When buying we strongly recommend you to instruct a local lawyer to ensure that all is in order. If dealing with a new development it must be checked that the plot/land is suitable for building purposes, i.e. zoning restrictions, building regulations, access to an official road, availability of water and electricity supply, telephone lines.
In the case of purchase of an apartment or house the lawyer needs to check building planning and other permits, the history, reputation and reliability of a developer and the title to the property.
Find a property and determine whether it is being sold with or without land. If it is being sold with land you need to form a company as the land owner ( much the same as a " Limited " company in the UK ).
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Negotiate and agree the final price with the current owners |
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After the verbal agreement, draw up the initial contract and get the property removed from the market. ( Similar to " Sold subject to contract " in the UK ) |
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Do the standard checks on: ( Use a solicitor ! ) |
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Title documents |
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Licenses and permissions |
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Debts on title |
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Terms of contract |
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Sign the Notary Act ( Contract to Purchase ) in front of a Bulgarian Notary Public and the Final Legal Contract |
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You are the proud owner of a Bulgarian property ! |
Information On Forming A Company in Bulgaria if you buy a house or land
( not required if you buy an apartment )
Private Limited Company ( a limited liability company ) - " OOD " - it is a commercial company with share capital owned by its members whose liability is limited to the amount of the capital subscribed. A private limited liability company may be founded by one or more persons, including foreign natural or legal persons. The minimum foundation capital is Leva 5,000 ( about ? 1 800 ) divided into shares with nominal value of Leva 10 each and at least 70% of the capital must be paid
up on foundation. Contributions to the foundation capital may be paid in cash or in kind. The statutory bodies of the private limited companies are the general meeting of shareholders, which must be held at least once a year, and the managing
director or board of directors.
After the forming & registration of the company the foundation capital ( ? 1 800 ) can be withdrawn and attributed to the final completion payment.
Formation And Registration Of A Company
A company is considered incorporated as from the date of its registration into the commercial register of the relevant district court. The application for registration furnished with certain documents required by the law shall be filed with the court by the elected managing body.
Private Limited Company - in order to be registered in a commercial register, a private limited company must :
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Produce its articles of association ( Memorandum of Association - in the case of a single-person private limited company ); the Law on Commerce stipulates the obligatory provisions of the articles |
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Have appointed a managing director ( or board of directors ) |
This information together with details of the management, etc., is recorded in the commercial register and promulgated in the State Gazette.
All foreign buyers purchasing real estate property must be aware that in Bulgaria there are such terms as " tax estimation price " and " purchase price ". The Tax estimation price ( similar to rateable value in the UK ) is for the purchases of real estate taxation and is much lower than the actual selling ( purchase ) price.
This is for obvious tax reasons on their behalf.
This practice is commonplace in Bulgaria and should not be regarded as unusual and will not effect your ownership, but will actualy lower the costs involved to purchase.
* Lawyers fee for company registration, icluding notary fee 500EUR.
Lawyers fee for the transfering of the property on your company / personal name / notary deal / € 200 + notary fees for all properties.
10% deposit on signing the preliminary contract. |
