Avukat Bulgaristan | Lawyer Bulgaria

Posts

Legal division of property

When co-owners of common property fail to understand how to divide their property voluntarily and turn their ideal parts into real, they can turn to the court for legal division of property

This way of termination of the co-ownership is settled as a particularly indisputable production, which takes place in two phases .

Any joint proprietor may file a claim for a division, which is always subject to the district court of the place of inheritance (in the case of a division of inheritance) or the location of the property (in the case of a split of a real estate). Where incapacity or abstention is involved in the partition, prior permission of the District Court is required.

Division by Court settlement. In any case of a court case (prior to the entry into force of the court decision on the distribution of the property), the judicial separation may end with a court settlement. Legal division of property

The latter includes a contract between the parties for the distribution of properties and a definition by which the court approves the settlement if it does not contradict the requirements of the law and good morals.

A particular type of court settlement is the agreement of the spouses to divide their property upon divorce by mutual consent.

FEATURES OF Legal division of property

First stage of the legal division of property

In the first phase of the partition the issues between who will be partitioned, which properties and what is the part of each ofthe partitioners are clarified .

The action for partition is not extinguished by prescription.

The subject matter of a division may be all or part of the property, unless the law provides otherwise, or if it is incompatible with the nature or purpose of the property. If one of the co-owners does not take part in the division, it is entirely null and void.

The court decides by a decision on the admissibility of the division, which is subject to self-appeal, after its entry into force, a new hearing is scheduled and the division continues in its second phase.

At the request of some of the distributors, the court ruled on the issue of the temporary distribution of the use of the property until the end of the divestment and the sums that the users should pay to the others.

– Second phase of the judicial split of property

In the second phase of the division a real distribution of the shares admitted to partition is made between the parties that are recognized as co-owners and according to the established shares with the court decision of the first phase of the admission of the division.

Whenever possible, each of the partitioners should receive a real share of the objects subject to the divestment, as the units are equalized with money.

In the second phase of the division, if submitted, the following shall also be considered:

the claims on the accounts of the distributors to recognize the costs he has incurred to increase the value of the property
claims to increase the inheritance (inheritance split)
as well as for the assignment of an indivisible residential property (in the case of a divorce of a matrimonial property community or an inheritance).

The casting may be done by drawing lots or by partitioning where the prerequisites provided for in law are available. Where a property is unalterable and can not be placed in one of the lots, the court shall order it to be put out for public sale.

This phase of the division ends with a court decision that has the power of a notary deed on shared real estate and is subject to entry in the Registry Office on the location of the property.

Public sale of the real estate

Where the co-owner to whom the property is awarded fails to pay the remaining monetary equation within six months, the award decision is invalidated by law and the property is exported to a public auction.

In this case, the property may not be sold for public sale and assigned to another co-owner if it has made a request for an assignment, the legal prerequisites are in place, and he immediately pays the price at which the property is valued at the split, less the value of his share in it.

When making the sale, the distributors take precedence over the third parties involved in the sale, each of them being able to buy the property at the highest bid.

If several distributors wish to redeem the property at the highest price offered at the first sale, a new sale is only made between these dividers, which is carried out under the general rules.

After that the actual distribution is executed. With the help of an expert the court divides the real estate by creating of separate shares for each co-owner after which each of them receives his property by lot.

Each party of the case for judicial division pays the outstanding court fees according to the market price of the received share. There are no obstacles for the parties to make an agreement about the way of termination of the co-ownership during the judicial division and to arrange a court settlement.

June 24, 2018/by lawyer

Legal advices

Legal grounds for divorce Bulgaria

Our family lawyer has been asked many times for the reasons and legal grounds for divorce in Bulgaria. Hiring a lawyer is advisable to avoid any futher problems.It is necessary. There are no formal impediments that would prevent either party from filing a petition in court.

Finally we would like to show basically the two important legal, grounds for divorce are set out in the Bulgarian Family Code: irretrievable breakdown of the marriage and mutual consent.

Divorce through breakdown of the marriage: Article 49 FC

Each of the spouses is entitled to petition for divorce where there has been a ‘serious and irretrievable breakdown’ of the
marriage.

(2) When granting the decree of divorce the court makes a ruling on its own motion on the issue of the fault for the breakdown of the marriage, unless the breakdown is caused by objective factors which cannot be ascribed as the fault of either spouse.

(3) The court does not rule on the issue of fault for the breakdown of the marriage where the spouses so request and they submit to the court their agreement on the custody of any children and access to and maintenance of the children, and also on the division of their property, the use of the matrimonial home, the payment of maintenance and the use of the family name.

(4) A divorce is not allowed where the breakdown of the marriage is due solely to the misconduct of the petitioner and the

Bulgarian Family Lawyer, Divorce, Child Maintenance and Custody

respondent wishes to preserve the marriage, unless there are important reasons why the divorce action must continue.

