"Off plan" property

Buying an ‘off plan’ villa or apartment in Bulgaria is essentially the same as buying in the UK and means reserving a property on a new development before the property is completed, often before construction has started. Buying ‘off-plan’ can prove a fantastic investment and prices are extremely competitive at this early stage as potential investors only have floor plans and artist impressions of the finished development to view and developers are keen to sell to minimise risk and to provide the project with some forward momentum.

You then have the option of selling straight away upon completion for a profit, or you can hold on to your property for further rental/ capital growth whilst having a great holiday destination to visit. Holding on to the property for a longer-term means you can benefit from Bulgaria’s expected accession to the EU in 2007 where considerable appreciation is expected throughout the Bulgarian real estate market, with holiday apartments expected to lead the way and appreciate the most in value.

"Off Plan" purchases have provided spectacular returns for hundreds of people over the last couple of years. The real key to why buying 'Off Plan' can prove such a good investment lies in the fact that in many cases you only have to pay initially a deposit as low as between 10% - 25% of the purchase price and then nothing until various stages of the project are completed.

The Bulgarian Act on Foreign Investment allows foreigners to buy buildings but not land. This restriction is simply avoided by setting up a Bulgarian company which then owns the land. This law is due to be removed before EU membership in 2007. It is one of the main reasons that property prices are so attractive compared with Western Europe but it will not last.

The process is summarised below:

• Check whether the property is being sold with or without land

• (if with land a company formation will be necessary)

• Agree a final price with the current owners

• Draw up and agree an initial contract allowing the property to be removed

• from the market

• Do a number of checks (title documents, licenses, debts on the title etc.)

• Sign a Notary Act (purchase contract) in front of a Bulgarian Notary Public

• and the Final Legal Contract

• You are now an official owner of a Bulgarian property

Don't worry! The good news is that we help make that process painless and routine! We can advise you on whether you need a company or not, if you do we can help set one up for you.
"Bulgaria is truly Europe’s best kept secret."