Recommendations
The purchase of property in Bulgaria is, as you would imagine, very different to buying in the UK although in some cases it is much simpler and quicker. However you are always recommended to appoint the services of a local English speaking Solicitor who will carry out all the necessary legal checks ensuring title to the property and that there are no debts against it, and for a new property that the developer has all the correct building permissions. We at Homefinders Bulgaria will happily introduce you to the most reputable solicitors, in case you advise us to do so.
The interactive chartabove visualizes the buying process in detail. Point on each stage to learn more.
You need to be aware of the various fees and expenses that you will incur on the purchase of your property in Bulgaria. Firstly there are your lawyers fees, then there are Notary and Land Registry fees – both based on a sliding scale of charges according to the purchase price.
Use our Notary fees calculator to find out how much you should pay:
Company Incorporations
One of the services that the solicitor will usually carry out for you is to register a limited company (OOD) in your name, in case you intend to buy land in Bulgaria. The purchase is registered against the company and you are the sole owner of the shares, respectively of the land.
The Bulgarian Foreign Investments Agency reports that the most popular form of engaging in business in Bulgaria is via a Limited Liability Company (OOD). Therefore, we have prepared an overview of registration process & requirements of OOD herewith. Please contact us if you require further information on OOD and information on other types of companies.
Who can form a Limited Liability Company?
A foreign or Bulgarian person (judicial or physical). The person/persons will be liable for the company's obligations to the value of his/hers share in the company's registered capital.
Formation Stages in Brief
The future shareholders conduct preliminary discussions on the commercial activities they intend to engage in. Based on their agreement, Articles of Incorporation are prepared & signed by all shareholders.
Content of Articles of Incorporation
- the trade name, the seat and address of
management of the company
- the purposes and the time period for which
the company is being set up
- the names or, respectively, the trade names
of the shareholders
- the registered capital. Where the full amount
has not been paid at incorporation, the articles shall set the
time periods and terms for payment. The term of final
installment of the whole size of the capital cannot be longer
than two years from the registration of the company,
respectively from the increase of the capital.
- the number of shares taken by each
shareholder
- the management and manner of representation
- the privileges of the shareholders, where
agreed upon
- other rights and obligations of the
shareholders.
Capital
A dedicated bank account is opened to collect all share capital.
The minimum capital is 5,000 leva. Shareholders at time of
registration must have paid at least 1/3 of their respective shares.
It is required that at least 70% (3,500 leva) of the capital is
raised at time of registration.
Company Registration
The company exists from the moment it is added to the Commercial
Registar 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.
- Articles of incorporation;
- Memorandum for appointment of Director/
Directors;
- Proof that each shareholder has paid at least
one third of its interest, but not less than 10 leva;
- Proof that at least 70 per cent of the
registered capital has been paid.
Publication of the Registar entry in the State
Gazette
The Bulgarian State Gazette is the official paper of Bulgarian
State. All Bulgarian legislation is published there for the law to
take effect. Publication of the company entry in the Commercial
Registar does not complete your company formation. It announces to
the general public the act of formation.
Costs Involved
3,500 leva = 70% share capital. Administrative costs (payable to
the state & registration court) are 250 leva (just over £70). Our
market research shows that foreigners are charged up to 1500 leva
(£500) for the services of a lawyer for the incorporation.
The Limited Liability Company incorporation service we offer is
charged at a flat rate of 550 Euro. This excludes the minimum
capital that you need to raise prior to registration.
Hopefully this section has touched on most areas
of the buying process, however should you have any further questions
we will endeavour to answer them.
The HomeFinders team.
