Arranging your non-resident mortgage in Bulgaria

The Bulgarian property market is relatively new to the international real estate horizon and offers some oncredible investment opportunities. Prior to joining the EU in 2007 Bulgarian property prices were rising by approx. 20-30% each year.

Full status mortgages are based on affordability. All your exisiting liabilities, including any rent/mortgage payments, loands, credit card payments, etc., in addition to your proposed Bulgarian mortgage repayments cannot exceed 40% of your net monthly income.

In some cases s percentage of the achievable rental income may also be allowed. It is, however, not always the case that the lender will takes any or all of these sources of income into account when calculating the maximum available loan.

To obtain a Bulgarian mortgage you will need, as a minimum requirement, proof of income when you make your application. The following will be required:

In most cases buying property in Bulgaria will mean that an overseas property buyer will need to set up a limited company. The only exception to this is when the buyer purchases a leasehold property (such as an apartment). This is because the buyer of the leasehold does not own the land and therefore there is no need to set up a Bulgarian registered company.

How to set up a Bulgarian company

It has become such a normal process to set up a limited company in Bulgaria that it is now relatively easy. Many Bulgarian estate agents offer this service. The cost of this service is likely to vary from agent to agent.

It may be beneficial to set up a Bulgarian Company prior to negotiating a propery purchase as your ability to proceed will then be enhanced, putting you at an advantage when agreeing the price and terms. Having a Company ready can put you in an excellent position as you are ready to buy. It demonstrates to the seller that you are a serious buyer who can buy a Bulgarian home without beaurocratic delay.

Your ownership rights are the same as if you bought the property as an individual. Whoever owns the company also owns the land.

These rules may change in 2007 after Bulgaria joins the European Union

You can contact agents able to assist with your property purchase by completing this form

Think carefully before securing other debts against your home. Your home or foreign property may be repossessed if you do not keep up repayments on your mortgage.