Bulgaria has one of the
most liberal foreign
investment laws in the
region regarding
real-estate, as well as
foreign investors. As a
foreign citizen you need
to make a note of the
following :
A)
As a foreign person you
have the right to buy
buildings, a right to
build, and any other land
related rights such as the
right to use for access
etc but you cannot
directly own a piece of
land (for this read point
B)
B) To own land, a foreign citizen must first set up a limited company in whose name the purchase of land can be made. The company can own the land as well as the building on it. Sheen Ltd can organise the whole process for the formation of the company from start to finish.
Once you have registered a Bulgarian company you can use it in the future for different activities or for the purchase of other properties.
Setting up a company in Bulgaria is very easy. You have to register a LLC which takes between 2 and 4 weeks. The company doesn't need to operate but it is simply a tool to purchase the property with the land. The company should be registered with the court, the tax authorities and with the Social Security Institute.
The step by step procedure for the formation of a company :
-
You will need a lawyer which SHEEN LTD will provide.
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Deposit 5000 BG Lev into a company bank account – this will be the starting capital of your company. Once the registration of the company is done the 5000 BG Lev can be withdrawn and used as part of the payment for the property
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Fees for setting up the limited company, is 600 Euros. This fee include: lawyer’s fees who will prepare all the documents for the company; go to different services to register it and arrange all procedures and documents and get all papers officially translated and stamped into English and post them back to you.
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The company becomes active when it is published in the State Gazette ( 2 to 3 weeks later)
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Once the company is formed, details of the company will need to be registered with the Bulgarian National Tax Register Authority, National Companies Register and the National Social Security Institute.
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Bank accounts opened in the company name must also be registered with the tax authority within 14 days.
You now have a company formed! Now you can choose and buy your dream property. Once you have made the choice we shall then proceed and acquire the property ownership rights for you by checking all the legal documentation and ownership papers.
Please visit our step by step guide on how to buy a property.
The last amendments of the Bulgarian Constitution
According to the last amendments of the Bulgarian Constitution of February 25, 2005, foreign citizens and legal entities will have the right to purchase land in Bulgaria after the coming into force of the Agreement for the Accession of the Republic of Bulgaria to the European Union. The regulations regarding the above will be provided for in special laws for that purpose, which we hope that it will soon be adopted.
CHANGE IN PROPERTY LAW FOR BUYING A PROPERTY
WITHOUT LAND
Purchase of real estate by foreign citizens in Bulgaria raises a new obligation for those who buy directly without registering a Bulgarian company. These are individuals who have bought property without land. According to the new BULSTAT Register Act that came into force from 11.08.2005 which states that foreign citizens should have a BULSTAT number (something like a tax payer ID) within 7 days after the deal in the Registry Agency (RA). The term starts from the day of receiving the deed.
Registration takes place at Registration Agency (RA) of the Ministry of Justice. SHEEN LTD shall need a Power of Attorney as this is mandatory (if we are providing this service). Reason for registering a BULSTAT number is to enable the country to determine easily individuals who are liable to taxation.
Foreign citizens that have existing properties in the country do not have to register, as RA will find the foreign owners in the Property Register and register them formally. Property owners then will be informed by official written letters inviting to receive their registration card and pay the due fees.