Divorce by mutual consent: Article 50.FC

Where there is serious and firm agreement between the parties about the divorce, the court allows it without investigating their motives for
terminating the marriage. A petition for a divorce by mutual consent cannot be filed until three years after the contraction of the marriage.

Agreement reached by the spouses in a divorce by mutual consent:

Above all else, divorce by mutual consent is a lot cheaper and faster, rather than filing a lawsuit. Such divorce is possible, if one of the parties is Bulgarian citizen.

Both parties must sign an agreement, which may be drafted in couple of languages – it’s imperative, that one of them is Bulgarian. In case of a lawsuit, relevant for the court will only be the one drafted in Bulgarian.
An agreement must be reached about all of the following:

The divorce will follow trough by mutual consent.
If there are children, born during the marriage – who will exercise effectively the parental rights, with whom will the children live respectively; what amount of child support is to be payed – child support may not be less then 125 BGN per month for every child.
When will the parent, who’s not effectively exercising the parental rights, be allowed visiting, personal contact, and personal time with the children.
Who will be using the family home, if there is one, and it is located in Bulgaria.

It should be noted, that according to the Bulgarian legislation, unlike other countries, the divorcing parties are entitled to alimony only in specific cases, where one of the parties is unable to work or maintain itself trough estate property, due to medical condition.

Article 51
(1) In a divorce by mutual consent the spouses have to include provisions in the agreement regarding the discharge of parental rights and obligations, their personal relations, and the maintenance of the children, and also their property relations, the use of the matrimonial home, the payment of maintenance and the use of the family name. The agreement is ratified by the court after it is satisfied that the interests of the children have been protected.

(2) Where the agreement is not complete or the interests of the children are not well protected the court sets a term within which these defects should be remedied. If the defects have not been remedied within this term, the divorce petition is dismissed.

Applications for child custody and child maintenance after the termination of a marriage by mutual consent

June 8, 2018/by lawyer

Legal advices

Legal documents & apostiles

Most transactions involving real estate in Bulgaria require a notary at the location of the property. A notary may be used for a range of other dealings: to certify your signature on documents (for instance on contracts); to help you execute a Power of Attorney; to deposit a will for safe-keeping; to transfer a car or other vehicle, etc.

Bulgarian notaries are a regulated profession separate to Bulgarian solicitors (who are referred to as Bulgarian advocates), and Bulgarian notaries have a very specialised role. They function as trusted parties and repositories for certain types of formal business.

Notaries cannot also be members of the Bulgarian lawyer association, and being highly-specialised cannot generally assist with preparing the documentation or advising on the transaction or legal business you may be planning even though they are uniquely placed to help you give it formal effect. We are in a position to help you with these.

Scope of Notary Related Services

We draft and finalise all types of notary deeds — e.g. for the transfer of real estate through sale and purchase contracts, through gifts, by inheritance, etc. We are also in a position to advise you when and how to use the notarial form of contract to your advantage.

Because of our extensive experience and network of contacts among Bulgarian notaries, where more than one is available, we are able to liaise with them for you and ensure that you obtain the best service.

Verification of documents with an apostilles

Sometimes, if a document is required to be presented in Bulgaria but was signed or otherwise prepared outside Bulgaria, the document would need to be:

(a) certified; and/or

(b) apostilled

Apostillisation is designed to replace the older procedure of legalisation, and is governed by an international convention (we refer to this as “the Apostille Convention”).

An even simpler procedure may apply where the document was prepared in one of a small number of countries enjoying agreements for special assistance in civil and judicial matters with Bulgaria: contact us to find out if your country of interest is one of these.

By far the most common situation involves documents which do require an apostille. Apostilled documents are immediately recognised in all other Apostille Convention states simply by having a special seal (‘apostille’) attached, and can be used (subject to a certified translation) in place of notarised documents. In property transactions, apostilles may be needed on Powers of Attorney and on several of the documents in the procedure for company registration (if a company is used).

We can help you obtain apostilles. You just need to visit, getting the draft of documents HM Government’s office for apostille processing. This allows us to prepare an apostille for you and deliver the certified POA, etc, to Bulgaria within several days of your instruction.

In EUROPEAN countries, we maintain relations locally to allow us to apostille your document for use in Bulgaria as fast as possible. Equally, we can procure legalisations, certified and sworn translations of documents and certifications of documents produced or executed in Bulgaria for use in other countries. Contact us further for this.

Drafting of Notarial Deeds

Using a lawyer rather than a notary to prepare a notarial deed is wise for most property buyers or sellers. It commonly reduces legal costs by 0.5% of the purchase or sale price of the property.

Together with our thorough experience investigating property title and conducting Bulgarian legal due diligence, this creates a one-stop shop – we deal with both the formalities and the substantive protection of investors’ interests.

Given that Bulgaria still has a somewhat decentralised system for recording title, it helps to smooth the process that we maintain regular relations with the competent governmental authorities.

