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F.A.Q.

If I like an apartment or a house, but I can’t come to Bulgaria right away, what should I do?

You can make the so called “reservation deposit” depending on the value of the real estate facility; it ranges from EUR1000 to EUR 2000. Such deposit allows to reserve the selected apartment or house to you for a certain period of time; during this period you can come, view the facility and make a decision of purchase.

 

How can I make a deposit?

You can pay that deposit at our head office or through our Representative Office in Moscow.

 

Could you tell me what deal execution expenses should I expect?

When perfecting the title to a real estate you should take the following expenses into account:

  • A notarial charge for deal settlement which you pay to the notary in cash. It is a notarial fee calculated in proportion to the material interest and formed on the basis of real estate value. It amounts to approximately 4-5%. The charge incurs 20% VAT.
  • A tax for a title transfer at the rate of 2-4% of the greater of a selling or tax value is paid to a municipality’s account.
  • A charge for registration with the Agency for entering at the rate of 1% of the cost.
  • Charge for drawing a notarial act – in average, EUR 200 and EUR 100 for registration.
  • Interpreter’ services amount to EUR 40 for interpretation.

 

What taxes and payments should be taken into account once I’ve purchased the property?

1. The annual tax for real estate – the tax base for companies is a book value of real estate; for individuals – a price of real estate determined by a territorial tax service (tax valuation). The tax rate is the same both for individuals and corporations and it amounts to 0,15%.

2. The annual fee for household garbage disposal: property owners in Bulgaria also pay a fee for household garbage removal. The payment rate is set by local authorities. For residential buildings – in proportion to a book value or depending on the garbage quantity. The tariff is the same for individuals and legal entities. The fee for garbage removal is set for private residences depending on a residence value. In the Burgas district, the fee is 0.17%.

The annual tax and fee are paid at the same time starting from March 1. The payment can be made in 2 installments: The first installment is paid before June 30, and the second one – before October 30, then interest starts to accrue for the delay in payment. All who paid taxes and fees before April 30 obtain a discount of 5% of the whole amount.

 

What other taxes exist in Bulgaria?!

  • Individual Income Tax – 10%
  • VAT (value added tax) – 20%
  • Dividend tax – 5%

Compulsory social security contributions:

  • Employer – 17.4%
  • Employee – 12.9%
  • Maximum monthly security tax – BGN 2000 (EUR 1000)
  • Profit Tax – 10%

The profit obtained from sale of shares through the Bulgarian stock market or a regulated market in a member country of EC/EEC is exempt from the profit tax– 0%

  • Corporation tax – 10%

Companies with a special investment objective are tax exempt - 0%, as well as collective investment schemes admitted for public offering and licensed investment societies of closed type – 0%

 

If I can’t be present in person during the signature of a Notarial Act, can I entitle anyone thereto?

You can instruct the conducting of negotiations and document signature on your behalf to a proxy, relative, lawyer or realtor.  For that purpose you need to execute a notarized power of attorney. Such power of attorney can be executed in your country  and have an official translation attached; no legalization or apostil thereof is required (please check with the Embassy of Bulgaria first).

 

What documents do I need for purchasing real estate?

If you purchase any real estate without a land plot, you only need to have a valid foreign passport.

 

Once I’ve perfected the title, and yesterday I received a notarial act, what should I do next?

After obtaining the notarial act you need to perform the following steps:

1. You need to notify the relevant municipality regarding the changes in property

2. Foreign citizens need to apply for BULSTAT (Agency for entering) and to receive a tax number using whereof you would pay taxes in the future. You need to do it within 7 days.

3. To file a tax return within 2 months after the purchase.

4. To apply to water supply and sewerage (ViK), a water distribution company, and to register therewith.

5. You also need to register with an electric distribution company: ChEZ, EON or EVN (depending on a region of purchase).

Our company will be happy to consult you on every point and to help you in going through those procedures.

 

What kind of SMS notification regarding the property is introduced in Bulgaria?

From the middle of February, 2013, the Agency for registration of titles in Bulgaria introduced a new service – sms notification at all real property deals. This measure should reduce possible fraud with real estate in Bulgaria. Conditions: Bulgarian citizens and foreigners can equally access the service. One sms costs 1 stotinka, a package of 500 sms for two years – BGN 6.  When receiving a message of an unknown deal with property, an owner can make a call on telephone number (02) 984 61 60, then the deal will be stopped.

 

If I came and decided to purchase the real property right away, and I already have the money on my account, can I become an owner right away?

Yes, for that purpose the real property facility needs to be completed, i.e. statement 16 (or 15 in the case of low-rise construction) must have been obtained, then the deal can be perfected right away:  to sign a notarial act and to pay the complete value of the real property facility.

 

What is the difference between a flat and apartment?

In general, these are different descriptions of one and the same thing in Bulgaria. The only difference is when we talk about a flat and number of rooms, then a living room is always included in that number, and it is not included in case of an apartment. That is when we write an “apartment with one bedroom”, it is the same as a two-room flat. We do that for your convenience, because it is usual in Bulgarina to combine the kitchen space with a dining room and entertaining zone, while a bedroom is separated by a partition and located in a separate room.

We are planning to move to Bulgaria for permanent residence, we have a daughter who is studying in 5th grade (she is 11 years old). Tell me please, is it possible for her to continue studying in Russian school in Bulgaria?
Yes, there are few options. In Varna there is a school with the study of foreign languages - VIII SOUPCHE "Pushkin". The languages which are studied there are: English, French, Italian, German and Russian (Russian in priority). They accept children from grades 1st to 12th. Education costs 800 euros per year. The website address of the school: http://www.8souvarna.com/
In Bourgas there is a Russian high school for the middle grades - GCHE "Vasil Levski". It has two specializations: the studying of Russian and English languages and studying Russian and German languages. They accept children from grades 8th to 12th. Education costs 900 euros per year. The website address of the school: http://gimnasy-rus-bs.net
Also in Bourgas plan to open a Russian school for grades 1st to 7th in next year. Unfortunately, we have no further details, but as soon as we get them, we will inform you.

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