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Buying Property In Bulgaria
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Why choose Property In Bulgaria LTD Consultancy?
We are a small and focussed Bulgarian company that has extensive experience of living and working in Bulgaria. We have several degrees between us and as such are well equipped to meet your requirements.
Our aim is to meet your objectives, be they return on your investment or the provision of your dream home, and to do so with only the highest level of service.
Bulgarian agents who provide us with properties which we then filter and advertise.
Last, but not least, we do NOT charge an ‘Agency Fee’. Our fees are all prearranged at the time of advertising.
There are no hidden, under the surface or unexpected costs, our word is our bond; the price you see is the price you pay.
Buying a property
Laws and regulations concerning property vary from country to country. In addition to the benefits it is fair to mention some of the issues related to the process.
• In addition to the market price there is also a "taxation estimated price" . This is usually much lower than the real market price and is used to calculate the stamp duty and taxes for your chosen property. The price is estimated by the local taxation offices using obsolete statistical data. This issue is similar to the council tax calculation system in the UK where households are charged according their price band A,B.C etc. Although these do not necessarily reflect current values they are still regarded as representative of comparative values for the market as a whole. As a result properties in Bulgaria are usually under valued by the authorities. However, as a part of ongoing taxation reforms the government is making its best efforts to eliminate this problem.
• Furthermore, the sellers usually require the ‘taxation estimated price’ to be entered on the title deeds instead of the purchase price, this enables them to pay less tax on the property. In very rare cases they would agree to have the have the full market price stated on the title deed. Therefore you should be prepared for the seller to insists on stating the 'taxation estimated price' on the title deed.
Buying a property with land
Currently, foreign citizens are not allowed to personally own land. This restriction will be in place until 2014. However, this obstacle is easily overcome; should you be interested in buying a property with land it is necessary to set up a Limited company to own the land on your behalf. The process of setting up a limited company is slightly more complicated by comparison to the UK. Fear not, Property In Bulgaria LTD Consultancy has a well established team of professionals who will undertake all the formalities related to the company set-up and this will cost you only 3 percent of the whole price, which are included in the price.. Upon registration it is required that you pay a ‘formation capital’ which is 5,000 BGN or approximately 1,800 GBP. After the registration process is completed the formation capital can be withdrawn and used as you wish.
Fees for buying a house in Bulgaria
We do not charge agency fees. Our fees have been previously negotiated with the sellers so the price you see is the price you pay. Should you purchase a property there are some standard charges that you should bear in mind:
•Set-up of a limited company - EUR 500 to 600 or approximately GBP 350 to 400
•Formation Capital, which can be withdrawn after the company registration is complete - 5,000 BGN or approximately 1,800 GBP
•Notary fee about 0.5% of the purchase price is payable upon completion of the purchase
•Municipal tax is payable upon completion, around 2% of the purchase price
•Rates for transferring money from UK to Bulgarian bank - 15 - 25 GBP
•Exchange rates EUR/GBP/BGL – about 1% to 2% of the total amount
•Other charges - translation of documents and others are is approximately 150 GBP for the whole transaction
•Annual property tax is payable each year in the amount of 0.15% of the property value But all there fees are also included in the final price.
How it works?
After you have decided to buy a property in Bulgaria and you have selected a range of properties from our website you will need to contact us or our representatives in England, so that we can sturt working on the chosen offer and inform you abount the details.
Once you have chosen a property a preliminary contract is signed and a deposit is paid (normally 10%). The property is then taken off the market and the completion date is set. We then arrange for our lawyers to create a limited company for you (see Notes in ‘Fees for buying a house in Bulgaria’ above). Once the incorporation of the company is completed the 'formation capital' money can be withdrawn and used for the final payment of the property.
Once all formalities regarding the transfer of the deeds are complete and /or arranged the outstanding balance is paid and the deeds are registered to you.
Government taxes and stamp duty are now payable and you can move into your new home. Enjoy!
For More Information go to http://www.propertyinbulgaria.biz
Have nice day.
Property In Bulgaria
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