which must be held at least once a year, and the managing director or board of directors.
The registration process takes approximately 15 days.
http://get.info.bg/faq/Dir.asp?pg=1&d=faq-properties
A0: Foreign nationals arent able to own land in Bulgaria directly - this law is liable to change in the next few years. Meantime this obstacle can be overcome by incorporating a business in Bulgaria and owning the land as an asset of the business.
more info >> <A class=url href="http://get.info.bg/properties/Dir.asp?id=20" target=_blank>http://get.info.bg/properties/Dir.asp?id=20
Q1: Can foreign nationals own property in Bulgaria?
A1: Yes foreign nationals can own property in Bulgaria.
more info >> <A class=url href="http://get.info.bg/properties/Dir.asp?id=20" target=_blank>http://get.info.bg/properties/Dir.asp?id=20
Q2: Where I can find more articles about bulgarian real estate market?
A2: We provide a lots of articles about bulgarian real estate market at our *** Bulgarian Properties *** portal.
more info >> <A class=url href="http://get.info.bg/properties/dir.asp?id=all" target=_blank>http://get.info.bg/properties/dir.asp?id=all
Q3: What are current property prices in Bulgaria?
A3: Property prices in Bulgaria are increasing all the time. Property still remains excellent value for the moment. A basic rural cottage can be purchased for as little as GBP 5000, but expect to pay significantly more for a property in one of the beach resorts or cities. Check the Property section to get an idea of what you can get for your money.
more info >> <A class=url href="http://get.info.bg/properties/dir.asp?r=bulgaria" target=_blank>http://get.info.bg/properties/dir.asp?r=bulgaria
Q4: How can be established an enterprise with foreign investment in Bulgaria?
A4: Foreign investment typically assumes one of the following forms: establishing a joint venture with existing companies; acquiring a company through privatization; setting up a new (green field) venture or making a portfolio investment.
Q5: Are there any restrictions on buying property in Bulgaria for a foreign national?
A5: There are no restrictions on buying property in Bulgaria for a foreign national. You can buy as many apartments in Bulgaria as you can afford!
Q6: How long does buying a property in Bulgaria takes?
A6: Buying a property in Bulgaria varies depending upon the type of property you buy (villa or apartment), also if the property is new or re-sale. For properties for sale with land you would need to incorporate a limited company in Bulgaria, which takes time. Generally it will take 3-5 weeks to buy a property.
Q7: What are the procedures when buying a property in Bulgaria?
A7: The procedures vary depending upon the type of property you buy - villa or apartment. Foreign nationals cannot own land in Bulgaria directly. This means that a lot of properties for sale in Bulgaria require limited liability company incorporation before you can proceed with a purchase. This law is likely to change in the near future to comply with EU legislation.
Q8: What is available on the market?
A8: The majority people who are buying property in Bulgaria are looking for holiday/second homes often with a view to retirement in later years.
more info >> <A class=url href="http://get.info.bg/properties/" target=_blank>http://get.info.bg/properties/
Q9: Are there any restrictions for foreigners?
A9: According to the Bulgarian Constitution foreign individual persons can buy buildings but not land. Therefore the most common method for foreigners buying property in Bulgaria is to set up a company which then owns the land and the buildings. We expect the law to change within the short to medium term as Bulgaria opens its doors fully in line with its expected entry into the European Union (2007).
Q10: What is the legal treatment of foreign investors in Bulgaria?
A10: -Equal rights for Bulgarian and foreign investors
-Priority of those international agreements that guarantee more favorable conditions for carrying out business activities by foreign legal entities
-Unlimited foreign participation in all types of business activity registered in Bulgaria.
Q11: Who and how can one obtain property rights over real estate in Bulgaria?
A11: Foreign nationals and foreign legal entities may acquire ownership title over buildings and limited ownership rights over property in the Republic of Bulgaria.
Q12: What are the living costs in Bulgaria? How much one pays for house insurance, gas, electricity, local and national taxes, to hire a gardener or a builder, to drive a car?
