Responsibilities and rights of non-residents when purchasing real estate in Bulgaria

Purchase of real estate in Bulgaria by foreigners

Foreign citizens can freely purchase both residential and commercial real estate in Bulgaria. If it comes to buying apartments and flats that do not come with land plots, no additional permits will be required. However, if you intend to acquire property with a plot, such as villas or country houses, non-EU citizens must register a legal entity in Bulgaria before completing the transaction.

Rights of foreign property owners

As for the rights of foreign owners, they can expect a multi-visa that allows them to stay in the country for up to 90 days within a six-month period. This right also extends to the legal spouses and minor children of the main owner, provided that the value of the purchased property exceeds...310 thousand eurosYou will have the opportunity to apply for a residence permit in Bulgaria.

Owners' responsibilities

Property owners should remember their responsibilities. For example, it is necessary to register with the tax authorities withintwo monthsafter the purchase and start paying property tax as well as utility bills. It is worth noting that the government offers a discount on5%for tax payments if they are made in a lump sum. However, one should be cautious, as there are penalties for late payments, which can lead to serious consequences, such as the seizure of assets for the purpose of forced sale to settle debts.

Tax obligations when purchasing real estate

Acquiring real estate also entails tax obligations. All expenses related to the transfer of ownership rights are borne by the buyer, regardless of their citizenship. On the day of signing the sales agreement, the new owner is expected to pay the municipal tax, which varies from1.5% to 3.5%From the amount specified in the notarized document. It is important to understand that if the tax authorities assess the property at a higher value than the price stated in the contract, the tax will be calculated based on the new, inflated value.

Additional expenses

In addition, the buyer needs to consider the payment for notary services, which amounts to approximately1%from the total amount of the transaction. A special fee of0.1%from the property value for entering information about the new owner into the state register.

Seller's responsibilities

The seller, in turn, is obliged to provide a tax assessment for the property and a certificate from the cadastral authority for the successful completion of the transaction.

Conclusion

Although the process of buying real estate in Bulgaria may seem complicated, with the right information and knowledge, it can be navigated without much difficulty. For example, during the lockdown, some buyers learned to purchase apartments online, which became a new convenient method in the context of restricted movement.

Sunny Beach and investment opportunities

On the shores of the Black Sea in Bulgaria lies the famous resort of Sunny Beach, which attracts tourists from all corners of the world. If you want to stay updated on the latest news about foreign real estate, be sure to subscribe to our Telegram channel, where important information about the market is regularly published.

Tax obligations when purchasing real estate

When purchasing real estate in Bulgaria, it is important to remember the tax obligations. All real estate properties are subject to taxation, with the exception of:

• plots designated for agriculture;
• forest areas.

Foreigners who become owners of residential property automatically become taxpayers. It is important to register the property with the local tax office within 60 days of purchase. To do this, it is necessary to fill out a declaration that includes:

• year of acquisition or construction;
• type of construction materials used;
• the total area of the building and individual rooms;
• features of the design;
• number of floors;
• cadastral value, which is usually lower than the market value.

Property tax rates

Property tax rates can vary depending on the region and range from 0.15% to 0.25% of the cadastral value. The tax begins to be charged immediately after the property is put into operation, and it is important to note that payment of the tax is mandatory, regardless of whether anyone resides in the property or not.

Utility payments

In addition to property tax, owners should consider utility taxes, which include fees for solid waste disposal. These rates are set separately for each municipality and can range from 0.14% to 0.45% of the value stated in the sales contract. For example:

• In Burgas — 0.25%;
• In Varna - 0.15%;
• In Sofia, it's 0.325%.

Moreover, even within the same city, tax rates can vary significantly depending on the district. On average, the owner of a one-bedroom apartment can expect to pay around 25 euros per year, while for a one-bedroom flat, the payment can be about 45 euros.

Experience in property ownership

If you're interested in life in Bulgaria, many owners are happy to share positive reviews, claiming that they bought three-room apartments for the price of air conditioners.

Taxes on rental income

If you plan to rent out property, keep in mind that rental income is also subject to tax. The income tax rate is 10% of the amount specified in the lease agreement with the tenants. You are allowed to deduct expenses for maintaining the property, for which you will need to provide documents confirming the actual costs incurred. Taxes can be paid monthly or once a year, by submitting a declaration by the end of April of the year following the reporting year.

