Real Estate In Bulgaria

Buying Property in Bulgaria

First Published Date : July 24, 2010

When you think of Bulgaria, you probably don’t think about buying property, but instead think about the fact that it is in Eastern Europe and you probably don’t know too much about it. However, did you know that home prices in Bulgaria are incredibly cheap, and the country itself is quite beautiful, with a border along the majestic Black Sea?

Bulgaria is located in south-east Europe, with borders against Romania, Serbia, Macedonia, Greece and Turkey. The country is the 16th largest in Europe, and there are several majestic mountain ranges that make their way through this beautiful country. If mountains are not your thing, then you can relax along the coast of the Black Sea, or stay on the Danubian Plain to the north, and the Upper Thracian Plain to the south. The largest city in Bulgaria is Sofia, where roughly 1,405,000 people live.

Bulgaria is also very diverse in terms of climate. There is snow along the mountains of the Rila, Balkan and Pirin mountain ranges, mild and sunny temperatures along the Black Sea, and a Mediterranean climate along the plains to the north and the south. No matter what type of weather you like, you will be able to find it somewhere in Bulgaria.

In terms of the type of country you are thinking of buying property in, Bulgaria is not as ranked highly as other countries in Europe, but it ranks much better than countries in Asia, South America and Africa. On the Institute for Economics and Peace’s Global Peace Index, Bulgaria ranks 56 out of 144. On the Human Development Index, the country is 61 out of 182. On the Corruption Perception Index, Bulgaria sits at 71 out of 180, while on the Global Competitiveness Report it is 76th out of 133.

So as you can see, Bulgaria ranks higher than most countries in the world, plus it is a place where you can literally buy a house with nothing more than a credit card. It should come as no surprise then that Bulgaria is growing in popularity as a place to buy a home, with 100 percent capital growth on property investments in the country in just the past year. As a result, prices are beginning to rise, especially in places like Barovets and Pamporovo, two very popular ski resorts within the country. Some areas have seen their housing prices double in just one year, so it is very important that you take advantage of buying a home in Bulgaria before prices get to high. In cities like Varna, Sofia and Barovets, prices are starting to get high, but you can still find plenty of deals if you go out to rural Bulgaria and buy a nice old cottage or home that just needs a bit of renovation. This can be a great investment if it is what you are looking for in Bulgaria.

If you do decide that you want to buy property in Bulgaria, for yourself or as an investment, then the process is pretty much the same as buying a property anywhere else within Europe. You find properties online, have someone you know check out the place, and then make an offer for the place. However, to help with the process, here is quick rundown for you:

1.    You should know the reasons that you want to buy a property in Bulgaria. Are you buying property for yourself as a holiday home, is it an investment, or do you just want to have more assets under your name? Once you know why you are buying a home, you can choose the area in Bulgaria that you want to buy the home in.

2.    At this point, you will need to establish a Limited Liability Corporation within Bulgaria. The reason for this is that only foreigners who own an LLC can own and buy property within Bulgaria. It is pretty easy to do this within Bulgaria but it should be noted that while in the United States, an LLC prevents you from incurring the debt; this is not the case in Bulgaria. You will be liable for the debts your company incurs.

3.    You will need to talk with the Bulgarian government and clear your tourist/visa status with them before you begin to buy the property. You will need to secure a D visa from Bulgaria if you are going to be staying longer than 90 days.

4.    Now, you should get a notary public that can oversee the entire transfer of the property. In Bulgaria only notaries can legalize a property sale. In Bulgaria, you will have to pay a two percent tax on the price of the property, and you will have to pay three percent commission. In addition, you will also have to pay lawyer fees so that you can make sure that the entire transfer is legal and proper in Bulgaria.

If you are going to buy property in Bulgaria, you always want to make sure you spend the time and money to get it done right. This is why a lawyer and someone you know in Bulgaria can be very beneficial because they will be able to check out properties for you and help you find a property. If you are buying a home for yourself in Bulgaria, then you will want to check out the property yourself to make sure it meets your needs. Come out to Bulgaria and look at the home and see what it is like. Sending someone to look at the home can help, but they may not look at the things you want them to look at. If you are buying it as an investment, then you do not need to go to Bulgaria to see the home, because you can have a proxy do that for you who knows what people within Bulgaria will want out of their home.

Bulgaria is a beautiful country that you can easily fall in love with given the chance. Check it out and you will not be sorry.