1. Why do I need to form a company? Answer: Under Bulgarian constitution a foreign person can purchase building but not land. At present foreigners need to set up a company which then owns the land and the building. This process takes approximately 1-2 months and you need to deposit 5 000 BGL in this company which is returnable when the company is established. Our fee for this is 330 EUR.
2. What documents should I bring to form a company? A: Along with your passports you should bring some proof of your permanent address in your country of residence, e.g. driving license, utility bill, etc.
3. What currency do I need to purchase a property? A: As properties are priced and paid in Euros we strongly recommend Euros. The local currency is BGN and the BGN is pegged to the euro ( 1 EUR =1.9558 BGN ). You should get a better rate of exchange for the pound/euro in the UK.
4. What is the normal deposit paid on a property? A: 10% deposit is the most common. Thereafter the property is taken of the market and a Preliminary contract is signed by both parties, with dates agreed for payments and transfer of ownership (Notary act).
5. Do I need to be present for the transfer of ownership? A: No. You can leave a Power of attorney with the company/friend/colleague/solicitor. However, we recommend if your circumstances allow that you return to Bulgaria to complete the transfer.
6. Do I need to open a bank account? A: When you are in Bulgaria you can open a personal bank account in euros whether you buy now or on your next visit. All you need is your passport and 10 euros to deposit. Whilst not costing much to set up it will allow you to transfer funds quickly and secondly, if purchasing a property and lets face it, if you plan on spending time here a bank account always comes in handy.
7. How much cash can I bring to Bulgaria? A: At present you are allowed to bring the equivalent of 8000 BGN each (approx. 4000 EUR) undeclared. Anything over this amount must be declared. Before coming to Bulgaria please check with the Bulgarian embassy in your country of residence for current legal limit. Bringing this cash will help speed up the process of setting up a company and or part payment of a deposit for property.
8. Is the use of credit cards widespread? Currently cheques are not used at all in Bulgaria and most transactions are carried out in cash. However credit cards are slowly becoming more acceptable credit cards can be used for purchases in some larger stores, gas stations, some hotels, car rental agencies and some travel agencies. In the large towns you will find A.T.M.S., however you will only be able to withdraw a small daily limit. You can also withdraw cash against your credit card daily inside most large banks dependent on your limit, however this will cost you from 2%-5%.
9. Do I need a visa? A: Foreign citizens of the European Union are granted 30 days automatically. A “C” type visa obtained from the Bulgarian Embassy will enable you to stay 90 days. For long term residence please contact the Bulgarian embassy in your country of residence.
10. Do I need to register on arrival? A: If you are staying in a hotel, guest-house this will be done for you. However, if you are staying with friends/family or relatives you will need to register within 48 hours at the local municipality/police station. You will be issued with a document which you must produce when leaving Bulgaria. Failure to register can incur fines of up to 2000 leva.