Tourist tax

It is important to note that until the beginning of 2020, a tourist tax was levied on properties rented out for short-term stays. This tax was calculated based on the number of guests staying in the apartment or house. Therefore, when making decisions about investing in Bulgarian real estate, it is essential to consider various factors, including tax obligations, which can significantly impact your final income.

Changes in tourism legislation in Bulgaria

In early 2020, the National Assembly of Bulgaria implemented a series of new changes to the legislation concerning tourism and the rental of housing through platforms like Airbnb. Now, in order to rent out their property, owners must register with local authorities.

Instead of paying various income and tourism service taxes, they switched to a simplified system of a single patent fee. The amount of this fee ranges from13to130 eurosDepending on the geographical location of the property. This approach makes the process of renting real estate more convenient, allowing tenants to work during specific months and minimize tax payments during periods of low demand.

Taxes on profits from the sale of real estate

In the same year, new rules regarding profit taxes arising from the sale of real estate were also implemented. If the former owner sells the property, they are required to pay a capital gains tax amounting to10%from the net income from sales. This implies that the tax is calculated based on the difference between the purchase price and the selling price, taking into account all expenses related to the property, including repair costs.

If the owner sells their primary residence, which they have owned for more than three years, they may be exempt from paying this tax.

Special cases of taxation

There is a specific case when a transaction is conducted through a legal entity, and the net profit exceeds the amount of25,550 eurosIn this case, an additional tax obligation arises - the payment of value-added tax (VAT). The VAT rate is20%from the amount of profit exceeding25,550 eurosFor example, if the net profit from sales is40,880 eurosthen VAT will be charged on15,330 euros.

Real estate for sale in Bulgaria

As of today, various real estate options are available for purchase in Bulgaria. An apartment is for sale in Sveti Vlas, with a price of234,990 eurosThe area of the housing reaches143 square metersThe apartment includes:

• Three bedrooms;
• A large living room with a kitchen nook;
• A terrace with a breathtaking view of the sea.

This property is located in a picturesque complex called "Manastira 2" on the third floor of a three-story building.

More affordable real estate options

There is also a suggestion for a more budget-friendly option – a two-room apartment in Ravda for85,500 eurosThe area of this apartment is85 square metersand it is located on the third floor of the "Riviera Fort Beach" complex, which is in close proximity to the sea. The interior space includes:

• Hallway;
• A spacious living room with a kitchen area;
• One bedroom;
• Bathroom;
• A large terrace with a magnificent sea view.

The apartment is offered fully furnished and equipped with the necessary appliances, making it more attractive to potential buyers.

Attractive offers from Grand Estates Group

Grand Estates Group offers a variety of attractive real estate opportunities in the Bulgarian market.

Unique offer: apartments by the sea

We invite you to take a look at an unusual offer – a two-room apartment located in close proximity to the sea at the Sunny Beach resort. The total area of this apartment is83 square meters, it is located atfifth floorThis is a great accommodation for those who value the combination of comfort and functionality. The thoughtfully designed layout allows you to enjoy the space and provides all the necessary conditions for a comfortable life.

Other housing options

In addition to this offer, we have other interesting options. For example, take a look at the spacious apartment in Sveti Vlas, which is priced at150,000 €The area of this housing reaches100 square metersand it is located on the seventh floor of a prestigious complex with direct access to the sea. The interior design includes:

• cozy hall
• a bright and spacious living room with a kitchen and dining area;
• a separate bedroom;
• the bathroom.

Moreover, there is access to a terrace with a stunning view of the sea, allowing you to enjoy magnificent sunsets every evening. The apartment is sold with furniture and necessary household appliances.

Two-bedroom apartment in Sveti Vlas

Another possible option is a two-room apartment in Sveti Vlas, which costs85,000 €The area of this apartment is80 square meters...and it will be perfect for a family to live in. The complex offers various amenities, including:

• a beautiful pool, perfect for relaxing in warm weather;
• convenient parking spaces;
• round-the-clock security, which guarantees the safety of the residents.