A12: It's not possible to compare living costs in Bulgaria and Western Europe. Living costs in Bulgaria are extremely low! For example the food is generally twice cheaper than UK. House insurance: around 100-200 . EURO per year depending on the type of house, together with the belongings and furniture inside. For a property of price 30,000 . EURO insurance against theft, flood and fire costs about 125 . EURO per year with a decent insurance company like Allianz. Gas: the gas system network is not developed in Bulgaria yet. People here mostly use electricity to cook. For heating: there are central heating systems in the big cities: monthly costs for a 2-bedroom apartment around 120 . EURO. In the small places people use charcoal and wood, which is even cheaper way to heat a house. For electricity, when used for cooking, light or hot water one pays about 30 . EURO monthly. Local and national taxes for owning a property: depending on the place where the property is located, the most expensive area is the capital Sofia, where the annual taxes of 2 bedroom apartment are around 150 . EURO per year, but the rest of the country is around 80 . EURO per year.
To employ a gardener or maintenance man or builder you will not pay much. The average salary in Bulgaria is 200 . EURO per month.
Q13: Where I can find map of Bulgaria?
A13: We have great online collections of maps of Bulgaria and Bulgarian bigest cities and regions (follow more info link).
more info >> <A class=url href="http://get.info.bg/visit/Dir.asp?d=0-11-Maps_Collection" target=_blank>http://get.info.bg/visit/Dir.asp?d=0-11-Maps_Collection
Q14: How much should we expect to pay for an acre of land in Bulgaria?
A14: It is strongly depend of location of land. The land close to Black Sea, in biggest cities or biggest ski resorts are most expensive than in countryside.
more info >> <A class=url href="http://get.info.bg/properties/Dir.asp?t=land" target=_blank>http://get.info.bg/properties/Dir.asp?t=land
Q15: I want to buy property in ski resort? Where I can find such offers?
A15: A lot of ski property offers for properties in mountains and ski resorts you can find at our <A href="http://get.info.bg/faq/"/properties/"">*** Bulgarian Properties *** real estate portal.
more info >> http://get.info.bg/properties/Dir.asp?r=property_in_mountain (http://get.info.bg/properties/Dir.asp?r=property_in_mountain)
Q16: If our property is only going to be occupied for about two months of the year, do we really need to get good security for the rest of the time?
A16: Yes! It is best when you have special alarm system and private property protection which costs € 13-25 per month. There are few very professional companies in Bulgaria providing such service.
Q17: Because Foreign nationals arent able to own land in Bulgaria directly, which are the preferred types of business organizations with foreign investment?
A17: The most common form of organization for foreign investors is a limited liability company. Other types are general partnership, limited partnership, joint stock company, sole proprietorship, joint venture, branch, holding, cooperatives, representative office. Limited liability companies, unlimited partnerships, public limited companies, limited partnerships, holdings and cooperatives are legal entities. Branches and representations are not independent legal entities: branches may engage in economic activities, they have their own property and compile a separate balance sheet; representations may not engage in economic activities.
Q18: If I buy a house, does this mean that I own the land too?
A18: YES, if you become the owner of a property after having registered a company, this means that you are the legal owner of its plot of land too. Subsequently, you are entitled to do whatever you wish with this property, including selling it, renting it out, etc.
Q19: Do I have to register a company if I want to buy an apartment?
A19: No. Foreign individuals can buy the buildings, but not the land. Company is needed when you want to buy the freehold.
Q20: Can I purchase property without coming to Bulgaria?
A20: Yes, but it is stronly recommended our first to view the property. It is also possible to buy using power of attorney.
Q21: What are transfer fees when buying a property in Bulgaria?
A21: There are notary and municipal fees, connected to the process of buying property in Bulgaria. The notary fees are paid on the higher of the market price or the book value of the property at varying rates, specified in a special notary chart. In addition to this 2 % municipal fee on the market price or book value is paid to the municipality, where the property is located.
Q22: Who can form a Limited Liability Company and how?
A22: A Bulgarian or foreign person (judicial or physical). The person/persons will be liable for the company's obligations to the value of his/hers share in the company's registered capital. The shareholders conduct preliminary discussions on the commercial activities they intend to engage in. Based on their agreement, Articles of Incorporation are prepared & signed by all shareholders.
Q23: Is there Value Added Tax on transactions with land and lease of property?
A23: Transactions with land and lease of property for residential purposes are exempt from Value Added Tax /VAT/. All other real estates transactions are subject to VAT, which is 20 %. The buyer/ lessee is entitled to a VAT refund, provided that it is registered for VAT purposes.
Q24: What is standard commission fee for real estate agent?
A24: Standard fee that broker collect is between 2% and 3% (usually 3%) but there is minimal fee independent of value of the property.
Q25: Is it safe to invest in Bulgarian property?
