Nice Places in Bulgaria. Bulgaria Guide.

A guide to Buying a Property in Bulgaria | Overseas Property ...
Bulgaria is one the most popular destinations for overseas investment home ownership as a result of the relatively low cost of property and the potential ...

A. You can, of course, pay any way you choose. A: Any reputable agency will not sell in a development that did not have full licenses. A: Any special agreements you make with the developer should be noted on the reservation form you sign with your agent. A: As you will have been made aware at reservation there will be certain fees and taxes that every buyer has to pay at completion. A: Bulgarian law dictates that any prop­erty purchased in Bulgaria is owned equally by both spouses even if only one name is on the contract and title deeds. A: It is not necessary for a lawyer to have Power of Attorney to sign a Pri­vate Purchase Contract. A: Some developers offer management contracts that you can sign to instruct them to look after your apartment and take care of all rentals for you in your absence.The cost of this service varies with each developer but are generally similar. A: This rarely happens but no, there is no need for every buyer’s permission. A: Under the ‘Bulgarian Act on Foreign Ownership’ foreigners are allowed to buy buildings but not land. A: Your fee is due with your first payment. After verbal agreement and all the nec­essary details provided, the contract will be drawn up by the lawyers and will set out the timescales, payment terms, pric­es and the terms and conditions agreed. All developments require annu­al maintenance fees and this is normal. All due diligence searches will have been achieved and at this stage the lawyer is confident in the developer and happy for you to continue with your purchase. All further payments will be paid to the developer as outlined in the terms you sign at res­ervation. And will new contracts need to be signed? At the time of your first funds being due, your lawyer will have done a certain amount of work. At this stage the agreed first payment is paid to the seller and such contracts will also detail scheduled payments thereaf­ter, up to and including the completion date in front of the Notary. Bulgarian banks do not provide full building loans like UK banks for development. Can I not just make my payments through my bank? Foreigners can however own land by setting up a Bulgarian company. HiFX are leading foreign cur­rency exchange company that will be able to give you better rates than any bank. However, WLS takes respon­sibility for each individual case to check all papers and licences, to be confident all ‘due diligence’ searches have been done and that reports can be provided. If land is included this is easily over­come by forming a Bulgarian registered company with you being a sole owner and director. If the costs turn out to be less than what you have paid, the difference will be refunded to you. If you require further information from your lawyer before you are willing to part with funds, this is within your right. If you wish to provide your WLS lawyer with Power of Attorney, you should inform us of your intention as early as pos­sible. In this case your WLS lawyer will be able to assist you.Q: What taxes will I be expected to pay once I own a property in Bulgar­ia?A: There are taxes that you will need to take into consideration when pur­chasing property overseas. In this instance it is not necessary to have a Bulgarian will unless you spe­cifically do not want this situation to occur. It is entirely your choice whether you wish to employ these services. It is known as the ‘Preliminary Contract’ because both parties effectively prom­ise to enter into a final contract to buy and sell the property. It is very important these are noted here. It will require legal fees to be paid upfront if the work will delay the first payment due. No one told us about this, will we have to pay these fees? Only docu­ments signed in front of a Public Notary require this. Q: Do I need to make a will now I have purchased a property in Bulgaria? Q: Do I need to provide the lawyer with a ¨Power of Attorney ¨ to sign the Private Purchase contract on my behalf? Q: The developer has offered us a management contract. Q: What happens if the developer in­forms us the building won’t be fin­ished until 6 months after the original completion date? Q: Who are HiFX and why are they ringing me? Q: Why do I have to pay before I see the contract? Q: Will my money be held in escrow until the apartment is finished? Q: Will my money be sent to the developer before my contract is signed? Should we sign this and what will we have to pay? Specialist tax advice is recommended should you wish to set up a business in BulgariaQ: If the developer decides to sell the development on to another developer before it is finished do they need each buyer’s permission prior to selling? The client is responsible for these extra costs which will typi­cally account for 3.5% - 4% of the pur­chase price. The cost of setting up a company is about 1000 Eu­ros plus any solicitor fees.Q: How will I sign for the title deeds when I do not live in Bulgaria? The final completion payment will be held by your lawyer until the title deeds are signed in your name.Q: The developer agreed that he will build another wall in the bedroom free of charge. The new owner takes all rights and du­ties from the previous owner and the new owner is obliged to follow every signed contract and become a part of all signed contracts. The purchase of off-plan developments does not require company incorporation only purchases of land require you to set up a Bulgar­ian company. These cover the Notary fees and Country Tax (the equivalent of the Stamp Duty in the United Kingdom). These fees will cover all security, gar­dens and general upkeep of the devel­opment and are required when buying in communal developments. These penal­ties vary between developers.Q: Do I need to own a company in Bulgaria to purchase property? They can also fix rates up to two years in advance which can help you control your spending if you are paying in stages over many months.It is worth speaking to them to find out how they can save you money when making your payments. This can be avoided by issuing Power of Attorney to your WLS lawyer. This can take up to ten weeks and we will assist and guide you through this process. This Power of Attorney enables another person (your WLS appointed lawyer) to attend and sign on your behalf. Under Bulgarian law your prop­erty will automatically be inherited in equal parts to your spouse and / or any Children, should you have any. Unless the price of the property you are purchasing includes VAT please be aware the VAT on a purchase in Bul­gariais 20%. We do not forward any of your money to the developer un­til your contract is signed. We shall also confirm that you have the right to sell your purchase before completion.Q: How will I know that the developer has all the legal licences required to build and sell the property I want to buy? We use their services and are happy to recommend them. We will contact you nearer the time regarding this.Q: Why do I have to pay my legal fees upfront? We will issue you with the forms a few weeks before completion and you will need to take this to your local Public Notary to be signed and stamped with an Apostle. We will then make sure any agreements noted are confirmed to you in writing by us and that they are evident in your contract. We will recommend you also look for further companies who offer additional ben­efits through their local resort discount programmes as these may assist you in achieving maximum rental income.Q: The contract mentions mainte­nance fees. When the time comes for sign­ing the Title Deeds in front of the no­tary Power of Attorney will need to be granted. With signing the PPC the client gives his agreement to the owner to sell the development on to another developer. WLS are not tax specialists and will not like to comment on any tax issues. Your Bulgarian lawyer will be able to this for you. Your first payment will be forwarded to the developer once your contract is signed after diligent searches on the financial standing of the developer are verified. Your signed instruction on your authorisation form gave power to our lawyers to sign the contract on your behalf. Your WLS lawyer will be given the reservation agreement along with your instructions from the agent. Your WLS lawyer will not sign any contract on your behalf until he or she is satisfied it covers all your interests and is legally correct.