How to buy or sell property remotely?
In our time, filled with unforeseen events, opening and closing of borders, constantly rising ticket prices, the question arises: "How to sell or buy property in Bulgaria remotely?".
According to the Bulgarian law, the personal presence of the Seller and the Buyer at the Notary is not obligatory. You appoint a representative to represent your interests (it can be your proxy, a representative of our company or a Lawyer). This requires the execution of a power of attorney and the collection of all necessary documents.
The easiest and most reliable way is to use the services of a lawyer. Below we will consider the most popular requests from the perspective of the transaction through a lawyer.
1. Are these transactions safe?
Yes. Absolutely safe. Such transactions are conducted by licensed Bulgarian lawyers on the basis of a power of attorney from the Buyer or Seller of the property. The licence of the lawyer is controlled by the state, which is a guarantee of safety. Any unlawful action of the lawyer threatens with revocation of the licence and criminal proceedings.
The licence can be checked on the website public.bar-register.bg
The Lawyer provides the following services:
-Providing a contract for legal services;
-preliminary inspection of the property for encumbrances and liens;
-preparation of documents;
-receipt or sending of funds on a special lawyer's account;
-complete representation of your interests;
-signing of the sale and purchase agreement with a notary;
2. What documents will be required for a remote transaction?
If you are a seller:
The attorney will need:
-ID card with a current expiration date;
-deed deed, original or certified copy;
-if married, spouse's ID;
-marriage certificate;
-if divorced, divorce certificate;
-(if the apartment was purchased in a legal marriage, and then there was a divorce, then all documentation must be ofomlenie by both spouses, regardless of who registered the deed earlier).
-receipt for payment of utility bills and service tax;
The attorney prepares a package of documents consisting of a power of attorney and declarations for each owner, which is sent to you by email or other convenient courier.
( 1. Declaration 264 - declaration that the owner has no obligations to the state authorities in Bulgaria under Art. 1. If the owner is married, the same declaration is required from the spouse.
2. Declaration of citizenship and civil status.
3. Declaration that the seller is not a civil servant, politician, etc. in Bulgaria (as per ch. 42, para. 2, item 2 of the MIPA), confirms that you are not in civil service in the Republic of Bulgaria, have no family ties with politicians. If the property was purchased during the marriage, the same certificate is required from the spouse.
The validity of the declarations is limited. They are only valid for the calendar year in which they are certified).
You print and certify these documents with the notary public of your place of residence.
You then send scanned copies to us or your solicitor for verification.
If there are no errors, you send the notarized originals to Bulgaria by courier service.
After receiving the documents:
-The lawyer sends them for translation or, if necessary, for legalization.
(Please note that if there is no signed Legal Assistance Agreement between Bulgaria and the country where you are having the documents certified (the Baltic States, Germany, England and some other countries), an apostille will be necessary in addition to the legalisation.
If the declaration and power of attorney are signed and certified at the Bulgarian consulate, no translation is necessary).
-The lawyer orders the documents necessary for the sale from the Cadastre Office (Bulstat) and the Tax Office:
-tax valuation - conclusion on the tax valuation of the property. It is issued in the municipality where the object is registered.
-a cadastral diagram - a plan of the apartment. It is issued at the cadastral office.
-certificate of no encumbrances - a certificate stating that the property is not subject to restrictions, does not act as a pledge. It is issued at the place of registration of the object.
The solicitor provides a packet of documents for the notary's preliminary inspection.
If you are a buyer:
The lawyer will need:
-The details of the person on whose behalf the purchase of the property is to be made in order to prepare a power of attorney. If you wish to register the property in several persons, identity documents will be required from all parties involved;
-a signed legal services agreement with the solicitor.
The solicitor prepares the power of attorney which is sent by a courier convenient to you. You print it out, have it notarized by a notary public at your place of residence and send it to us or the Attorney.
Once we or the Lawyer receive your documents, we send them for translation or, if necessary, for legalisation.
3. What is the process of buying and selling a property remotely?
If you are the Seller:
During the transaction at the Notary , the Lawyer representing your interests supervises the process of sending the money from the Buyer, to the account you specify.
The lawyer provides a payment order to transfer the funds to you and the notary.
Upon confirmation of payment, the Solicitor notifies the Notary that the funds have been received. The Notaire registers the sale and purchase of the property.
If you are the buyer:
One stage of the property purchase involves a deposit/prepayment by the buyer. You can transfer it by bank transfer to a specialist solicitor's account. It will then be credited towards the total cost of the property.
The principal of the property value is also transferred to this account.
On the day of the sale transaction, at the notary's office, the solicitor transfers the funds to the Seller's account. Provide the notary and the Seller with a payment order. The Notary then registers the sale transaction and you become the happy owner of the property in Bulgaria!
The next stage for you will be the registration after the sale. This is the process of registering you with all government authorities and utility services as the new owner of the property. You can do it yourself, or you can trust a lawyer.
The title deeds can be kept with the solicitor, in our office or sent to you by courier.
4. What taxes are payable on the sale of property in Bulgaria.
In Bulgaria there is a law "On Taxes on Personal Income". The tax rate is 10% of the profit. Thus, the tax is paid not on the amount of the sale of the property, but on the difference between the purchase price and the sale of the property (from the profit).
-If you sell the property at the purchase price, no tax is payable.
-If you sell a property you have owned for more than 3 years, no tax is payable.
-If you sell a property that you have inherited by will or inheritance, no tax is payable.
If you still have questions, we will be happy to advise you.
We understand that at first glance everything looks complicated, but believe us, in reality everything is much simpler.
Our contacts:
Viber/ WatsApp/ Telegram
+359894793889 Ekaterina
www.happypropertybg.com
happypropertybg@mail.bg