What is the currency in Bulgaria?Bulgaria’s national currency is the Lev (BGN). 1 Lev = 100 stotinki. The exchange rate is normally approximately £1 sterling = 2.85 Lev. Notes are in denominations of BGN50, 20, 10, 5, 2 and 1. Coins are in denominations of 50, 20, 10, 5, 2 and 1 stotinki.
Is the Bulgarian currency tied to the Euro pending their entrance into the EU?The Lev is tied to the Euro at a fixed rate: 1 Euro = BGN1.964.
What currency is payment in?All property purchases are made in Euros. Reservations can be taken in Pounds Sterling.
How will membership of the EU affect one's finances in Bulgaria?Now that Bulgaria has joined the EU it should be easier to arrange your finance, as you should be able to borrow from any of the EU banks against your property in Bulgaria.
Will I need a Bulgarian Bank Account?A Bulgarian bank account is required to purchase a property with land, as a Limited Company has to be set up to facilitate a foreigner buying land in Bulgaria. This in turn requires a bank account to be set up. If a purchaser is buying an apartment, then a bank account is not necessary. The developer must receive the funds, for example by bank transfer from the UK in Euros, to enable the purchase to be properly notarised.
How do I arrange a mortgage to buy a property in Bulgaria?It is surprisingly easy to arrange a mortgage. The lender, Piraeus Bank, requires a 30% deposit on signing of the preliminary contract and the remainder 70% is paid on completion of the development.
What is the taxation position for a UK purchaser in Bulgaria?The owner is liable to pay tax on all income they receive from the property which is the same as in the UK. There is a taxation treaty between the two countries so any tax paid in Bulgaria will not be payable again in the UK.
Do any countries have taxation treaties with Bulgaria?Yes, a large number of European Countries have double taxation agreements with Bulgaria including the UK, France, Germany, Russia, Spain, Portugal and The Netherlands.
Will I need to make an alternative will?Yes, your solicitor will recommend making a Bulgarian Will. A Will in England may be valid but it may not override legislation that exists in Bulgaria for the distribution of assets in a deceased estate.
Can I rent the property out once it has been purchased?Yes. Out to Inspire Ltd works closely with Pride Rentals. They are one of the leading rental agents in the Varna region. Please ask the sales team for further details.
Are there any guarantees or late delivery of the unit?Yes, the preliminary contract has a clause that will compensate a buyer for late completion of a unit.
Is there a warranty available on the units?Yes, there will be a warranty provided as detailed within the contract.
Can the unit be sold at any given time?Yes, once completion has taken place.
Will I own the land as well as the property?Yes, but under the Bulgarian Property Act and Foreign Investment Act you will be required to form a Bulgarian Company in order to do so. There have been so many investors here that it is now everyday practice & very simple to arrange. |
