There are 475 properties listed on this website
0 properties in the last week
Advices
Legal and Taxation Support
Below, we have summarized basic legal and taxation information on real estate and land purchase in Bulgaria. For additional details, please consult your independent legal adviser or any agent from „Yavlena-Burgas” LTD and we will be pleased to help you.
Legal Information
The Bulgarian Construction and the Foreign Investment Act provide national treatment to foreign investors, which means that foreign persons are entitled to perform business activities under the same conditions as Bulgarian citizens. Foreign investments in Bulgaria are covered by legal and international guarantees, except minor additional requirements for land purchases as explained below. Each contract will be assigned a registration number, which can be referenced for any inquiries of proof of ownership. In term of two months after the permission for use is issued, the estate address should be registered in the municipality.
Legal requirements for real estate purchases in Bulgaria in case the buyer is a foreign person /individual or company/: Purchase of land:
Foreign companies and citizens can buy land in Bulgaria only through a Trade Company formed in Bulgaria. The company will buy the land, and on the other side the same company might be 100% owned by the respective foreign person. Bulgarian participation in the company is not necessary at all. The owner of the company can be its manager as well. Land purchase in Bulgaria is free of VAT.
Foreign companies and citizens can buy buildings and objects in buildings without any restrictions. What is the stage in the process when the investor becomes official owner of the respective property?
The buyer becomes the official owner of the property in the moment, when the final purchase contract in special notary’s form is concluded. The contract /title deeds/ is prepared by a solicitor and certified via a notary. After the signing of the contract in front of the notary it has to be filled in the special property register in the local Regional court / the register is similar of the cadastre register in some west European countries/.
Taxation
The taxation of real estate purchases depend on the price of the property and the tax valuation. The valuation is in accordance with addendum No 2 of the Law for the local taxes and fees.
to 100 levs -15 levs from 101 levs to 1 000 levs -15 levs + 1. 5% for incomes over 100 levs from 1 001 levs to 10 000 levs -28. 50 levs + 1. 0% for incomes over 1 000 levs from 10 001 levs to 50 000 levs -118. 50 levs + 0. 5% for incomes over 10 000 levs from 50 001 levs to 100 000 levs -318. 50 levs + 0. 2% for incomes over 50 000 levs over 100 001 levs -418 levs + 0. 1% for incomes over 100 000 levs, but not more than 3 000 levs
Example 1
Tax valuation – 25 000 levs, price from Notarial Act 25 000 levs, one copy of Notarial Act /I-st page 2 levs, and 1 lev for the next/
Notarial tax 118. 50 levs Income over 10 000 levs 75. 00 levs Local tax – 2% 500. 00 levs Register entry tax – 1/1000 25. 00 levs Other 15. 00 levs Copy 3. 00 levs
Total costs 736. 50 levs
Example 2
Tax valuation – 35 000 levs, price in Notarial Act 80 000 levs, three copies of Notarial Act
Notarial tax 318. 50 levs Income over 50 000 levs 60. 00 levs Local tax – 2% 1 600. 00 levs Register entry tax – 1/1000 80. 00 levs Other 15. 00 levs Copy 3 nos. 9. 00 levs
Total costs 2 082. 50 levs
Additionally, the owners of real estate properties have a rubbish collection fee which is different depending on the local regulations of each region. The fee is defined every year by the municipality’s council.
Transfer abroad the incomes, realized in Bulgaria Foreign investors can repatriate their profit realized in Bulgaria without any restrictions after they prove that all due taxes regarding their incomes in Bulgaria have been paid.
Taxation of individuals The taxation of the annual incomes of the individuals in Bulgaria is in accordance with the following progressive table: Till 1440 levs – free of taxes From 1440 levs to 1800 levs - 12 % for incomes over 1440 levs From 1800 levs to 3000 levs - 43, 20 levs + 22 % for incomes over 1800 levs From 3000 levs to 7200 levs - 307, 20 levs + 26% for incomes over 3000 levs Over 7200 levs - 1399, 20 levs + 29 % for incomes over 7200 levs
The dividends accounted from Bulgarian companies in benefit of the shareholders in the respective company will be taxed with “final tax” which is always in amount of 15. These incomes, will not be included in the total income described in the table above.
Corporate taxes
The companies pay "Corporate taxes" in the amount of 19. 5% of the net income for the respective year /on annual basis/