Compact studio in Sunny Beach

If you're looking for something more compact, it's worth considering a studio in Sunny Beach for36,500 €This small but very cozy studio has an area of35 square metersis located aton the sixth floorThe windows offer a picturesque view of the pool and the resort town, creating a cozy atmosphere. The complex where the studio is located offers many amenities, including a pool where you can relax and enjoy sunny days.

Three-room apartment in Pomorie

Among our offerings, there is also a three-room apartment in Pomorie, and its price is99,500 €The total area of this apartment is100 square meters, it is located aton the second floorand includes two spacious bathrooms and two terraces, which are perfect for relaxation. If you want to live close to the sea, this offer will be a real find for you – the beach is just a short distance away.150 metersThe low utility bills make this complex even more attractive. This unique place is perfect for those who want to enjoy life right by the sea.

Real estate from "Alternative Properties"

The company "Alternative Properties" offers a variety of real estate options on the Bulgarian coast. Among them stands out an apartment in Sveti Vlas, Bulgaria, priced at 162,000 euros. This three-room residential property is located on the third floor and has a total area of 110 square meters. The apartment is situated in a modern residential complex and is fully furnished.

The bedroom of the apartment is equipped with two windows, providing a delightful view of the calm sea from the terrace. The room itself has a special atmosphere of coziness and harmony, making it an ideal place for comfortable living. The apartment also comes with a spacious balcony that offers a mesmerizing panoramic view of the sea.

Apartment in Kosharitsa

Among the listings, there is also an apartment in Kosharitsa, valued at 75,000 euros. This three-room apartment offers 97 square meters of comfort and is located on the first floor with a view of the pool. The residential complex where the apartment is situated is equipped with numerous amenities:

• swimming pool for summer relaxation;
• a playground that ensures safety for children while they play;

Apartments in Sunny Beach

There is also interest in real estate on Sunny Beach, priced at 115,000 euros. This spacious three-room apartment, located on the fourth floor, has an area of 112 square meters. It is situated in a resort area and offers a first-class panoramic view of the sea from all rooms.

Inside the apartment, there are provisions for:

• two bright bedrooms;
• three bathrooms.

This layout makes the accommodation convenient for several people to live in or for hosting guests.

Apartment in Primorsko

There is also an apartment available in Primorsko, priced at 83,000 euros. This two-room apartment has an area of 60 m² and is located in a building with central heating, providing all the necessary comfort. Among the added advantages are:

• the possibility of obtaining a visa upon purchase;
• option for remote viewing of the property;

The location in a pine-oak grove, just 300 meters from the sea, makes this offer especially appealing for those seeking peace and solitude while still being close to the beach.

Other options

Another interesting property is an apartment in Primorsko, measuring 56 m², priced at €83,500. This two-room apartment also offers the possibility of obtaining a visa upon purchase and access to flexible payment installments. It is characterized by the following:

• The house is equipped with steam heating, making it ideal for year-round living.
• The developer offers flexible installment terms and the option to pay in various currencies, including cryptocurrency.

Individual approach

Each offer from "Alternative Properties" is tailored to meet the diverse needs of future property owners, ensuring comfort and coziness in the heart of Bulgaria.

Conclusion

In conclusion, I want to emphasize that purchasing real estate in Bulgaria for non-residents is a process that requires careful consideration of all aspects and nuances. Foreigners can take advantage of attractive conditions for investing in residential and commercial properties; however, they should keep in mind the necessity of legal formalities and compliance with tax obligations.

Rights and responsibilities of owners

When purchasing real estate, it is important to understand both your rights and responsibilities. Every owner should be prepared for the need to pay property taxes and utility bills, as well as the necessity to register quickly with the tax authorities.

• Property taxes:Property owners are required to pay property tax and utility tax.
• Registration:It is necessary to register with the tax authorities within 60 days after the purchase.
• Fines:Failure to fulfill obligations may result in fines and legal issues.

Potential for investments

I hope that the information gathered will help you better navigate the Bulgarian real estate market and make informed decisions. The franchise and vibrant culture of the country, picturesque landscapes, and favorable climate conditions certainly create unique opportunities for living and investing.

Conclusion

Ultimately, the right choice of real estate can not only be a profitable investment but also a wonderful place for a new beginning. Don't forget to conduct additional research and possibly consult with professionals, as this can help you avoid many pitfalls that may arise on your path to your dream property in Bulgaria.