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Need to Know
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Peace Havens Ltd |
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What do I need to know about buying a house in Bulgaria?
In Bulgaria one should buy a neighbour, not just a house.
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OK, where is Bulgaria?
Bulgaria is a small European country on the shores of the Black Sea.
So, to start with, you are a foreigner, and according to the Bulgarian Constitution, foreign individual persons can buy buildings but not land. (And this restriction will not be removed for EU citizens until 2014). However this hiccup is easily overcome for foreigners buying property in Bulgaria by setting up a Limited Company which then owns the land and the buildings, and of course, you own the company, so you own the land and the buildings.
Our solicitor can organize the entire process from start to finish, together with all aspects of conveyance, within a few days.
A step by step flow chart into buying a Bulgarian Property
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SELECT YOUR AREA. We specialise in Varna City & the Black Sea Coast |
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ARRANGE A VIEWING TRIP. We pick you up at the airport and arrange accommodation |
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SELECT A PROPERTY. We take you around and show you the sites |
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WITH LAND. You will need a Company
It takes us about 3 days |
WITHOUT LAND. NO COMPANY NEEDED. |
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NEED A MORTGAGE? We arrange for you to see the Bank |
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SIGN A PRELIMINARY CONTRACT. This indicates your intention to buy a property |
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CHECK TITLE DOCUMENTS, DEBTS ON TITLE, LICENSES, PERMISSIONS, CONTRACT TERMS. |
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SIGN THE NOTARY ACT, (Contract), CONFIRM IN FRONT OF BULGARIAN PUBLIC NOTARY. |
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YOU HAVE NOW BECOME THE PROUD OWNER OF YOUR VERY OWN BULGARIAN PROPERTY. |
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PLUS continued back up from our Bulgarian team on how to do this and where to do that concerning Rates, Electric, Telephone, Supermarkets, Schools, Recreation. We are there for you for anything you need to know. |
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What does setting up a Limited Company cost me? We provide a full company formation service for only £500. This is carried out by your appointed solicitor, and your company can be ready in four to five working days. This can be completed during your visit to Bulgaria. You only need visit our office once for about half an hour, the rest of your time here can be spent sightseeing. You only need one company to buy any amount of land.
There is another temporary cost. When we register your company you must deposit a sum of 5000 Lev (approx. £1,280) into your company bank account whilst the registration is being carried out. This money can then be withdrawn after the company is registered and used as you wish. The company does not need to operate and may be used only for purchasing the property. Once the property is bought, the company can be re-registered to the address of the new property.
Other costs involved in buying the property?
There is a Property purchase tax of 3% of the declared value of the property and Notary fees including this tax are approx £500. A Bulgarian/English translator is usually provided free to explain everything that is being written or said at your meeting with the Solicitor. The deeds are written in Bulgarian, of course, and should you require them translated into English this would costs about £50 - £60, depending on the number of pages.Rates? Annual property tax.
Rates are collected by the municipal administration on an annual basis. The amount of it represents 0.15% (0.0015) of the property’s tax evaluation. A house valued at £80,000 would pay about £120.00 per annum. If you pay it before the end of April you will get a 5% discount off the bill.Can I get a Mortgage?
Providing that you meet the criteria, then, there is no problem getting a mortgage. Your place of work need not be in Bulgaria. You can work in the UK at present whilst investing in your future in Bulgaria. A perfectly acceptable scenario. Mortgages are available from the Bank based on passing 2 criteria...1) The Bank's faith in the quality of our construction. (Passed)
2) The Bank's faith in your ability to repay the loan. (Up to you).
Picking you up at the airport and arranging hotel accommodation and viewing the property is provided free by us, however, you pay for your own transport costs to and from Bulgaria and your hotel accommodation, meals etc. Lots of smokers "pay" for their trip to Bulgaria by bringing home 16 cartons of cigarettes which they bought at £17.00 a carton. No problem with Customs as you may bring home as many as you like, so long as they are for personal use. What with the same cigarettes being £47.00 a cartoon in England that is a saving of £480.00 which pays for your trip, and your holiday.
