Company Reregistration

It was declared three years ago that all companies in Bulgaria MUST be reregistered before the end of December 2010.
Most of companies have been done, but I am sure there are also a lot still not been done.
The goverment will have any company not reregistered liquidated! The properties owned by the said company will be reposessed and sold.
Please make sure that your company is not one to be liquidated!
If you require help please contact me asap.

November Village Day

Every village and town here in Bulgaria celebrate thier own day. Resen, our village day was November 6th this year. I missed last years day as I was busy going to and fro to Sofia, but the previous year was dry and sunny with approx. 50 stalls selling a variety of goods and food etc.

This year there were at least 100 stalls there including a bar, candy floss, toffee apples and so much more. The sun shone, it was a very warm day and a lot of local people turned out in support, we also saw a lot of people from other villages there.

Resen is very lucky to have a lady Mayor, she really looks after the village and get's things done here. The centre has a lovely park with a seating area and a play area for the kids, it is quite a large centre and has grass, waterfall and paved footpaths.

I should aslo remind people living here that you should be driving 24/7 with headlights ON now until March next year.

Winter tyres should also be put on very soon in readiness for the bad weather, it is not a legal requirement, but it is advisable.

House Prices

I have seen a drop in the value of property here in Bulgaria this year, I think it is still due to the world wide economic crisis. There are more Russian buyers coming intot he country now, they can see the true value of buying here.
There are rumours around that prices will rise again next summer, a lot of estate agents are thinking that this is when many more people will have funds enough to be buying here. My advice is if you can buy now do it! Before the prices start to rise again.
The winter is coming, winter tyres should be put on the cars now, chains out ready and a shovel in the boot of the car in case you have to dig yourself out. It is also a legal requirement to drive with your headlights on all the time form November the 1st until March, be aware the police are stopping people to check tyres, lights and windscreen wipers this month.
Drive carefully.

Garden Maintainance

This year has seen a rise in the amount of gardens that we maintain for those of you who have holiday homes here in Bulgaria. It makes sense to have someone go around to the property on a monthly/weekly basis to check everything is alright and that there are no leaks or loose tiles at the property that could prove costly later on if left.
Services on offer are a choice of
1/ Weekly inspection.
2/ Monthly clean through and garden strim or cut with a lawnmower.
3/ Just a garden strim or lawnmowed.
4/ A twice yearly cut down of the weeds etc that grow so fast over here.
5/ Dust throughout the property the day before you arrive for your holiday so your not ploughing through dust when you first get here.
6/ Winter checks done weekly, turning off of water and draining down any heating system to prevent ice damage.
Fees are set per property and per requirements but are not expensive, if you have a property here and are interested in these services please email me at propertylocatorbulgaria@hotmail.com with your property location and size of plot, the services you require and I will be happy to go to look at the requirements and email you back with a quote.

2010 Summer

Firstly I would like to say how sorry I am that I have not updated my blog for sometime now, the truth is that this spring and summer has been very busy for me. I am finding there are more people looking to relocate to Bulgaria, others who have holiday homes here require garden maintance and I have even been project managing a house renovation!
I now know why project managers charge between 8 & 10% of the renovation costs, it is a nightmare trying to get different skilled workers to either work together or come in on time and budget. Still it was an experience.
House sales are better than last year, if anyone is looking for a genuine bargain then this is the year to be buying.
I also now know of a cheaper way to transport furniture or goods accross from the UK, or the other way for that matter. Email me your requirements and I will put you in touch.
The sun is shining and we are enjoying our life here, is it time for you to join us?

Buying Procedure In Bulgaria.

