Advice on buying Bulgaria Property

Under Bulgarian law a foreigner cannot own land. If you wish to buy land or a house with a plot in Bulgaria then you can circumvent this law by opening a Bulgarian company. The land (and house) can be owned by this company and a foreigner can have outright ownership of the Bulgarian company. The cost for setting up a company is relatively low (under 1000 Euros).

With new, off-plan developments it is not necessary to own part of the land or set up a company as buildings can be owned by foreigners.

Bulgarian Property hotspots
The Black Sea Coast
With a climate similar to northern Spain and golden sandy beaches aplenty, the Black Sea coast is a popular destination with holiday makers and property buyers alike.

Property prices along the coast have increased rapidly over the past 12 months and continue to do so. However, 65,000 euros will still be enough for a one-bedroom apartment on the coastal strip of Sunny Beach, les in less popular resorts.

Sofia
Bulgaria's capital is where those with an eye on making a profit will undoubtedly find themselves drawn.
New one-bedroom apartments can be bought from 55,000 euros, while on the city's outskirts, prices are closer to 20,000 euros. However, the cost of Sofia apartments are almost certain to rocket in the coming year, as the country moves closer to joining the EU.

Bulgaria Ski Resorts
About 30 per cent of Bulgaria's territory is occupied by mountain areas. Of these, the Rhodope, Rila and Pirin mountain ranges all offer fantastic ski resorts between October and March, one of which could be in the running to host the 2014 Winter Olympics.
Prices of apartments in Bulgaria's ski resorts vary from between 40,000 euros for one bedroom, to 75,000 for two bedrooms.

Plovdiv
The country's second biggest city behind Sofia, Plovdiv has slowly started to generate a trickle of interest with British buyers. Property prices are still extremely cheap - a two-bedroom house could cost as little as 15,000 euros - although rental potential is still limited.

Legal fees & costs of buying property in Bulgaria
Legal fees & costs on purchase price totals around 5%
This includes
Solicitors fees usually 1%
Notary expenses are approximately 2%
Notary fees varies, but usually are less then 0.5-0.8%
Stamp duty of 2%
Land registration tax of 0.1%
Time scale for the entire process is around 30/40 days.

These guidelines are meant for guidance only and describe a straightforward purchase scenario. However this information is not meant to replace proper legal advice, which we always insist you take.

John Everitt is a consultant to Globespan European property portal. Please visit our estate agents directory