Buying Bulgarian Property

The choice of destinations for buying Bulgarian property ranges from the resorts of its Black Sea coast to the peaks of its mountain ranges. It has proven to be a popular property investment choice in recent years for many international property buyers, with the British, Irish and Russians being perhaps the most enthusiastic property investors.

The capital Sofia is now arguably the top Bulgarian property investment hotspot. It has attracted many overseas businesses thanks to generous tax breaks and the boost to the local economy has created a buoyant property rental market. It is also the gateway to some of the country’s best-known ski resorts, themselves some of the most popular Bulgarian property-buying locations.

Around 160 kilometres from Sofia, Bansko property typifies the Bulgarian mountain property today. Those buying Bansko property can choose from a large number of new property developments comprising chalets and apartments close to modern facilities that suit skiers of all standards. Borovets is even closer to the capital and has hosted World Cup alpine events in recent years, while Pamporovo in the south of the country is also worth a look for those thinking of buying Bulgarian ski property.

Buying Bulgarian property on the Black Sea Coast was big news just a few years ago, with places like Kavarna, Sunny Beach, Bourgas and Golden Sands at the top of many property investment lists. The unknown factor with this sector of the Bulgarian property market is that there is no established property resale market yet, so it remains to be seen whether the original property investors will make the kind of money they expected in the long run.

Though it seems to have been eclipsed by some other Eastern European investment opportunities, buying Bulgarian property might still prove a worthwhile option for some UK property buyers and investors.

Key Facts
Population: 7,262,675
Capital: Sofia
Languages: Bulgarian
Area (km2): 110,910
Currency: leva (BGN)
Exchange rate: £1= 2.42 leva
Dialling Code: +359
Emergency services: 150
Embassy in UK: http://www.bulgarianembassy.org.uk

Health
As a member of the EU, provided you carry a valid EHIC card you will be entitled to free treatment. That said, the Bulgarian healthcare system is considerably worse than that of the UK, and private healthcare is strongly advisable

Travel
There are plenty of direct flights all year to Sofia from regional UK airports. Low-cost direct flights to some of the more touristy destinations such as Varna on the Black Sea are also available during the high season, but off-season connecting flights from Sofia are currently needed

TOP TIP
The biggest problem areas in Bulgaria have been false title and false planning permission. This is thankfully becoming much less common, but make sure you appoint a professional to check out these two areas thoroughly, just in case

Fees and taxes

• If a company needs to be set up (for land purchases), initial fees and taxes usually amount to around £500
• Aside from the 2% property tax, which is paid to the local municipality on purchase, no other transfer taxes exist on real estate
• Legal fees average around 3%
• Agents’ fees can vary anywhere between 3% and 10% – so it is very advisable to shop around when choosing an estate agent
• Where applicable, VAT of 20% is added (for example to register a new company address) 

The Process for Buying Bulgarian Property

• Buying Bulgarian property in  is pretty straightforward. However, while foreigners can purchase apartments or houses they are not currently allowed to buy land
• When the buyer has selected a Bulgarian property, either a preliminary purchase or a reservation contract is drawn up and signed
• The preliminary purchase contract is legally binding, whereas a reservation contract is not, so where possible opt for the latter
• Your lawyer will then make all the necessary checks, after which the preliminary contract is signed, committing both buyer and seller to the sale. This contract outlines all details of the purchase, and you are required to pay a 10% deposit at this point
• The balance is paid on final exchange, when a final purchase contract is signed in front of a notary. New ownership can then be registered
• If buying off-plan Bulgarian property, payments are broken into stages, normally three payments of 30% and a final 10% on completion, but this varies

Read our articles offering independent expert advice about buying or investing in Bulgarian property:

• Investment property in Bulgaria
• Buying property in Bulgaria for under £80,000

as well as our overseas property news regarding buying Bulgarian property or view our range of Bulgarian properties.