Certification OF LEGAL DOCUMENTS

We certify documents from other jurisdictions for use in Bulgaria and vice versa. The ones most commonly used are: certification as true copies; for the authenticity of signatures on them; for use in legal proceedings; as witness statements; and as sworn statements and affidavits. We also prepare/help execute Powers of Attorney (POAs).

Service process

We offer procedural representation in Bulgaria to clients involved in international legal disputes in administrative, civil and penal matters.

If you need our legal assitance, do not hesitate to contact us immediately ! Our law firm D. Vladimirov & Partners is here for you to support your business to start well and seamlessly, so that you will be able to take advantage of all the opportunities and options our country is giving you.

Call us for more information on + 359 897 90 43 91 or send us your inquiry on office@lawyer-bulgaria.bg

June 2, 2018/by lawyer

Legal advices

Purchase property in Bulgaria

Our law office D.Vladimirov & Partners provide a professional legal services to purchase property in Bulgaria.

The entire process of buying a property in Bulgaria is complicated so we need to check the ideal parts of the ownership right and also the land plot for lack of encombrances.

Once you’ve found a home you plan to buy and agreed the selling price, you will need to take the following steps:

Signing a preliminary contract and pay a deposit.
Signing the notary deed and make the final payment.

The buying process is generally straightforward and is often completed within a month. EU citizens can purchase and own property in Bulgaria in the same conditions as locals.

The process of property acquisition and disposal can be lengthy and complicated and we advise our clients on the significant commercial implications that might arise.

We advise on and draft development agreements, provide legal assistance in construction, planning and site disposal matters, fund-raising arrangements, freehold transfers and any associated due diligence reports.

We assist in the acquisition of real estate in Bulgaria and in the subsequent implementation of investment projects in the field of hotel management and tourism, golf courses, office and commercial buildings, industrial construction works in Bulgaria

Please note we are chariging you for real costs and legal fees, state fees and the tax for transferring of ownership). If a travelling out of Sofia is needed, this would be calculated additionally.Purchase property in Bulgaria

Property legal check-up

Working with many international clients & corporate, our law office D.Vladimirov & partners has created a stable legal work policy for checking of the legal status of your property in Bulgaria.

Acting as a qualified property lawyers in Bulgaria, we performing the legal check services for our clients, depending on complexity of every case in the Bulgarian property register.

We check in the Bulgarian property Register the status of the certain property and report to our clients the final results and warnings, if there are any.

This information would allow you to check whether there are any encumbrances upon your property, for which you do not know, for example: a mortgage for a loan, which is already repaid, interdiction, imposed by the tax authorities for unpaid tax obligations, or any other rights of third persons.

Bulgarian land investment no longer requires company !

As a result of the contractual obligations, undertaken by the Bulgarian government in relation to Bulgaria’s membership in the European Union, an important part of the Bulgarian law was recently changed.

From 1 January 2012 citizens of the EU are no longer prohibited to purchase Bulgarian land, which is in regulation.

Until this date they had to set up a Bulgarian company and purchase land through the established legal entity, as according to the old law only Bulgarian individuals and companies had the right to acquire Bulgarian land.

This led to many unfavourable consequences for foreign investors, such as paying additionally to a lawyer to establish a Bulgarian company, appointing an accountant for the relevant services and making other expenses, related to having and maintaining a company.

Preliminary Contract

The first stage in buying a home in Bulgaria is the signing of a preliminary contract. Your lawyer is responsible for ensuring that this is drawn up correctly and you shouldn’t rely on an estate agent to do so.

It’s important not to pay a deposit or sign a preliminary contract prior to performing an in-depth due diligence of the property.

Check that the property has the same dimensions as advertised, if there are any undisclosed encumbrances (i.e pending costs) and that all the necessary permissions and documentation are in place.

While some agents or developers will provide a properly-drawn up contract, some won’t – and unless you’re a Bulgarian-speaking lawyer you won’t be able to tell which is which!

For peace of mind it’s recommended that you have the contract drawn up or at least checked by a Bulgarian property lawyer.

There are a number of types of preliminary contract, depending on whether you’re buying an existing (built) property or a new property off plan (i.e. yet to be built or under construction).

Signing the Notary Act

Signing the notary act (sometimes referred to as the notary deed, purchase contract or final contract, which is equivalent to a title deed) is the final step in taking ownership of your property.

If you’re unable to be present at the signing, you can have your agent or lawyer sign it on your behalf if you’ve given him power of attorney.

You should always sign the notary act in person if you’re buying a brand new or off-plan property, to make sure that all the requirements of the preliminary contract have been met.

The signing of the notary act takes place in front of a notary public, who first checks that all the conditions contained in the preliminary contract have been fulfilled.

It’s normal for all parties concerned to be present when the final contract is read, signed and witnessed by the notary, including the estate agent, developer (for new or off-plan property), your lawyer and your translator.

