According to Bulgarian legislation, EU/EEA members are eligible to purchase both the property and the land it is situated on. Non-EU citizens, such as Indians, may only purchase buildings when they want to privately own real estate, not land. Only Bulgarian citizens and legal entities are permitted to own land in the country. Foreigners may only purchase and base property, such as a home with a garden, a villa, plots, etc. if they establish a business in Bulgaria
Real estate acquisition and sale
The first step in buying a property is to do market research. The buyer’s objectives determine the best option. Advertising from real estate companies includes 360 virtual tours, films, etc. Before making a purchase choice, a buyer should do an on-site inspection, regardless of whether it is a single-family home or an investment in commercial or residential real estate. Additionally, foreigners are urged to get legal counsel from an experienced attorney who is knowledgeable of the relevant local laws and processes before signing any contracts. The following stages are often included in purchasing and selling real estate:
Sign a draft agreement
To remove a property from the market, real estate firms often demand payment of a deposit. This indicates that the purchaser makes an advance payment equal to a portion of the stated price, often 10%. The preliminary contract has to precisely specify this. This contract establishes the rights and duties of both parties, hence a professional should draft it.
Establish an escrow account
To safeguard the buyer’s finances, this measure is advised. The money is held in escrow and is only released to the seller if all terms of the contract have been fulfilled. Escrow agents must be independent third parties, and a particular escrow agreement is created just for this deal’s needs.
Title deed notarized
The buyer acquires ownership of the property with this last contract. Specific details concerning the property must be included in the notary document (title deed). Additionally, it has to be signed in front of a notary. After that, the notary records the notarial deed with the registry office. Both the seller and the buyer must be present to sign the notarized deed. The alternative is to do this via your Bulgarian attorney and a power of attorney. The property must be carefully inspected for encumbrances, ownership rights, etc. in various registries before the acquisition process is started.
Advice on purchasing property in Bulgaria
Real estate in Bulgaria is valued by square meters, not rooms, hence this information will be shown in property adverts. Foreigners purchasing real estate in Bulgaria should be aware of this. Common portions are frequently included in the advertisement’s total square meters. Even though it is not a part of the living space, this room is nevertheless covered by the fee. The listed price could, in certain situations, be more than the property’s worth. Therefore, the buyer may sometimes bargain for a 5–10% cheaper price throughout the transaction.
Bulgarian property purchase costs
These are the typical expenses of purchasing a house in Bulgaria expressed as a proportion of the selling price.
- Property transfer taxes: 1% to 4%.
- Fees for notaries: 1% to 2.5%.
- Registration cost: 0.5%.
- Fees for estate agents: 2.5% to 5%.
- Fees for a translator: 30 to 50 levs.
Expect to spend 3% to 8.5% of the selling price overall on purchasing expenses. These are, of course, typical numbers that may vary depending on the area you are purchasing in and the services your estate agent provides. Nearly always, the agent fees are a fantastic deal given the comfort and simplicity of purchasing a home in Bulgaria.
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