Buying in Bulgaria

Currently Bulgarian legislation states that foreigners can only purchase the property, but not the freehold (the land). Consequently, all non-Bulgarians need to set up a limited company in order to purchase the property and the land in one simple transaction.

This may sound complicated and a little over welling but rest assured that this is simply a legal process needed to purchase the property and land and there is no need for the "company" to be operational.

BPS will arrange the necessary paperwork for our clientele and you can anticipate a straightforward procedure without any inconvenience. BPS has at its disposal an excellent law practise in Sofia whose expertises will be made available.

BPS believes that to date no foreigner have been refused the setting up of a limited company for the purpose of property purchase.

It is important to note that the setting up a limited company is not required when purchasing an apartment. To be precise you own the leasehold only and not the freehold.

Setting up a limited company takes between 3-5 weeks and costs €500 - €600. You will have to allow one day with our solicitor to fill in and submit all necessary forms on your behalf. Simply choose a name for your company.

Then BPS will assist you to open a business bank account. Our experience has shown that Bulbank are the most efficient and reliable of banking institution, in fact, BPS uses Bulbank for all our international banking requirements. Once you have opened an account you will be allocated a dedicated account manager by the bank, who will assist you at every point of the journey.

Along with your application form, you will also deposit the statutory capital amount of BGL 3500 (about ₤ 1,400), which upon completion of your purchase can be withdrawn back.

These funds will be "locked in" only from the moment of the bank account application until the completion stage of your purchase.

Bulbank account mangers speak fluent English but BPS can, if so required and at any stage of the transaction process, organise a certified translator, so that you are fully informed of the process as well as what documents are you signing.

Once you have chosen your property, an offer is made and if successful, a 10% deposit must be paid to the vendor's solicitor.

If you decide not to preceed with the purchase, your 10% deposit is not refunded.

However, if the seller decides not to proceed with the transaction or the results from the local searches do not allow the transaction, your deposit will be refunded along with the same amount in compensation. This is achieved through the agreed initial contract of sale. PLEASE NOTE: If you decide to go with other property agencies, check that is the case before committing.

Since most of our clientele come to Bulgaria for a week, during that period you will have to spend one day with our solicitors to set up the limited company. BPS will assist you to use the rest of your trip to view properties at different locations and ultimately make that all important offer.

Completion can be done only after the limited company is registered, meaning that you will have to either come back in approximately one month's time for the completion, or provide a third party or BPS with "Power of Attorney" to complete the purchase on your behalf.

At the completion, the remaining 90% of the agreed purchase price has to be sent to the solicitor's bank account.

Commonly Asked Questions

Is setting up a limited company the only way I can purchase a property in Bulgaria?

If you are buying a house with the land, or land only, you will need to set up a limited company. This limited company will be the owner of the property and as director/s you will have 100% ownership of the company, e.g. the property. If you are not buying a property and or land but a holiday apartment, then you do not have to set up a limited company. As in English law, you will not be the owner of the land on which the property has been build, this is owned by the free holder, you will own the lease.

How do I set up a limited company?

Normally, we will organise everything for you. Obviously, you can do it by contracting a third party. The process is fairly uncomplicated and takes between 3-5 weeks.

How do I know what am I signing, I do not understand anything?

When setting up a limited company and at the point of completion you (or the person/s you have given "Power of Attorney") have to see a solicitor. BPS will, if requested, provide at our expense a certified translator. You will be informed of what is being said, ask questions and be advised of the documents you are signing.

PLEASE NOTE: After completion you will receive the original Bulgarian property documentation, as well as an English translation.

How do I make sure if the property has all mains connected?

BPS will specify if a property has electricity and water supplied. Most houses even in remote villages will have electricity and running water. Most country properties do not have a sewage system, but do have a septic tank. In some cases there will be running water from a tap in the garden but not in the property. Most country properties will not have a bathroom or inside toilet. This can be fitted easily.