Q: What is the law on foreigners owning property in Bulgaria?
According to the Bulgarian Constitution, foreign individuals can buy buildings but not land, with the exception of EU and EEC citizens who can buy building plots as well. Therefore the most common method for foreigners buying property in Bulgaria is to set up a company that then owns the land and the buildings. This historic restriction is one of the reasons why property in Bulgaria is so competitively priced compared to Western and Central Europe.
The most popular form of engaging in business in Bulgaria is via a Limited Liability Company (OOD).

Q: Who can form a Limited Liability Company & how?
Any Bulgarian or foreign natural or legal person. The person/persons will be liable for the company's obligations to the value of his/hers share in the company's registered capital. The shareholders conduct preliminary discussions on the commercial activities they intend to engage in. Based on their agreement, Articles of Incorporation are prepared & signed by all shareholders.

Q: What are transfer fees when buying a property in Bulgaria?
There are notary and municipal fees, connected to the process of buying property in Bulgaria. The Taxes are about 4,5-5%, including about 2 % Notary fee and up to 3.00 % - Municipal Tax.

Q: Is there Value Added Tax on transactions with land and lease of property?
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, which is 20 %. The buyer/ lessee are entitled to a VAT refund, provided that it is registered for VAT purposes.

Q: What is the full amount of costs I am supposed to pay in relation to acquiring a real estate in Bulgaria?
To purchase a real estate in Bulgaria, a foreign person should consider the following payments:
- The purchase price of the property
- The agent fee of "BulgarianESTates" Ltd.
- Payable public and notary charges relating to transfer of ownership of the property to be purchased (they are calculated for each specific case and generally rate about 4,5-5%, including about 2 % Notary fee and up to 3.00 % - Municipal Tax.
- Company registration expenses rating at 450 €.
- Travel expenses from the relevant country to Bulgaria
- Repair and reconstruction costs relating to the property after acquisition thereof to be individually estimated in each specific case depending on the property condition and customer views.

Q: What is your agent fee?
The agent fee is not included in the price of the property. The commission is 3 % of purchase price but not less than 1200 € and it is due on the day of signing the order contract.

Q: Currency regulations import and export
Foreigners may export and import banknotes and coins in circulation to the amount of up to 10000 €. Sums exceeding this amount may be imported and exported only after declaring their origin.
Upon crossing the state borderline of the Republic of Bulgaria passengers may import and export commodities that in type, quantities, and value are not of a commercial nature. These do not include objects the passenger carry for personal use and consumption objects.
Exchange controls are the responsibility of the Bulgarian National Bank (BNB). The Bulgarian Leva is pegged to the Euro, and enjoys local convertibility. The export of Leva is prohibited, but foreign businesses can repatriate profits and capital in foreign currency. Companies can maintain both Leva and foreign currency bank accounts. Currency exchange can take place both in commercial banks and in exchange offices.
Import controls - Most goods can be imported into Bulgaria without restriction. All exports to Bulgaria are subject to pre-shipment inspection.

Q: What is the cost of living?

Here are some examples: