We are supporting foreigners, who come in Bulgaria to start a new business company. That is the reason, why the clients usually ask us how to set up company in Bulgaria ?
Bulgaria is situated in South-Eastern Europe. It is bordered by Serbia and Macedonia to the west, Greece and Turkey to the south, the Black sea to the east, and Romania to the north.
The limited liability company is one of the most popular choices for starting business actities in Bulgaria.
Saving taxes is one of the reasons why many business people and companies have chosen to set up a company in Bulgaria.
Bulgaria offers an excellent fiscal climate: a flat corporate income tax rate of 10%, a flat personal income tax rate of 10%, a dividend tax of 5% (dividends distributed to parent companies in the EU are taxed at 0%) and a wide network of double tax treaties.
Our clients know and using the advantages of the favorable tax level and business climate in Bulgaria.
There are few legal steps, which need to be followed to register a company in Bulgaria.
t’s very important to note that foreigners face legal instrictions on set up a new business company in Bulgaria.
Bulgaria has a simplified process of registering companies for foreign businesses.
How to register a company in Bulgaria ?
The clients could register a company from their countries without visiting Bulgaria and spening a money for business trip.
A limited liability company is a commercial company formed by one or more natural or legal persons who are liable for the company’s obligations up to the amount of their contributions to the company’s registered capital.
The entire registration process could be done through the simple power of attorney.
Think about the name of your company and address in Bulgaria. This is very important for the contact with tax office and Bulgarian authorities.
The limited liability company is a simple legal form of business activities in Bulgaria.
This is special form of established by the small and medium companies in Bulgaria
The company should have a manager, appointed by the general meeting of the shareholders.
The name of the company must be unique – thnk about the specific name of your company in Bulgaria.
The limited company in Bulgaria should have a initial company capital which has to be deposited in a local bank account.
The minimum start-up capital is BGN 2, which must be divided into shares with a registered value of no less than BGN 1.
We suggest to use our address as a sit and adress of your company and settle a scope of activities, which will be nessesery for the documents.
The entire documents and process of drafting the papers finished with signing and verification of signatures and documents.
After the documents has been signed, you should get an apostile for them
https://lawyer-bulgaria.co.uk/wp-content/uploads/2018/04/Claim.jpg6001000lawyerhttps://lawyer-bulgaria.co.uk/wp-content/uploads/2016/03/ilodplogo-300x96.pnglawyer2020-06-22 07:15:062020-12-08 10:18:07How to set up company in Bulgaria ?
Our clients choose us because they know we understand their objectives and offer them legal support by getting the documents transfer of property.
We regularly handle transactions for the world’s leading investment banks, private equity funds, hedge funds, pension funds, REITs and sovereign wealth funds.
Increasingly they are cross border, highly structured and involve sophisticated financing arrangements.
We support our clients in their most important real estate projects on an international basis.
1. Property title documents transfer of 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.
2. Property Tax Evaluation Certificate – issued by the local tax office at the property domicile.
The Property Tax Evaluation Certificate has to contain an address identical to the address of the property as per the title deed.
Property co-owners may not have any outstanding debts concerning the property, which shall be indicated in the Property Tax Evaluation Certificate.
3. Certificate of Marital Status of the seller(s), indicating the marital status of all owners as of the date of acquisition of the property.
4. Marriage Certificate of the seller, if applicable.
5. This property is not acquired as marital property, it shall not be considered matrimonial property community;
6. 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.
The waiver has to be signed in the presence of a Notary Public and shall be registered with the Notary Public’s file.
7. In case the property is subject to partition – the document in question (contract, ruling), registered with the Registry Agency.
8. Plan of the plot, in case of transfer of land (land plot, yard or part of yard, where the property/apartment is built).
9. In case the property has been received as inheritance
10. If the seller is divorced, the court ruling dissolving the marriage in divorce shall be presented.
11. Specific cases require different documents, which follow the property history and proves the title of ownership.
12. Certificate of Burdens for the property – to be issued by the Registry Agency
13. In case the seller is unable to perform the transaction personally, he needs to appoint another person 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.