Either party (buyer or seller) can give a representative power of attorney. In the case of an off-plan purchase, the final contract isn’t signed until the building is complete.

Find independent legal advice for purchase property in Bulgaria

Numerous property owners are now experiencing problems with their property because they did not seek independent legal advice and instead used lawyers and translators which were recommended by the estate agent or developer and they were acting for both parties.

Appoint a qualified lawyer, who is experienced in property conveyance and fully independent of anyone else involved in the transaction, eg the estate agent, vendor or developer.

If you need our legal assitance, do not hesitate to contact us immediately

May 20, 2018/by lawyer

Legal advices, News, Personal

Bulgarian construction lawyer

Our lawyers have been involved in a wide range of construction projects, from small and medium size projects, such as construction of petrol stations, to major thermal power plants as Bulgarian construction lawyer.

We provide advice to investors, developers, financing institutions and government organisations.

Our thorough appreciation of the risks involved in property development and construction ensures we work together with our clients to minimise those risks.

Issue of Certificate for rough construction, roof level, (Act 14)

This act certifies that certain stage of the construction process is reached.

More specifically, the separate floors, staircases, outdoor and indoor walls, as well as the roof of the building are completed.

During the construction process the authorities issue an acceptance of the completed works by the investor and the supervisor

The completion of construction is certified by execution of a protocol (“Act 15”) which is signed by the investor, the designer, the contractor and the supervisor.

This Certificate called Act 15, the supervisor prepares a final report on the execution of the works.

The executor of the construction works hands over the building to the investor.

Issue of Certificate for Permission for usage (Act 16) – the building is completed in full at that stage. Bulgarian construction lawyer

It is examined by government construction authorities if it corresponds to the initial architectural project about which the building permission is received.

These four stages are absolutely obligatory and a must according to the Bulgarian Construction Law

Our law office provides professional consulting services and negotiaton assistanceship bteween the foreign investors and the construction contractors.

OUR LEGAL PRACTICE – CONSTRUCTION PROCEDURES

Throughout the years of our practice in the fields of construction law.

We actively took part into the development of folowing :

A/ infrastructural projects,

B/ linear and site infrastructure projects,

C/ gas stations, environmental

D/ water projects, waste treatment facilities construction projects, etc.

We have experience at all stages of the construction process – from the proper development of a detailed zoning plan procedure, giving the frames of the future construction project.

We are also able to provide legal advice upon the necessary demolition of equipment, whose operation is terminated.

We can assist you on a wide range of construction matters including:

pre-contract and tendering advice
drafting and negotiating of contracts
planning, environmental and building regulation issues
joint ventures, investment vehicles and funding
procurement structures and construction documentation
negotiating with local planning authorities
approval of designs, issuance of construction and operational permits
dispute resolution

We are used to work in each and every step of the construction process, including demolition of lawful buildings.

Our practice includes legal advice and drafting of

various types of contracts needed for the organization and implementation of the construction process, i.e. design contracts,
EPC contracts,
design supervision contracts,
construction supervision contracts.

We represent our clients in the negotiations on the specific terms and conditions, rights, obligations in the construction process.

Our team coordinates the necessary matters with civil engineers, designers and other experts who help us deliver first class and effective legal support.

Changes in the construction law

Аfter it came into force last month, changes in the law on spatial planning, which set the functions of the Ministry of regional development

The legal act to be divided into two separate, one will govern the territory, and the other will affect the investment process in construction.

The deputy hopes that with the new changes in the law will stimulate investment in construction.

Another major problem that hinders the investments, is the lack of general development plans of municipalities.

If you have any construction legal questions or issues in Bulgaria you need an expert lawyer to protect your rights.

May 9, 2018/by lawyer

Legal advices

Property purchase in Bulgaria

Legal documents nessesery for property purchase in Bulgaria are :

the Land Registry extract,which provides all the information on the land’s use, regulation (building restrictions) and structure.
for the properties which are not included into the Cadastre Register a Municipality Sketch (регулационна скица) is issued.
planning permission you must ensure that when buying off-plan from a developer, the development has been approved from the local municipality (town hall). It is also worth having a look at the Urban Plan which will state whether or not the plot you wish to buy has any building restrictions, is in a green zone or includes a public pathway or similar
the paid-up receipt for the previous owner’s annual property tax. It is also wise to make sure that there are no unpaid fees and taxes from previous years
the Cadastral certificate giving the exact boundaries and square metres of your land
the Use Permit (Act 16) which is issued by the town hall for new buildings or restructured ones and certifies that the property is habitable. You will need this document to connect to electricity and water companies.
It is wise to require from the seller of the property to provide evidence for absence of any liabilities concerning the property (taxes and other statutory costs and fees) or its use (consumable expenses) Ask the property agent for information regarding any costs the owner has not paid. You should be aware that if you later find that there are any outstanding debts, as the new owner, you assume the debts for the current and previous year (two years in total). For this reason it is strongly advisable to ensure that you have a copy of an affirmation stating that the previous owner has no debts
a property survey: this is not obligatory but it is wise to get a chartered surveyor (независим оценител) to check the property before you complete
if you are buying an off-plan property, confirm that there is an architectural plan for the property approved by local municipality. Ensure that the developer/constructor has the necessary insurance to cover build defects.
the preliminary contract – this contract is not obligatory but is usually signed between the buyer and the seller before the public deed is granted. You should make sure that you fully understand the contract before you sign it – if you are not fluent in Bulgarian you should get it translated
the title deed – it is important to check that there is an accurate description of the property in the deeds
Off-plan developments
Off-plan development in Bulgaria means property for which no Use permit (Act 16) is issued.

