Once the client has selected an off plan opportunity in which to invest, an initial contract is drawn up setting out prices, timescales, and penalties for late completion.  The details may include a payment scheme for staggered payments as the work progresses within its allotted timescale, plus the remaining balance to be paid at completion.  The contract also states the commitment of the developer to build, and the obligation of the client to buy.  The client may obtain legal advice privately or rely on the agents’ legal representatives, and once assured the contract is satisfactory it is signed by all parties.

When the property is completed, the client and the developer (or their legal representatives) visit a Notary who ensures the transaction details are correct and enters them onto the property deeds.  Once the title deeds have been registered, as a foreign citizen it is a requirement that a BULSTAT number is applied for within 7 days.  Again, this can be done through a legal representative.  This is simply for the Bulgarian authorities to keep a record of foreign investors.

Expenses at completion include local tax of 2% of the price on the Notary papers (this is equivalent to UK stamp duty), the Notary fee, the registration fee, and, if required, copies of the Notary act.

Unlike the purchase of land or existing property on land in Bulgaria, off-plan developments do not require a company to be set up, as the purchase only refers to a part of the overall building, albeit freehold, rather than a separate entity.

A leading source of information regarding property in Bulgaria can be found at:

http://www.mybulgaria.info