Buying off-plan

Buying ‘off-plan’ differs significantly from buying already built properties. Unlike villas there is no land purchase so foreigners can own apartments directly and personally, as such there is no need to set up a company. A purchase contract (known as a preliminary contract) is signed by the buyer and developer before or during construction, which in essences states that the developer will transfer ownership of a property (a specified section of the development, eg Apartment 20) to the seller once the development is complete. Under Bulgarian law a property is deemed to be complete when it is granted ‘Act 16 Certificate’, which certifies that the building has been constructed to a complete stage and that all electricity, pluming, insulation etc have been installed. Only after Act 16 can the development be treated as ‘real estate property’ and it is no longer legally regarded as a building site, only then should ownership be transferred and title deeds can be issued.


1. Select your property & Reservation fee

Once you have decided on a property and a final price and payment plan has been agreed you will need to pay a reservation fee to either to us in the UK by cheque (Pounds) or straight to the developer (Euros) to take your apartment off of the market. The amount can vary but it is normally 1000 Euros (?750), you should be aware that the reservation fee is non refundable, however should you change your mind on which apartment you would like to purchase (within the same development) it is normally possible to change subject to availability. Upon payment of the reservation fee the property is taken off of the market and the buyer is allowed 21 to 28 days within which the ‘preliminary contract’ must be signed.


2. Appointing a Lawyer and Signing of the purchase contract

It is within this 21 to 28 day period after reservation that you should appoint an independent lawyer who will review the development, the licenses, the land ownership and the contract etc. They will provide you with a full due diligence report and highlight anything that you should be aware of. They will also negotiate directly with the developer to change the terms and conditions of your contract in your favour. 


3. Inspection and Snagging List

Upon completion of the development, as per the terms and conditions of the contract, the developer will need to transfer the property into your name. In order to do this we recommend you inspect the property or appoint us to inspect it for you. Any issues or defects are noted at this time and agreed in a formal ‘snagging list’ which forms a legal part of the completed apartment. Any minor issues such as scratches on woodwork, uneven paint, broken tile etc are jointly agreed to be repaired asap, this document is counter signed and the final instalment is paid by you to the developer.

You are welcome to visit the property to conduct this inspection yourself; your own findings will make up the snagging list.

4. Documents essential to transfer ownership

If you decide to come to Bulgaria you can sign a Power of Attorney whilst there to enable us to act on your behalf for the transfer. However, if you are not planning to visit Bulgaria then we can draft the necessary documents to enable us to act on your behalf and you can sign these remotely. Your options are either to sign at the Bulgarian embassy in London or sign in front of a UK Notary Public and then sent for apostille stamping at the Foreign Office.

The cost of these third party services is your cost to cover, the documents must then be sent to us in Bulgaria. Once we have these documents we can begin to act on your behalf.

5. Notary fees, taxes and other fees due upon completion

By law, a government appointed Bulgarian Notary must oversee, approve and authorise every property transaction, it is impossible to own a property without the notary approving the transfer. The notary charges a fee and collects taxes due (similar to stamp duty); the total for which is approximately 4.5% of the price on your title deeds, not necessarily 4.5% of the total price paid (see: tax estimated price), further details are below: 

• Notary Fees:
The notary fee is regulated by the government and is based on the ‘tax estimated price’ which is stated on the title deeds (see: tax estimated price). The exact percentage for this varies according to a government matrix table, but it is normally around 2% - 2.5%.

• Local taxes (Stamp Duty)
Local municipality tax or Stamp Duty is 2% of the total value stated on the deeds, this is payable upon preparation of the title deeds which is shortly after completion at the same time as the Notary Fees.

• Annual property tax
The annual property tax is payable on yearly basis and is 0.15% per year of the property’s value as stated on the title deeds, which for a property worth 50,000 Euros is 75 EUR per year. The first year can be paid upon completion. For each year following you can use our service, see here for details. 

• Property Maintenance
Every new build has common areas (reception, corridors etc) which are owned proportionally by all apartment owners. The amount you own is determined by the total size of your purchase and for every square metre you will need to pay an annual fee for the heating, lighting, cleaning and general upkeep of the common areas. It is normally around 10-12 Euros / sqm. The first annual fee will be due upon completion and the developer will contact you directly regarding it. 

6. Foreign Owner Registration

In addition to those mentioned above, you as a foreign buyer have further legal obligations to fulfil upon completion, these include;

• Registration for BULSTAT (like a British NI number)
• Register the new title deeds in court in your name
• Registration with local municipality for annual property taxes
• Registering your property with the Cadastre Agency.

Each of these actions requires a different trip to the area of your purchase and as such it can be a time consuming procedure.

Our Conveyancing and Completion Service:

We offer a full service to represent you in front of a notary, to produce your title deeds, make payment of all necessary taxes, register you with all necessary local and court authorities as above. This full service is available for a fixed rate of 350 Euros / apartment and is payable before we commence the completion process.

It is entirely optional for you to use us or another party; most solicitors will charge you 6000-800 Euros for the service, the costs of documents and registrations will be additional.