There are statutory stages of construction of an off-plan development which are certified by certain documents specified in the law. The most important documents are:

planning permission/Visa for design (виза за проектиране) – it entitles the developer to prepare architectural design and construction plans for the development in accordance with certain statutory parameters for height of the building, density of the construction, layout of the building, etc.
construction permit (разрешение за строеж) – it entitles the developer to start construction process as per the approved architectural, construction and other technical plans for the property
opening of construction site and determining of construction line and level (Protocol for commencing of construction)
certificate for completion and approval of rough construction (Act 14)
certificate acknowledging the compliance of the construction with the statutory rules (Act 15)
use permit (Act 16)

It is not advisable to buy off-plan development for which no construction permit is granted.

In practice, a usual transaction for buying off plan development has two stages: the signing of preliminary contract; and the signing of public deed before a Bulgarian Notary (Notary deed). The transfer of the property is made under the notary deed.

It is advisable the payment for the purchase of off plan property to be made in instalments each of which is made after the completion of the relevant construction stage and obtaining of statutory certification document.

While we hope that this information is useful, please be aware that it is not intended to be the only guidance for prospective buyers to follow when considering making a purchase. In addition, we make no representation as to the quality or accuracy of the information which is available at the web addresses listed in this guide, nor can we accept any responsibility for the content that is hosted on them. We strongly recommend that prospective buyers of property in Bulgaria seek independent legal and financial advice at all stages of their purchase.

December 15, 2017/by lawyer

Legal advices

Documents checklist property sale in Bugaria

Document checklist for property sale in Bugaria

Property title documents – certifying the title of the property.

Most frequent documents of ownership:

Title Deed, registered with the Registry Agency – title deed for purchase and sale, title deed for donation, title deed for exchange, notarized statement of ascertainment;
Deed with registration records;
Sales Agreement executed under the Ordinance on State-Owned Properties;
Sales Agreement, executed under the Municipal Property Act and the State-Owned Public or Municipal Real Estate Act. If executed after 1 June 1996, this Agreement has to be registered with the Registry Office.

Property Tax Evaluation Certificate – issued by the local tax office at the property do
Register a Joint-stock company in Bulgaria
micile. The Property Tax Evaluation Certificate has to contain an address identical to the address of the property as per the title deed, or in case of discrepancy, Certificate of Identity of Addresses has to be issued. The Property Tax Evaluation Certificate shall list all of property owners.

Property co-owners may not have any outstanding debts concerning the property (this means paying property tax and waste discharge fees), which shall be indicated in the Property Tax Evaluation Certificate.

Certificate of Marital Status of the seller(s), indicating the marital status of all owners as of the date of acquisition of the property. This certificate shall be issued by the Uniform System for Civil Registration and Administrative Services to Population department in the district of domicile of the owner.

Marriage Certificate of the seller, if applicable.

If the property is not acquired as marital property, it shall not be considered matrimonial property community (MPC); however, in case the address of the property is the address of registration of one of the spouses, a statement has to be filed, under article 26 of the Family Code, which shall evidence the respective spouse agrees to with the sale. This shall also apply for property acquired by inheritance, donation, and in general cases other than MPC.

If the property has any real rights registered, in order to execute the sale transaction, the user shall abandon all the real rights, established in their favour, by filing a waiver of the right to use the property. The waiver has to be signed in the presence of a Notary Public and shall be registered with the Notary Public’s file. In case the used is deceased, an excerpt of the Death Certificate shall be submitted.

In case the property is subject to partition – the document in question (contract, ruling), registered with the Registry Agency.

Plan of the plot, in case of transfer of land (land plot, yard or part of yard, where the property/apartment is built). It shall be issued by the technical service in the district of location of the property, and shall have a term of validity for 6 months.

In case the property has been received as inheritance – Certificate of Inheritance, Certificate of Death of the predecessor, Last Will and Testament.

In case the seller is divorced, the court ruling dissolving the marriage in divorce shall be presented.

Specific cases require different documents, which follow the property history and proves the title of ownership.

Certificate of Burdens for the property – to be issued by the Registry Agency, and including any and all ownership documents – from the date of the first Title Deed to the date of the last Title Deed, and in case of inheritance – a Certificate of Inheritance. In case the property includes land or shares of land, a plan of the property shall be enclosed as well.

