Real Estate Advice

Acquisition of Land 

If you own an apartment in Bulgaria and the ideal parts of the building right upon the land plot, it is high time you acquired the ideal parts of the ownership right of the land plot itself. In principle, there is a prohibition for citizens of the EU to acquire Bulgarian land until 2012, and for other foreign citizens until 2014, but some Bulgarian Notaries quote the Bulgarian Property Law, according to Art. 38 of which the ideal parts of the land plot, on which a building is already built, are considered part of the common parts, because such land plot can not fulfill its appropriation as land any more. On this ground a foreign individual can acquire the ideal parts of the land plot, corresponding to the apartment, owned by them. Usually the company, which has sold the apartment, is the owner of the land plot and would transfer the ideal parts of the land plot without additional payment from the buyer, as their price is included in the price of the apartment anyway. If you would like to acquire the ideal parts of the land plot, on which your apartment is built, and you have the agreement of the owner of the land plot, our company’s fee for preparation of the relevant documents and representation at the Notary transfer is € 265 (including 2 travellings, not including the Notary fees, the state fees and the tax for transferring of ownership). If a travelling out of Sofia is needed, this would cost you additional € 105

Property Check-up 

If you would like to check the status of your property in Bulgaria, we perform the service “Property Check-up” for a fee of 205 (the fee of the Property Register is included). We check in the Property Register the status of the certain property and report you the results. This information would allow you to check whether there are any encumbrances upon your property, for which you do not know, for example: a mortgage for a loan, which is already repaid, interdiction, imposed by the tax authorities for unpaid tax obligations, or any other rights of third persons. 

Bulgarian land investment no longer requires company 

As a result of the contractual obligations, undertaken by the Bulgarian government in relation to Bulgaria’s membership in the European Union, an important part of the Bulgarian law was recently changed. From 1 January 2012 citizens of the EU are no longer prohibited to purchase Bulgarian land, which is in regulation. Until this date they had to set up a Bulgarian company and purchase land through the established legal entity, as according to the old law only Bulgarian individuals and companies had the right to acquire Bulgarian land. This led to many unfavourable consequences for foreign investors, such as paying additionally to a lawyer to establish a Bulgarian company, appointing an accountant for the relevant services and making other expenses, related to having and maintaining a company. To sum up, from 1 January 2012 establishing a Bulgarian company is no longer necessary for EU citizens in order to buy regulated Bulgarian land, as they can legally acquire it as individuals. The prohibition continues to be in force until 2014 for land, which is out of regulation though (agricultural land, forests, etc.). If you are from the foreign investors, who have established a company only for the purpose of acquiring properties in Bulgaria, you can now transfer the properties to yourself as individual and close the company in order to cut the costs, related to having and maintaining a company. Our fee for Representation at a Property Acquisition/ Sale is € 585 (including 2 travellings, not including the Notary fees, the state fees and the tax for transferring of ownership). There is a discounted fee, namely € 385 (including 2 travellings, not including the Notary fees, the state fees and the tax for transferring of ownership), which we offer for transactions with price of the property up to € 5000. Regarding the closing of the company, our fee for Liquidation of a Company is € 575 (the fee includes preparation of Liquidation Financial Statements by an accountant, provision of Certificate from the National Revenue Agency, Certificate from the National Social Security Institute and Certificate for Good Standing; the fees of the Registry Agency are also included).

This post is also available in: Bulgarian