14.A declaration under article 25, paragraph 7 of the Notaries and Notary Practices Acts and a declaration under article 264, paragraph 1 Tax Code
15. An identity document, which confirms the identity of both the buyer and the seller
16. In case the transaction refers to transferring developed buildings – the respective documents issued by the builder/investor
17. 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.
https://lawyer-bulgaria.co.uk/wp-content/uploads/2016/09/42250012_l.jpg16722508lawyerhttps://lawyer-bulgaria.co.uk/wp-content/uploads/2016/03/ilodplogo-300x96.pnglawyer2018-06-24 13:09:342023-01-16 09:45:35Documents transfer of property
The dynamics of modern business relations can easy switch to another country of doing business in different settlements by registration of a branch.
If you have such a need, you are generally faced with three options for doing business:
A) register individual “subsidiaries” of trading companies and through them to carry out your business.
With this option new companies are emerging and they have separate business enterprises.
The common between them is in the owner who owns them, but in the case of third parties they are completely independent subjects;
B) to disclose retail outlets (warehouses, shops, etc.) in the different settlements, without creating new companies and operating in them.
In this situation, no new legal entity emerges – a company, the trader himself engages in legal relationships with third parties.
B) register a branch through which to separate the performance of part of your activity in a settlement other than that in which your company has its registered office.
The branch is a legal-organizational form for carrying out a business activity in which a trader (firm), through a relative separation of part of its activity, carries it out in a settlement other than that in which its seat is located.
In the internal relations, the branch is dependent on the trader and this dependence is manifested in different directions, for example in:
A) the lack of an independent firm, and the branch company includes the trader’s firm and the branch add-on;
(B) the branch is part of the trader’s business (and, if transferred, the branch is transferred).
In disputes arising out of a direct relationship with a branch, claims are brought against the firm (as may be done at the headquarters of the branch);
B) the termination of the trader also leads to the termination of the branch (the same applies when the bankruptcy is declared);
D) the branch does not compile a stand-alone balance – the branch leads commercial books as a sole trader without compiling a separate balance sheet.
Registration of a branch
Branch registration is the result of the following procedure, which includes:
1. decision on the establishment of a branch;
2. election of a branch manager;
3. Entry in the Commercial Register (TP).
The decision to register a branch is taken by the competent corporate body under the rules of the relevant commercial company:
The decision should contain a clear intention to establish a branch and its headquarters, address of management, subject of activity, manner of management.
Setting up a Bulgarian branch by a foreign company is one of the legal forms for establishment of a business presence in Bulgaria.
Usually the branch office is considered to be an alternative to being a (sole) shareholder of a Bulgarian company.
The Bulgarian branch office is not a separate legal entity but a part of the foreign company.Registration of a branch
As a result, share capital of the branch is not required and the foreign company is liable for the liabilities incurred by the branch.
Legal Representative of the Bulgarian Branch
Though the Bulgarian branch office is not a separate legal entity and appointment of a director is not required, the authorization of a legal representative of the branch is mandatory.
The representative powers of the legal representative are determined by a power of attorney granted to him by the foreign company.
Registration with the Bulgarian Commercial Register
Under Bulgarian legislation branches are required to be registered with the Bulgarian Commercial Register. The necessary documents to register a branch in Bulgaria include:
official certificate of good standing of the foreign company;
official incumbency certificate containing the particulars of the persons authorized to represent the foreign company and their representative powers (if not contained in the certificate of good standing);
resolution of the foreign company to establish a branch in Bulgaria (the persons competent to adopt such a resolution are determined by the national corporate law of the foreign company);
constituent act/articles of association of the foreign company;
notarized power of attorney granted to the legal representative of the Bulgarian branch;
notarized written consent and specimen signature of the legal representative of the Bulgarian branch;
declaration under art.13, para. 4 of the Bulgarian Commercial Register Act.
