Bulgaria

Dear Sir/Madam, Because of receiving huge number of inquiries each day which regards to procedures and costs associated with properties in Bulgaria, we would like to explain the problem below.

Purchase of apartments and locals


PROCEDURES

Buying procedure:

Procedures and costs - apartments and flats - BulgariaConditions 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:

  1. First variant is to buy an apartment during the investment departure – a visit to Bulgaria.
  2. Second option is to buy property without necessity of visiting to Bulgaria. We are always encourage to use the first variant, it provides a personal knowledge of terrain, surrounding area and immediate neighborhood, what is very helpful in making this type decisions.

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.

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:

  1. Signing a contract or
  2. Organization the investment trip, including both ways flight and hotel reservation
  3. Pickup from airport and transfer to the hotel and than signing the agency agreement
  4. Presentation of alternative properties according to customer specifies criteria and indication of current developers offers
  5. We negotiate the offer price with the seller on client request. Negotiations are most effective when the payment is a one-time or if you are buying at least 2 apartments
  6. Payment of reservation (usually about 1.00-1.500 EUR) and signing the reservation contract.
  7. Translation and negotiating terms of the preliminary agreement
  8. Signing of the preliminary agreement and payment of the first tranche which can not be less than 30% of the apartment value within 14 days including into account payments already made a reservation fee (eg. 1.000EUR)
  9. Payment of the remaining 70% of the value in installments and dates agreed individually during signing the preliminary contract.
  10. Receiving and commissioning of premises, verification of the facts and parameters of the local in terms of documentation
  11. Organization and signing the final agreement (after formal legal putting the building for use) with a notary in Bulgaria with a sworn translator. Usually until that moment the seller is expected the full price, though it is possible to pay during notarial act or after it in date agreed with seller (in cash or by bank transfer).

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.)

COSTS

Purchase costs:

To any real estate purchase, in this case an apartment in Bulgaria, except offer price should be added:

  1. Notarial transfer agreement costs that is notary fee and the tax on the civil law transactions (same as in Poland) whole is paid to the notary. Notary fee is a cost ranges from tens to hundreds Euro – negotiable. The tax on the civil law in Bulgaria is 5% of the transaction.
  2. Costs of flight in both directions and stay in any hotel. The flight costs varies between 300 and 400zł in the off-season in both direction that is Poland-Bulgaria-Poland per one person. Costs of staying in a good class hotel with a sea view in the winter months and before the season is about 50zl/day per person (it is a optional cost because we are also supporting complex transactions without flight)

Most of answer to the potential questions are presented on our website, here is a link to the guide – Real Estate in Bulgaria – why is it worth.

Permanent costs:

In the territory of the Republic of Bulgaria all flats-apartments are acres. Every owner of the apartment (assuming that it is an apartment with many facilities in a closed complex) is required to sign a contract to manage the whole complex (the equivalent of our rent) with the administrator – usually developer. Price of the year-round property management is in the range from 4 to 10 euros per square meter for apartment

Components of permanent costs:

To take full illustrate, the above costs we are giving an example of studio apartment with total area 27,73m2. We assume that the cost of year-round maintaining for this apartment will be 5 EUR/m2 per year (according to the management agreement) which provide 27,73m2 x 5EUR what is 138,65EUR per year. This fee forms a cost of managing complex and includes the maintenance of common areas in that:

  • front desk,
  • clock protection,
  • swimming pools cleaning,
  • mowing lawns,
  • free protected parking for apartments owners,
  • lifts conservation,
  • renovation fund,
  • saunas keeping,
  • gym, fitness and much more, etc.
  • property tax,
  • proportional flat fee for media (electricity and water).

Additional costs:

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.

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.

ATENTION: ILS POLAND GROUP provides comprehensive after-sale service including assistance the immense renovations of houses and during apartments are to be furnished and equipped, basing on individual agreements or separate contracts.

Additional and useful links:

  1. Embassy: >>https://www.gov.uk/government/world/organisations/british-embassy-sofia 
  2. Wikipedia: >>https://en.wikipedia.org/wiki/Bulgaria
  3. Search for real estates in Bulgaria for sale: >>https://en.ilspoland.com/real-estates/bulgaria
  4. Search for apartments in Bulgaria for sale: >>https://en.ilspoland.com/real-estates/bulgaria/apartments/sale


Purchase of houses and plots


PROCEDURES

Buying procedure:

Purchase of houses and plots - BulgariaConditions 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:

  1. First variant is to buy house with a plot or the same plot during the investment trip – a visit to Bulgaria,
  2. Second option is to buy property without necessity of visiting to Bulgaria. We always encourage to use the first variant, because it  provides a personal knowledge of terrain, surrounding area and immediate neighborhood, what is very helpful in making this type of decisions.

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.

  1. Signing a contract or
  2. Organization the investment trip, including both ways flight and hotel reservation
  3. Pick up from the airport and transfer to the hotel and then signing the agency agreement
  4. Presentation of alternative properties according to customer specifies criteria
  5. We negotiate the offer price with the seller on client request
  6. After making decision about buying property - paying the fee reservation. This payment should not be less than 1.000 EUR to the notary deposit account as a pledge for the seller. The pledge will be counted to the purchase price during signing the final agreement
  7. From 1st January 2012 all EU citizens can buy one a built-up residential house or building plot as individual person.  In case of buying two or more such properties it is necessary to register the simplest form of legal entity – Limited liability company in the National Court Register in Bulgaria on an idividual client.
  8. Receive a legal entity registration documents in case of buying two or more land and houses
  9. Organization and signing the final agreement with a notary in Bulgaria with a sworn translator. Usually until that moment the seller is expected the full price, though it is possible to pay during notarial act or after it in date agreed with seller (in cash or by bank transfer).

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:

  1. Notarial transfer agreement costs i.e. The notary fee and the tax on civil law transactions  is paid for the notary`s. Notary fee is a cost ranges from tens to hundreds Euro – negotiable. The tax on civil law in Bulgaria is 5% of the transaction. The height of its depends on valuation for tax purposes so called "bułgarska ocenka" which is drawn up by the appropriate local tax authorities, directly before the transaction.
  2. In case of buying two or more built or unbuilt plots due to bulgarian legislation, onepaid cost for registration the simplest form of "legal person" that is Limited liability company in the National Court Register in Bulgaria on an idividual client which is 500 EUR (this regulation applies to 2012 because of standarization of whole EU regulations, the registration precess is carried by ILS GROUP on behalf of the customer and it takes only 48h)
  3. Costs of flight in both directions and stay in any hotel. The flight costs varies between 300 and 400zł in the off-season in both direction that is Poland-Bulgaria-Poland per one person. Costs of staying in a good class hotel with a sea view in the winter months and before the season is about 50zl/day per person (it is a optional cost because we are also supporting complex transactions without flight)

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.

Permanent costs:

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:
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:

  1. Embassy: >>https://www.gov.uk/government/world/organisations/british-embassy-sofia 
  2. Wikipedia: >>https://en.wikipedia.org/wiki/Bulgaria
  3. Search for real estates in Bulgaria for sale: >>https://en.ilspoland.com/real-estates/bulgaria
  4. Search for houses in Bulgaria for sale: >>https://en.ilspoland.com/real-estates/bulgaria/houses/sale

+48 668 803 003