Real Estate Template
T O P   O F F E R S
 


For sale House
11500 EURO,
380 sq. m.,
Plovdiv District
Village of Dobri dol
Read More »
.............................................................

 


For sale House
8600 EURO,
80 sq. m.,
Plovdiv District
Village of Starosel
Read More »
.............................................................

 


For sale Office
46000 EURO,
170 sq. m.,
Town of Plovdiv
Kamenitsa-zapad District
Read More »
.............................................................

 


For sale Three-bedroom
63000 EURO,
120 sq. m.,
Town of Plovdiv

Read More »
.............................................................

 


For sale House
51500 EURO,
180 sq. m.,
Plovdiv District
Village of Brestovitsa
Read More »
.............................................................

 


For sale House
10800 EURO,
60 sq. m.,
Plovdiv District
Village of Streltsi
Read More »
.............................................................

Bulgaria is a hot investment area at the moment but the simple fact is that many of the people who want to buy property know little or nothing about the country. Our team has put a lot of effort in gathering information about Bulgaria that we hope you will find useful.

When buying a property abroad one has to take into account many other things than just price and location: cost of life, local climate, roads, law system, health system, shops, tourist attractions and places, bank system, methods of payment etc. One may be buying a holiday home to use for a week or two; others may retire and move to Bulgaria permanently because of the much cheaper cost of life.

Easy steps for buying property

  • Browse the properties
  • Contact us to request more information, to check availability (the market is very dynamic and there is no guarantee the property you have chosen will be available to arrange a viewing trip)
  • Visit Bulgaria and view your chosen properties (or a selection closely matching your stated criteria)
  • When you have settled upon a property sign a preliminary contract of purchase and put down a 10% deposit.(If the property is with land you have to register a company or you can authorize AndiGroup to do that on your behalf and in your name – see Charges and Fees.)
  • Finalise the payment ( usually in about 4 weeks when the company’s registration has gone through and the legal administrative process has been completed)
  • Receive the ownership documents (Notary Deed).


Buying a property in Bulgaria

Foreigners can buy buildings, the right to build and other land related rights such as the right of use and passage but cannot buy land. Please check this out before any purchase.

Foreign judicial and physical persons can however acquire land via a Bulgarian registered company. We can help you organise this once you have decided to purchase. The legislative intention is to provide this opportunity to foreign persons who intend to engage in commercial activity in Bulgaria.

The restriction on land ownership on foreigners, as established by the Constitution of 1991 is now publicly discussed and is likely to be modified or lifted in the accession to the EU. We will keep all our clients informed on any developments. Any change towards less restrictive legislation is likely to increase property prices.

Our professional team will help you:

SAVE – Time and money by helping you identify the property that best suits your needs and by negotiating the best price.

OWN - Buying a property in Bulgaria can be complicated. Our team of experts will help you ensure that each step of the purchasing process is followed with ease. Keeping you informed and secure in the knowledge that as a client of AndiGroup your best interests are our priority.

Our services include:
• Consultation
• Search and Selection
• Negotiation
• All Legal Matters
• Completion


Customer Services

We will show you everything we have available depending on your demands, in time convenient for you.

When you have arranged a trip to Bulgaria, it will be a pleasure for us to meet you, book accommodation for you in a hotel in accordance with your requirements, and will assist to rent a car so you can be independent in your travel around the country or we could take you to the property you have selected to view the place and get a first hand impression about what you intend.

Property Management

- help with renting the property on your behalf when you're not in the country
- legal advising on possible re-selling, trading of the property etc.
- regular maintenance - cleaning (daily and/or weekly), utility bills payment, keeping an eye on it etc.
- refurbishing, interior design, renovation

Charges and fees

If you want to buy

Agency commission:
Our agents commission covers many important services which we provide for the buyer during the process of pruchasing - such as: solicitor's assistance, full checks on the title deeds and the ownership, preparation of all necessary contracts, paperwork, communication costs. etc. We protect the rights of the buyer! AndiGroup Ltd charges 5% Agent’s commission but not less than £350 payable at signing of the preliminary contract of purchase when you are to place a deposit of 10% of the purchase price to reserve your chosen property and withdraw it from the market. If after this point you change your mind you will lose the deposit and the commission (they are not refundable), however if the seller for any reason withdraws from the transaction they must pay back double the amount of your 10% deposit.
Our practice shows that most of the properties are being sold very quickly due to the booming market in Bulgaria. If you find a property on our website that you really want to own, we recommend that you reserve that property by placing a deposit to secure it and arrange viewing later in order to avoid disappointment.

Viewing trips

Our viewing trips include up to 4 properties a day, a car and driver/English speaking guide.
1 day viewing trip costs £30
2 days viewing trip costs £50
3 days viewing trip costs £90
4 days viewing trip costs £110
5 days viewing trip costs £150
Excess mileage is charged when daily travelling distance exceeds 50 kilometres, the charge levied is £10 per 50 kilometres excess.

If you buy a property with AndiGroup Ltd we will subtract the viewing trip fees from the Agency Fee - therefore your viewing trip will be FREE for you.

AndiGroup Ltd does not provide flights, we are not a travel agency, but we do offer free advice on which Airlines offer flights and best prices. AndiGroup Ltd can also assist you to find accomodation during your stay in Bulgaria for the viewing trip.

When you go for a viewing trip with AndiGroup Ltd, your guide will pick you up and return you to your hotel, the airport or wherever is most convenient for you.

