Property for sale in Bulgaria
Nowadays, Bulgaria stands out as an appealing place for real estate investment, and there are several compelling reasons for this trend. The business landscape in a country is vibrant and experiencing rapid growth, characterized by socio-economic stability and a trustworthy banking system. This positive economic trajectory is also bolstering the country’s real estate market.
The influx of foreigners into the real estate sector is driving vital development in resort areas and major urban centers. Consequently, the country has seen the completion of numerous large-scale industrial projects, including logistics hubs and manufacturing facilities, enhancing its overall infrastructure.
This article will help you to deal with all details of acquiring property for sale in Bulgaria.
The benefits of buying real estates in Bulgaria
Appealing Pricing: country boasts significantly lower real estate prices compared to other popular European destinations. This affordability extends to everyday living expenses such as food, transportation, and entertainment.
Developed Resort Infrastructure: With tourism being a key economic driver, Bulgaria has invested heavily in upgrading its resort infrastructure. While still catching up to some European counterparts, the country offers well-developed resorts with modern amenities.
Diverse Recreational Options: country caters to a variety of preferences, offering year-round attractions. Enjoy the warm seas during summer, ski on snowy slopes in winter, and rejuvenate at spas with healing mineral waters in the off-season.
Pensioner-Friendly Policies: country provides simplified residency options for retired foreigners. Acquiring housing, demonstrating financial stability, and completing a straightforward registration process grants retirees residency permits, enabling them to enjoy their golden years in this welcoming country.
Real estate market
Bulgaria’s real estate market is experiencing a sustained upward trend in prices, ranking second in the European Union for quarterly growth. This eliminates concerns about potential losses when reselling housing in the future.
Prices on the secondary market have shown remarkable growth, with a 4.3% increase in the first quarter of 2023, followed by over 10% in the second quarter. This follows a 9.5% rise in prices throughout the previous year.
Major cities like Sofia, Stara Zagora, Burgas, Plovdiv, and Varna have witnessed the most substantial price increases. Interestingly, even smaller towns and villages haven’t experienced price drops despite a slight decrease in demand.
High demand for office space makes purchasing properties in well-connected areas with developed infrastructure an attractive investment opportunity. Converting residential properties into offices could prove lucrative in the future.
The pandemic has sparked a growing preference for living in smaller towns or rural areas. This trend, combined with lower housing costs and the rise of remote work, makes these locations ideal for those seeking a closer connection to nature and a more affordable lifestyle.
Can I buy a house in Bulgaria as a foreigner?
Foreign individuals and entities can legally purchase real estate in Bulgaria for sale. However, certain restrictions apply, particularly concerning land ownership.
Land Ownership Restrictions:
- Foreigners, including EU citizens, cannot directly purchase land in Bulgaria.
- To acquire land, foreigners must establish a Bulgarian company. This applies to housing with gardens or plots.
- EU citizens can buy properties with gardens but not agricultural land.
- Non-EU citizens can only acquire properties with land through a local company.
Apartment Ownership:
Non-citizens can freely purchase apartments, especially within apartment buildings, as these typically lack individual land plots.
Upcoming Changes:
Restrictions on non-EU citizens purchasing properties with land are expected to be lifted soon.
Immigration Support:
Immigration lawyers can assist foreigners interested in relocating to the country through property purchase. They can guide you through the process of obtaining temporary, permanent, or extended residence permits. Various visa options exist for individuals seeking employment, family reunification, travel, study, or research opportunities.
What is the average price of a house?
The average price for properties in Bulgaria for sale varies based on location and features, ranging from €800 to €1200 per square meter. The second quarter of 2023 saw a surge in demand for houses, with prices averaging around €1000 per square meter.
Why is real estate so cheap in Bulgaria?
Bulgaria’s status as a developing country with a lower average income is reflected in its budget-friendly housing market. Prices are directly influenced by the population’s purchasing power, resulting in lower costs compared to more developed nations.
Documents to consider when buying real estate for sale in Bulgaria
Key papers include:
- Sale Agreement: This legally binding agreement must comply with relevant laws.
- Certificate of Tax Evaluation: This document establishes the property’s taxable value.
- Title Deed: Issued by the Land Register upon registration of the new owner, this document confirms property ownership.
Additional papers:
Depending on the housing and buyer, additional documents may be necessary. Some examples include:
- Certificate of Marital Status: Required if purchasing the property with a spouse.
- Land Sketch: A sketch of the plot is mandatory when buying land.
- Certificate of Encumbrances: Issued by the Land Register, this document reveals any existing claims or liabilities associated with the property.
Company Acquisitions:
Companies acquiring properties for sale in Bulgaria must register with the National Statistical Institute.
Is it possible to secure a mortgage in Bulgaria as a foreigner?
While mortgages are accessible to foreigners in the country, eligibility criteria and terms vary depending on the lender.
Eligibility Requirements:
Non-citizens seeking mortgages must typically:
- Possess a valid residence permit or citizenship.
- Furnish necessary documentation like proof of identity and income.
- Meet the lender’s specific requirements.
Mortgage Details:
- Interest rates are generally favorable, ranging from 1% to 5% for a 20-year term.
- Banks commonly lend up to 85% of the property’s assessed value, though this can fluctuate based on the applicant’s income and risk profile.
What is the property purchase procedure?
Step 1: Finding the Right Property:
Non-citizens are often drawn to major cities, including the capital and other prominent economic hubs. It’s essential to allocate sufficient time for property viewings before making a purchase. Seeking legal counsel and hiring a translator can prove immensely helpful during this process.
Step 2: Reserving Your Chosen Property:
Once you’ve found a suitable property, a deposit (typically €1000 to €2000, depending on the property’s value) is usually required to secure it. Bulgarian lawyers can provide valuable insights into city-specific pricing and conduct due diligence to ensure a secure investment.
Step 3: The Preliminary Agreement:
After placing the deposit, a preliminary sale agreement is signed with the property owner. This document outlines the key terms of the purchase, including details like property description, agreed-upon price, payment method, and any other relevant conditions. These terms will then be incorporated into the final, legally binding purchase agreement.
What are the steps to buy a house in Bulgaria?
When considering purchasing a house in Bulgaria, there are various factors to take into account and several steps to follow. For instance, while it’s not obligatory, it’s advisable to conduct a property verification before committing to such an investment. Foreigners aren’t obliged to apply for residency prior to acquiring property but may opt to live in Bulgaria until they qualify for permanent immigration.
The procedure of acquiring property in Bulgaria for sale typically involves:
- Optionally, conducting a property verification, recommended for due diligence.
- Reserving the desired property by making an advance payment.
- Signing a pre-sale contract, a customary step in the purchasing process.
- Drafting the Notary Deed, also referred to as the Title Deed, which confirms ownership of the property.
- Having the Title Deed certified by a public notary, who will also register it with the Bulgarian Land Register.
Additionally, the preliminary contract is usually signed within 30 days of receiving the deposit and typically includes details such as property description, cost, and payment terms.
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