A25: Yes:
- The Bulgarian Economy is growing steadily - Strong growth in industrial production, employment and credit has resulted in high GDP growth over the last few years;
- Bulgaria Property prices are relatively low
- Relative security - Bulgarians forever moan amout petty crime, yet crime levels in most towns and cities, Sofia included, are incomparably low by comparison with major world cities.
- Low Currency risk - The Lev has been pegged to the Euro since its introduction at a fixed rate equivalent to 1 EUR to Lev 1.9558. From 1997 the Lev was pegged to the DM at a rate of 1 Lev to 1 DM.
more info >> <A class=url href="http://get.info.bg/Properties/dir.asp?id=50" target=_blank>http://get.info.bg/Properties/dir.asp?id=50
Q26: Are there cheap Bulgarian properties on the market? What are average prices for property in big cities in Bulgaria comparing with cities from other countries?
A26: Yes. You can find a lots of cheap Bulgarian Properties. Bulgaria Property prices are relatively low - Property in the better residential areas of Sofia sells for around €1,000 – 1,200 per square metre (roughly £67 – £82 per square foot). To give regional comparisons, the best residential property in Zagreb, Croatia sells for €2,200 – 2,500 per square metre, in Belgrade, Serbia €2,000 – 2,200 per square metre, in Romania for over €1,500 per square metre and in Athens, Greece for €7,600 – 8,800 per square metre. It is clear that Bulgarian properties are significantly cheaper than many other countries in the Europe. If you compare with London, property in a number of residential areas (such as Knightsbridge, Kensington and Chelsea) can sell for approximately €16,000 per square metre (£1,000 per square foot).
more info >> <A class=url href="http://get.info.bg/properties/" target=_blank>http://get.info.bg/properties/
Q27: Can I rent my Bulgarian property?
A27: A good quality ski chalet or seaside villa can generate excellent short-let yields. There are many websites that manage the marketing and provide reservations systems for ski chalet rentals.
Q28: Are mortgages available on Bulgarian properties?
A28: Mortgages are available on the Golf & Beach resort. With this exception, mortages are impossible to obtain on Bulgarian property for non-Bulgarian citizens.
Q29: What is rhe cheapest way to finance my purchase of a home?
A29: You can use Mortage. If you are form the UK - UK has the most efficient and competitive mortgage market in Europe, and the cheapest way to finance the purchase of a home overseas is by selling or re-mortgaging a UK property. (Re-mortgaging means withdrawing equity from a property whose value has increased by increasing the mortgage on it.)
Acquiring a mortgage from a UK bank based on a Bulgarian property, or from a Bulgarian bank based on a Bulgarian property, will be both more complicated and more expensive (higher APR) than re-mortgaging a UK property.
Q30: What is Currency regulations for import and export?
A30: Foreigners may export and import Bulgarian banknotes and coins in circulation to the amount of up to BGN 10,000 (about 3500 GBP). Sums exceeding this amount may be imported and exported only with a permit by the BNB (Bulgarian National Bank), valid for a period of up to 90 days of its issuance date.
The foreign persons may export convertible (hard) currency in amounts that do not exceed the amount of the foreign currency they had imported and declared. They can import unlimited amounts of foreign currency, which is to be declared.
Upon crossing the state borderline of the Republic of Bulgaria passengers may import and export commodities that in type, quantities, and value are not of a commercial nature. These do not include objects the passenger carry for personal use and consumption objects.
Exchange controls are the responsibility of the Bulgarian National Bank (BNB). The Bulgarian Leva is pegged to the Euro, and enjoys local convertibility. The export of Leva is prohibited, but foreign businesses can repatriate profits and capital in foreign currency. Companies can maintain both Leva and foreign currency bank accounts. Currency exchange can be effected through either the Commercial Banks or the Bureau de Change.
Import controls - Most goods can be imported into Bulgaria without restriction. All exports to Bulgaria are subject to pre-shipment inspection.
Q31: When selling a property in Bulgaria, what are the laws for example on taxation and bringing your money back into the UK?
A31: It is beyond our competence (please if there is anybody who can answer - let email us at bgproperty@europe.com) but:
Foreigners may export their profit but they must declare the origin of the money and must show a document from Tax administration for paid taxes about this incoming. There are different Tax lows for individual persons and for the companies.
Q32: I have bought an agricultural plot. Can I make a building there and what are the laws for building on this land?
