Investing in Bulgaria Property - A 'How To' Guide
The good news for investors looking to buy into Bulgaria property is that it is a comparitively simple process.
There are no restrictions on foreigners buying property in Bulgaria, though if you wished to buy land you would need to do so through a company. Individuals are not permitted to purchase land and won't be able to until 2014.
BUYING COSTS
Purchasing Bulgarian property does carry some significant buying costs. Here's a breakdown of what you might expect to pay:
- 2% state tax (like stamp duty), which is calculated according to the property’s price
- Notary fee (calculated in accordance with the price stated in the Title Deed, but usually for one-two-bedroom apartment would be approx €325)
- Fee for inscription in the Land Registry – 0.1% of the property’s price
- Legal fees – these can range from €400 – €1,000
- Total cost on average, around 4–5% of the purchase price
BULGARIA MORTGAGE OPTIONS
The Bulgarian mortgage market is very well developed. There are a range of products available to foreign investors and with some very good terms for the CEE.
These include 25-year terms, 60-80% Loan To Value, self cert mortgages and refinancing options.
See our Bulgarian Mortgages page for finance providers you can use.
EXIT STRATEGY
Currently, Sofia property is the only property in which to invest in Bulgaria and it should be considered a long term investment (5-10 years) in order to take full advantage of property price growth. However, some investors may require a short term exit strategy.
This is possible in Sofia as foreign purchasers make up barely 20% of the overall market in the city. This indicates a healthy local market. The lack of supply to increasing demand also allows for early exit if required.
Such is the demand from the local emerging middle classes that supply cannot keep up - a foreign investor should be able to sell to the local market very quickly.
