FREQUENTLY ASKED QUESTIONS: Can I own land in Bulgaria? If I buy land and I want to build on it how can I find a reputable builder? If I buy an apartment, do I own a share of the communal land the apartment is built on? How much is the deposit on a property? Is there any way to get a discount on a property? Can I get a mortgage? Why are there different types of payment plan? What kind of guarantee can I expect when I purchase a new apartment? How can I check on the progress of the construction when I am in the UK? What happens when my apartment is ready? What happens If the construction is delayed? What are my rights is there is a defect with the construction after completion? What other costs can I expect to pay on top of the purchase price? How much does it cost to register my property with the tax authorities? How much are the legal fees? How much Capital Gains Tax am I liable to If I want to sell my property? How much is personal income tax? Are there any taxes payable in the UK after that? Can I purchase a property without coming to Bulgaria? What is P.O.A.? Can I own land in Bulgaria? The easiest way to acquire land in Bulgaria is by having a company registered in Bulgaria with foreign shareholding.  By setting up or joining a company incorporated under the Bulgarian legislation foreign persons can acquire complete land ownership rights including ownership rights on agricultural land. The cost of setting up a Ltd Company in Bulgaria is 750E.  The bank holding capital is approximately 2,500EUROS which is fully refundable once the company has been set up (normally within 1 month). (back to top of page) If I buy land and I want to build on it how can I find a reputable builder? Please enquire to Black Sea Dreams for further details as we have various building companies we can recommend for small works to major renovations. (back to top of page) If I buy an apartment, do I own a share of the communal land the apartment is built on? When you purchase without a company you have indefinite FREEHOLD ownership of the property, not a share of the land.  There are certain instances where it is possible to get a share of the land, but this is very rare. (back to top of page) How much is the deposit on a property? Normally around 1,500E, although this figure depends on the developer. (back to top of page) Is there any way to get a discount on a property? If you pay 95% of the property purchase price at once, you can usually get a discount in the region of 5%.  If your purchase multiple properties in the same complex or with the same developer there is normally chance to negotiate a discount (which we will do on your behalf). (back to top of page) Can I get a mortgage? Yes, please contact us for details.  A Euro-Mortgage is normally 30% deposit with 70% over 15 years. There is a charge of 1% of the property price for this service. (back to top of page) Why are there different types of payment plan? Financing is still relatively undeveloped in Bulgaria, so this means that some developers use stage payments to part fund their developments. Larger developers do not need these payments to start the work. (back to top of page) What kind of guarantee can I expect when I purchase a new apartment? There is a 1 year fixture and fittings guarantee from the developer. There is a 10 year guarantee for structural work only and is from the Bulgarian National Building Standards Agency (similar to the NHBC in the UK). They sign and certify construction. The final certificate is Act No 16. (back to top of page) How can I check on the progress of the construction when I am in the UK? Black Sea Dreams will keep you up date and will be in regular communication with you.  We will also endeavor to send you pictures of the construction progress where at all possible. (back to top of page) What happens when my apartment is ready? Black Sea Dreams will gain access to your newly acquired property and we will do a snagging list for you. We can then offer you any level of service you require to maintain your property. (back to top of page) What happens If the construction is delayed? This entirely depends on what is stated in the Preliminary Contract, but this term is always checked by your lawyer and they will advise you whether this clause is standard. For example, If the delay is due to poor weather conditions it is deemed a ‘Force Majeure’ circumstance and therefore this can not be the fault of the developer. (back to top of page) What are my rights is there is a defect with the construction after completion? Any claim for substantial damage is made against the Bulgarian National Building Standards Agency, not the Developer as this is the body who regulates building constructions. A claim constitutes major problems such as subsidence or (back to top of page) What other costs can I expect to pay on top of the purchase price? Apart from lawyers fees, you should budget 3% on top of the property price (If the full value is stated in the Notary Deed) for notary fees, contract translations etc. (back to top of page) How much does it cost to register my property with the tax authorities? Free, If you have a lawyer recommended by us, otherwise approx. 100E. (back to top of page) How much are the legal fees? If you use a lawyer recommended by us, the charge for a standard case is 750 EUROS. The lawyer is completely independent and works for you not the owner / vendor. If you are buying multiple properties there may be a discount of this fee. Of course, If the case is not standard, then a fee shall be negotiated between yourself and the lawyer. (back to top of page) How much Capital Gains Tax am I liable to If I want to sell my property? In the name of a physical person(s)15% for property held up to 5 years. 0% thereafter. If a Ltd. Company owns the property it is liable for 10% Corporate Tax, minus expenses of the company. (back to top of page) How much is personal income tax? This varies depending on the amount of income earned, which is levied in a special table. (back to top of page) Are there any taxes payable in the UK after that? The United Kingdom and Bulgaria have a double taxation treaty so any taxes are offset on your income tax liability in the UK. (back to top of page) Can I purchase a property without coming to Bulgaria? We would recommend that you do come to Bulgaria, but if this is not possible then you can purchase a property from the UK with the services of a Bulgarian lawyer and UK Notary.  Black Sea Dreams can help you with this service. (back to top of page) What is P.O.A.? A Power of Attorney is a legal document which must be signed in front of a Notary Public.  For example, a POA can be given to your lawyer to act on your behalf in front of the Notary to complete the purchase deal If you cannot be in Bulgaria on the specified date of completion. (back to top of page)