Fees and commissions

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Transport charges:

  • Use our company car (more than 200km.) and pay 0.30 EUR per km.
  • The charge covers the wear cost of the car and petrol expenses
  • The transport fee is refundable in case you purchase property during your visit.
  • Pick up from the airport (Varna) and driving to the hotel-20 EUR
Deposit:
At least 10% of the purchase price.The deposit is necessary to take the property out of the market for about 60 days at which time you have to start purchasing process and pay the rest of the price.The deposit is not refundable if any fail of the purchase because of the buyer's fault. If there are any sellers fault, deposit is twice fully refundable. The deposit and our agency fee must be paid together when we sign the preliminary contract. All deposit and fees can be paid cash or from bank account in Pounds, Euro or BG leva. We will negotiate the payment way with you to match your requirements.

Company registration fees:

If you are a foreigner interested in buying land in Bulgaria, you must register a Trade Company. In Bulgaria it is forbidden a foreigner to buy land as an individual. This limitation will cease after 2014. According to the Bulgarian act on foreign investment foreigners can buy buildings(apartments) but not land. Therefore the most common method is to set up a company which then owns the property. If you want to set up your own company the taxes for open are 700 Euros. As well as to open a bank account you have to put 5,000 leva (2,500 Euros-1785 GBP ) in some Bulgarian bank. These 5,000 leva are just to open an account for your company! When company will be registered you can use these 5,000 leva, for example as a part to your money for your new home in Bulgaria.
Our team of lawyers will register your company for which we charge 800 Euros.
  1. The difference between EOOD ( Single person limited company ), OOD ( Multiple person limited company ) and Sole Trader ( ET ) is that the Sole Trader is responsible for his duties regarding the business liabilities but if your company is LTD ( = EOOD or OOD ), each partner is responsible only to the extent of their share in the total capital. We recommend LTD.

Buying an apartment:

  1. To buy an apartment in Bulgaria, you don’t need to register a Ltd company as this is valid only when you are buying land or a house. For the apartments you are actually buying the right to build (not the land) that’s why company formation is not required. There is no reason to worry about that, as once you’ve bought the apartment you will have legal document for ownership – Notary deed which is not limited in the time and is issued by legal Notary, practicing in the area where is the property.
  2. Once you’ve chosen the apartment that you like, the standard way to reserve it is by putting 1000 EUR reservation fee which takes the property off the market. The reservation fee is not refundable, but is deductable from the first payment
  3. Once the apartment has been reserved, your passport details and home address is required so that a preliminary contract can be made. In this contract is described everything regarding your purchase – apartment number and price, amounts and dates of payments and also penalties – for you, if you are late with the payment or for the developer if there is delay with the building process. Our solicitor will help you in this process by checking all the papers for the building, documents of ownership and also check the preliminary contract and advise you whether everything is in order or something needs to be changed.
  4. Usually 1 month after the reservation you have to transfer the first payment for the property into a bank account in Bulgaria
  5. After the deal you will need to register the property in the Local Tax department so that you are registered as the new legal owner. Also according to the Bulgarian Law you will need to register in the Bulgarian Statistics Institute (BULSTAT) and take a BULSTAT card. You need to do this within 7 days after the purchase. This service also is included in the cost that our solicitor is charging.

IMPORTANT!

Please, note also that in Bulgaria there is a Tax estimation price /similar to ratable value in UK/ which is usually several times lower than the purchase price. Because of various reasons (saving on taxes and VAT) most vendors prefer this lower price rather than the real sale price written in title deeds. Due to this practice, it is good to ask on each individual offer how it’s being transferred.

Fee for: declaring the new ownership before the Tax Authority Service and registering new electricity, water, telephone bills-150 EUR

Some additional expenses:
  1. Notary fee – from 0.2% to 1.2% of the larger amount - the purchase price or the property tax valuation (similar to stamp duty). A Notary Public is a certified official that is authorized to transfer title and legalize property purchases in Bulgaria.
  2. Government tax valuation fee or the so called local tax – 2% of the larger amount - the purchase price or the property tax valuation.
  3. Value Added Tax (VAT )- Transactions with land and lease of property for residential purposes are exempt from VAT. All others are subject to VAT at the uniform rate of 20%. If you are buying property from an individual you pay no VAT.