Step by step guide

Buying an apartment for an office and/or dwelling purposes in Bulgaria should NOT be different than buying of an apartment elsewhere in Europe. However, things are not as easy and as straightforward as one might think. In practical terms, the deal should take place within the following parameters:

1. First of all, the buyer should sign a preliminary contract for the purchase of the estate and pay the owner a sum of 10 per cent of the total purchase price as a down payment. Usually such contracts are signed in order for the owners to outfit themselves with the documents necessary for the signing of the title deed before a notary public (a “notarioos”, in Bulgarian). (One should think that if a person wishes to sell, he would have to be ready with all papers. Well, not if you are buying in Bulgaria.)
2. After certain period of time (usually one month) the buyer pays the remaining 90 per cent of the purchase price and obtains a title deed for ownership over the estate.
All potential buyers should be aware that all dealings with real estate in Bulgaria MUST be done before a NOTARY PUBLIC.
In many cases, apartments also come with some proportional ownership (co-ownership) over the land on which the building is erected, which has its own complications.
The expenses on the deal are: two per cent state tax (something similar to a stamp duty, to be calculated on the purchase price), notary fee (which is calculated in accordance with the price stated in the title deed, but usually for a one two-bedroom apartment it would be approximately 650 leva or 325 euro), fee for inscription in the land registry (0.1 per cent of the value), and legal fees.
Example: if the property costs 50 000 euro, all these fees (except legal fees) would total nearly 1300 euro; for a deal where the property costs 100 000 euro, they are about 2400 euro; and for a deal where the property costs 200 000 euro they would be about 4500 euro. The usual practice used to be (when the deal was between two Bulgarians, at least) that these expenses would be covered 50/50 by the parties. Nowadays, it is a subject of an agreement between the vendor and the buyer.

Things of which to be aware:

It is QUITE LIKELY that the owner will NOT want to declare the real price of the property on the deed of transfer. This is done for the owner to AVOID paying CAPITAL GAINS TAX (which would be approximately 30 per cent of the real purchase price). You might end up in a situation where the owner proposes that either you pay the market value BUT get an official document (title deed) stating far lower price, or you do not have a deal.
Usually, we recommend that this be EXPLICITLY agreed in writing before the signing of any document, but if your situation comes to such a dead-end, you should know that having a title deed with a lower price does not invalidate your deal. However, such a situation has its financial consequences, such as not having official documents for the money spent and higher taxes if you decide to sell the property afterwards at its real value. Please, consult with your broker/lawyer about every aspect of the deal to avoid any misrepresentation and misunderstanding at a later stage.

General warning:

When the search for good root to title is carried out in the land register (especially applicable for SOFIA’s Land Register), there are three to five BLANK DAYS, immediately BEFORE the search, for which your attorney would not be able to give you any data – i.e., there is a possibility that the owner of the estate might have put a lien on it, etc. This does not happen on an everyday basis, BUT buyers should be aware of it, as there may be unscrupulous owners who take advantage of this opportunity. Therefore, we recommend that the deal be guaranteed by an escrow account set up either by the notary or by a bank.

Visa Information 

There are 4 main types of visa that non-Bulgarian Citizens may apply for. Each of these types is described below. 

Visa for Airport Transit (type "A" visa)

It can be single, double and exceptionally multiple valid for 3 months after the date of issue. A person who is issued with an airport transfer visa is considered not admitted to the territory of the Republic of Bulgaria and his movement is restricted to the transit area of the airport. It gives a right to leave the aircraft when it makes a scheduled landing at a Bulgarian airport or a change of flights is necessary. Applicants are required to present a flight reservation. Only persons holding passports or travel documents of the following countries need to apply for a Visa for Airport Transit: Afghanistan, Angola, Bangladesh, Democratic Republic of Congo, Ethiopia, Eritrea, Ghana, Iran, Iraq, Liberia, Nigeria, Pakistan, Somalia, Sri Lanka, and Sudan. 

Transit Visa (type "B" visa)

It can be single, double and multiple valid for 3, 6 and 12 months after the date of issue. It is issued to a foreign person who enters the territory of the Republic of Bulgaria from one country en route to another country. It allows entering the country and a maximum stay of up to 24 hours in Bulgaria. The multiple transit visas allow entering the country for up to 90 times within each period of 6 months. The applicants are required to submit:
(1) Proof of a paid fare for an onward transportation;
(2) Visa or an entry clearance issued by the country of next and final destination;
(3) Proof of sufficient funds (at least €50 or its equivalent in other currency for each entry). If the applicant is entering the country on a motor vehicle by road, he/she has to show proof of possessing additional funds of at least €200 or its equivalent in other currency for each entry. 

Short Entry Visa (type "C" visa)

It can be single or multiple valid for 3, 6 and 12 months following the date of issue. It is issued to foreign persons who travel to Bulgaria for tourism, on business trips or make private visits. It allows one or multiple entries into the country and a stay not exceeding 90 days within each period of 6 months. Multiple entry visas are issued only to a foreign person who satisfies one or more of these conditions: 
(1) Maintains regular business contacts with companies registered in Bulgaria;
(2) Has invested more than 50 000 EUR or its equivalent in other currency in the Republic of Bulgaria and there is a document from the Bulgarian Agency for Foreign Investment confirming this;
(3) Is the representative of a person who satisfies one of the above two conditions;
(4) Carries out commercial activities in Bulgaria and at least 10 Bulgarian citizens have been employed in relation to these activities;
(5) Is a foreign expert, working in Bulgaria by virtue of an international agreement;
(6) Is a representative of a foreign company, registered with the Bulgarian Chamber of Commerce.
(7) Carries out activities in accordance with the Bulgarian Foreign Investments Act;
(8) Has a substantial contribution for the development of the bilateral relations between Bulgaria and his/her country of nationality;
(9) Is the member of the family of a Bulgarian citizen;
(10) Has a Multiple Entry Visa valid for more than 12 months for one of the countries the citizens of which enjoy visa free regime for a short entry in Bulgaria.

The applicants for a Short Entry Visa are required to submit: (1) Documents explaining the grounds for the visit (letter of invitation for a private or a business trip or a tourist voucher);
(2) Proof of availability of sufficient funds of minimum 50 EUR or its equivalent in other currency per day of the required stay, but not less than 500 EUR;
(3) Proof of availability of accommodation – prepaid tourist vouchers for a hotel, a letter of invitation for private visit endorsed by the local authority, or sufficient funds of not less than 50 EUR or its equivalent in other currency per night during the intended stay;
(4) Proof of a secured return trip from Bulgaria or sufficient funds (not less than 300 EUR or its equivalent in other currency) if the applicant will exit the country on a motor vehicle.

Long-term Visa (type "D" visa) It can be only single entry valid up to 6 months from the date of issue and a stay up to 90 days. It is issued to foreign persons who intend to apply for a long-term or a permanent residence permit in the Republic of Bulgaria. 
In case the foreigner is employed by a company or institution in Bulgaria, the employer should obtain the work permit from the appropriate department of the Ministry of Labour and Social Policy of the Republic of Bulgaria. Then the foreign person should enclose the original of the work permit to the application for a Long-term Visa (type "D" visa). In Bulgaria he can apply to the local immigration authorities for a residence permit.
We can offer help with all questions you have on Visa’s just call us on 00359 52 694200 or pop into SPC offices for a chat.