Main questions about Bulgaria and property acquisition in the country.
1) Q: What is the property acquisition process like in Bulgaria?
A: Once you arrive to Bulgaria with the goal of property hunting, you should check one of our data bases and choose a range of your personal favorites that are within your budget. After you visit the apartments/houses chosen and come to the final decision, you will be charged a 1000-2000EUR deposit (security confirmation ) for the property that you wish to purchase. Afterwards, the sales contract will be created within a week, which will specify the sequence and the dates for all required payments. As a rule of thumb, you will be asked to pay the outstanding 10% during contract signing at a notary office. Then, you will be awarded with a notarized document that will specify and acknowledge you as a new legal owner of the property.
2) Q: Am I required to indemnify the purchased property and how could that be done?
A: We strongly recommend you to indemnify your real estate, at least, against the main group of risks (nat. disaster etc). We also recommend you to indemnify your furniture and electrical appliances too as the cost of insurance in Bulgaria is rather low.
3) Q: Is installment purchase an option?
A: It is possible under the following scenarios: (1) When a developer/an owner offers 0% interest rate on installment payments (2) Obtaining a mortgage once a mutual agreement between you, the bank and the developer is reached.
4) Q: Do you offer any help with furnishing the property and installing some electrical apartments?
A: DomElReal offers a whole range of services varying from furnishing to renovations and design.
5) Q: How to get to Bulgaria?
A: The most efficient way is by plane ( there is an abundance of charter flights during the season). However, if you feel reluctant to fly, there is always an option of travelling by train or by car.
6) Q: Can the property be rented out and what is the estimated profit from it?
A: Not only that it can be, it definitely should be rented out as you receive an income that is not taxed. During the pick summer months, you should except to receive up to 3000EUR for one bedroom apartment and up to 4000EUR for two bedroom apartment ( Our company will assist and guide you throughout the whole process)
7) Q: What is the property tax in Bulgaria?
A: The annual tax on property is 0.3% from the official sum stated in the notarized document.
8) Q: What is the cost of real estate registration?
A: The registration fee is around 4-5% from the official sum stated in the notarized document.
9) Q: Is there an annual fee for apartment services and how much is it?
A: Usually, in touristic areas the annual fee is around 6-12EUR/sq. m. It's very rare when there is no annual charge at a housing complex.
10) Q: How much are the communal services?
A: Electricity during the day is 0.21Lev/kwt, at night it's 0.18Lev/kwt. Water is 2.25lev/meter cube.
11) Q: How do I pay the annual tax and the annual apartment services fee?
A: The annual tax is paid at the local municipal authority and the best period to pay so is from 1st of March to the 30th of April (5% discount). The annual apartment services fee is paid to the managerial company of your housing complex. Our company offers the annual property tax services for which our client then receive a copy.