Considering the huge number of inquiries we receive every day regarding the procedures and costs related to the purchase of real estate in Bulgaria and the subsequent maintenance and possible rental of your property in Bulgaria, we would like to present the issue below.
Purchase of apartments and locals
Conditions of sale and purchase apartments in Bulgaria are the same as in Poland and whole European Union. Purchase is made by notarial act which is prepared and signed in the country in which the property is buying. Transactions in Bulgaria are performed only in Euro.
There are two variants of purchasing:
We would to emphasize that ILS Poland Group is a licensed broker (who has liability insurance) and co-founder of the Polish Chamber of Real Estate – PIN. We care about the best buyer interest in every purchase option. There are three possibilities of signing the contract which has to carry about client interests: in Poland, in Bulgaria or by correspondence.
We also emphasize that our company has its own branch in Bulgaria and residents, and thus we provide our clients with comprehensive services in English, Polish, Bulgarian, Russian and German.
In both variants, buying property is associated with several basic steps. That process is completely carried out by the ILS Poland Group and looks as follows:
Nevertheless, the sites will is clearly specified in the contract what guarantees the security of transaction. Content of the agreement defines the brokers responsibilities and steps for its realization.
To meet your expectations, to resolve any doubts and answer the most frequently asked questions we would like to stress that developers with which we have signed contracts are always tested by us. They often have state guarantee, already comlpleted projects and satisfied customers (eg. Our natives from Poland permanently living in Poland, France, Great Britain, Ireland, Norway and other countries around world including lawyers, economists etc.)
The purchase of any property selected by the customer on the secondary market must always be confirmed by a reservation first, i.e. payment to the seller to a special notarized escrow account created for the seller and the buyer. and only 6-8 weeks after the purchase, the buyer must go to a notarized contract of title transfer and pay the remaining amount of the sale price of the property in one payment by bank transfer to the same Bulgarian bank where both the seller and the buyer must have a bank account.
Reservation of the property chosen by the customer is a must, as more than 99% of sellers are neither Poles nor Bulgarians, only citizens of other nationalities, e.g. Russians, English, Irish people etc. and only the reservation guarantees every seller that the buyer will not give up the purchase, thus exposing the seller to the many costs associated with preparing for the sale transaction.
The costs that must be borne by every seller include the cost of arriving in Bulgaria and / or appointing a sales representative in Bulgaria (usually in the person of a lawyer from some Bulgarian office), as well as the cost of many documents associated with the need to download and delivering before the transaction to a notary office, many certificates, valuations, excerpts and excerpts, copies, sketches and other documents from many offices and institutions, which are issued for a fee, waiting for up to 7 days, and which documents have only one month validity, which the seller ultimately must provide to the notary public, in accordance with Bulgarian law.
IMPORTANT: Each property can be booked, both by signing a brokerage agreement during a visit to Bulgaria, and without having to fly out, by completing and sending the reservation form on our website in the preview of each offer under the description and under the map with the exact location of the given property. And after receiving the form, the person responsible for a given offer sends to the reserving person via e-mail a signed, stamped and scanned brokering agreement (in pdf file) in which the contents are all activities we undertake to undertake and the number of our company bank account in Bulgarian is indicated bank to which, among other things, an advance payment should be made for the seller.
It should be emphasized that the reservation of any property from our offer is associated with the necessity to make two payments by the person making the reservation (after signing an agency agreement with our company), i.e. one as a deposit for the seller, as a reservation and deposit fee - on average in the amount of 2,000 EUR (this fee is deducted from the sale price of the property when transferring ownership) and the second, as our remuneration in advance, and after receiving the payment confirmation, we then inform the seller and send him the confirmation of the transfer as payment of the deposit amount, in order to verify the earlier, during a telephone conversation with the seller of the reservation on a "word", and after the payments are credited to our Bulgarian, company bank account, we immediately pay the deposit for the seller to a dedicated, notarized deposit account, which we set up on the booking and the seller in a Bulgarian bank and sign n a reservation and deposit agreement at our expense, with a validity period of 6 weeks, and which agreement is the equivalent of a Polish preliminary agreement, as it is a notarized reservation and deposit agreement.
Finally, immediately after posting the above-mentioned payments, we change the status of the offer on our website to RESERVED, and for the amount of payment of our remuneration we issue a VAT invoice and the original invoice together with the original contract in two identical copies, signed and stamped unilaterally by authorized persons on behalf of our company we send to the customer by traditional mail - by registered priority mail, to the correspondence address indicated in the contract, in the company folder with a return envelope, with a request to send one copy of the contract in the original with initials on each page and the client`s signature in the appropriate place to our company in the attached and addressed return envelope.
