Property Feeds
Get the latest properties direct to your desktop 
|
|
Reasons to buy property in Bulgaria |
|
TEN REASONS TO BUY A PROPERTY IN BULGARIA 1. Incredibly low prices Just for the sum of your deposit in Spain, you can buy property in Bulgaria. All properties in the country are freehold. 2. Lower cost of living Approximately 30 percent lower expenses for your everyday life than in the Spain. 3. Healthy climate More than 300 sunny days per year. Average temperature from April through September 23°C. The best place for ski in the winter. 4. Life-giving waters Bulgaria's 550 mineral springs cure bronchial asthma and various conditions of the respiratory tract, urological and liver problems, cardiac and vascular diseases, disturbances of the nervous and the reproductive systems, etc. Next to Bansko is Bania resort (4 kilometer from Bansko) with more then 50 mineral springs. 5. Extremely varied landscape Warm, sunny beaches and cool alpine mountains - just several hours' drive from each other. 6. Friendly atmosphere Bulgarians are warm and hearty people, renowned for their hospitality to foreign visitors. 7. Traditions You will find them in the beauty of the handicrafts, melody of the Bulgarian folk songs, etc. 8. Easy access Just over three hours away from most British airports. 9. A member of NATO The country is a member of NATO since 2 April 2004. 10. EU Membership Bulgaria is already in the EU!
WHY BULGARIA? Fresh air, pure water, virgin forests. Very few industrial areas in Bulgaria, mainly agricultural areas and tourist attraction. Natural products and a variety of crops that potentially could feed whole Europe.
Low crime rate.
Political stability.
Religious and ethnical forbearance, peaceful coexistence of different nationalities and cultures.
Gradual growth of economy and constant interest on the part of the European investors.
Very ancient country, rich in history and a circuit of the civilizations existing in territory of Bulgaria.
Location. All European countries 1-2 hours by the plane, 3 hours to Russia. Wonderful option to travel by car across Europe.
Climate. Rather moderate in every respect, there is no strong cold and strong heat, the climate is soft, in some measure damp, in some measure dry, rather useful to health.
Sea. The Black Sea. Not other comments.
Loads of restaurants with good quality, inexpensive food.
Very cheap real estate to the European price levels.
Breath-taking nature. On a photo it is difficult to determine where the landscape is: Italy, France, Spain or Germany. Mountains, valleys, woods, vineyards, lakes, rivers, the sea – a feast for the eye.
A number of excellent skiing resorts.
Variety of supermarkets, hyper markets and techno markets, including famous European chain stores.
Big car market consisting from both new and second hand automobiles from Germany, France, Italy.
Many business opportunities, you only have to seize them. Two main reasons stand at the top of the legthy list: - Quality of life
- Brilliant investment oportunity
And the following: - "Bulgaria? It's the new Costa Del Sol, Daily Mail,April 4, 2004
- 3 hours flight from Gatwick or Heathrow(to the capital Sofia).
- The seaside (Black Sea) boasts more than 220 km of sandy beaches.
- Over 1700 hours of sunshine from May to October.
- Excellent food - a delicius mixture between Mediterranean and Oriental cuisines.
- The cost of living is one of the cheapest in Europe. That means you can enjoy an excellent 3 course meal with wine for no more than GBP 5.00 per head. Drinking beer at 40 pence per pint might be considered a strong reason too.
- All major British tour operators will be on the Black Sea coast next year.
- The unique climate allows sunny beach resorts during the summer and beautiful ski resorts during the winter.
- Stable currency linked to the Euro (lev; BGN).
- Properties have risen in excess of 30% during the last year.
- Bulgaria has recently joined NATO and the European Union.
