In Bulgaria foreign natural persons and legal entities can directly acquire buildings, premises within a building and limited property rights (e.g. a construction right, right of use), but not property on land. Indirectly, foreign natural persons and legal entities can acquire any type of real estate, including land, by registering a Bulgarian company to act as acquirer. It is possible for such a company to be 100% owned by the foreign investors. Further details also our fees regarding setting up a company in Bulgaria, you can obtain upon request.

There are no other limitations to foreign property ownership.

The foreign natural persons and legal entities do not pay Income tax like the Bulgarian residents yearly. Their incomes from re-sale and rents are subject of Income Tax in amount of 10% due immediately after each transaction. Further details you can obtain upon request.

The business and investment income of nonresident legal entities earned from sources in Bulgaria are subject to Corporate Gains Tax. The domestic rate of tax is 10% /in force from January 1, 2007/. Where the recipient of the payments resides in a country with which Bulgaria has Double a Tax Treaty, the tax rate could be reduced or an exemption could be available subject to the provisions of the respective treaty. Bulgaria has executed more than fifty Double Tax Treaties with almost all European countries including the UK and Republic of Ireland.

In Bulgaria the owners of properties have to pay annual property tax in amount of 0.10 – 0.15% /depending from the policy of exact Municipality/ from the tax evaluation price of the properties. The investors should be aware that the tax evaluation price is up to four times less than the market one.

The VAT in Bulgaria is in amount of 20% and generally it is included into the final sales price. If the buyer arranges the purchase through Bulgarian company the paid VAT could be refundable.

Statutory costs and expenses born by the Buyer.

• Transfer tax – 2% of the higher of the purchasing price agreed between the parties, or the tax valuation made by the tax office prior to the transaction.
• Fee for registration in the Real Estate Register – 0.1% of the higher of the purchasing price agreed between the parties, or the tax valuation made by the tax office prior to the transaction.
• Notary fee – according to the statutory Notary Tariff not more than BGN 3,000 (approx. Euro 1,550) per transaction. In percentage it is approximately 0.5% – 0.7% from the purchase price of the property.

Generally in Bulgaria the purchasers use a lawyer for the closing of the deal. Asta Bridge Bridge International Properties recommends your clients to use its in-house Legal team services. The price levels are competitive to the market one as you can obtain representation during all the length of the purchase process, furthermore the after sales procedures to be fulfilled on your behalf for less than 1% from the purchase price. In addition, our Legal team can open for you a Bulgarian company against EUR 700 which amount includes all relevant taxes and fees.

There is no sales tax on a sale of property in Bulgaria. On ground of the rule that the Buyer undertake the payment of all relevant expenses, the Seller has not such charges.

Foreign nationals who wish to enter and stay in Bulgaria must obtain a visa, unless they are subject to visa-waiver agreements.

EU citizens (also the citizens of the Republic of Ireland and the United Kingdom) do not need visas for a stay of up to 90 days within each period of six months. Citizens from Australia, New Zealand, Japan, Ireland, UK, Canada, USA, Switzerland, etc., are allowed to stay in Bulgaria without visas for up to 90 days within each period of six months. The calculation of the period commences on the day of first arrival into Bulgaria as indicated in the foreign national's international passport.

You are always warmly welcomed at

sales@asta-bridge.com