To any real estate purchase, in this case an apartment in Bulgaria, except offer price should be added:
In the territory of the Republic of Bulgaria, all apartments-apartments are rent-free, while each apartment owner (assuming that it is an apartment in a closed apartment complex with many amenities), is obliged to sign a contract for the management of the entire complex (equivalent to Polish rent) with the manager, i.e. . a management company, and the price of the year-round management and maintenance of the property, the so-called the annual maintenance of cammon areas fee for the property manager ranges from EUR 4 to EUR 17 per square meter of the total area of a given apartment per year.
IMPORTANT: The statutory standards for calculating the total and usable area in Bulgaria are slightly different than in Poland and, for example, the usable area includes the area of balconies and / or terraces, while the total area includes the share of the land, expressed as percentages, converted to square meters and recorded in the body of the notarial deed as ideal common parts.
Components of permanent costs:
To take full illustrate, the above costs we are giving an example of studio apartment with total area 27,73 m2. We assume that the cost of year-round maintaining for this apartment will be 10 EUR/m2 per year (according to the management agreement) which provide 27,73 m2 x 10 EUR what is 277,30 EUR per year. This fee forms a cost of managing complex and includes the maintenance of common areas in that:
Additional fees are set on the basis of counter values and includes electricity and water consumption. Sometimes the fee for the property management includes also a flat charge for electricity and water accounted in annual fee or overpayment after the end of the calendar year. It should be emphasized, however, that electricity prices in Bulgaria are almost two-thirds lower than in Poland and there are no additional subscription, fixed or variable transmission fees, which means that everyone pays only for the energy consumed, unless of course with this energy uses, and if someone lives permanently in another country and there are periods when they do not use, then they receive only information about the lack of arrears by email and electronic statement for 0.00 leva.
In addition, due to the fact that each manager (a management company for which, in each complex, each owner of a given apartment always pays the maintenance of cammon areas fee) usually has signed contracts with tour operators or is a tour operator and employs appropriate staff (receptionists, laundresses, cleaners, gardeners, restorers, etc.), you can also sign a management contract with the manager for a medium remuneration of the manager in the amount of about 25% of the profit generated from renting and then such a manager also deals with the comprehensive care of the apartment, i.e. cleaning, washing and change of bedding and towels, as well as investigating the condition of the apartment, each time before and after the rental. Alternatively, the owner of the apartment can order by phone or e-mail each time the cleaning service and replacement of bed linen and towels for the complex manager, and once this service costs about 65 Leva cleaning and 15 Leva laundry and change of bedding and towels, but usually pay in advance by bank transfer to the account of the manager (management company).
We would also like to point out that when signing a contract with a manager for management with rental services, it is necessary to declare the period in which a given flat should stay at the disposal of the owner every year, and during the remaining period it can be rented, it should be borne in mind that the season in Bulgaria, it runs from May to October and the payment of rent for a given flat, after deducting costs and a written settlement by a given manager always follows the end of the season, i.e. in the fourth quarter of each year.
IMPORTANT: Of course, there are also external companies that deal with rentals, but we are far from recommending them, because everyone can find them on their own using any search engine.
Template / draft contract for management with rental service:
Companies managing each contract with a given client (the owner of an apartment in a given complex) treat as a business secret and do not provide any detailed information beforehand (neither to the broker nor interested clients) and do not provide the contract templates in advance, because they only show them to the owners when signing management with rental service and during possible negotiations, so receiving a template / draft contract for management with rental service is possible only when you already own, not earlier.
Although we do not provide rental services, we know from our clients who have purchased and rented their property in Bulgaria that for renting a one-room studio apartment from the season from May to October (after deducting 25% of the rental service costs and 10% of the annual flat income tax and other costs, including electricity and water) you can earn an average of about EUR 2,500, a two-room apartment on average EUR 3,500 and a three-room apartment on average EUR 4,500 (but you can earn more and less, because it all depends on the complex, distance from the sea , standard, view from windows and balconies, etc., especially since, for example, in the same complex by the beach, an apartment with a view of the pool and the sea will earn much more than the one with a view of the parking lot and the road, hence these are average amounts).
Costs of complex ILS POLAND GROUP service:
ILS POLAND GROUP provides comprehensive service and conducting every transaction (from own offers bank or from sources indicated by the customer). During the purchase of apartments on the primary market the broker salary is covered by developer so the buyer is exempt from paying commission!
It is worth to mention that in some cases, when the apartments are more expensive some developers are also covering travel and accommodation costs.
*Any commission for brokering activities including comprehensive service and carry out of transaction can be determined only when you buy the smallest and cheapest apartments in the promotional ILS Poland Group terms, only when the seller is an individual or developer who does not pay remuneration. ILS Poland Group salary is set individually basing on the property price. The client is informed about this before taking decision.
