FAQ - Buying Property In Bulgaria

Are there restrictions on who can buy property in Bulgaria?
Anyone can buy property in Bulgaria however it is currently a lot easier for foreign nationals to purchase property within a new development. This process is generally very straight-forward.

Foreign nationals who wish to purchase second hand properties however will have to complete more complicated paperwork. At present it is necessary to establish a Bulgarian company to facilitate the process however it is expected that these regulations will ease with EU membership.

How can I finance the property investment?
It is possible to arrange a mortgage in Bulgaria or through an independent financial service provider. Mortgages can be up to 70% loan to value and can be taken for up to 20 years to the age of 70. Interest rates vary from 6% and will be capital repayment mortgages. It is widely expected that interest rates will decrease slightly as a result of EU membership.

It typically takes a period of two to four weeks to receive a mortgage offer however an indication based on your financial application can be obtained in the interim.

What are the costs involved:
1) The Purchase Cost
2) Transfer & Notary Tax - This is approximately 3% of the market value

Please note VAT in Bulgaria is 20%. This cost is generally incorporated into the purchase price.

Maintenance charges varying depending on the square footage of the purchase property and the common areas within the development. They are typically charged at between 8 and 10 euros per square meter
Do I need a lawyer?
As Property Law is specific to a country we do recommend that your purchase by managed by an independent legal firm within Bulgaria. We are happy to recommend a reputable and established firm to you. We have already completed title checks and background checks on the developer before we represent any property for sale.
What is the buying process?
1) Appoint a legal adviser (as discussed above)
2) Reserve an apartment with us.
3) Pay a booking deposit of 1500 euro. This is refundable.
4) For off-plan purchases 30% will need to be paid within 60 days and signing of a preliminary contract. A further 40% will be paid when the external construction is complete. The final 30% is paid when you receive your title deed
5) For new developments, which are already completed, the payment split is 70/30.
6) Before signing of final contract, we strongly recommend a visit to Bulgaria. We can arrange this on your behalf. It's a very pleasant way of spending a long weekend!
7) We monitor all projects very closely. We have our own management team in Bulgaria and we conduct our own site visits at least every 2 months.

Do I require a visa to travel to Bulgaria?
No. A valid passport is sufficient for entry into Bulgaria for a period of up to 30 days.

Can I rent my property?
The rental market in Bulgaria is still young, but developing fast. Tourist numbers are growing at an annual rate of 20%. We do not offer Rental guarantees as it is simply not possible- anybody that is offering them is adding the cost to your purchase price! We would expect that with the quality of our locations we should at least recover your finance costs through rentals. However there are no guarantees!

The main reason for this investment is the growth in value of your property and not the rental income.

The coast benefits from a high season from June to August and the Ski resorts from December to April. The type of contract agreed will determine letting fees.
Will I pay tax if I sell my property?
Capital Gains Tax in Bulgaria is 15%. Some countries, including Ireland, have signed a Double Taxation Treaty with Bulgaria. So, in this case, the seller would pay any difference between the two countries' capital gains rates. We would strongly recommend that you hold your property for a minimum of 3 years , to make the investment worthwhile.

If you have any other questions or if we can be of any further assistance please do not hesitate to contact us.

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The information contained in these pages is, to the best of our knowledge, true and accurate at the time of publication. It is intended solely for information purposes and as such Hegarty Properties accepts no liability for any loss or damage howsoever arising as a result of use of or reliance upon this information, whether authorised or not.