FAQs

Can Foreign Nationals own land in Bulgaria?

"Foreign nationals and foreign legal entities may acquire ownership title over buildings and limited ownership rights over property in the Republic of Bulgaria. Foreign individuals cannot own land (this is a Constitutional prohibition). However, the Foreign Investment Law removed the restrictions on acquisition of land by locally registered companies with foreign participation. By setting up or joining a company incorporated under the Bulgarian legislation foreign persons can acquire full land ownership rights including ownership rights on agricultural land."
From Bulgaria Foreign Investment Agency website.
http://investbg.government.bg 

So do I have to set up a company?

No, but only Bulgarian-resident individuals and entities can acquire title to land, while non-residents may acquire only buildings and limited rights. Setting up a company is of course an option and maybe be worthwhile for larger or multiple units.

So how do I get ownership of an apartment without setting up a Bulgarian company?

When you purchase without a company you have indefinite FREEHOLD ownership of the Apartment (not a share of the land). To get around this, the land share remains with the developer who signs a Declaration upon completion that they will assign land ownership over to the Apartment owner as soon as law allows (e.g. on EU Membership) or if you sell to a Bulgarian person or entity. This Declaration forms part of the title deed and is also assignable if you sell to another foreign national.

With EU membership this restriction will do away. If in the meantime the developer goes out of business then the Administrator has no claim over the land as the Declaration is like a charge (mortgage) over the property.

How much does it cost to set up a company in Bulgaria?

Company setup is approx. €600. Annual return is approx. €200 

Do new buildings come with a Guarantee? 

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 Article 16. 

Who would I claim against in the event of a defect on the construction of the building?

Any claim is made against the Bulgarian National Building Standards Agency, not the Developer.

Can I get a Mortgage?

Yes contact us for details. Typically loan to value is 70%. Best rate as of May 2006 is 5.95%.

What are the transfer taxes in Bulgaria?

2% of the market value of the property is paid to the municipality where the real property is located.

The notary fees are paid on the higher of the market price or the book value of the property at varying rates, specified in a special chart.

How much is the annual property tax?

The property tax and is paid annually based on 0.15% of the property value.

How much is capital gains tax?

15% for property held up to 5 years. 0% thereafter.

What tax is payable when bringing funds back to the UK?

The United Kingdom and Bulgaria have a double taxation treaty, so the 15% deducted in Bulgaria are offset your income tax liability in the UK.

Is Value Added Tax included?

All real estate transactions are subject to VAT at the uniform rate of 20%. Unless specifically mentioned all prices on jet2let's web site include VAT.

Why do stage payments vary from development to development?

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.

Which ski resorts should I invest in Bulgaria?

Bansko is the only one of the ski resorts not purpose built, however it has a new and expandable lift system. It is a lovely old town that attracts tourists in winter and summer. When new road is completed early 2007 travel time from Sofia airport will reduce from 21/4 hours to 1 ½ hours.

Pamporovo has the most stunning setting, most sunshine and is set to be the most exclusive of Bulgaria's ski resorts.

Borovets is closest to Sofia has extensive skiing and is expected to receive a massive investment into a new lift system. We expect to see some good investment opportunities here.

Which coastal resorts should I invest in Bulgaria?

Sunny Beach 7 kilometres of superb sandy beach. Developed infrastructure. Very close to Burgas airport (now with Wizz Air direct low cost flights from London Luton). 1 ½ hours from Varna airport. Great rental opportunity.

Sozopol Just 30 minutes from Burgas airport. Historic and unspoilt fishing town. Very sympathetic development. Set to be a property hot spot in 2007

Alen Mak 10 minutes from Varna airport, great undeveloped beach. Close to vibrant Varna with its up market shopping. Excellent rental and capital growth prospects.

What about investing in Sofia?

The capital of 1.2m people is developing very quickly. The new business parks under construction will mean the rental market for modern apartment homes will grow. The city suffers from poor roads and congestion, but investment in the infrastructure has seen some recent improvement.

Where in Sofia?

We believe the area around Vitosha Mountain is very attractive for investment. The Vitosha lift system will be replaced by a modern lift system in the next few years. With views over the City and yet still15 minutes from the City centre means that the area is attractive for rental and capital appreciation. 

How do I let my property?

There are several options and this does depend which development you invest in. Typically the developer will have preliminary arrangements with a tour operator such as Balkan Holidays, TUI (Thomson), Crystal etc. You will generally be restricted on own use but this will give you usually a guaranteed income. Alternatively you may use a number of letting agents who will take between 12% and 25% commission. Many investors also enjoy own use of their property and rent to friends and family.

Why invest in Bulgaria?

See our Why Bulgaria section click here. In summary, a beautiful mainly mountainous country, politically stable with democracy. Strong tourist growth completes the picture.

Do jet2let charge commission?

Currently we charge investors £750 (€1,000) only on High Land Lodge, Bondis, Glazne buildings 1, 2 and 3.

All our other developments are 0% commission for buyers. 

Do jet2let offer a property consultancy including tour of investment areas?

Yes for a £1,700 fee we conduct a face to face consultation and will search all areas for a property that fits your requirements. We also offer a personal Bulgarian property guiding service for £400 per day excluding transport and accommodation costs. Typically this will take in Sofia and the ski resorts. A separate tour is required for Varna, Sunny Beach and Sozopol areas.

How do I furnish my property?

Jet2let have a range of kitchen and furniture packages. This offers you additional choice over and above the developers' packages. Contact us for details.

Do I need a Bulgarian lawyer?

Yes, essential. Whilst jet2let offers its clients free guidance from its own Legal Directors, we strongly recommend you appoint your own lawyer independent of the developer and us as agent. We have several Bulgarian lawyers we can recommend who are fluent in English.

How much does a lawyer cost?

The ones we recommend charge €1,100 for the basic conveyance service.