Procedure for Purchasing Real Estate in Bulgaria

There are several important stages in the property purchase process. Please review the information below, and if you have any inquiries, do not hesitate to contact us. We are here to assist you and facilitate a smooth and comprehensible purchasing process.

1. Send us an inquiry regarding a specific property or the criteria you desire for your future property.

2. Property Selection

Our agent will contact you to understand your requirements. Your purchasing objective is crucial – whether it’s for investment returns or personal use. After clarifying your goal and budget, our team of professionals initiates the search for your desired property based on your predefined criteria. Following the selection of suitable options, our agent will contact you to schedule a meeting for property viewings.

3. Price Negotiation with the Seller

Once you’ve chosen the property and made a decision to purchase, we will facilitate negotiations between you and the seller to ensure that each party receives the best deal.

4. Purchase Process

It typically takes between 2 weeks for local residents and 2 months if the seller is a foreign citizen. Rest assured, you’ll soon be able to enjoy your dream property.

4.1. Upon expressing your intention to purchase a specific property, you’re required to provide a reservation deposit, typically amounting to 10% of the property’s sale price. With this deposit, the property is reserved for a specified period until the signing of a preliminary or final purchase agreement.

4.2. Ownership Verification – The property undergoes verification for mortgages, liens, and other encumbrances in the property register. On the day of the transaction, at the buyer’s request, a certificate of encumbrances may be issued by the Land Registry Agency.

4.3. Should you wish, you may hire a lawyer to advise you during the purchase.

4.4. Document Preparation by the Seller – The seller prepares the necessary documents for the transaction, including:

• Extraction of a property scheme from the Cadastre and Geodetic Service of the respective region;
• Municipal tax assessment from the municipality where the property is located. This cannot be issued without payment of building tax and property tax for the respective property until the time of sale;
• If the seller cannot attend the transaction in person, they provide a power of attorney to a legal representative, often an attorney;
• The seller or their representative must provide the buyer with utility bills for electricity, water, and telephone, as well as maintenance fees if the property is part of a managed complex;

4.5. Once the documents are ready, the parties agree on a convenient date and time for the transaction. The payment method and transfer costs, which are borne by the buyer unless otherwise agreed, are determined.

4.6 Upon the transaction, the following costs are incurred: local tax, notarial, and court fees totaling 3-4% of the property’s tax assessment value, payable in cash at the Notary’s office;

4.7 The transaction is carried out within the jurisdiction of the court district. After signing the notarial deed before a Notary, the transaction is registered in the District Court and considered legitimate. The notarial deed is obtained within 14 days after the transaction.

4.8. If the buyer is a Bulgarian citizen, after receiving the ownership document, they are required to register the property with the Tax Office of the respective Municipality within a two-month period, and transfer electricity and water bills.

4.9. If the buyer is a foreign citizen, according to the Commercial Register Act, they must register for a Bulgarian Identification Code (BULSTAT) within a 7-day period from the issuance of the notarial deed, and then register the property with the Tax Office of the respective Municipality.

Congratulations! You are now a proud owner of real estate in Bulgaria!