The reservation fee. Reservation fee is from 1000 to 5000 euro, depending on the price of the estate and the agreement with the seller. After payment of the booking tax, the property will be suspended from sale. It is valid within 2 to 4 weeks, fillowing the first installment. Reservation fee is non-refundable if the owner changed his mind to buy the real estate. The amount of the reservation will be deducted from the amount of first payment.
For reservations of houses there should be a deposit of 5000 euro or 10% of the property value.
Preliminary contract. In it there are all the conditions of sale of the property. The necessary elements to be contained in the preliminary contract:
1. Two sides - seller and buyer.
2. Evidence that the seller is the owner of the property being sold.
3. Accurate and complete description of the property being sold.
4. Period of preliminary contract - when the contract begins and when (the exact date or any date), both parties must sign the deed.
5. Property price - full price and in what amount is the received deposit. If the price is paid by installments, then in what dates and what amounts. There must be specified dates for receiving Act 14 and Act 15 Certificate of commissioning of the building /Act 16/ if payments are tied to the receipt of the documents.
6. The seller declares that the property is not burdened etc.
7. The penalties that can be imposed on the vendor and penalties that may be imposed on the purchaser.
After that there is collection and preparation of necessary documents for the transaction, and processing the transaction at the notary, together with the final payment for the property and transfer of ownership to the buyer.
The final transfer of ownership takes place before a local notary in the pre-agreed time between the parties. For foreigners need the presence of a licensed translator of the transaction to ensure the transfer of ownership. If the buyer is unable to attend the transaction in Bulgaria, it is required a power of attorney of the person who can sign the act in the name of the buyer.
The new deed must be recorded in the state register, and it is ready within 1-7 days from the date of passing of the notary deal. Deed is the equivalent of "document confirming the right of property."
Note: After purchasing the property, it must be registered in the Registry Agency - BULSTAT (for foreign citizens) within seven days of receiving the deed from the registry office and then registered in the tax office at the location of the property for two months.
Taxes in Bulgaria
A tax in Bulgaria is levied on all property, except forests and arable land.
Tax for rented real estate is paid by the landlord.
The amount of VAT in Bulgaria is 20% with some exceptions. Some of the areas of activity are exempt from VAT, others are VAT in a smaller size.
Taxation of individuals
Tax annual income of individuals in Bulgaria is 10%.
Fees for buying and selling real estate
- Tax for the acquisition of real estate - 2-5% of the purchase price
- Notary fee - collected in tariff in accordance with the Law on Notary and application of the Law "Tariffs notary fees"
- Preparation of the title deed - as a cost of doing deed is defined by a notary in accordance with tariffs or lawyer.
- Additional paid services of an interpreter at the time of signing the title deed of a notary. According to the laws of the deal must attend a licensed translator. The value of their services can reach from 20 to 70 euro per hour depending on the region to conduct the transaction in the language they translate and sometimes the number of people who translate.
- In cases where the buyer can not attend, he can make a power of attorney for any person to attend and represent the transaction.
These are costs and they amount to about 5-7% of the property value recorded in the deed. These costs are paid off and the new owner of the property.
After the transaction, the property owner is required within two months (when there is Act 16) to declare the property at the tax office.
Property tax is paid in two equal installments within the following deadlines: 1 March to 30 June and 30 October of the year to which they relate. For persons performing full payment (full year) from 1 March to 30 April there is discount 5 percent.
In Bulgaria there is also a tax on garbage collection (for each region a percentage of the purchase price in the notarial deed). The fee is determined by the local authorities. When at the end of last year, the local administration has not determined the amount of payment for waste collection next year, you will be charged the current room rate on 31 December of the previous year.
It is paid simultaneously with the tax on real estate. For private houses the garbage collection depends on the cost of housing.
Every year until the end of February each owner of real estate tax office receives from notification of the due amount of property tax and fee for removal of household waste.
The level of fees is different in some cities:
Varna - 0.20%,
Plovdiv - 0.21 percent,
Burgas - 0.17 percent,
Sofia - 0.245% + 5lv.
Complex maintenance fee
In modern residential complexes in Bulgaria, there is a charge for service that includes security, cleaning of the territory, landscaping, swimming pool maintenance and more. The fee is paid once a year per square meter of apartments and can be 5 to 15 euro.
According to monthly reported data the utility billsa are paid to the service companies: cold and hot water, electricity. Phone calls are paid on an hourly basis in accordance with established tariffs.
Currently tariffs are as follows:
Water - 1.25 Euro / cu. M;
Electricity - daily - 0.11 Euro / kWh; nightly - 0.08 EUR. / KWh;
Companies pay "corporate tax rate of 10% of its net income.
Tax office and Bulstat
By law, foreigners are required to declare that they are the owner of the property in the Registry Agency-register Bulstat and declare to tax authorities that have property in the country. The presence of Bulstat number allows the state to more easily identify taxpayers.
Foreigners (individuals) who have bought properties in Bulgaria are required within 7 days from the date of acquisition to register BULSTAT Register to the Registry Agency.
Individuals, regardless of the different grounds for entry (such as having several apartments) can have only one registration (one code Bulstat).
The agency assigned a unique identification code (UIC), mandatory for those to be entered in the register Bulstat called "code Bulstat." The code is open-ended. But any change should be reported within 7 days from the date of the change.
If the property is bought to stage "rough construction" will have to wait until the building has been put into operation and only then to register the property in the tax office. Deadline for declaring in this case - two months after the receipt of Act 16.