Fees and Costs involved in the Bulgarian property deal

There are several costs involved in the actual Bulgarian property transfer: stamp duty, the notary fee and registration tax.

Stamp Duty

Stamp duty, or the so-called transfer tax, is paid by the buyer and goes to the local municipality where the property is situated. The amount of the tax is 2 per cent on either the tax evaluation or the purchase price, whichever is the higher. The transfer tax is either paid to the notary or paid by bank transfer to the municipality, and the bank document is presented to the notary.There are also bank charges for the transfer, which depend on the amount transferred and the bank charges of the particular bank.

The Process of Buying a Property in Bulgaria

The procedure for buying a property in Bulgaria is different from the procedure in the UK. This is so, not only because the law and the legal system as a whole are different, but also because of the different habits and traditions of the country. There are some similarities, of course, but in general it is best to understand the specifics and the procedure, rather than try to compare it and make conclusions on the basis of what you know from the UK property buying process.

Add children to the Notary deed of your Bulgarian Property

You may be considering adding your children as co-owners of your property in Bulgaria at the time of purchase, to save inheritance tax when you die. On your death you would only own, say, one-fifth of the property rather than one half, and only that part will be taxable. This only works sensibly if they are over 18. Of course there are drawbacks.

Raising Finance to Buy a Property in Bulgaria

In these days of low interest rates, many more people take out a mortgage in order to buy a property abroad. If the property is viewed simply as an investment, a mortgage allows you to increase your benefit from the capital growth of property by leveraging the property investment. If you buy a house for €200,000 and it increases in value by €50,000, it has yielded a 25 per cent return on your investment. If you had only put in €50,000 of your own money and borrowed the other €150,000, then the increase in value represents a return of 100 percent on your investment. As long as the rate of increase in the value of the property is more than the mortgage rate or costs, you have gained.

The Cost of Building Works in Bulgaria

As mentioned previously, the cost of building works in Bulgaria is higher than people initially expect, and prices are set to increase further. What follows is a breakdown of some of the current costs to carry out works in the VelikoTurnovo region. You will find that in other regions, such as Sofia and along the coast, prices will be higher. These prices have been provided by Best Bulgarian Properties Ltd.

Living in Bulgaria

Many people buy property because they want to live abroad. Some wish to escape the stresses of Britain, others to gain further skills abroad and perhaps start a business, and others to retire or take a year or two out. It is remarkable how many foreigners arrive in Bulgaria with one-year contracts and end up staying and buying a home, and often getting married or integrating into the local community.

A Changing Bulgaria

Bulgaria has gone through a great transition since the end of Communism in 1989, known locally as ‘the Changes’. Since ‘the Changes’, people in the new democratic society have been debating what from the past they should retain, and what they should discard. Many of ‘the Changes’ were conditional for EU accession. They included a move from a state-run economy to one that respects free trade and private enterprise.

Bulgaria property market

The rise of the Bulgarian property market has been one of the most remarkable real estate phenomena ofthepastfewyears.lt has come about for two reasons – the collapse of Communist regimes in Eastern Europe, and the massive growth in the overseas property market. The former has opened up a hitherto unknown country to reveal one of […]

One bedroom apartments far from the center and luxurious homes outside the city

The preferences of the clients are relocated into homes and offices far from the center of the big cities. The overbuilding of the central parts in the big cities brought certain loss of interest from the candidates to own real estates. At the same time the interest in the peripheral parts of the city has become bigger.

Orchid Developments Group is ‘Investor of the Year’

Orchid Developments Group won the award for an investor of the year in the building business. The prestigious award was accepted by the project advisor Eli Egozi during the ceremony for “Person of the year”. “We are very happy for this acknowledgment”, shared Eli Egozi and she didn`t hide the fact that they have intentions […]