The viewing trip normally includes:
 • A visit to the AndiGroup Ltd office to select properties you wish to view
 • Viewing the properties
 • If you find what you are looking for you can secure a property with a 10% deposit

Other expenses

Depending on each property there are other expenses like: notary fees, tax, stamp duty, checks on the property ownership, debts on title etc. which are usually very low – about 3% of the property price. These are paid directly by the buyer at completion of the deal.

Company registration fee

Foreign judicial and physical persons can acquire land via a Bulgarian registered company. For a fee of £300 AndiGroup can help you organise this once you have decided to purchase. Or alternatively for a fee of £600 you can authorise AndiGroup to register a Ltd company in your name and conduct the purchase on your behalf. Please note that the company must prepare and submit annual tax declarations as well as keep accountnacy books. Therefore, we have a qualified local accountant to take care about the company's books. (NB This fee is for the service AndiGroup offers only and does not include state taxes and other property related expenses.)

If you want to sell

Please send email with a description of your property + your asking price. We offer tailored services to every client.

If you want to advertise your services

Please send email or contact us on our company phones to find out about the costs involved if you want to advertise your property related services. A member of our team will contact you to discuss your requirements and advise you on possible options.

PriceWaterhouseCoopers real estate tax summary: Bulgaria

General

Bulgaria is a politically stable country, and the introduction of a currency board in 1997 stabilised the country's economy. However, as is the case elsewhere in Central and Eastern Europe, legislation, including that governing real estate, is volatile and subject to frequent change. A foreign investor can invest in properties in Bulgaria either directly or through a local entity. Only Bulgarian-resident individuals and entities can acquire title to land, while non-residents may acquire only buildings and limited rights (e.g., leasehold and construction rights) to land. In some limited cases, acquisition of immovable property by non-residents requires prior permission of the Ministry of Finance. Foreign investors are guaranteed full repatriation of profits resulting from an investment in Bulgaria. The transfer abroad can be made only after the bank effecting the transfer is presented a certificate proving payment of all Bulgarian taxes due.


Investing through a local entity versus direct investment

As indicated above, a foreign investor can invest in properties in Bulgaria either directly or through a local entity. In the case of a direct investment, the tax treatment of the foreign investors depends on whether or not their activities constitute a permanent establishment. The definition of a permanent establishment under Bulgarian law is very broad: the mere fact that a foreign company owns and rents out property in Bulgaria (except where such activity is carried out through an independent agent) may create a permanent establishment under domestic law. The various tax treaties entered into by Bulgaria usually contain a narrower definition of permanent establishment. If the activities of a foreign person owning real property in Bulgaria do not constitute a permanent establishment, the person will be liable for only 15% withholding tax on the rentals and capital gains, unless an even lower rate is applied under a double tax treaty.


Basis of taxation

The taxation of a local entity or a foreign entity which constitutes a permanent establishment is as follows.


Rental income

The basis of the taxable income of a company, investing in Bulgarian real property is the gross income derived from the property less tax-deductible, property-related expenses and depreciation. Such expenses include repairs, maintenance, renovation and similar costs and interest on loans used for the acquisition of the property. A Municipal Tax at a rate of 10% of profits is due. This is then deductible in calculating taxable profits which are subject to a flat corporate tax rate of 25%.


Depreciation

Land itself is not depreciable, although any immovable property affixed thereto is, provided that it is used for the business activities of the company and is booked as a fixed asset. Depreciation for tax purposes is at a rate of 4% per annum, and is usually calculated using the straight-line method. Real estate acquired for purpose of re-selling it is considered as "investment property". As such, it is non-depreciable and is subject to annual revaluation to the market value. In practice, it is often unclear in which situations a property should be treated as an "investment property" rather than as a fixed asset.


Loss carry-forward

Tax losses can be carried forward for a five-year period. Losses cannot be offset against profits from previous years.


Capital gains

Capital gains are treated as ordinary income subject to corporate income tax.


Transfer taxes

Apart from corporate tax, no other direct taxes are levied on the transfer of real property. The transfer is, however, subject to notary and municipal fees. 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. In addition, 2% of the market value of the property is paid to the municipality in which the real property is situated.


Local taxes and rates

The owner of a building or a plot is obliged to pay a real property tax. Where a building is built on a State or municipal plot, the value of the plot will also be included in the tax base. The tax is equal to 0.15% of the book value of the property. Arable land is exempt from local taxes. In addition to the real property tax, owners also pay waste-collection fees.


Value Added Tax

Transactions with land and lease of property for residential purposes are exempt from Value Added Tax (VAT).
All other real estate transactions are subject to VAT at the uniform rate of 20%. The buyer/lessee is entitled toa VAT refund, provided that it is registered for VAT purposes.


Financing the property
Debt


Under currency control regulations, a registration with the Bulgarian national Bank is required for loans granted by non-residents to Bulgarian entities. Where the debt financing exceeds the equity financing, deductibility of interest is subject to limitation, which is determined by a particular formula. If the interest costs exceed the allowable limit, the excess is non-deductible. The interest costs not deducted in a given year can be deducted in the subsequent tax period. Interest paid to a foreign lender is subject to a withholding tax of 15%, unless a lower rate is available under a double tax treaty. Upon receipt of a loan denominated in a foreign currency, a local company must re-value its foreign currency liability monthly. The positive or negative differences are accounted for as current financial income or expenses. No additional evaluation is made at the end of the financial year or upon repayment of the loan.


Equity

An equity contribution can be either in cash or in kind. Real property, limited property rights, etc. can be subject to in kind contributions after a special evaluation is performed.
| | | |
ANDIGROUP 1 Ltd.