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Frequently Asked Questions
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Shamrock Consultancy Services can provide you with all information concerning Bulgarian property and Bulgaria.However, if you would like to get the impartial advice of others such as notaries or sollicitors,do not hesitate to log on to the following website: Bulgarian Law Portal:Lawyers,Attorneys,Bulgarian Property Law,Notaries,Courts
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Can foreign nationals own property and land in Bulgaria?
Why do i have to open a business bank account and lodge 2500 euro in it when i want to set up a company so i can buy land?
I found a house for sale without your services or without the help of an other company.The seller suggests that we can declare a lower price of the property value on the Deed of Transfer. Is this safe to me and what does he mean with this?
How much does it cost to set up a Bulgarian Company so i can start buying houses with land or just land?
How much tax,what kind of tax do i have to pay on my property if i decide to keep my property ,sell or lease it out
How long does buying a property in Bulgaria takes?
I just want to buy an apartment in Sofia,Varna,Bansko or Sunny Beach?Do I have to register a company if I want to buy an apartment?
I want to bring over my car to Bulgaria.Do i have to pay import duty on it?
Why should I choose Bulgaria to buy property for investment purposes or as a holiday home?
bought a house in some little village and i can not get a BroadBand internet connection from the Bulgarian ISP's.The dial up connection i have is dreadful!
Can foreign nationals own property and land in Bulgaria?
Yes, foreign nationals are free to own as much property in Bulgaria as they want. However, if you purchase LAND, you are currently required to incorporate a business in Bulgaria and own the land as an asset of the company.
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Why do i have to open a business bank account and lodge 2500 euro in it when i want to set up a company so i can buy land?
The opening of a business bank account is a requirement of Bulgarian Company Law. The 2500 Euro which has to be lodged in this account is a kind of prove that you have the means to run a company.After the Courts decision to grant you permission to own a company you can immediately withdraw this money.When you set up your company with Shamrock Consultancy Services you DONT have to lodge this money in your account!We set up your account for you (see further) and lodge our money in it instead!After the courts decision we withdraw our money,give you the documents and then it is up to you to decide how much money you want to lodge in your Bulgarian bank account.
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I found a house for sale without your services or without the help of an other company.The seller suggests that we can declare a lower price of the property value on the Deed of Transfer. Is this safe to me and what does he mean with this?
Theoritically it is a little bit illegal but it is a common occurence. In order to avoid paying excessive amounts of Capital Gains Tax (which can amount to as much as 30% of the real purchase price), it is likely that the current owner of the property will not want to declare the real price of the property on the Deed of Transfer when he sells it.For example: in 1987 the house was valued at 3000 Lv but he sells it now for 10000 Euro. The Title Deeds will therefore display a lower figure than the actual price you paid for the property. This situation will have its financial consequences, such as not having official documents for the real money you spent plus liability for higher taxes if you decide to sell the property afterwards and declare its real value.As an owner of a company you actually only have to pay these capital gains tax once you disolve your company and then you will have to pay the diffirence. You'll need to consult our company or any other reputable company on this and all aspects of the deal to avoid any eventual misinterpretations or oversights which may result in you paying out a lump sum to the Bulgarian tax man.At the other hand you could suggest to him that you want a higher tax evalution on the Deeds than what you paid him,wich he will refuse, but than you offer to pay his taxes on the difference in the price wich means that when you are selling for a higher price you actually will pay less in tax.What ever you do,contact us if you have questions about this!
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How much does it cost to set up a Bulgarian Company so i can start buying houses with land or just land?
Shamrock Consultancy Services' rate for a Bulgarian Company Formation is 850 Euro.This includes:(1)a bank account with First Investment Bank,Bulgaria.(2)all sollicitors fees for the court procedures.(3)All Company documents translated in to English by a legal translator and certified by a notary.(4)your own company stamp,required by the Bulgarian gouverment.(5)your company 'Bulstat Card'.(6)your Bulgarian National Insurance number and related documents.(7)All notary fees.(8)all taxes payable for your company formation.(9)An official business address at our offices.(10)Dedicated assistance at all times.
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How much tax,what kind of tax do i have to pay on my property if i decide to keep my property ,sell or lease it out
As an owner of a building or a site you are obliged to pay a property tax. Where a building is built on a State or municipal plot, the value of the plot will also be included in the tax base. The tax is equal to 0.15% of the book value of the property. Arable land is exempt from local taxes. In addition to the real property tax, owners also pay waste-collection fees.Transactions with land and lease of property for residential purposes are exempt from value added tax. All other real estate transactions are subject to VAT at the uniform rate of 20%. The buyer/lessee is entitled to a VAT refund, provided it is registered for VAT purposes. A company investing in Bulgarian property is taxed on its gross income derived from the property, minus tax-deductible, property-related expenses and depreciation. Tax-deductible expenses include repairs, maintenance, renovation and similar costs, as well as interest on loans used for acquiring the property. A Municipal Tax at a rate of 10% of profits is due. This is then deductible in calculating taxable profits which are subject to a flat corporate tax rate of 15%. Tax losses can be carried forward for a five-year period. Losses cannot be offset against profits from previous years. Capital gains are treated as ordinary income subject to corporate income tax. Apart from corporate tax, no other direct taxes are levied on the transfer of real estate. However the transfer is subject to notary and municipal fees. Notary fees are paid on the higher of the market price or the book value of the property at varying rates, with the maximum being BGN 3, 500. In addition, 2% of the market value of the property is paid to the municipality in which the property is located. Local Taxes and Rates
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How long does buying a property in Bulgaria takes?
Usually it takes 1-3 weeks to buy a property in Bulgaria depending on the type of property you buy.When the seller has all neccesary documents ready it can be done in 2 days.
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I just want to buy an apartment in Sofia,Varna,Bansko or Sunny Beach?Do I have to register a company if I want to buy an apartment?
No. Foreign individuals can buy the buildings, but not the land. A Company is needed when you want to buy the land (freehold). When buying a ground floor apartment with garden,you will need a company!
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I want to bring over my car to Bulgaria.Do i have to pay import duty on it?
Well it depends..how long you are planning to stay.If you report your car as stolen,you must pay import duty on it!
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Why should I choose Bulgaria to buy property for investment purposes or as a holiday home?
Bulgaria boasts a rich variety of natural beauty, from stunning blue flag Black Sea beaches, to beautiful mountains with ski resorts. It is small wonder that Bulgaria is the fastest growing holiday destination in the world. Major tour operators such as Thompson and First Choice now include Bulgaria in their brochures and cite it as one of their top sellers. Investment wise, high growth figures are very achievable while land and property prices are very cheap but on the increase. Over the past two years, prices have risen by over 50% in some areas and with the enormous boost to tourism currently underway, buy-to-let purchases are also proving highly lucrative.
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bought a house in some little village and i can not get a BroadBand internet connection from the Bulgarian ISP's.The dial up connection i have is dreadful!
Shamrock Consultancy Services can supply you with 'Always on' wireless satelite broadband,designed to operate in remote areas where no coverage of Bulgarian ISPs excist.Prices from 57 Lv-23euro per month.Contact us for more details
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