In respect to immovable properties, Bulgarian law recognises two types of rental contracts, namely, definite and indefinite contracts. Definite contracts are concluded for a specific term (e.g., 15 days, 6 months, or 2 years). Indefinite contracts are concluded for an undefined period of time. Definite Contracts A definite contract is automatically terminated upon the expiration of its term. Nevertheless, if, after the expiration of the applicable term, the tenant continues using the property without the opposition of the landlord, the definite contract will be considered to be renewed for an ..read more

General Principally, real estate transactions are exempt from VAT, except for transactions related to: (i) new buildings and the land associated with them; and (ii) land for construction purposes. The Bulgarian VAT law defines the term “new buildings” as buildings that, at the time when VAT becomes due, are (i) in a stage of “rough construction” or (ii) for which a permit to be used was issued in the last 60 months. It should be noted that the opinions provided by the Bulgarian Revenue Agency and the Bulgarian Supreme Administrative Court state that major changes in an old building may lead to ..read more

In Bulgarije bestaan de gemeenschappelijke delen uit; trappen, grond, de fundamenten, de buitenmuren en gevels, het dak, de binnenwanden die de flats verdelen, alle leidingen, kabels en draden voor diensten, telefoons en goten, de gemeenschappelijke toegangswegen en doorgangen. Er zijn ongeveer 30 bedrijven in Bulgarije lid van de professionele Bulgaarse Facility Management Association. Sommige van deze bedrijven kunnen contracten sluiten met (ver)huurders. Het is niet ongebruikelijk dat deze bedrijven deel uitmaken van investeringsmaatschappijen, die zich bezighouden met onroerend goed of con ..read more

Bij aankoop van vastgoed in Bulgarije, zal de notariële transactie moet worden ondertekend en moeten de partijen voor een notaris verschijnen voor het ondertekenen van de notariële akte. Een bevoegde notaris komt uit de regio waar het onroerend goed zich bevindt. De verkoper moet de originele eigendomsbewijzen waaruit het eigendomsrecht blijkt bij de notaris indienen. De notaris controleert of het onroerend goed zich in zijn regio bevindt en: De notaris controleert de identiteit, capaciteit en bevoegde autoriteit van de personen die voor hem verschijnen De notaris controleert of er geen wette ..read more

The capital of Bulgaria, Sofia city, is an attractive destination for real estate investment. This article discusses the three main reasons to invest in real estate there. The high return on investment rate The return on investment rate in respect to real estate in Sofia is up to 4,2% higher than the rate in other European cities. For example, one can purchase four two-bedroom apartments in Sofia at the price of one such apartment in Berlin or Munich. If rented, those four apartments will pay back the investment in them two times faster than the single apartment. The steady increase of the pri ..read more

If you’ve owned income property for any length of time, you know that managing a rental can be financially rewarding. At the same time, you’ve also likely discovered that property management requires a large commitment of time and effort. A rental property only generates income when a landlord has good tenants who pay their rent on time and do not destroy their units. Using a professional property management company has a number of benefits for landlords, especially those who own multiple properties. These benefits save landlords a significant amount of time and money and make owning a rental ..read more

Increased supply and freezing of the prices, even a slight decrease – these are the most common forecasts for the real estate market in Sofia, Bulgaria next year. The overpriced offers will appear to decline, most real estate agencies say. These conclusions are due to both the boom in new housing permits issued and the number of the completed projects already on the market. Experts says that the price of every property will start to depends more and more on the quality of the construction works and the additional extras that it offers. Most of the clients are interested in finished and fully f ..read more

Foreigners can freely purchase buildings and parts of buildings in Bulgaria. However, certain limitations apply to the purchase of land in residential areas and agricultural land. Below, we will examine these limitations in more detail. Land in residential areas – EU Citizens  Land in residential areas may be acquired by foreigners if they are citizens of the European Union (EU) or the European Economic Area (EEA). Legal entities established in the EU or the EEA may also freely purchase land in residential areas. Land in residential areas – Non-EU Citizens Citizens of countries that are n ..read more

Rental Prices in Sofia In the recent years, there has been a slight decrease in the rental prices of properties on the central commercial street of Sofia (Vitosha street). The reason for this was the appearance of many shopping malls within the territory of Sofia. Since no new shopping malls are expected to appear in the near future and the purchasing power of the residents of Sofia continues to increase, we can expect a steady increase of the rental prices on Vitosha street and other commercial streets in the city centre of Sofia. At present, the average monthly rental price of properties on ..read more

Preliminary Agreement in Bulgaria Bulgarian law governs in detail the conclusion of real estate purchase agreements. A preliminary agreement does not transfer a property from a seller to a buyer and does not need to be registered with the Bulgarian property register. Instead, it contains promises made by the parties to enter into a definite real estate purchase agreement. Preliminary agreements need to be in writing in order to be enforceable. Preliminary vs Definite Agreements in Bulgaria If a party to a preliminary agreement refuses to comply with it, the other party may request a competent ..read more