A32: The necessary actions depend of type of the building you want:
If you want to build house: First - You must change the status of the land (it is no so easy and may cost a lot). If it is a large area you can change the status of part of the land only (for example 300m2)where you want to build. Then you need permission from Municipality head architect (you must give him document for ownership, plans, schemes, etc.).
If you want to build small extensions (log cabins, etc.) you do not need any permission and changing the status of the land.
Q33: I have bought a house with plot. Can I make upgrade of it? What are the laws if I want to demolish current house and build new one?
A33: You need planing permissions for building (from Municipality head architect) independently of type of building project ( new building or additional storey) except in cases this is temporary building (small extensions, log cabins, etc.)
If it is repairs only (painting, change of tiles, pipes, glasses, etc. - without changing of building area) - you do not need any extra permissions from architects or government institutions.
Q34: We have bought a property in Bulgaria 80 km from town of Varna. At the moment we can only visit this property once a year. Please can you advise on how we can pay rates, electricity, water and insure the property without paying out large sums for property management which we don`t really need?
A34: There are no so many options:
Most of the Banks in Bulgaria support this kind of service. You must create Bank account for attendance of your communal consumptions (water, electricity, mobile and hospital phones). There are some documents required like: your last invoices and/or documents for ownership, etc. (it is depending from the Bank / service and you must ask the Bank staff about this). In this case - regular (once per month) the bills will arrive to the Bank and will be served from the your Bank account. The Government Tax for your property can be paid entire year long and you can pay it during your stay in Bulgaria. The same is for the Insurance of the property. Most of the Bulgarian Banks have Internet Banking and you can transfer to/from your bank accounts via Internet.
Via Payment Portal <A href="http://www.epay.bg/" target=_blank>Epay.bg but it is in Bulgarian language. There you must register your debit/credit card(s) and then you can make payments to Electrical company, Water support company, Tax Administration, etc. It will be more difficult for you!
Q35: Is it better to buy off plan apartment in Bulgaria?
A35: Ordinary buying off-plan property in Bulgaria is more attractive because new apartments and houses are built to a higher standard with more facilities on the complexes that appeal to foreign buyers and holiday makers. Other reason to buy off-plan is because the new property will not be built for another 12-24 months and you are buying into a development at an early stage - it is more cheaply and in some cases buyer can require additional extras for the interior or room disposition. The prices for similar properties for sale in Bulgaria would be significantly higher, as the past trend showed a good capital growth for properties in Bulgaria.
Q36: What kind of tax I owe for my property in Bulgaria?
A36: Amount of taxes and fees varies from the place where the property is located in Bulgaria. For the properties owners there are 2 kinds of tax - property tax (is paid annually based on 0.15% of the property value - the valuation is made from tax department and is different from market price) and annual fee for garbage transportation (it is calculated based on value of the property and depends of place and municipality - vary from 1.6 to 5 per 1000).
more info >> <A class=url href="http://get.info.bg/properties/Dir.asp?id=105" target=_blank>http://get.info.bg/properties/Dir.asp?id=105
Q37: Should I wait until 2006/2007 to invest?
A37: Absolutely not!!! The market will show gains in 2007-2009 for sure. However, the large gains are to be made up to 2007. Then Bulgaria will be member of European Union and prices will rise to levels similar to other European countries! Follow link more info to find cheap and low priced Bulgarian Properties!
more info >> <A class=url href="http://get.info.bg/properties" target=_blank>http://get.info.bg/properties
Q38: What is the local feeling towards foreigners owing property?
A38: The Bulgarians are warm and friendly people in spite of difficulties in their life. Bulgarian people are very tolerant - there is not hostility between different nationality, religions or cultures. The Bulgarians are happy to see people bringing wealth and foreign investment to their communities especially if the foreigners are not stuck-up with their riches.
Q39: What are the conditions to register a Private Limited Company in Bulgaria and how long is the process?
A39: Private Limited Company (a limited liability company) - "OOD" - it is a commercial company with share capital owned by its members whose liability is limited to the amount of the capital subscribed. A private limited liability company may be founded by one or more persons, including foreign natural or legal persons. The minimum foundation capital is BGL 5,000 divided into shares with nominal value of BGL 10 each and at least 70% of the capital must be paid up on foundation. Contributions to the foundation capital may be paid in cash or in kind. The statutory bodies of the private limited companies are the general meeting of shareholders, which must be held at least once a year, and the managing director or board of directors.
The registration process takes approximately 15 days.
http://get.info.bg/faq/Dir.asp?pg=1&d=faq-properties