AREAS OF INTEREST Bulgaria – a small paradise recess, combining in itself the unbelievable beauty of the warm azure sea and the awesome snow-capped mountain peaks. Covering only 2% of the territory of Europe, Bulgaria is blessed by nature with its landscape diversity, mild temperate climate suitable for all-year recreation, flora and fauna abundance, numerous medicinal mineral springs.Bulgaria is a country of rich cultural heritage. The models of this heritage – architectural monuments, objects of country life and valuables, date back from the Paleolithic period when different tribes were living on the territory of today’s Bulgaria, and from Antiquity – mainly from the Thracian culture, The Middle Ages, and Renaissance, up to the present days.Everyone who is interested in our lovely country can enjoy all these valuables by visiting our capital Sofia and acquaint himself with the exponents exhibited in the Archaeological Museum and the National History Museum.Rila, Pirin, and Rhodopi mountains are really beautiful with their virgin forests, numerous caves, gorges, waterfalls, and lakes accessed through picturesque paths. In Rila mountain, Borovets resort is a subject of particular interest, situated at the foot of Moussala peak – the highest peak on the Balkan peninsula. In proximity to the resort are located the “ seven Rila lakes” – the most beautiful cirque of seven lakes in Bulgaria, as well as “ Rila Monastery” – the biggest monastery complex in our country. At the foot of the magnificent Pirin Mountain, close to Mesta river, is located the popular winter resort Bansko, which is not only one of the most snowy places in the country but it also possesses a rich cultural historical heritage. In the “arms” of three mountains – Rila to the north, Pirin to the south, and Rhodopi to the east, is situated the town of Razlog. If you decide to visit this town, you will see more than 40 houses in the typical Revival architectural style, the so called Razlog - Chepin style, which have the value of cultural monuments. In the heart of Rhodopi mountain is situated the modern ski resort Pamporovo. This is the sunniest Bulgarian mountain resort, and here the snow-cover remains during the whole winter season. Not far away is “Bachkovski Monastery”. This is the second biggest and popular monastery in Bulgaria.The Bulgarian Black Sea coast offers a diversity of picturesque sites for cruising and rest. The biggest coastal town situated in Varna Bay, is Varna . In the periphery of this town there are a lot of gardens, vineyards, and broad-leaved forests. As a tourists center, it offers an unlimited number of services and conveniences for its visitors. In close proximity to the town, in the north-east direction, is situated the biggest resort on the North Black Sea coast – Golden sands. The invariable temperature of 27° C and the microclimate of the summer season, make it a wonderful place of recreation and entertainment. The second biggest town on our Black Sea coast is Bourgas, situated on the furthest end of Bourgas Bay. Here there are a lot of hotels, private hostels, and interesting landmarks. The famous sea resort Sunny Beach disposes of 120 hotels, 2 camping sites and many entertainment places. On a small peninsula is situated Nessebar . Its beaches are considered the best alongside our coast. Its ancient part is proclaimed to be a cultural monument of world significance under the defense of UNESCO. In the furthest south part of Bourgas Bay,on a small rocky peninsula, lies Sozopol . The town is attractive with its ancient atmosphere which brings us three centuries back in time. The cobblestone roads and the high fences are integral parts of the town appearance. Dobrich area is preferred for investment in country side properties and agricultural land because of its proximity to the sea and clean environment.
BUYING PROPERTY IN BULGARIA We have simplified the explanation of the buying process to the following:1. You find the property you want to buy on our website.
2. Place a deposit to reserve it or arrange a viewing.
3. Sign a preliminary contract.
4. Set up a company (you don't have to set up a company if you are buying an apartment).
5. Checks are carried out on: Title Documents, Licenses and Permissions, Debts on the Title, Terms of Contract.
6. Sign the Notary Act.
7. You are the new owner of the property!
Please have in mind that properties appearing by the UK standards to be very cheap will almost certainly need work to be done to them in order to bring them up to western standards. Obviously the less expensive properties will be older style and perhaps more remotely located. Many of the cheap properties have their toilets built outside the house. Dream Bulgarian Property Ltd have teams of local builders who will do any type of work required.
Many new developments are being offered under construction (mostly on the coast), where properties may be purchased 'off plan'. In this case every vendor (normally a construction company) provides some extra terms of sale in addition to Dream Bulgarian Property Ltd terms of sale. They are normally set out in the preliminary contract. According to the Bulgarian Constitution, foreign individuals can buy buildings but not land. Therefore the most common method for foreigners buying property in Bulgaria is to set up a limited company which then owns the land and the buildings. The law is expected to change soon as Bulgaria is to enter the European Union in 2007. This historic restriction is one of the reasons why property in Bulgaria is so competitively priced compared to Western and Central Europe.
Forming a company
Who can form a Limited Liability Company & how?A foreign or Bulgarian person (judicial or physical). The person/persons will be liable for the company's obligations to the value of his/hers share in the company's registered capital. The shareholders conduct preliminary discussions on the commercial activities they intend to engage in. Based on their agreement, Articles of Incorporation are prepared & signed by all shareholders.
A dedicated bank account is opened to collect all share capital. The minimum share capital required is 5,000 leva.
The company exists from the moment it is added to the Commercial Register of the district court of where the company will be based. The entry is made upon issue of a district court decision for the incorporation. The following documents must be available at the time of the submission of registration application to the district court.
1. Articles of incorporation;
2. Memorandum for appointment of Director/ Directors;
3. Proof that each shareholder has paid at least one third of its interest, but not less than 10 leva;
Bulgarian State Gazette is the official paper of Bulgarian State. All Bulgarian legislation is published there for the law to take effect. Publication of the company entry in the Commercial Register does not complete your company formation, it announces to the general public the act of formation. Finally, your new company will need to register immediately with the National Tax Register Authority.The costs involved are 5,000 leva. Administrative costs (payable to the state & registration court) are 250 leva . This is the minimum capital that you need to raise for registration. Once the entire share capital has been paid up these funds can be accessed and withdrawn.The process of forming your company can take anywhere between a few days to a few weeks.For a fee of EUR600.00 we can set up a company and complete all the above details on your behalf.
