Independent
Property Consultancy
Bulgaria

Owning a property in Bulgaria

According to the Bulgarian Constitution foreign nationals and foreign legal entities may not directly acquire ownership rights on land. This however does not apply for apartment buildings as the present of land is not deemed considerable.
In short this means that Foreigners can obtain a propery with land through registering Bulgarian company. There is no restricton when purchasing an apartment.

Taxes and fees

Buying Bulgarian property

· Stamp duty: 2 - 3 % - payble on completion of the deal
· VAT / new building only / : 20 % - ask if the VAT is included in the price of the new build and off-plan apartments
· Estate Agent : 3 - 5 % - with new build and off -plan properties the comission is included in the price
· Legal fees : 1-2 % - applies if independent legal services are employed

Maintenance taxes

· Local authority ownership and rubbish: 0.15 % of property value
· Corporate tax on Bulgarian property income : 15 % of net income

Selling Bulgarian property

· Capital Gains Tax 15 % - is not taxable, if provided with evidence the property has been the seller’s permanent home for at least three years before the execution of the sale, or if the period from the acquisition up to the sale exceeds 5 years.
· Repatriation Tax 7 %

Inheritance Taxes

· UK and Irish rules apply
· Local Bulgarian protected heirs rules do not apply, therefore, you can pass title of your property under standard will arrangement.

* Please note that all the percentages should be calculated from the price of the property

Mortgages

Three or four years ago, the mortgage product did not even exist in Bulgaria as a financial instrument, now there are already six Bulgarian lenders that offer financial products to foreign citizens to buy property in Bulgaria. The guideline of the conditions is highlighted in the table bellow.

Sash Solutions in a partnership with various mortgages providers and will provide you all the information about the process, selects among the best suitable mortgage product in Bulgaria and arrange successfully the mortgages for our investors .Please enquire here