In case the seller is unable to perform the formalities for a transaction personally, the seller shall have the lawful obligation to appoint another person to represent the Seller with a Power of Attorney. This Power of Attorney shall be notarized, and both the signatures affixed and the content of this Power of Attorney shall be certified. A declaration under article 25, paragraph 7 of the Notaries and Notary Practices Acts (NNPA) and a declaration under article 264, paragraph 1 of the Taxation and Social Security Code of Procedure (TSCCP) shall be issued.

An identity document, which confirms the identity of both the buyer and the seller (identity cards, certificates of good standing, and a decision of the competent body – in case the party under the transaction is a legal entity).

In case the transaction refers to transferring developed buildings – the respective documents issued by the builder/investor – building permits, architectural design and distribution of land, permit to use – Act Form 16, et al.

Other documents, according to the specifics of the transaction. Due to the diversity of documents possible, we recommend that the documents under this transaction be checked by a lawyer.

December 11, 2017/by lawyer

Legal advices

ANNUAL BALANCE & FINANCIAL STATEMENT

SUBMITTING ANNUAL BALANCE & FINANCIAL STATEMENT OF BULGARIAN COMPANIES

Every year the companies must publish annual financial statements for the past year, as the deadline for sole proprietors (which are subject to statutory audit) is 31st May, for limited liability companies (LLC) – by 30th June, and for all other entities– by 31st July.

Bulgarian companies must prepare their annual financial statements (referred as balance sheets) on the basis of International Accounting Standards (IAS), or on the basis of Bulgarian Accounting Standards for Small and Medium Enterprises (SMEs).Bulgarian companies, which do not exceed two of the following criteria during the previous two years :

Net asset value per December 31, less than BGN 8,000,000 ;
Annual turnover of less than BGN 15 million ;
Average number of employees less than 250.

choose between Bulgarian Accounting Standards for Small and Medium Enterprises or the International Accounting Standards (IAS ) to prepare and submit their annual financial statements. The companies from the public sectors, which are using public financial savings or funds , als o Bulgarian companies, which are issue a bonds or financial institutions are obliged to prepare and submit their annual financial statements on the basis of International Accounting (IAS ) Standards .

Companies in liquidation or bankruptcy prepare and present for their annual financial statements on the basis of Bulgarian Accounting Standards for Small and Medium Enterprises.

Bulgarian financial statements include:

Balance sheet, the income statement, the cash flow sheet, the capital sheet, Annexes

The information presented in the annual financial statements must also meet the following requirements:

– Intelligibility,

– Relevance,

– Reliability,

– Comparability

Companies which financial statements are subject to mandatory verification by independent auditors & accountancy needs to prepare an annual activity report. Once approved by the general meeting of shareholders, the Bulgarian companies must publish their annual accounts and annual financial statements under the following conditions:

Submission in the Bulgarian Trade Register before June 30 of the following year for Bulgarian regstered companies incorporated in the form of limited liability company (LLC) ;
Submission in Bulgarian Trade Register before 31 July of the following year for other legal forms (SA, etc.).

The managers or legal directors of the Bulgarian companies are responsible for the drafting, preparation, content and the publication of annual financial reports & activity statements of their Bulgarian companies within the time prescribed by law reports.

Should you need more information concerning this matters, send us a legal inquiry on info@lawyer-bulgaria.bg or call us now on + 359 897 90 43 91

December 11, 2017/by lawyer

Legal advices

Management of Condominium Buildings

Public relations regarding the management of common parts of buildings under condominium ownership arrangements and rights and obligations of owners, tenants and occupants of individual units or parts thereof, are regulated under the Condominium Ownership Management Act (COMA), (effective as of May 1st, 2009, published in the State Gazette, issue 6, dated January 23rd, 2009, amended in SG, issue 15 dated February 23rd, 2010, amended in SG, issue 8 dated January 25th, 2011, amended in SG, issue 57 of July 26th, 2011).

The special regime of management of the common parts of buildings under condominium ownership arrangements is introduced for buildings in closed residential complexes shall be arranged with a written contract, with notarized signatures, with the investor and the owners of individual units, which are parties thereto. The agreement has to be registered with the Registry Agency on the lot of each individual unit by the investor, and shall be referenced to subsequent purchasers.

Exceptions to the management of the common parts of buildings under condominium ownership arrangements are introduced for buildings, which contain up to three independent units, which are property to more than one owner. In these cases, the provisions of article 30, paragraph 3, article 31, paragraph 1 and article 32 of the Property Act shall apply.

Condominium Management shall cover procedures and shall supervise the use and maintenance of the common areas and compliance with the building internal regulations under condominium ownership arrangement, and the supervision over the fulfilment of the obligations of the owners, users and residents.

Forms of Condominium Management are the General Meeting and/or the Association of Owners.