Using you credit card in ATM's here is easy, but you will find hefty charges on your bank statement when you get home. Better to open a Lev account with your Bulgarian Bank and get a "no charge" Bulgarian Debit Card. The ATM's are programmed in English and Bulgarian.
Talking of cards - When you have a company you get a Boolstat Card which allows you to do a whole host of things an ordinary citizen can't do, like reclaiming VAT and getting discounts off purchases for building materials and furniture. It also makes it easy to get a Metro Card for discounts on foodstuffs.
Changing money should only be done at a Bank, an Official Exchange Booth, of which there are many, or at your Hotel. Do not use a well dressed "money changer" who may approach you in the street. They are likely to give you counterfeit or out-of-date unspendable bank notes. Just say, "No thank you" and carry on walking, and don't be suckered in to it by the offer of a ridiculously high exchange rate. Scottish and Irish pound notes are not legal tender in Bulgaria, and will not be exchanged or accepted for payment.
Why should I invest in Bulgaria? Bulgaria is a quiet, unspoilt and largely rural country in South Eastern Europe about the size of England but with a population of only around 7 million. For years the Black Sea Coast has been the favourite holiday destination for Eastern Europeans, but in recent years, after Bulgaria opened its doors to the rest of the world, and the world sat up and took notice of what it had to offer. With its majestic mountains, sandy beaches and old-fashioned rural tranquillity Bulgaria offered a glimpse of Europe which has long since disappeared under the noise of traffic and concrete in the rest of Western Europe. By the same token, the 21st century modern facilities in the big cities, like Varna, offer similar standards and shopping as other European capitals, with department stores such as Marks & Spencers, Mothercare, Metro Supermarkets, Praktiker Do-it-All and lots of world class restaurants and entertainment. Our new build houses in Gaburnitsa offer this rural tranquillity with easy access to life in the big city. The best of all worlds.
What are the long-term economic prospects? Following the changes in 1989 throughout Eastern Europe after the collapse of the Soviets, Bulgaria has been going through a successful transition from a state-controlled economy to an open market economy. Bulgaria joined the European Union on 1st January 2007 and this made it fully accessible to any European, including yourself. The European Union is investing millions
of euros in upgrading the country's infrastructure - roads,
airports and so forth. I visit the country every month, and every month it has
changed, for the better, with more roads having been built or resurfaced, and
road signs in English are becoming the norm. Every morning one can look out of
your city hotel window and see new street lamps being fitted, new pavements,
new toilet facilities. And, the fact is, one only has to
stand at the hotel reception desk to realise that all tourists,
regardless of
their nationality, seem to speak to the desk clerk .. in English .... And,
even better, on Friday the 16th May 2008, the Bulgaria Minister of
State Administration and Administrative Reform, Nikolay Vassilev, in the city
of Varna, gave the official start of the biggest English language education
initiative for 15 thousand state employees in Bulgaria, ever seen in this
country. The European Social Fund of the Operational Program "Administrative
Capacity" is going to finance the English language classes. The English
education project in Bulgaria is known as "Preparing Bulgarian State
Administration Employees to work Effectively with European Institutions".
Which means for you and me that all of the State Employees will speak Fluent
English to us at City Hall, very soon.The new Terminal 5 runway opened at Varna airport this summer to cope with the new influx
of holiday
makers bound for the Black Sea Resorts. Travellers can fly direct to Varna
during the tourist season from most UK airports, in a little over 3 hours, but
during the winter months one can fly from Luton to Varna.
There are some super cheap deals on offer from the likes of Easy Jet and Wizz
and more airlines are signing up daily to fly to Varna.
I have met the
occasional tourist on the plane who has suffered from stomach upsets caused by
eating something dodgy, but as for not eating salads ... well ... my favourite
Bulgarian snack is a Shopska Salad, mainly tomatoes and cucumbers with
a unique Bulgarian sour cheese. The problem with this £1 starter dish is that
it takes 20 minutes to eat, and it fills you up like a three course meal.
