Bulgaria Mortgage Fees

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Bulgarian Mortgage Fees

Check what legal costs and government taxes you are liable for before committing yourself. Bulgarian lenders fees are usually around 1% of the mortgage amount. The bank legal costs are around 1.2% of the loan amount, usually with a maximum of €1000. If you do use your own solicitor you are also liable for the banks legal costs. You may however choose to use the solicitor appointed by the bank in joint representation against a flat fee of €2000.

As elsewhere in Europe, the transfer is the subject of Notary and Municipal (Local Authority/Stamp Duty) fees. These fees total approximately 2.4% of the value of the transaction and are paid to the municipality in which the property is located.

Typically, owning property in Bulgaria has the added benefit of significantly lower running costs, compared to those in other European countries. The owner of a property is obliged to pay an annual property tax of 0.15% of the declared value of the property (compare that to your UK council tax!!). Amazingly, this property tax also covers all waste-collection fees for your property!

If your property is a part of a residential complex the owner will normally pay a contribution to the Housing Association of about 350 Euro per year - this provides for 24 hour security, cleaning, swimming pool, lighting and maintenance, etc.

All foreign buyers purchasing real estate property must be aware that in Bulgaria there are such terms as "Government Tax Estimation Price" and "Purchase Price". The "tax estimation price" is for the purposes of real estate taxation and is often calculated by the municipality lower than the actual selling (purchase) price. Bulgarian property vendors will wish for the "Tax Estimation Price" be written into the title deed, and not the actual price which the buyer has agreed to pay. As a result of this common practice there may well appear to be discrepancies between the price written in the title deed and the actual cash consideration paid by our Clients. If our Clients wish that the purchase price to be written in the property title deed they must notify us in advance and we will attempt to negotiate with the vendor of the property on your behalf.