Selling your home, property, or apartment in Bulgaria is a crucial decision, especially if it is held by a domestic limited liability company that is registered in your name. Here are some great hints and tips to follow to protect your interests to make sure you sell your property in Bulgaria free from stress.
The tax ramifications that might result from selling real estate for more than what was paid for it when it was first purchased under the Title Deed may be attempted to be hidden by real estate brokers.
If the need arises, the domestic limited liability corporation, the property’s owner, must pay capital gains tax.
Please remember that the legal part of the transaction is what will guarantee its successful financial conclusion by guaranteeing you are not liable for damages resulting from making false representations in the new Title Deed
Please be aware that before starting the sale, you must do the following actions:
- When selling a Bulgarian property, check to see if the building or the corporation that owns it are in good standing (cadastre registration, no outstanding payments for taxes, no encumbrances on the property, et al.)
- being knowledgeable about the current real estate market and any potential Capital Gains tax complexities following the sale. – To accurately estimate the asking price for your house, learn the fair market values of nearby properties that are similar to yours.
Selling a property involves additional accounting fees if you own the real estate through a corporation.
- marketing the property – Check to see that any real estate brokers or agents are advertising the property at the asking price. Always market worldwide many nationalities buy in Bulgaria make sure you are reaching all markets globally.
Please be aware that you should demand a VAT invoice for any and all costs due if you are selling a property through a corporation.
Before signing, the title document should include the whole purchase price.
In order to avoid the real estate brokers acting unjustly and withholding the reservation money, make sure that all reservation deposits are deposited to your account and not to theirs.
To safeguard your legal and financial interests before real estate agents, to ensure you receive all sums due to you, and to make sure you get the most out of your transaction, we are delighted to create the necessary documentation and act/negotiate on your behalf. Consider it a wise decision to appoint us to represent you.
The trickiest aspect of the procedure is without a doubt how to locate the suitable buyer for your house.
We can assist you by looking through your paperwork and assisting with the listing of your home for sale.
Once a buyer has been located successfully, we will ask them for details on their preferred means of funding the purchase (by way of example – a mortgage loan).
Making ensuring the sale process runs well is an essential part of our job.
Bulgarian Property Lawyers
Your Lawyer will operate in your best interests, see to it that you got your deposit, and mediate in paying the legal expenses associated with getting the necessary papers.
Acquiring the necessary paperwork for the selling of your Bulgarian property. Please be aware that this is a drawn-out procedure as applications for papers must be submitted to many agencies, including the National Revenue Agency, the Cadastral Agency, and the Land Registering Agency. Please be aware that before deciding to proceed with the purchase, your potential buyer (or their attorney) might want to review the paperwork.
- Kindly be informed of the Cadastral Plan details pertaining to properties. Prior to selling your property, you must get a cadastral plan, show it to a notary public, and register your property with the cadastre agency.
This is especially crucial if you own property in Sunny Beach, Bansko, Pamporovo, Kavarna, Sozopol, etc., as such locations already have an established cadastral plan.
How to really close the sale: You have two choices
For the sale of a property, you have two options: you may directly sign the title deed, or you can first enter into a preliminary contract in exchange for a deposit.
This is obviously the most important step in the sale process, and we would be pleased to help you create the preliminary agreement and/or the title deed for the sale using your current paperwork.
Before signing, have things translated and approved by you.
Additionally, it will be our duty to arrange a meeting with a neighbourhood notary public who serves the neighbourhood where your property is located. You can also give us permission to represent you in front of the Notary Public, saving you the journey to Bulgaria.
Post-sale: your agent can give you a copy of the Title Deed after you complete the sale and sign it, and your agent can also assist you in having it removed from your file with the Bulgarian Revenue Agency so that you can be sure you are no longer paying local property taxes for that property.
Additionally, your agent can provide the service of batch registration exchanges for public utility companies:
- A list of the legal papers required for the sale of real estate in Bulgaria
- The Notary Deed is the primary document demonstrating your ownership.
It ought to have been given to you when you originally acquired the property. It doesn’t necessarily indicate that you have lost ownership if you happen to have lost it. To obtain a notarized copy from the notary who first signed the contract, speak with your agent for help.
You also require the property sketch, which is provided by the municipality where your property is located’s local technical department.
In a day, the drawing may be finished. You will want a copy of the notary deed in order to obtain a drawing.
A sketch’s validity period is six months after it is issued. The entire process should then be repeated.
A valid Tax Evaluation Document, issued by the Local Tax Services Office in the Municipality where your property is located, is the next document that is required for the sale of property in Bulgaria.
A paperwork showing your marital status is required if you are selling the property as a physical person.
You must bring this document from your own nation and have it translated and authorised in Bulgaria.
If the property was purchased during your marriage, your spouse’s letter of attorney is required for the transaction. Therefore, it is crucial to know your marital status at the time you bought the property for this.
A legal certificate of lack of encumbrances, which declares that there are no genuine rights in favour of third parties formed for the property you are selling, is one of the documents that will be required.
The Registry Service in your Municipality issuing this document.
You must include the property’s notarized deed with your request. If the property has land, you must also include a drawing.
This document is only valid for a day. Some notaries don’t ask for this document since they review it automatically on the day of the transaction.
Legal declaration of citizenship and marital status in accordance with Notary Law Act article 25. 7.
This form must be completed in front of a notary public on the day when ownership of the property is transferred.
A formal statement that you don’t owe the Republic of Bulgaria any taxes.
Make sure you have an exact letter of attorney signed and notarized (apostilled) by you with which you authorise a lawyer or someone you trust to sign on your behalf and on your account in the event that you, the owner, will not be present at the transaction!
A corporation is the owner of property.
If you own the property as a business, you will need a written decision from the company’s shareholders stating that you have decided to sell this asset of the company, the real estate. You must submit a corporate decision for the acquisition or sale of the property.
All shareholders must sign it, then it should be stamped.
By law, as long as the manager is present during the transaction, just the manager is required to sign this document; yet, many notaries will insist on it!
Please be aware that occasionally additional paperwork may be required owing to a complex type of ownership. We always suggest using us for your own security!
Please remember to bring your passport.
Each of the mentioned processes will be represented by and supervised by a legal firm.
