Gray Stuart – BULGARIA
From our international offices and our local partners on the ground in Bulgaria we help international clients with the following services.
Buying the Best Property in Bulgaria
Very simply we offer our International clients the best of both worlds in that we have proven experienced local knowledge on the ground as well as international expertise from having made many different transactions throughout the world. This will allow you to buy safely and securely in Bulgaria
If you’re an investor and already own assets in Bulgaria or just acquiring them then our team of professionals can offer you the complete asset management services including property management and project management.
These are just a sample of the key services that Gray Stuart Bulgaria provides and should you need any further information do not hesitate to contact us directly.
Gray Stuart Bulgaria
EU +44 20 7588 8355
Asia +63 977 829 1489
Why Invest in Bulgaria Property?
Last updated January 2018
Bulgaria is one of the most risk adverse countries in the world today. Ranks on the 7th position in The Global Risk Briefing, by Bloomberg (3rd best European country after Switzerland and Czech Republic), and confirms Bulgaria’s strong position compared to other EU target countries for immigrants. Bulgaria with about 28% the third lowest Debt-to-GDP ratio in the EU;
Why Invest In Bulgaria property?
After almost five years of stagnation, Bulgaria’s house prices are now rising rapidly, thanks to falling interest rates and stable economy. The recovery is led by the country’s capital, Sofia, with double-digit house price rises.
The nationwide house price index rose by 8.82% (9.79% inflation-adjusted) during the year to Q3 2016, a sharp improvement from a rise of just 2.04%y-o-y a year earlier and the highest annual increase since Q4 2008, according to the National Statistical Institute (NSI). During the latest quarter, house prices increased 1.59% (1.29% inflation-adjusted) in Q3 2016.
The almost zero interest rates on bank deposits have encouraged people to invest in real estate, and also encouraged purchases of pre-construction residential property.
“2016 has been a very dynamic year for Bulgarian real estate market and for the first time in many years the trend has been entirely positive.
From 2000 to 2008, Bulgaria had a house price boom, with residential property prices surging around 300%. The bubble burst at the end of 2008:
Bulgaria’s property market is expected to remain strong in 2017. Demand for properties in the major cities continues to grow, and supply is increasingly limited by low levels of new construction.
Bulgaria’s economy expanded by 3% in 2015, an improvement from annual growth rates of 1.5% in 2014, 1.3% in 2013, and 0.2% in 2012, and the highest expansion since 2008, mainly due to higher net exports and public investment, according to the (IMF). The economy is expected to expand by another 2.8% in 2017, according to the IMF.
European Union citizens can now purchase properties in Bulgaria, including land. The 5-year moratorium on land purchases, set as a condition in the Accession Treaty between Republic of Bulgaria and The European Union, was lifted in January 1, 2012.
Bulgaria offers two types of investment opportunities, Sofia the capital for professional investors where rental returns and capital growth are currently exceptional and the beautiful Black Sea Resort properties for the lifestyle investor who plans to actually use the asset for their own holiday time and get holiday rental income when they are not using it.
Whether you’re a professional investor or a lifestyle property investor prices are very low for an EU country especially one that is starting from such a low base and has one of the best debt to GDP ratios in the world let alone the EU. We would strongly recommend Bulgaria as a property investment Hot Spot.
The Buying Process in the Bulgaria
Last updated January 2018
This Guide is meant to be a quick get up to speed guide to what makes buying in Bulgaria different to other countries we would however strongly recommend that you get your free copy of our Buyers Guide by clicking the link below and we will send it to you straight away. Please note that our system does require Mobile Code Authentication before sending the brochure out.
The Buying Process
The legalities of purchasing a property in Bulgaria are extremely straightforward and wholly safeguard the purchaser’s rights. Gray Stuart has broken down the complete purchase process into ten simple steps to provide a comprehensive overview of all the stages you’ll go through. We regularly provide progress updates and photos, ensuring our clients are always aware and fully informed about the status of their investment.
How difficult is the property purchase process in Bulgaria?
Buyers should remember that unlike the UK, US, and other developed countries, Bulgaria has no centralized property registry. Property searches will be necessary, and the process needs to be entrusted to a competent Bulgarian lawyer or consultant.
Bulgaria gives buyers a very good tax rate on income tax BUT you need support, you need a trusted advisor. It is always important [for the advisor] to understand what the client wants the property for. Knowing that, we can devise a consistent strategy, from A to Z.”
Citizens of EU states may own property and land in Bulgaria at the same terms and conditions as Bulgarians.
The Notary Deed
Bulgaria houses and real estate properties
Under Bulgarian law the transfer of property rights, as well as the establishment of limited rights in rem in respect of real estate is done by way of a formal agreement (generally referred to as a “Notary Deed”), executed by the parties and a duly qualified Notary Public authorized to act within the region of location of the property. Transfers of ownership or limited rights in respect of real property are subject to registration with the relevant Real Estate Registry. The legal owner of the property is considered to be the person registered in the Real Estate Registry. It takes an average of 17 days to complete the procedures needed to register a property.
Transfer tax is set by the municipalities and the rate varies from 0.10% to 3%. The transfer tax rate in Sophia is 2.5%.
Notary fees are around 0.10% to 1.50% of the property value. There is a schedule of notary fees charged in Bulgaria. Notary fees are capped at BGN6,000 (€3,062).
TAX BASE, BGN (€) NOTARY FEE
Up to 100 (€50) BGN30 (€15)
100 to 1,000 (€500) 1.50% on band over €50
1,000 to 10,000 (€5,000) 1.30% on band over €500
10,000- 50,000 (€25,000) 0.80% on band over €5,000
50,000- 100,000 (€50,000) 0.50% on band over €25,000
100,000 – 500,000 (€250,000) 0.20% on band over €50,000 Over 500,000 (€250,000) 0.10% on band over €250,000 but not more than BGN6,000 (€3,000)
The fee for registration in the Real Estate Register is 0.10% of the purchase price or tax valuation, whichever is higher.\Real Estate Agent´s Fee
There are cases where the buyer shoulders the whole burden of the fee. Hence, the buyer is advised to ascertain whether the vendor expects him to pay or share the fee.
Buying and Selling Costs
Below is a list of the buying and selling costs and who pays
|Transfer Tax||0.10% – 3%||buyer|
|Notary Fees||0.10% – 1.50%||buyer|
|Real Estate Agent´s Fee||2.50% – 3%
2.50% – 3%
|Costs paid by buyer||2.80% – 7.60%|
|Costs paid by seller||2.50% – 3%|
|BUYING AND SELLING TRANSACTION COSTS||5.30% – 10.60%|
If you require more detailed information about the buying process in Bulgaria please just fill in the contact form and one of our property professional will get in touch to help you with all questions and needs.
Bulgaria Location Guide
Bulgaria is a Balkan nation with diverse terrain encompassing Black Sea coastline, a mountainous interior and rivers, including the Danube. A cultural melting pot with Greek, Slavic, Ottoman, and Persian influences, it has a rich heritage of traditional dance, music, costumes, and crafts. At the foot of domed Vitosha mountain is its capital city, Sofia, dating to the 5th century B.C
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