Excel Property Sofia is a young but fast growing real estate company that offers properties for sale and rent in all segments of the market in Bulgaria. Main objective of our work is to offer a complete package of various services accompanying real estate transactions for our Bulgarian and foreign clients.
1. Who and how to obtain the ownership of real estate in Bulgaria? – All Bulgarian citizens, Nationals who are Members of the European Union or other foreign citizens can acquire ownership of buildings and limited real rights on immovable property according to Bulgarian law. Under the Treaty of Accession of Bulgaria to the European Union, all citizens of EU member states or the European Economic Area, from 01.01.2012 have the right to acquire the land which is built on their property. Currently, only remain in force the moratorium on sale of agricultural land to foreign citizens, according to the contract of the Republic of Bulgaria to join the European Union should be abolished on 1.1.2014
2. Which are the main steps of the legal procedures for purchasing a property in Bulgaria? – If you want to acquire a property in Bulgaria, there are two main stages in the legal process – namely, the preparation and signing the preliminary contract of sale and the finalization of the deal after signing the final contract in the form of Title Deed front of a notary. The preliminary contract is the duty of vendor to sell and the buyer to purchase the property under the terms of this agreement – subject to contract, final price, terms of payment, term of performance, penalties, etc. After fulfillment of all conditions under this contract is transferred to the ownership of the property as a final contract is signed front of a notary by both parties and the same day this Title Deed to be entered in the Property Register. Thereby certifying that the purchaser is the new owner of the property and he has every right to dispose of it as it sees for well.
3. What is the amount of legal fees and charges in real estate transactions? – In real estate transactions, provided by law taxes represent the sum, which generally amounts to 3.5-4% of the purchase price. First is the tax for the transfer of ownership or local tax, which is determined according to the location of a particular property. Second is the notary fee, which is the same for the whole country and is determined according to the tariff for notary fees. Finally, is the fee for entering the transaction in the land registry, which is fixed in the amount of 0.1% of the value of the property. It is recommended in real estate always use the services of qualified lawyers, fees to be paid extra and are subject to individual negotiations between the lawyer and the client according to material interest and volume of work.
4. What my obligations are as an owner of real estate in Bulgaria, what taxes and fees I have to pay? – First, each owner is obliged to pay their utility bills to suppliers of electricity, water, heating, TV, internet and others. These amounts are subject of individual contractual relationship between you as an owner and the service provider. Moreover, every property owner in the residential complex, according to the Condominium Property Act is obliged to pay utility costs for maintenance of common areas in proportion to their ownership interests. Very often in residential complexes are used companies that commit themselves to the overall management and maintenance of the property, as relevant fees and services of these companies are determined by the General Assembly of the owners and for this purpose, there are signed necessary contracts. As an owner of a property in Bulgaria are required to pay annual property tax together with a fee for municipal waste (garbage fee), which are determined by the local tax authorities according to the location of a particular property.
5. What steps must be taken in the resale of real estate, should I have to pay income tax? – This process should be considered in two aspects, legal and practical. In legal term, first vendor must demonstrate that it has full ownership of the immovable property to dispose of it. Resale is the act of transferring ownership of property from one person to another by signing a contract in the form of Title Deed front of a notary. Practice should contact a real estate agency with a good reputation on the market a company with a good marketing strategy and innovative approach to work that adhere to the best international practices and thus can as soon as possible to realize deal. It is important to know that the resale of a property under the provisions of the Law on Income Tax of Individuals (LITI) is subject to taxation under the total annual tax base.
6. What is the minimum capital for registering a company in Bulgaria? – Commercial Law of the Republic of Bulgaria defines the framework and requirements for the registration of any type of company. All legal entities, merchants, branches of foreign traders and related circumstances are subject to entry in the Commercial Register in Bulgaria, which is supported by the Registry Agency of the Ministry of Justice. Under this law, the main types of companies and capital needed for their registration are:
- Sole trader (ET) – can be registered every person residing in the Republic of Bulgaria, no matter if it is Bulgarian or foreign citizen. In its registration is not necessary capital, that the registration is only required administrative pay state taxes;
- Limited Liability Company (LLC / Ltd) – established and controlled easily on the basis of association which shall be concluded in writing. Management structure consists of the General Assembly and one or more managers. When such a company formed by one person, then it is companies with limited liability. This is the preferred type of company, because legal obstacles to it are minimal compared to other companies. According to the law, the required minimum capital for registration of such a company is 2 Levs;
- Joint Stock Company (JSC) – established by one or more Bulgarian or foreign individuals or legal entities. This is a company whose capital is divided into shares. Company Statute determines its structure and its mode of governance. Minimum amount of capital required for registration is 50.000 Levs;
- General partnership (GP), Comandite par (CP), commandite par actions (KDA) – these are companies formed a contract between two or more persons to engage in commercial activities under a common company. Treaty for the establishment of this type of companies is drawn up in writing with notarised signatures of members and must contain requisites referred to in that article of the Commerce Act. In their registration no initial capital requirements;
7. What is the agent’s commission for Excel Property Sofia? – The agent commission is one of the standard ways to pay for the service in brokering property worldwide. At this stage in Bulgaria, there are still no standards and legal frameworks for the activities, which must carry out real estate agents as mediator. For this reason, very often, real estate agents commit themselves to the whole process of realization of a transaction – from property valuation, the formation of the market price, promotion and organization of the inspection, property and legal consultations, to finalize the transaction. This requires, depending on the volume of work that will be involved and relevant material interest in the transaction, the amount of the agent’s commission to be the subject of individual negotiations with each property owner.
If you want to discussing the possibilities for sales or purchase of ski apartments in Bulgaria, we from Excel Property Sofia will be happy to answer on all of your questions absolutely free, with no obligations! Please contact us NOW by the phone or via e-mail…