A Step-by-Step Guide for Overseas Vendors
Selling property in Bulgaria involves a defined sequence of administrative and legal procedures to ensure a lawful transfer of ownership. Once you’ve accepted a buyer’s offer and received a deposit, the conveyancing process needs to commence.
Given that overseas vendors typically aren’t physically present for the transaction, you’ll need to appoint either your real estate agent or a solicitor to act as your representative in Bulgaria and manage the conveyancing on your behalf. To facilitate this, your agent or solicitor will require digital copies of several documents from you (passport, title deeds, address, marital status details, etc.) to prepare the necessary paperwork. You will then be provided with specific documents to establish your tax and marital status, along with a Power of Attorney (PoA). This PoA is a critical document that grants your chosen representative the authority to act entirely on your behalf as your signatory, so it’s essential to review it thoroughly before signing.
These three crucial documents must be officially signed by you in one of two ways: either in the presence of a Bulgarian notary at your nearest Bulgarian embassy, or witnessed by a local Notary Public in your home country (many high street solicitors offer this service). If you choose the Notary Public route, your documents will also require an Apostille stamp from your Foreign Office. Regardless of the method, all signed and legalized documents must be sent back to Bulgaria via a reliable courier service. Due to the importance and potential cost associated with these documents, using a professional courier like FedEx or DHL is strongly recommended over standard postal services, which can be unreliable for international tracking and delivery.
Upon receiving these legalized documents, your representative in Bulgaria will initiate the property conveyancing process. The initial step involves obtaining a ‘tax estimated price document’ and the registered property schematics from the local municipality. While legally these should be issued within 14 days upon request, the actual timeframe can sometimes be longer.
Any outstanding property taxes must also be settled, often utilizing the initial deposit. Furthermore, all utility bills (electricity, water), maintenance fees, etc., must be paid up to date. Your agent or solicitor should handle these payments as part of the conveyancing process. Once all dues are cleared, most notaries will also require a certificate of encumbrances, confirming that the property is free from any mortgages or other liabilities that could invalidate the transfer.
For owners who purchased before Bulstat registration became mandatory, this tax identification number must be obtained prior to the sale. The Bulstat is essential for the transaction to proceed. Additionally, if the property was never registered with the Cadastre agency (a requirement that became compulsory after some earlier purchases), the official architectural plans for your specific property will need to be located and submitted to the Cadastre. While this process can take up to 30 days, there are often avenues to expedite it.
At this stage, your representative will use their PoA to establish a new Bulgarian bank account specifically for the sale. Upon completion of the transaction, the buyer’s funds will be deposited into this account, and the net balance will then be transferred to you. The notary requires proof of funds in an account under the vendor’s name, making this account essential.
Each of the aforementioned documents and tasks incurs costs, typically totaling approximately 250-300 euros. These costs are separate from any legal or solicitor fees and apply regardless of who represents you.
Once all documents are present, valid, and legalized, the Bulgarian notary closest to your property can legally verify your ownership rights and your intention to sell via the Power of Attorney, without your physical presence. A notary appointment is scheduled, which all parties or their representatives must attend in person. After the notary reviews and approves all documentation, the buyers are instructed to make payment. The transaction cannot be finalized without the notary’s consent and approval.
The buyer then makes payment to your designated Bulgarian bank account (or to your solicitor’s account if you’ve opted for their escrow service, which usually involves an additional fee).
The notary proceeds to issue a new title deed in the buyer’s name. This new deed must be registered with the courts, a process that typically takes 3-4 working days.
Upon receipt of the registered new title deed, your agent or solicitor can present it to the bank, which will serve as confirmation for the release of the sale proceeds to you. The funds can then be transferred to any bank account of your choosing.
Finally, the Bulgarian bank account established for the sale is closed, and the property transaction is complete.
The entire process typically takes around 6 weeks from the receipt of the deposit, with a slightly longer timeframe if you choose the Apostille route instead of a visit to the Bulgarian embassy.
