Guide to buying a property in Bulgaria

Most people who are buying property in Bulgaria are looking for holiday/second homes, often with a view to retirement in later years although there are an increasing number of investors who are simply buying property with a view to making a capital gain in the short or long term. This increasing interest, along with other factors such as the rise in visitors to Bulgaria, better awareness and EU entry on the cards for 2007 is gradually forcing higher prices.

Before you start your hunt for that bargain property in Bulgaria, you should be clear in your mind exactly what you want to buy. Do as much research as possible about different areas, types of property, the professionals who can help you and the buying process.

Bulgaria is currently a real hotspot for property purchase, mainly from an investment point of view. You must initially decide why you are buying in Bulgaria. Is it for investment? Is it a holiday home? Are you going to rent the property out?

You could be looking at buying a property in Bulgaria, off-plan. This is buying a property before it is built and all you might see at the purchase stage is a map and a floorplan.

You might consider buying an older property in Bulgaria, ripe for renovation. If this is the case, you will need to know where to look for reliable builders and tradesmen. You will need very careful planning of your budget and timescale.

Buying a new apartment in Bulgaria can be an excellent buy. The quality is high and the prices are still quite low. This type of property, depending on location, could be ideal for renting out in Bulgaria as holiday lets.

Many people have bought land in Bulgaria. This is a good option for investment, depending on the location and facilities nearby. You could sell the land at a profit at a later date or even build on it.

Where to buy
Bulgarian property can be divided into two main locations, Coastal properties and Ski properties. Coastal properties will be based around the Black Sea Coast and could well be at Sunny beach near Bourgas or on Golden Sands near Varna.

These two main resorts are already well developed. Many people are now looking at smaller resorts between these two. The infrastructure is improving making access much easier. The further away from the major resorts, the cheaper the property prices. It is also a good option to purchase property slightly inland from the Bulgarian coast. In the long term, much the same as Spain, as time goes by, people feel more comfortable about buying away from the coast. Currently there are some absolute bargains on inland properties in Bulgaria.

Do not be tempted to buy a property over the internet without even seeing it. Although this has happened for a considerable time, some people have found themselves in trouble. Why not visit Bulgaria for at least a couple of weeks? Tour the different areas and see for yourself exactly what is available. Remember that many areas of Bulgaria are still relatively poor and the infrastructure is close to non-existent. This will of course change with the injection of EU money in the near future.

Coastal resorts are busier in the summer months and can be very quiet in the winter. Ski resorts are busy in the winter and quiet in the summer. This will have a direct bearing on renting of properties. The closer to the sea and other facilities, the higher rental you will achieve. The more luxurious and comfortable the property, the more chance you have to rent it out.

Setting a budget
Step one is to work out exactly how much you want to spend. Make a strict list of all the expenses you are likely to incur and deduct this from your budget. The sum that you have left over is what you can spend on buying a property. Remember that current legislation dictates that in order to purchase a house and land in Bulgaria you have to establish a Limited company in Bulgaria (How to Do this). You must take appropriate legal advice about this. Do your research and look at the prices that property is currently realising. Ask your agent to show you how prices have changed in that area over the last few years. Remember if you are buying an older property, work out exactly how much renovation/repairs will cost you.

If you are looking for finance for your purchase, do your homework first and get the finance in place, before you look for a property.

Talk to as many agents as you can and check out the credentials. Ask them for references from past clients.

Make enquiries as to how you are going to get your funds into Bulgaria. You can of course use your bank but be prepared for poor rates of exchange and charges. Consider using an FX company that could save you thousands of pounds.

If you are buying a property with a view to moving to Bulgaria then take your time. Consider very carefully the location and type of property. What facilities will you need and are they currently available in that area. Have you got children to consider? What are you going to do for working in Bulgaria?

Property Purchase Procedure

1. Find a property
2. Register a Bulgarian company:
   The Bulgarian Constitution states that in order for a foreign person to buy a property with land, it must be registered as a Bulgarian Limited Company which is set up by a legal advisor. The most popular form of engaging in business in Bulgaria is via a Limited Liability Company. The law is expected to change within the short to medium term as Bulgaria opens its doors fully in line with its expected entry into the European Union (2007). It is generally accepted that the purchasing of an apartment does not require you to set up a company as it has no or very minimal land ownership.
3. Contracts
   When you have found your perfect land or property preliminary/Primary Property contracts are drawn up. This is the final stage when both buyer and seller meet with a Notary Public and complete the transfer and pay the state and Municipal taxes due on the transfer.