The management bodies are: the General Meeting and the Managing Board (Manager).

The General Meeting of the Association shall be authorized to make a decision, adopted by a majority of more than 50 percent of the represented shares in the association, to assign the powers of the Management Board (Manager) to non-owner individuals. The contract for authorization shall be executed by a person, authorized by the General Meeting of the Association.

Expenses for the management and maintenance of the common parts under the condominium ownership arrangement will be equally shared by owners, users and residents.

Repair, renovation, reconstruction and rehabilitation of common parts or replacement of common facilities and equipment shall be carried out under the decision of the General Meeting of owners. The General Meeting of the owners or the Association establish and maintain a Repairs and Renovations Fund. Expenses for repairs, renovation, reconstruction and rehabilitation of the common areas, referred to in the respective decision of the General Meeting of owners, shall be distributed among the owners of the individual units, proportionate to the notional shares of the common parts of the building, held by them.

For any issues, not covered by the COMA, the provisions of the Ownership Act will apply.

The list of main obligations to be complied with includes, but shall not be limited to: to not prevent all other owners, operators and occupants from using all common areas of the building; to not cause damage to common areas; to not rent them; to not participate in activities, which cause excessive disturbance and inconvenience to other occupants; to fulfil the decisions of the General Meeting; to make payments for the expenses required; to comply with the sanitary and hygiene standards, et al. A Condominium Log has to be organized, kept and maintained in each building which should contain the relevant information on the property, owners, users, et al. The decisions of the governing bodies, adopted in accordance with the condominium ownership arrangements, shall be absolutely mandatory for all building owners.

Often, property owners who are foreign nationals employ management and maintenance companies to perform all internal organization works for the building, pay bills, collect payments from owners, rent apartments on their behalf, et al. Services of such companies can be easily found through the internet. It is strongly recommended to sign a contract with such a company and follow the advice of your legal counsel.

December 9, 2017/by lawyer

Legal advices, News, Personal

Selling your Bulgarian property

Selling your house, land or apartment is a very important action, particularly if it is owned by a domestic registered limited liability company in your name.

Our legal department has prepared this article in order to lead you through this procedure which may look like a labyrinth , but in fact is quite easy and straight forward when you know what exactly you need and which step follows next.

Real property agents may try to conceal the tax complications which may arise from selling a real property at a price higher than the price of initial purchase under the Title Deed.

Should the occasion arise, the owner of the property, i.e. the domestic limited liability company owes capital gains tax.

Please take into consideration that the legal aspect of the transaction is the one which will ensure the positive financial outcome of it, by ensuring you are not liable for damages due to making misleading statements in the new Title Deed (drafting a Title Deed is one of the services we offer).

Please also note that you will need to do the following before you initiate the sale:

– ensure the property or the company that owns the property is in good standing (cadastre registration, no outstanding payments for taxes, no encumbrances on the property, et al.)

– getting up to speed on the current real property market situation and any possible Capital Gains tax complications after the sale – get information on fair market values of similar properties in the area in order to correctly determine the going price of your property.

If you own the real property through a company, selling a property entails some accounting costs as well.

– marketing the property – make sure any real estate brokers or agents are marketing the property at the asking price; ensure also that you will only pay the requisite fees after the actual signing of a Title Deed.

Please note that in case you are selling a property through a company, you should require a VAT invoice for any and all fees payable.

The full price for the sale should be listed on the Title deed before signing.

Make sure any and all reservation deposits are transferred to your account and not to the real estate agent account, as there is a risk of the real estate agents acting unfairly and keeping the deposit.

We are happy to prepare the relevant documents and act/negotiate on your behalf to protect your legal and financial interests before real property agents and to guarantee you will receive all amounts payable to you and to ensure you get the full benefit from your sale. Consider hiring us to act on your behalf a good move.

How to find the right buyer for your property is easily the hardest part of the process.

We can help you by examining your documents and help you in listing your property for sale.

After having successfully found a buyer, we will collect information from the buyer about their selected method of funding the transaction (by way of example – a mortgage loan).

A crucial element of our job is to ensure a smooth sale process.

We will act in good faith on your behalf and ensure that you received the deposit and mediate in paying the legal fees for obtaining the requisite documents.

– Obtaining the requisite documents for the sale of your property in Bulgaria. Please be aware that this is a lengthy process – application for documents are filed to the Land Registering Agency, to the Cadastral Agency, the National Revenue Agency, et al. Please also be aware that your prospective buyer (or their lawyer) may require examining the documents before agreeing to go through with the purchase.

– Please be advised of the Cadastral Plan particulars as regards to properties. Your property needs to be registered with the Cadastre Agency and prior to selling your property, you need to obtain a Cadastral Plan and present it to a Notary Public.

This is particularly important for properties you own in Sunny Beach, Bansko, Pamporovo, Kavarna, Sozopol, et al., since it is there that a Cadastral Plan is existing already.

