The Cost
Although the property prices in Bulgaria are quite low compared to the other European countries, there is still a wide variety of prices depending on the property type and location (as a rule, Sofia and the Black Sea properties are more expensive). The first thing you will need to figure out is how much you can afford to spend, and then, determine your purchase price range. Apart from the property’s actual price, there are a lot of other one-off costs you have to consider.
The expenditures
There are some differences in the property-buying process in Bulgaria from those in the UK. Below is the list of one-off costs, which gives you a rough estimate of the expenditures you must cover. It is advisable always to consider all eventualities when making your estimates.
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1. Deposit
Usually, you must put down at least 10% of the price.
2. Solicitor
You must employ a local solicitor who speaks English for all the legal aspects of buying a property. Some charge a flat rate, others a percentage of the property price (usually 1%). We recommend getting some quotes before choosing one.
Solicitors in Bulgaria frequently represent both sides of a transaction but are legally obliged to be diligent and fair.
3. Preliminary contract
Its cost is around £100, with an extra £15 or so payable for a contract translation – remember that the English version is not legally binding.
4. Survey / Valuation Fee
5. Agency fees
Bulgaria’s agency fees are often split between buyer and seller; a typical cost might be 6%, with buyer and seller each paying 3%. Sometimes, the buyer is responsible for the whole cost; would-be buyers should clarify precisely what percentage of the value will be the fee and the proportion of that fee they are liable. Occasionally – and this is most often the case with new-build properties – the cost is included in the purchase price; again, though, the buyer is advised to find out if this is the case and, if so, what proportion of the overall cost pertains to the fee as it may affect the resale value of the property.
6. Stamp Duty
The government charges a tax based on the property’s purchase price. This is called a country tax, the equivalent of the Stamp Duty in the United Kingdom. This maximum is 2% of the purchase price charged at completion.
7. Notary Fee
The Notary publishes that the title deed has been signed in their presence and understood by the parties concerned. The Notary is further in charge of submitting the title deed with the other related documents of the transfer to the cadastral and the property register (land register).
The Notary will pay registration and state fees collected previously from the buyer.
Registration confirms you as the legal owner of the property and registers you at that address. The fee depends on the property’s price (See Stamp Duty).
8. House-hunting Expenses
Property-hunting can be quite a costly business. Expenses include money for travel to Bulgaria, hotels, and eating, and telephone calls.
9. Removal Fees (if not only a holiday home)
Doing the removal yourself is time-consuming and stressful. If you decide to employ a company, ask around for quotes first.
Find a Property in Bulgaria
After calculating how much you can afford, you can start on the most exciting property-buying process: selecting your future property.
But before you start spending your nights digging through piles of Bulgarian property websites and looking at estate agents’ brochures, it is advisable to sit down and think about what exactly you want. Property-hunting is exhausting and time-consuming, and you can save yourself a lot of work and energy by deciding on certain prerequisites before starting the actual property search.
Choosing the location and the neighborhood
Make sure you select an area you feel comfortable in that suits your needs. If you spend only your holidays in Bulgaria, you may prefer a ski or sea resort property. If you intend to retire in Bulgaria, a small village may suit you. But it is a must to check the infrastructure in the region. The same situation is if you are considering purchasing a property in Bulgaria for part-time retirement.
If you are a young, childless professional, you might want a lively pub scene in the area, whereas if you are an overworked parent of two children, a good school and a playground might be more important to you.
Anyway, there is a place for everybody in Bulgaria – quite lovely villages with animals and gardens, undisturbed mountain villages, lively cities, or luxury sea or spa resorts.
Here are the essential points to consider when choosing your future location and neighborhood:
1. The Prices
Find out what area you can afford a decent property in by looking at the prices of properties sold recently in different locations.
2. Your feelings
Make sure you feel comfortable in that location.
3. Distance and transport
You can arrive in Bulgaria by plane, car, bus or train. The major airports are in Sofia, Varna, and Bourgas. You can take a bus or a taxi to your final destination from there. For more information, you can see Arriving in Bulgaria. So when you choose your property’s location, consider how you would get there and how long it would take you. The best possibility is that your future property is close to the major airport and the road infrastructure is in good condition.
4. Local Amenities
What you need depends on your lifestyle and preferences. Look out for shops, public transport, leisure facilities like pubs and clubs, children’s activities, parks, etc.
5. Schools
If you have kids, find out the situation with the local schools.
6. Crime rate
Find out the crime rate in the region.
7. Condition of the region and neighborhood
Keep in mind that the state of the houses in your area influences the value of your own. The resort regions are likely to be fancier than the ordinary villages.
8. Local Authority Services
Find out how often the waste is being collected, if the road infrastructure is regularly maintained, and, and if the gardens and parks are in good condition.
Choose a Property
In addition to deciding what area you want to live in, you will have to decide on the characteristics of the property you intend to buy.
Below there is a list of property features you will have to consider:
1. Property type
Do you want a house or a flat? If you prefer a home, should it be detached, semi-detached, or terraced?
Under the Bulgarian Act on Foreign Investments, foreigners cannot own land but may own buildings. Foreigners who own land can do it by setting up a Bulgarian company to hold the ground. Bulgarian company incorporation costs less than £600. Bulgaria’s ownership policy will be harmonized with the EU in the future, probably in 2007.
2. Property Features
Determine what size the property should be (keep in mind that a bigger home means higher heating costs).
Decide on the number of bedrooms and bathrooms, the face of the building, and whether you want a garden. If you are looking for an apartment, have you any preferences for the floor number?
3. Old or new?
A new property will be more expensive, but high expenses might be incurred for repairs and improvements with an old property. Many properties are sold “off-plan,” which may favor you.
4. Garage
If you intend to have a car in Bulgaria, check whether you have good parking facilities on the street or a garage.
Bulgarian Property-Hunting Resources
After deciding on your priorities, you can start looking for a property to buy. There are different resources for property listings.
