How to buy an apartment in Bulgaria through Clements Properties Overseas
Firstly, to buy an apartment in Bulgaria, you do not need to register a Ltd company as this is only needed when you are buying land or a house. For apartments you are actually buying the right to build (not the land) that’s why company formation is not required by law. There is no reason to worry about that, as once you’ve bought the apartment you will have legal document for ownership – Notary title deed which is issued by a legal Notary, practicing in the area where the apartment is located.
The steps for buying are:
1. Once you’ve chosen the resale apartment that you like to buy through us, the standard way to reserve it is by putting down a 2000 GBP/EUR reservation deposit and this amount will take the property off the market. The reservation fee is not refundable if the buyer pulls out, and is deductible from the total agreed price of the property.
2. Once the apartment has been reserved, we require a scan showing the buyer’s passport details and their home address information - this is required so that a preliminary contract can be prepared by our lawyers. In this contract is described everything regarding your purchase, payments and also penalties – for you, if you are late with the payment and also for the seller if they delay. At this stage, buyers are welcome to find a lawyer to represent them; however one is not required by law so it is the buyer’s choice.
3. Usually 4-6 weeks after the reservation you will need to transfer the price of the apartment into the seller’s bank account.
4. Once all the payments are made, the property will be transferred into your name in the local Notary in Bulgaria. For this also you will either need to either give someone Power of attorney to represent you, or you can fly to Bulgaria yourself. You will then be issued with a title deed, and this document shows that you are now the new legal owner.
5. After the deal you will need to register the property in the Local Tax department so that you are registered as the new legal owner. Also according to the Bulgarian Law you will need to register in the Bulgarian Statistics Institute (BULSTAT) and take a BULSTAT card. You need to do this within 7 days after the purchase but don't worry, we can arrange everything.
You will need to pay around 4% of the declared value to cover all of the notary and state fees and taxes as well as a fee to a Bulgarian lawyer.