Nice Places in Bulgaria. Bulgaria Guide.

ELITE HOMES VARNA BULGARIAN Real estates Planning and Building


Articles of Incorporation are prepared & signed by all shareholders.A company bank account is opened to collect all share capital. At this point any state and municipal taxes must be paid and any outstanding balance of monies must be paid to the vendor.The title deed of the property is then transferred into your company name.Congratulations - you're now owner of a Bulgarian property! Finally, your new company will need to register immediately with the National Tax Register Authority. If you are buying an apartment, it may not be necessary to form a limited company.If your purchase includes land a Limited Liability Company (OOD) will need to be formed.Who can form a Limited Liability Company & how?A foreign or Bulgarian person(judicial or physical). If you are not a Bulgarian national, we recommended setting up a limited company that will then own both the real estate and the buildings on the land. In addition to the property tax, owners also pay waste-collection fees. In addition, 2% of the market value of the property is paid to the municipality in which the property is situated upon completion.This is a little like the UK equivalent of Stamp Duty.Local taxes and ratesThe owner of a building or a plot is obliged to pay a property tax. It is required that at least 70% (3,500 leva) of the capital is raised at time of registration. It's important that you factor these charges into your financial planning.Real Estate Tax SummaryApart from corporate tax, no other direct taxes are levied on the transfer of real property. Make sure you know about the taxesIn Bulgaria, as with pretty much everywhere else, property transactions are subject to tax. Memorandum for appointment of Directors;3. Proof that at least 70 per cent of the registered capital has been paid.The Bulgarian State Gazette is the official paper within which all Bulgarian legislation is published. Proof that each shareholder has paid at least one third of its interest, but not less than 10 leva;4. Publication of the company entry in the Commercial Register does not complete your company formation, it announces to the general public the act of formation. Put down a deposit on your propertyOnce you've found the property you want, you will need to place a deposit to reserve it. Set up a limited company:Foreigners are permitted to buy buildings in Bulgaria but not land. Shareholders at time of registration must have paid up at least one third of their respective shares. Sign the Notary ActThe last step in the buying process is to sign the Notary Act - essentially an official declaration that you have agreed to buy the property. The buyer is entitled to a VAT refund, provided that it is registered for VAT purposes.4. The company exists from the moment it is added to the Commercial Register of the district court of where the company will be based. The company owners will be liable for the company's obligations to the value of his/hers share in the company's registered capital. The costs involved are: 3,500 leva = 70% share capital.Administrative costs (payable to the state & registration court) are 250 leva (just over £70). The deposit is usually 10% of the selling price and is refunded on completion of your purchase.We will then take the property off the market while you begin the purchase.5. The entry is made upon issue of a district court decision for the incorporation. The following documents must be available at the time of the submission of the application to the district court:1. The minimum share capital required is 5,000 leva. The notary fees are paid on the higher of the market price or the book value of the property at varying rates, with the maximum being BGN 3,500. The process of forming your company can take anywhere between a few days to a few weeks. The tax is equal to 0.15% of the book value of the property. The transfer is however subject to notary and municipal fees. This is the minimum capital that you need to raise for registration.Once the entire share capital has been paid up these funds can be accessed and withdrawn. We've broken the process down into a few simple steps - follow these and you'll soon be the proud owner of a new property in Bulgaria!1. Where a building is built on a State or municipal plot, the value of the plot will also be included in the tax base. You need to ensure that the relevant terms and conditions are included in the preliminary contract ‛ELITE-HOMES‛LTD can assist you as your legal advisor.2.