I am writing this post to help clarify the situation here in Bulgaria. Please read carefully.
No foreigner can own land in Bulgaria, so it is necessary to open a company. This can be achieved without too much effort if you know who to use. It does cost a bit and it also means you must submit yearly accounts just the same as if you had a company in the UK.
If you were to buy an apartment then as you do not own the land underneath there is no requirement to have a company.
All agents charge for thier services, some charge for transporting you around to view properties, this is something we are not used to in the UK, but if you look at it this way, in the UK you may be only a couple of miles from the agents office, here you might be gone all day and have to travel up to 100 miles in a broad sweep of the area. So they need to pay for the vehicle running cost's etc. Usually the fee is approx. 1 Lev (40p) per kilometre. Just be aware of this, not all agents charge, I do not!
When you find a property that you want to purchase please remember to add the agents fee. In Bulgaria the buyer pays the agent a fee, this can be a percentage of the value of the property, or if the value is low then it is usually a fixed amount. I suggest that you ask at the outset about commission charges as these vary. Again this is uncommon in the UK, but very normal here, unless your buying a new build then there may be no fee involved as the developer will pay. The vendor also pays the agent a commission for thier services. It is possible that you will visit properties that are not listed with your agent, unlikely, but possible. As they want to keep as much commission as possible to themselves. This is also why some do not like to negotiate too hard.
A deal can be closed within two weeks, sometimes shorter it depends on the paperwork.
Firstly you must open a company, I always suggest this is done asap after arriving in the country. It is required that you open a company bank account and deposit a nominal sum of 2 Lev (90p) into it, once the company is open this account is then closed. Open a personal bank account so you can transfer funds over into it, for things like buying the property you find and then daily living etc.
A company can take up to two weeks to open, but I have had it done in two days, it depends on the work load at the office at the time of your application.
Next, you sign a prelimary contract and leave a 10% deposit, if you pull out of the deal you loose your deposit, however if the vendor withdraws they must repay you twice the deposit amount.
A vendor is required to get a new "Skitza", this is a plan of the property and shows any buildings on the plot and also tells you that it is built legally etc etc, this comes from the council offices and is only valid for 6 months, so a vendor will wait until they have an offer on the table before odering one. This takes approx. a week to get.
The vendor also has to provide a statement on the day of the deal showing that there are no loans or mortgages attached to the property, they should also show the last electricity and water bills that have been paid.
It then takes approx. two weeks after the signing of the deal to get your deeds back from the court with your company ownership details on, but on the day of the deal you pay the money and take the keys to your new home.
All deals are done in cash, there are no cheques here, or electronic transfer of funds, someone must go to the bank and collect the money to pay the vendor.
So now we must look at costs, these are only approx. as different companies charge different rates.

1/ To open a company, between 500 and 650 Euros.
2/ A notary (solicitior) must comfirm your signature and confirm your ID. 20 Lev.
3/ Open a bank account for the company. 2 Lev (80p)
4/ You must have a company stamp, 40 Lev (£18)
5/ Writing of your deeds. 50 - 100 Euros
6/ Notary (solicitor) fees including taxes (stamp duty) this varies on the price of the property but is usually around 500 - 1000 Euros, always ask.
7/ Agents commission, 3 -6% of the property value, or a fixed price, again ask up front.
8/ Registering your new home into your company name, 50 - 100 Euros.
9/ Changing the utuilities into your company name, 50 - 100 Euros for both.

Now here is a thing! You must declare the cost of your new property when purchasing so they know how much tax to take, you CAN declare less than you pay! Saving you money, but it means that when you come to sell, if the new owner wants the real cost written you must pay 20% on the capital gains! Most sales (95%) are done at a lower cost as it saves everyone paying too much tax.

So, after agreeing a price on your new house it can be yours within two weeks. No chains, no surveys, property is "sold as seen", no long solicitor's bills, just a quick purchase.
Any agent that takes you to a property should know about it, the legal issues and the ownership issues. It is often the case that a property is owned by more than one person, in this case it must have the full agreement of all the owners to sell. If one does not agree then the sale should not proceed, but ask about this when viewing.
Then it is time to start relaxing and enjoying the new lifestyle you desire.

Revival?

Today has been a good news day. I have heard from several sources that property sales are starting to improve here in Bulgaria. Myself, well I have had a few more enquiries this last week and am hopeful of a good summer.
I think we still need to see how the general election pans out in the UK, but I also think that anyone wanting to move abroad this year have already made up thier minds. Who ever gets into power in number 10 Downing St. will have to make huge cut backs to pay for the massive debts that the UK has.
Make your move soon, if the property sector does start moving it will only go one way from here.