For further details on the Cadastral Plan, please visit our section “Cadastral registration”.

– Effectuating the sale: You have two options at your disposal.

You can go for direct signing of the Title Deed for the sale of a property, or you can do a preliminary contract first, against the receipt of a deposit payment.

Naturally this is the key point of the sale process and we will be happy to assist you in creating both the preliminary agreement and/or the Title Deed for sale, based on your existing documents.

We will have those translated and approved by you prior to signing.

It will also be our responsibility to set an appointment with a local notary public acting in for the area of location of your property. You can also authorize us to appear before the Notary Public on your behalf and save yourself a trip to Bulgaria.

– Post-sale: After you complete the sale and sign the Title Deed, we can provide you with a copy and we can help you deregister it from your file with the Bulgarian Revenue Agency to make sure you are no longer paying local property taxes for that property.

We also offer the service of exchanging the public utility company batch registrations.

List of legal documents, needed for the sale of properties in Bulgaria

The main document proving your ownership is the Notary Deed.

You should have received it when you first bought the property. If you by any chance have lost it it doesn’t mean you have lost your ownership. Contact your agent for assistance to have a notarized copy issued from the notary who has initially signed the deal.

You need additionally the sketch for the property – the sketch is issued by the local technical department in the Municipality where your property is located.

The sketch could be ready in 24 hours. In order to put a request for a sketch you will need a copy of the notary deed.

Once a sketch is issued it is valid for 6 months. After that the whole procedure should be done again!

The next documents, which is nessesery for the sale of property in Bulgaria is a valid Tax Evaluation Document, issued by the Local Tax services Office in the Municipality where your property is located.

If you are selling the property as a phisycal person, you will need to have a document stating your Marital Status.

This document you should supply from your own country and get it translated and legalized in Bulgaria.

If the property has been bought during your marriage you will need a letter of attorney by your spouse for the deal. So for this it is important what was your marital status by the time when you have purchased the property.

One of the documents, which will be needed is a legal certificate of lack of encumbrances– this document states that there are not established real rights in favor of third persons for the property you are selling.

This document is issued by the Registry Service in your Municipality.

When submitting a request you have to provide the notary deed for the property. If the property has land you have to supply a sketch as well.

This document is valid only 24 hours. Some notaries do not request this paper as they are checking it automatically at the day of the deal.

Legal declaration for citizenship and marital status as per article 25. 7 from the Notary Law act.

This document should be filled before the Notary public on the day of the transfering of the ownership over the property.

Legal declaration stating that you don’t owe any taxes to the Republic of Bulgaria.

In case you as an owner will not be present at the deal , make sure that you have an accurate letter of attorney signed and notarized ( apostilled) by you with which you empower a lawyer or someone you trust to sign on your behalf and on your account !

Property is owned by a company

……you need to provide a company decision for the purchase / sale of property If you own the property as a company you will need a written decision of the share holders in the company that you have decided to sell this property which is an asset of the company.

It should be signed by all shareholders and stamped.

By law when providing this paper there is no need all the shareholders to be present at the deal as far as the manager is present but many Notaries will require it!

Please note that in some cases you may need additional papers due to some complicated form of ownership. In each case we advise you to use us for your own security!

We would like to advices you not to forget you passport !

Our law office will represent you and provide guidance in each of the steps listed.

Please contact us if you have any questions or if you need any assistance on the matters detailed herein.

December 8, 2017/by lawyer

Posts

Legal division of property

First stage of the legal division of property

– Second phase of the judicial split of property

Legal grounds for divorce Bulgaria

Divorce through breakdown of the marriage: Article 49 FC

Divorce by mutual consent: Article 50.FC

Agreement reached by the spouses in a divorce by mutual consent:

Legal documents & apostiles

Scope of Notary Related Services

Verification of documents with an apostilles

Drafting of Notarial Deeds

Certification OF LEGAL DOCUMENTS

Service process

Purchase property in Bulgaria

Property legal check-up

Preliminary Contract

Signing the Notary Act

Find independent legal advice for purchase property in Bulgaria

Bulgarian construction lawyer

Issue of Certificate for rough construction, roof level, (Act 14)

During the construction process the authorities issue an acceptance of the completed works by the investor and the supervisor

The executor of the construction works hands over the building to the investor.

OUR LEGAL PRACTICE – CONSTRUCTION PROCEDURES

We can assist you on a wide range of construction matters including:

Changes in the construction law

Legal documents nessesery for property purchase in Bulgaria are :

There are statutory stages of construction of an off-plan development which are certified by certain documents specified in the law. The most important documents are:

Document checklist for property sale in Bugaria

Selling your Bulgarian property

We can help you by examining your documents and help you in listing your property for sale.

List of legal documents, needed for the sale of properties in Bulgaria

Property is owned by a company

Any more questions? Call us on + 359 897 90 43 91 !

Cookie and Privacy Settings