Legal information
According to the Bulgarian Constitution and legislation foreign persons and companies can invest in real estate in Bulgaria either personally or through a local legal entity. Generally speaking, foreigners as persons can buy the building, the right to build and other land related rights such as the right of use & passage; however they cannot buy the actual land. Bulgarian citizens and companies (including such with foreign owner) can obtain the ownership of Bulgarian land.
The most popular and preferred by non-residents ways to become the real estate owners are:
Property without land
It is generally accepted that the purchasing of an houses, villas, flats does not require you to set up a company, as it has no or very minimal land ownership. In such case you can own only a right to construct, which property right is enough for the ownership of a property.
Property with land
If the property you intend to buy comes with land then you will need to register a Bulgarian Ltd. company to own the land. The company that you own will then legally own title to the land. Forming the company is relatively straightforward and we can help you with this.
Forming a Limited liability company (Ltd)
Any foreign or Bulgarian person (judicial or physical) can form an Ltd. The person will be liable for the company’s obligations to the value of his/her share in the company’s registered capital. The shareholders conduct preliminary discussions on the commercial activities they intent to engage in. Based on the agreement, the articles of incorporation are prepared and signet by all shareholders.
A dedicated bank account is opened to collect all share capital. The minimum share capital required is 5 leva.
The company exists from the moment it is added to Commercial Register of the district court of where the company will be based. The entry is made upon issue of a district court decision for the incorporation. The following documents must be available at the time of the submission of registration application to the district court.
1. Articles of incorporation
2. Memorandum for appointment of director/directors
3. Proof that each shareholder has paid at least one third of its interest, but not less than 10 leva.
4. Proof that at least 70 % of the registered capital has been paid.
The process of forming your company can take anywhere between a few days to a few weeks. Finally, your new company will need to register immediately with the National Tax Register Authority.
Value Added Tax
Transactions with land and lease of property for residential purposes are exempt from VAT; all other real estate transactions are subject to VAT at the uniform rate of 20%. The buyer is entitled to a VAT refund, provided that it is registered for VAT purposes.
Real right
Examining property legal status
Participation in negotiations for conclusion of deals with real estates
Consultations for notarial procedure and preparation of notarial acts
Consultations on restitution questions
Registration of housing-constructing buildings
Preparation and finding of wills and consultations on hereditary-legal questions
Consultations connected with territorial-regulating plans and building permission
Corporative Law
Consultations about the choice of legal-organization form
Registration of judicial person (not commercial companies, civil associations, and commercial companies)
Representation of foreign firms and international organizations
Liquidation of commercial companies
Insolvency and recovery of commercial companies
Deals with commercial enterprises
Transforming -influx, merger, separation and division of different types of commercial companies
Investments
Consultations for privatization deals and after privatization problems
Consultations on banking deals and transactions with securities
Procedure representation on firm deeds and trade arguments
Procedure representation in front of arbitration court
Commercial Law
Preparation of all kinds of commercial contracts in the field of production, domestic and international trade, tourism, transport and banking
Law consultation and participation in negotiations on conclusion of commercial contracts
Assistance in custom procedures
Insurance Law
Consultations in conclusion of different types of insurance contracts
Representation of physical and judicial persons in front of insurance companies in connection with payment of damages
Representation on civil cases with subject insurance relations
Civil Law
Procedure representation on civil cases in front of all court instances (District court, Regional court, Court of appeal, Supreme court of appeal, arbitration court ) executive procedures
Consultation on deals according to Law for obligations and contracts
Registration of cooperations
Registration of judicial persons with not commercial activity (associations, foundations, parties)
Consultation on family law questions
Preparation of Letters of Attorney
Administrative Law and process
Consultations and assistance in the procedure on issuing of different types of administrative acts, including licences and permissions
Appeal of administrative acts
Consultations and preparation of documentation on Law for social orders
Consultations and representation of foreign citizens on the Law for foreigners in the Republic of Bulgaria
Consultations concerning concessions
Tax Law
Consultations on different taxes and tax planning
Representation in front of organs of tax administration
Appeal of acts of tax administration on administrative and court order
Banking Law
Credit deals and operations
Law analyses on credit guarantees
Labour and Social Security Law
Preparation of labour contracts and contracts for assignment of management
Consultations on termination of similar contracts
Consultations on social and health insurance
Representation on labour cases in front of all court instances
We look for direct, immediate and constant contact with the client, giving us complete knowledge of all his problems, in order to realize his dream for buying of real estate in Bulgaria and starting of his own business. We aim to secure judicially the entire activity of your enterprise so that no jurisdictional consequences will follow. This is realized with the direct participation of lawyer in the deciding of every concrete casus and it comes from the client’s will to look for legal consultant and protection, even in situations where he does not see the necessity of judicial help.
Your legal protections is our obligation!
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