Real Estate Tax Summary
Transfer taxes Apart from corporate tax (15% in 2005), no other direct taxes are levied on the transfer of real property. The transfer is, however, subject to notary and municipal fees. The notary fees are paid on the higher of the market price or the book value of the property at varying rates, with the maximum being BGN3,500 (about EUR1,750). In addition, 2% of the market value of the property is paid to the municipality in which the real property is situated upon completion.
Capital Gains Tax There is no Capital Gains Tax on the profit when your company sells the property but the standard rate of corporate tax (10% in 2007).
Local taxes and rates The owner of a building or a plot is obliged to pay a real property tax. Where a building is built on a State or municipal plot, the value of the plot will also be included in the tax base. The tax is equal to 0.15% of the book value of the property. Arable land is exempt from local taxes. In addition to the real property tax, owners also pay waste-collection fees.
Value Added Tax Transactions with land and lease of property for residential purposes are exempt from VAT (Value Added Tax), all other real estate transactions are subject to VAT at the uniform rate of 20%. The buyer/lessee is entitled to a VAT refund, provided that it is registered for VAT purposes.
Reserving the property After you have made the decision to buy a certain property in Bulgaria you need to place a deposit in order to reserve it. The deposit is 10% of the selling price. Upon receipt of cleared funds we will take the property off the market for a period of 30 days. During this period of time you need to start the purchase and pay the rest of the property price.
If you decide not to buy then no refund will be made.
You can also reserve the property by paying a deposit equal to the the full price. This amount will be treated as a reservation deposit and the reservation deposit terms will apply. Please see the previuos paragraph.
All deposit funds must be paid into our bank account:
ProCredit Bank
Dream Bulgarian Property Ltd.
Sort code
Acc. No.
We will not be responsible for deposits paid into a different account number!!!
The deposits paid into this bank account will be guaranteed by Dream Bulgarian Property Ltd. and ProCredit Bank, Bulgaria. This is the only way you can feel safe while buying a property in Bulgaria. When the time comes to pay the outstanding balance on the completion day (between 30 and 45 days after the reservation of the property) you will be asked to transfer the rest of the money in your company bank account in Bulgaria. Your representative in Bulgaria will withdraw the money and will pay it to the vendor in order to finalize the purchase hassle free.
Signing the preliminary contract Upon receiving cleared funds our solicitors will draft a preliminary contract containing all of the agreed details, money paid and setting out the terms and conditions of the deal. You will need to sign the contract in order to proceed with the purchase.
The Notary Act After setting up a company, bank account and completing all checks and searches you will need to pay the remaining balance for the property. Now it is time for the last step. This is the final stage when you will complete the purchase and become the new owner of the property. You must confirm before the Notary Public the agreement to buy the property. The state and Municipal taxes must be paid, the full amount paid to the vendor and the title deed will be transferred into your company name.
Important facts, you should know, before proceeding with a purchase!
Before making an investment in the Bulgarian Real Estate Market you should first carefully consider several important factors.
Trading in Bulgaria is slightly different as it is in every country. The Bulgarian Legislature is not yet entirely unified with the other European countries Legislature or the EU regulations. The Bulgarian State is regularly issuing new laws which gradually synchronize our legal system with that of the European Union before entering the EU.
Until then for example every vendor will have the right to promote his property with the help of as many agencies as he/she wants. In a result, there is an immense interest from many clients in one and the same property. The clients are all competing with each other if they decide to proceed with reservation. Sometimes during the process of paying the money for the reservation of a property, which takes up to 5 days the property can be bought by someone else who has managed to reach first the vendor. It is the way the market in Bulgaria is developing.
However, we will quickly proceed with the reservation, but there is always a risk of somebody competing unfairly and stealing the deal.
Dream Bulgarian Property is not responsible for any deal lost through competition with other agencies. The money already paid into our bank account for the reservation of the “lost” propertie/s can be transferred for the reservation of other properties offered by us or can be transfered to your bank account. It will be your decision.
Other reasons for “losing” a deal are the difficulties of reaching the vendors simply because the areas chosen for investment are very rural and not many vendors have cell phones. This practice takes time, although we do our best to get to the vendors as quickly as possible.
In any case, the vast majority of properties for sale on the Bulgarian Real Estate Market in Bulgaria are in the rural farming areas near towns and cities which means that the properties need full renovation and redecoration and sometimes they have structural damages.
All of these Bulgarian properties have similar characteristics and need similar amount of money for renovation so if you lose one deal you can always choose another.
We recommend our clients to be ready to pay the reservation deposits for the properties they like as quickly as possible in order to avoid any disappointments.
Important notice:
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 "ratable value" in UK) 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" (ratable value) 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 because of various reasons and Dream Bulgarian Property Ltd. can not be responsible for it. Even if the property buyer wishes that the purchasing price is written in the property title deed we can not guarantee that this will be accepted by the vendor.
Congratulations! You are the proud owner of your new property in Bulgaria.
We suggest that you should arrange property insurance.
|
|
|
