Mortgages & Legal, Taxation, Links
This page has technical information and links. Don't feel you have to read it all, it's here to help you if you want. Instead you can just ring us on +359 24001492 and let us explain it!
Mortgages - UK/Irish Investors
If you are a UK or Irish resident (or former resident who still has a bank account in UK or Ireland), you could obtain a mortgage secured on your new property at Garden of Eden Bulgaria from Piraeus Bank. They currently offer mortgages at a rate of 6.2% variable repayable over 5-25 years (but not on studio apartments). You can look at their information sheet here.
We advise that you arrange a pre-approval of your mortgage well before completion so that you can be confident you will qualify when the time comes, and to speed up the process as delay upon completion might be costly. You can view and complete a Piraeus Bank Bulgarian Mortgage Application Form here. Piraeus Bank London's International Mortgage Department can be contacted on +44 (0)20 79206022. Remember to mention that you heard through Eden Support so that they can deal with your enquiry most effectively.
Alternatively, you can take a mortgage, or second mortgage or remortgage, on your UK or Irish property. We are advised that if you are UK-based, then provided you structure the transaction properly, you will able to claim in the UK full tax relief on your interest costs against income on your Bulgarian (or other overseas) property.
Lawyers
You can find listings of Bulgarian lawyers through the Bulgarian Law Portal Lex.bg. The following highly reputable and professional lawyers with the relevant expertise have acted for clients purchasing in 'Garden of Eden', and have been recommended by them. The developer has no contractual relationship with these firms, they have never acted for it in any capacity. They would act for you on your behalf.
Grace & Co - English Solicitors with specialisation in overseas property - contact mail@graceandco.co.uk (UK) 0800 9172253
Borislav Boyanov & Co - Bulgarian lawyers, based in Sofia and suggested by the British Embassy - contact Nickolay Nickolov (+359 2) 981 3007
Taxation
As Bulgaria aligns its tax system with EU practice, taxation rules are changing annually and sometimes more frequently. The following links may be helpful, but for definitive advice you should seek professional assistance:
- Bulgaria Taxes - from www.worldwide-tax.com
- Blevins Franks tax information - including inheritance tax (which is not covered by the UK-Bulgaria or Ireland-Bulgaria Double Tax Treaties)
- UK-Bulgaria Double Tax Treaty
- Ireland-Bulgaria Double Tax Treaty (Convention)
Other
- InvestBulgaria Government Agency - information about Bulgaria's macroeconomic position, tax and law
- The British Embassy, Sofia
- The Irish Consulate, Sofia
- Bulgarian-English phrase translation: InterTran
- Bulgarian-English word translation: Ectaco
- Genesis Chapter 2 - The Original Garden of Eden... (King James Version)
Please let us know if any of these links are broken by contacting support.
Property Bulgaria Real Estate - Houses for sale in Bulgaria
At present foreigners can buy buildings, the right to build and other land related rights such as the right of use & passage but cannot buy land (until the year 2014, when this rule will change). However foreigners can acquire property (except land) - which is all that is required for 'Garden of Eden'. Under Bulgarian law, you will also have a right to use the land (in proportion to your ownership of the building on which it stands) so the lack of outright ownership of the land is a fairly academic point.
Foreigners can even now acquire land by setting up a Bulgarian registered company. If you are thinking of buying a number of apartments this might be worth considering, as the taxation treatment in Bulgaria may well be more favourable than in your home country (Bulgarian corporate tax for 2005 is 15%) - but you should take professional advice.
In legal-speak: According to the Bulgarian law, embodied in the Constitution of the Republic of Bulgaria, the Property Act and the Foreign Investments Act, foreign physical and also juridical persons such as companies cannot acquire the ownership of land in the country. However, they are permitted to acquire the ownership of houses or flats and limited ownership rights with regard to every kind of immovable property situated in Bulgaria. Under the category of 'limited ownership' Bulgarian law includes the rights of use (usus), the right to build a house on a piece of land (superficie) and the servitudes (e.g. the right of access to the street through another person's piece of land). An old limitation on purchases by foreign persons of property within 'border areas' was removed in May 2004.