If you want to own freehold property in Bulgaria you need to own a limited company.
The company must not necessarily be actively engaged in any kind of trade. It is
simply a tool enabling you to buy and own properties in Bulgaria. The limited company
is registered with all relevant Bulgarian Institutions - The District Courts Registry,
BULSTAT and the Tax Office. Since the company is a Bulgarian Business Entity it
is required by law to pay taxes to the Bulgarian Tax Authorities. The most appropriate
types of companies for carrying out business in Bulgaria are.
The most common form of company set up by individuals is a Private Limited Company
A private limited liability company may be founded by one or more persons, including
foreign, natural or legal persons. The minimum foundation is 5000 BGN, at least
70% of the capital must be paid up on foundation. Contribution to the foundation
capital maybe paid in cash or in kind.
A single person private limited liability company is called EOOD. It is owned by
a natural or a legal person, the sole shareholder exercises the powers of the general
meeting and the Managing Director or the board of Directors is appointed to run
the company.
A private limited company must prepare a balance sheet and a financial statements
each year.
The legal fee for registering company is 600 euro.
Other things to consider
Setting up Bank Accounts
There are a host of banks that will allow foreigners to set up an account which
can be in Sterling or Euro. These are useful for transferring money from UK or anywhere
else outside Bulgaria. In order to set up a bank account, you simply need your passport
and a second ID. The whole process can be undertaken in a day.
Notary Fees
The notary fees are paid on the higher of the market price or the book value of
the property at varying rates specified in a special chart and is around 0.5+% of
the price. In addition 2% of the tax value of the property is paid to the municipality
where the property is located.
Property Taxes
The property taxes for your own property in Bulgaria is very low. For example the
annual property taxes in a big Bulgarian city or holiday resort are 50-70 Euro per
year.
