Property Dream Bulgarian - Property

Bulgarian Property Dream


After conclusion of this contract you will normally have a set period or 30 days to complete the purchase. All the documents must be filled in Bulgarian; we have accountants who can do this for you.If you have established the company only for the reason of purchasing a house, then you will have a non-operational company, which needs a relatively simple tax return. At this preliminary contract you will be required to pay a 10% deposit and the estate agents fees. Both parties may sign the document personally before a Notary. Do I need to submit tax returns for my company?Yes, tax returns are made annually. Each company has a threshold of EUR 25.000. Ensure you see all charges up front and don�t use their personal solicitor if they have one working for them.vAfter you have selected the property you will like to buy, you will need to negotiate the price for the property. For instance, you may wish to have someone deal on your behalf with the utility companies while you are abroad, or you may wish to give someone the power to purchase and/or sell properties on behalf of your company. However, if you undertake this procedure from abroad, authorised translations of all the paperwork must be obtained including copies of your personal documents. However, you should be aware thatVAT is payable when selling property. I have heard about giving Power of Attorney to people, will you explain in details?According to Bulgarian legislation a foreigner can assign Power of Attorney to another person. If your tax returns are not submitted before the deadline, you will be fined. In our opinion, the price stated on the title deed is considered �the selling/purchase price� and thegovernment�s/ state�s tax assessment is the �tax estimation price�, which is the Bulgarian equivalent of the rateable value in the U.K. It depends entirely on you what powers you will transfer to another person. It is easy to check to see how long they have been registered. Once you go over that limit, 20% VAT will need to be paid on subsequent sales, based on the selling price of the property. Since the company will not register any profits or losses, no income tax or corporate tax liability will apply;If I wish to buy more than one property, do I need to set up more companies?No, with your established company, you can purchase as many houses as you will like. The Bulgarian fiscal year runs to the end of December and tax returns have to be filled by the end of March of the following year. The notary is obliged by law to ensure that all parties concerned are fully aware of what they are signing. The notary will then check that all persons present are who they say they are and go through the circumstances of what is taking place. This is done by the estate agent on your behalf.vOnce you have agreed on a price, you will be required to place a reservation fee of about 2,000 eurosto secure the property for a set period or a period of normally 14 days. You will also need to pay the solicitor�s fees as well as state and notary taxes;vThe finalisation of the deal will take place at a notary�s office (for this you will need a legal authorized translator to act on your behalf). You will have to decide a name for the company and who will be in the company; the solicitor will open a personal and company bank account.