IMPORTANT: The remuneration collected by our company for a comprehensive transaction in the case of real estate from the secondary market is the remuneration for the performance of activities, which is a huge amount, and the determined amount of actual salary is calculated at the lowest level and requires us to incur many operating costs, including among others:
ATENTION: ILS POLAND GROUP also provides comprehensive after-sales service, including assistance during furnishing and equipping apartments based on individual arrangements or separate agreements.
IMPORTANT: Both in Poland and Bulgaria, the branch of our company operates only from Monday to Friday from 9:00 a.m. to 5:00 p.m. local time, because on Saturdays, Sundays and public holidays, the managers of the complexes do not provide the keys to the apartments, and bank offices and notary offices are closed, therefore, when planning your visit to Bulgaria, please bear this in mind.
ATENTION: If the customer is already determined and would like to reserve a given property, first of all please contact the person responsible for the offer directly by phone, because we need to check whether the offer is still valid at the moment, and only when we receive confirmation from the seller about the news of the offer and we will inform the seller about the customer`s willingness to book, then we call back the customer (if of course he is not there and wants to book remotely on-line, without having to fly to Bulgaria) and fill in the booking form (by e-mail ) from the preview of a given offer. After receiving a properly completed reservation form from the client, we send the client an intermediation agreement with the client`s data entered in it, with the data of the selected property entered into the agreement, we indicate in the agreement all activities to be performed for remuneration as part of brokerage in the purchase and indicate our company account currency in a Bulgarian bank, to which two payments must be made, i.e. one as a deposit and the other as our remuneration in advance, as it requires us to pay for the operation. The contract signed by persons authorized to sign, stamped and scanned, is sent by e-mail to the e-mail address indicated in the completed form and we are waiting for the return of the contract scan, also with the customer`s signatures, together with confirmations of both above-mentioned transfers. Then, when the transfers have already been made, the representative of our branch in Bulgaria, one of our Polish residents, goes to the locally competent notary at the appointed time, goes to the bank with the notary, and a deposit account is created there for the seller and buyer / booking to a deposit account, our company pays the deposit amount, then we return together to the notary`s office and sign, at our expense, as part of our remuneration, a reservation and deposit agreement valid for 6 weeks, and sometimes as an exception, at the express request of the reservation holder and with the obvious consent of the seller, up to 8 weeks . The reservation and deposit agreement is the equivalent of the Polish preliminary agreement.
Additional and useful links:
Purchase of houses and plots
Conditions of sale and purchase plots and houses in Bulgaria are the same as in Poland and whole European Union. Purchase is made by notarial act which is prepared and signed in the country in which the property is buying. Transactions in Bulgaria are performed only in Euro.
The process of buying houses and plots looks similar to buying an apartment:
We emphasize that the ILS POLAND GROUP is a licensed broker (who has liability insurance) and co-founder of the Polish Chamber of Real Estate – PIN. We care about the best buyer interest in every purchase option.
There are three possibilities of signing the contract which has to carry about client interests: in Poland, in Bulgaria or by correspondence.
IMPORTANT: Registered company does not doing business, it occurs only as the owner of the land and therefore once a year should be accounted so called PIT-0 in the relevant local tax office – on client request by ILS POLAND GROUP.
Otherwise, the clearly specified sites` will in the contract guarantee the security of transaction. Content of the agreement defines the brokers responsibilities and steps for its realization.
To meet your expectations, in order to resolve any doubts and to answer the most frequently asked questions we would like to stress that available houses with plots from the secondary market comes directly from the owner-sellers and we are always checking it against formal aspect.
Cost of purchasing:
To any plot purchase in Bulgaria, except offer price should be added:
Most answers for the potential questions are presented on our website, here is a link to the guide – Real Estate in Bulgaria – why is it worth.
Property tax – on the territory of the Republic of Bulgaria height of the property tax depends on the community in which the property is located, it varies at 25-100 EUR per year.
Moreover, once a year, after completion of the calendar year ILS accountancy on behalf of the companies owners is made to the bulgarian competent local tax office the annual tax return, so called PIT-0. It indicates that the company is not active and only remains the owner of the built or unbuilt land. Costs of preparation and submission of annual tax return varies between 60 and 90 EUR
Additional fees are based on the counter values, it includes normally consumption of electricity, water and waste disposal.
Costs of complex ILS Poland Group service:
*ILS Poland Group provides comprehensive service and conducting every transaction (from own offers bank or from sources indicated by the customer). The brokerage activities commissions including a comrehensive service and carrying out a transaction is determined individually in Bulgaria, of course assuming that the buyers intention is to purchase only house or land.
ATENTION: ILS POLAND GROUP provides comprehensive after-sale service including assinstance the immense renovations of houses and during furnishing and equipping it, basing on individual agreements or separate contracts.
Additional and useful links:
59 m²261 000 €