Buying property in Bulgaria

A foreign investor can invest in properties either directly or through a local entity. For a direct investment the tax treaty of the foreign investor will depend on whether or not their activities constitute a permanent establishment. If they do then they are taxed as locals, whereas if the property is not considered a permanent establishment then a flat tax rate is applied or the rate in effect given the individual’s tax treaty – whichever rate is lower.

There are several steps to buying property in Bulgaria. First, you must choose the area of the country in which you want to live. As Bulgaria is a highly diverse place it is imperative that you choose wisely. If you are not big on the quiet rural life, then choosing to live in a city might be more suitable to your personality. However, if you despise an urban environment then you may consider either the Bulgarian country-side or even one of the many sea resorts that line the Bulgarian Black Sea Coast. Those who enjoy winter sports may be better off purchasing property in one of Bulgaria’s ski-resorts.

Second you have to choose the property according to the services and amenities that are available both in the complex in which you wish to purchase (if applicable) or in the town of your choice. Find out such things as if they are on a rationed water plan or if water is available 24 hours a day. Find out whether power is cut during peak seasons or times of the day and find out how much it will cost to run your internet connection.

The next step will be to choose the right property. If you plan on retiring in Bulgaria and have more than enough cash to spare then you might want to consider a nice, luxury villa. If you are planning on buying a property with the goal of profiting from it, then your best bet is to buy an apartment unit. If you purchase a condo in a sea resort the easiest kind of units for subsequent rental purposes are studios and one-bedroom condos. However, in the city the units that are most in demand are one and two-bedroom apartments.

Once you have chosen the region and the property you want to buy then you have to get the agent to send you a reservation form and you will have to pay a fee to ensure that the unit is reserved for you. The fee usually ranges from Euros 1000 to 3000. You will then have the documentation – basically the contracts – with all of the details of the purchase sent to you for signing. After you have signed and delivered the papers back to the agent, then you will begin paying for the property according to your payment plan.

When the project is completed you have to come to the country to sign the final contract and to receive the final deed; or you must hire a solicitor to sign on your behalf in front of a notary. At this point you will have to pay any outstanding taxes along with the notary fee.

Once all these steps are done, you are the owner of property in Bulgaria.

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