Accounting
Under the Bulgarian Commerce Act following the successful branch office registration, the branch is required to maintain its own bookkeeping as well as to prepare a balance sheet.
Taxation
Under the Bulgarian tax legislation the profit generated by a foreign company’s branch established in Bulgaria is subject to corporate income tax.
https://lawyer-bulgaria.co.uk/wp-content/uploads/2018/06/42250012_l.jpg16722508lawyerhttps://lawyer-bulgaria.co.uk/wp-content/uploads/2016/03/ilodplogo-300x96.pnglawyer2018-06-24 08:27:132021-05-06 09:04:47Registration of a branch
Change in the manner of management and representation or change of the person (s) representing the company
A change in the management of a company may occur when two or more persons are elected in the place of a manager to represent and manage the company together or separately, as well as the appointment of a procurator.
I. In the Commercial Law an option is provided by the manager of the company aloneto request it to be removed from the Commercial Register by giving written notice to the company.
Within one month of receipt of the notification, the company must declare its release in the Commercial Register for entry.
If the company does not do so, the manager may himself file for registration the fact that is entered, whether or not another person is elected in his place. In a nutshell, in order for the manager or the liquidator to declare the deletion alone, the law provided for the existence of two prerequisites – the manager / liquidator / requested the deletion by written notification to the company and the company had not declared its deletion in within one month of receipt of the notification.
The second and more frequent reason for change of manager in OOD is
Election of a new governor after the expiry of the mandate of the old governor or
Withdrawal of the manager’s authorization at any time during his term of office,
Resignition of the manager.
Empowerment of the manager may be withdrawn at any time and his name deleted from the commercial register.
The freedom of the general assembly to free the governor at any time, respectively to elect a new governor, is imperatively regulated by the legislator, and it results from the free withdrawal of empowerment (including empowerment).
There is a complete correspondence between the possibility of the general meeting of the company to withdraw the authorization of the manager / for the dismissal of the manager / as provided in Art. 141, para. 5 of the Commercial Act, the unilateral withdrawal of the manager, with a written notification to the company. The possibility of a free change of the manager is related to the fact that the legislator did not introduce grounds for the dismissal of the manager.
Even in cases where such a foundation is provided in the company agreement, they could not overcome imperatively the art. 141, para. 4 of the CG freedom of the General Assembly to withdraw the authorization, but such grounds would have significance in the search of the manager’s responsibility.
The change of the manager of the company should be entered in the Commercial Register.
Upon the change of the current manager, it is necessary to conclude a new written contract for the assignment of the management on behalf of the company, also the general meeting must take a decision to amend the company contract if the management and representation of the company change are the essential elements of the contract.
This decision must be taken by a majority of more than three-quarters of the capital unless a majority of the company’s agreement is provided.
The decision shall be drawn up with a notary authentication of the signatures and the contents made at the same time, unless a written agreement is provided in the Articles of Association.
The decision shall be entered in the record book. In LLC, a change in the way of management most often means assigning the management of EOOD to a procurator, but it is possible to appoint a governor if the constitutive act does not exclude the possibility of appointing a third party manager.
1. Drafting & preparation of the necessary documents, according to the requirements of the Commerce Act;
2. Drafting of applications of the Registry Agency – Commercial Register and all other necessary documents;
3. Transfer & payment of Register state fee for recording changes in circumstances;
4. Transfer of all state fee for Commercial Register, bank Fees;
With our service we will save you valuable time, with our knowledge and skills we will complete the entire procedure for you at moderate competitive prices.
Any carrier wishing to carry cargo on the territory of the Republic of Bulgaria and / or on the territory of the European Union must register a transport company and hold the respective license to carry cargo on the territory of the Republic of Bulgaria or a license to carry out international freight transport.
This development concerns the registration of a freight transport company within the European Union (the procedure for registering a freight transport company on the territory of the Republic of Bulgaria is similar).
