1. Why Bulgaria?

2. Arriving to Bulgaria

3. Can you make all the same checks that you would make in Britain?

4. Is the process of buying a property in Bulgaria similar to the process in England?

5. Do I need permission to buy?

6. What are the main dangers when buying property in Bulgaria?

7. What should I bear in mind when looking for a Property?

Why Bulgaria?

Why buy land in Bulgaria? Bulgaria has had a steady economic growth during the last couple of years. Bulgaria became NATO’s member in 2004 and will soon be part of the EU. The climate in Bulgaria is moderate, there are plenty of warm and sunny days. There are many peaceful and picturesque places with diverse and beautiful nature. The Bulgarian people are famous for their friendliness and hospitality. This, together with the low cost of living, explains why Bulgaria has become such an attractive place for visiting and investment. Prices in Bulgaria are much cheaper compared to the prices in EU countries. For instance, here a cup of coffee in a cafe costs half an euro, a pack of cigarettes – 1 euro, and you can have dinner at a middle-class restaurant for 5 euro. The low costs apply to real estate property as well if compared to other European countries. Therefore you can easily buy a house, a flat, or a plot with intention to build a house or office, in areas best suited to your budget and taste – next to the sea, in the mountain, in a calm rural surrounding, or in the city. Even if the house you buy is not exactly what you have been looking for you can easily reconstruct it or rebuild it thanks to the cheap workforce.

Arriving to Bulgaria

Do you need a visa and what type to apply for? If you wish to stay in Bulgaria for more than thirty days you will need to apply for a visa. You can apply for Short Entry Visa (type "C" visa) or for Long-term Visa (type “D”). Both visas will give you the right to stay in the country for up to three months, visa D will give you however the right to apply for a long-term or a permanent residence permit in Bulgaria. Therefore this visa will be more suitable for you if you wish to buy a property in Bulgaria and settle for a longer period. Visa type C is suitable for those who wish to make multiple entries to the country within a short period. Finally you can always take the opportunity to stay for up to one month without a visa but in this case you will not be able to change your status. For more details you can contact the Bulgarian Embassy in UK: 186-188 Queen's Gate, London, SW7 5HL, web site: www.bulgarianembassy.org.uk , 24 Hour Visa Information Service: tel.: 09065 508 950. You could also contact the British Embassy in Bulgaria. Tel for visa information: 00359 2 93309290, and for other inquires: 00359 2 933 9292.

Can you make all the same checks that you would make in Britain?

No. As we have already said, the systems are very different. We can only do what is normal in the country where you are buying the property. In just the same way, you would follow a totally different procedure if you were buying a house in Scotland from the procedure that you would follow if you were buying a house in England. Sometimes the procedure is worse. Often it is as good as (or better than) our English system. It is always different! At the end of the day, using the local procedures, thousands of local people successfully buy houses and apartments. They end up buying a property with good, clean title, with the appropriate planning consents and without the burden of debts or charges registered against it. That is what we set out to do for you.

Is the process of buying a property in Bulgaria similar to the process in England?

No. The Bulgarian legal system is very different from the English. Generally speaking, however, provided that we make the necessary checks and enquiries, there is hardly any more need to worry about buying a house in Bulgaria than about buying one in England. That does not mean to say that it is safe for the unwary or as simple! There are special problems, some of which we have explained and others that we will explain where appropriate, in the report that we will prepare for you when we deal with a purchase on your behalf. Unfortunately, very often people purchasing property in Bulgaria take little or no legal advice and are indeed quite "casual" about the purchase and about the signing of legal documents. They may then find there is no title to the property, that it was built without planning permission...or that it does not even exist! You will, no doubt, have heard of cases where Buyers of overseas property have suffered loss as a result of these types of problems or of the property being burdened by debts registered against it. We recommend that you take our legal advice for any property you choose.

Do I need permission to buy?

In general, foreign individuals can purchase and own real estate (land or buildings) in Bulgaria ONLY if they buy through the medium of a Bulgarian limited company. A person buying an apartment does not need to do this. This is because you only 'own' your apartment, not the land it is built upon. You need not be too worried about this. Your rights over it continue for ever. Even if the property burns down you are allowed to rebuild. It is just that it is not, officially, classified as the ownership of land. Some apartments are sold WITH a share in the land upon which they are built. In this case you will need to own, at least the land, via a Bulgarian company. You can always, as a foreign individual, register a company in Bulgaria and buy the property through that company. A company owned by a foreign person in Bulgaria is considered to be a Bulgarian legal entity and, as such, may acquire real estate ownership rights without any restriction - whether the real estate is acquired for business or for some other purpose. This applies even if the company is 100% foreign owned. All the necessary procedures for establishing the company can be completed within approximately one month. Both ways of buying property in Bulgaria have advantages and disadvantages. The trouble is, it is not obvious which is the right choice! You need, in every case, to take advice. You need to understand, in detail, what you are letting yourself in for when you buy in Bulgaria. In particular, you need to understand the tax implications or the choice you are making. There are potentially serious UK tax consequences of buying a holiday home in the name of a company. You need advice. That is where we can help.

What are the main dangers when buying property in Bulgaria?

There are some dangers applicable in every country. For example:

Does the property have good title?
Is it affected by debts?
Has the building been constructed legally?
Does the property suffer from any defects?
Is what the seller and the agent have told me true?
In addition, there are issues that need special attention in Bulgaria. In particular:

If you are buying a building plot, is it in an area
programmed for building?
Is the property built in an area zoned for
individually owned properties (rather than, for
instance, hotels)?
If you are buying an apartment, who will own the
'freehold'? This is important when it comes to the
control of the common areas.

What should I bear in mind when looking for a Property?

The first point to bear in mind is that Bulgaria is a "new" country as far as the overseas property market is concerned and will continue to evolve as it emerges as a fully free market and potential member of the European Union, which it hopes to join in 2007.
Buying a property in an emerging market country such as Bulgaria is riot the same as buying a property in, say, Spain or France, where millions of foreigners have already bought homes. As a result every notary, land registry, tax office, town hall and lawyer has dealt with hundreds of them. As a result everybody knows what to do. This is not so in Bulgaria.
So, to find a clean title is a crucial task in this market. Do not worry too much. It is perfectly possible to buy property with its history properly and legally recorded. You just need to be particularly careful and get good legal advice before you commit yourself to a purchase.
The second thing we would stress to you is that you should NEVER SIGN ANYTHING until you have had it checked by your lawyer. If you do sign you will be committed to a contract that you may not understand, that may be totally unfair or unsafe and that could be structured, financially, in a way that is totally unsuited to you and tax inefficient.