Bulgaria has one of the most liberal foreign investment laws in the region regarding Bulgaria real estates well as regarding the foreign investors
According to the Bulgarian Constitution and legislation foreign persons and companies can invest in real estate in Bulgaria either personally or through a local legal entity.
Generally speaking, foreign investors can acquire only buildings but not land. Only Bulgarian citizens and legal persons (including such with foreign owner) can obtain the ownership of Bulgarian land. Foreign investors however purchase land as a Limited company, which holds the land for the investor. A limited company can be incorporated within 2-3 weeks for the investor who is the director of this limited company. To arrange this you must contract a good solicitor or barrister at law.
There are other ways for foreign investors to buy land such as:
-
Establishing a joint venture with existing local companies
-
Setting up a new venture
-
Acquiring a company through privatization
-
Making a portfolio investment
Foreign organizations have the right to open bank accounts denominated in a Bulgarian or foreign currency. There is also no limit to the company stake they possess. Moreover, there is a special regime of respect towards the foreign investors on the part of the Bulgarian legislative system, which is a gesture of tolerance to those, who are interested in Bulgaria and are willing to benefit from its future.
The last 2 Bulgarian governments are doing their best to attract foreign investors into the Bulgarian economy, including of course foreign investors wanting to buy Bulgaria real estate.
The service will be undertaken by a Bulgarian lawyer, expert in Bulgaria real estate and specialists who will provide you with a professional help in the field you need.
In Bulgaria it is important to check the history of ownership of a property. If one can proved 10 consecutive years true ownership of this property then there is no problem. It is just a good point to realize to avoid any problems. Your legal representative will no doubt take this into account during their diligence on the property you choose.
The usual term for the old owners of the property to move out of it after completion of the sale is one month. This could be negotiated if the buyers require a shorter term.
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" is for the purposes of real estate taxation and is much lower than the actual selling (purchase) price. Most of the Bulgarian property owners (vendors) wish that the "tax estimation price" is written in the title deed, and not the selling (asking) price which the buyers are paying, so due to this practice there might be discrepancies between the price you are paying and the price written in the title deed. This is nothing to be alarmed about, just something you should be aware of before you buy.