This is the issue of a Community license for the international carriage of goods. The procedure for issuing such an international transport license is regulated in ORDINANCE No 11 OF 31 OCTOBER 2002 FOR THE INTERNATIONAL CARRIAGE OF PASSENGERS AND GOODS .
The state fee for issuing an international license for freight transport from January 1, is 500 leva. The freight license is NOT indefinite! It shall be issued for a period of validity of 10 years, after which it shall be renewable.
1. In order to operate as a freight carrier, you must first register a transport company. It is recommended to be in the form of EOOD or OOD.
The transport activity can be realized with both own and hired heavy trucks, but obligatory with Bulgarian registration.
2. The license of the transport company is issued by the Minister of Transport, Information Technology and Communications on a proposal of the Automobile Administration Executive Agency.
Any transport company applying for a freight license must meet certain specific requirements, namely:
I. REASONABILITY – The requirement of reliability is met when transport managers are not convicted of deliberate crimes of general character under the Penal Code or are not deprived of the right to exercise transport.
II. PROFESSIONAL COMPETENCE – The transport manager must have a Certificate of Professional Competence issued by the Automobile Administration Executive Agency or a Certificate of Professional Competence issued by a competent authority of a Member State of the European Union. Note that a person may be the head of the transport activity of no more than two transport companies.
III. FINANCIAL STABILITY – Demonstration of the financial stability of the transport company depends on the number of vehicles with which the transport activity will be carried out. For the first car, the transport company proves that there are resources for carrying out its transport operations, equal to the BGN equivalence of EUR 9,000, and for each subsequent car the BGN equivalence of EUR 5,000. The provision of the above mentioned resources for transport activity is evidenced by the corresponding amount in the capital of the transport company, through bank guarantee and insurance contract.
At the same time, the transport company must have no tax and social security obligations unless it is deferred or deferred under the Tax and Social Insurance Procedure Code, as evidenced by the Certificate for the existence or absence of tax liabilities.
IV. ESTABLISHING THE TERRITORY OF THE REPUBLIC OF BULGARIA – the transport company must have its own or hired operational center, garage area and office.
Compliance with each requirement should be certified by the relevant document. The circumstances declared in the contracts, declarations, etc. are controlled and controlled and checked prior to the license being issued by the licensing authority, so it is advisable to use advisory services to specialists who are familiar with the practical requirements for issuing such a license.
The time limit for the issue or refusal to issue a license for the carriage of goods is 30 calendar days from the date of filing of the application. If there is a document missing or there is an irregularity in the documents submitted, the deadline for their removal is one month after receipt of the instructions from the Ministry. The license is issued in as many copies as the vehicles themselves.
We would like to offr you our legal service as follows :
• Drafting of documents & registration procedure of your new shipping company for you.
• Legal advices to preparation , fill in and submit the necessary documentation for the issuance of an international freight license.
We will save you valuable time with our knowledge and skills to complete the registration process and get a freight license for you at moderate competitive prices. Call us now on `+ 359 897 90 43 91 or send us your mail on оffice@lawyer-bulgaria.bg
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.
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
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:
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
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.
https://lawyer-bulgaria.co.uk/wp-content/uploads/2016/03/ilodplogo-300x96.png00lawyerhttps://lawyer-bulgaria.co.uk/wp-content/uploads/2016/03/ilodplogo-300x96.pnglawyer2018-05-09 04:04:172021-11-28 13:19:20Bulgarian construction lawyer
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.
lawyerhttps://lawyer-bulgaria.co.uk/wp-content/uploads/2016/03/ilodplogo-300x96.pnglawyer2017-12-11 11:48:542017-12-11 11:48:54Documents checklist property sale in Bugaria
We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.
Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.
Essential Website Cookies
These cookies are strictly necessary to provide you with services available through our website and to use some of its features.
Because these cookies are strictly necessary to deliver the website, you cannot refuse them without impacting how our site functions. You can block or delete them by changing your browser settings and force blocking all cookies on this website.
Other external services
We also use different external services like Google Webfonts, Google Maps and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.
