Please keep in mind that Bulgarian properties appearing to be very inexpensive by UK standards will almost certainly need a lot of work to bring them up to Western standards. Most of the inexpensive Bulgarian properties will be older style and more remotely located. Many of them will have their toilets built outside the house. Stork International Ltd. have teams of local builders (in Southern and Western Bulgaria) who are ready to provide competent services.

Detailed information about the Real Estate Taxes can be found here:

Real Estate Taxes
Bulgarian Taxes related to real estate invetments by foreign individuals and companies 2006 (Report by PriceWaterhouseCoopers)



We offer two options for your inspection trip as outlined below.

INSPECTION TRIPS OPTIONS

OPTION 1

Organised viewing trip – 220 pounds
This is the most common form of viewing trip and consists of a flight all transfers, property viewings and two nights accommodation in a 3 star hotel.

Day 1

Pick up at the airport by one of our sales representative and transferred to a hotel. If the flight times allow a viewing trip may be organised. Otherwise the clients are left to relax or explore, as they so desire.

Day 2

Pick up from the hotel by a sales representative. We take you on a viewing trip. This can be as long, or as short as you desire. Once we have shown you the properties of your interest in that region and the complex sites, you get the opportunity to ask our sales representative any questions/concerns that you may have.

Day 3

Pick up from your accommodation by one of our sales executives and transferred to the airport. Flight home.

OPTION 2


We offer tailor made viewing trips as well as complete and flexible assistance for independent travelers. Please contact our office for details, as prices would depend on the number of people travelling, time and duration of trip, and the areas visited.


NB: We will refund the cost of one inspection trip per reservation for those who proceed with a property purchase.


TAXES AND FEES

Legal fees for setting up a company and doing the conveyance will be approximately ?500.

Transfer taxes

State Tax (Stamp Duty equivalent) is 2% of purchase price and other legal and notary fees are less than 2%

According to the prescriptions of the Notary and the Notary Activity Act (NNAA). The buyer must pay a notary fee for immovable property acquisitions. The exact amount of the notary taxes is defined in the Notary Taxes Tariff (article 8) as follows:

Price Notary fee in BGN /Bulgarian leva/

Under 100 BGN BGN 15

From 100+ BGN to 1000 BGN BGN 15 plus 1.5% for the amount above 100

From 1000+ BGN to 10,000 BGN BGN 28,5 plus 1% for the amount above 1000

From 10,000+ BGN to 50,000 BGN BGN 118,5 plus 0.5% for the amount over 10000

From 50,000 BGN to 100,000 BGN BGN 318,5 plus 0.2% for the amount above 50000

Over 100,000 BGN BGN 418,5 plus 0.1% for the amount above 100,000, but less than 3000 BGN


Capital Gains Tax

There is no Capital Gains Tax on the profit from the sale of property but the standard rate of corporate tax (15% in 2005) will apply if you are buying Bulgarian property through a company. If you are purchasing as an individual, the tax varies according to the amount of the profit earned. Please contact us or a lawyer for more information.

Local Taxes

The owner of a building or a plot of land is obliged to pay a real property tax. In the case where a building is built on a State or municipal plot, the value of the plot will also be included in the tax base. The tax is equal to 0.15% of the book value of the property and is paid annually. Arable land is exempt from local taxes. In addition to the real property tax, owners also pay waste-collection fees.

Value Added Tax (VAT)

Transactions involving land and the leasing of property for residential purposes are both exempt from VAT. All other real estate transactions are subject to VAT at the standard rate of 20%. The buyer/lessee is entitled to a VAT refund, provided that his company is registered for VAT purposes.

Source: Invest Bulgaria Agency