Buyers Guide

>Why choose Explorer Properties
>Agency fee
>Buying a property
>Buying a property with land
>Fees for buying a house in Bulgaria
>Purchase example

Why choose Explorer Properties?

Explorer Properties are overseas property specialists.

Buying property abroad can be a scarey and stressful process. Our staff and our legal and financial advisors will guide you through the buying process to make it as pleasant and as straightforward as possible.

Bulgaria has become one of the hottest spots for real estate investment in recent years. We endeavour to provide you with the highest level of service necessary for you to obtain, manage and eventually resell your property.

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Agency fee

Our fees are all pre-arranged at the time of advertising.

Unlike many other agencies our fees are not added to the sale price.This enables us to offer a final purchase price which includes the legal and other ancillary fees.

There are no hidden or unexpected costs; the price you see is the price you pay.

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Buying a property

Laws and regulations concerning property vary from country to country. We will try to explain the main differences below:

"Taxation estimated price'"

This is usually much lower than the actual market price and is used to calculate the stamp duty and taxes payable on your property.

It is estimated by the local taxation office using obsolete statistical data. It is Bulgaria's version of our "Council Tax".

Although the "Taxation estimated price" does not necessarily reflect the current market value it is regarded as reflecting comparative "estimated" values for the market as a whole. As a result properties in Bulgaria are usually under-valued by the authorities.

The good news is that the "taxation estimated price" is included on the title deeds instead of the purchase price meaning that there will be less tax to pay on the property.

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Buying a property with land

Foreign nationals are not allowed to personally own land in Bulgaria.

The constitution of the country has recently been changed and this restriction will be abolished for citizens of the EU in 2014.

In the meantime this obstacle is easily overcome. Foreign nationals are allowed to set up a limited company that can acquire the property.

Over 30,000 British families have already bought houses this way.

The cost of setting up a Limited company with all the necessary government offices and making sure that there are no legal issues associated with the property, paying notary fees and getting the new title deed issued in your name is 600 Euros and is included in the purchase price.

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Fees for buying a house in Bulgaria

We do not charge agency fees.

Our fees are pre-negotiated with the seller. The price you see is the price you pay but there are some standard charges purchase a property there are some additional standard charges that you should be aware of:

>Limited company formation: 600 Euros.
>Limited company formation Capital: 2,500 EUROS (this amount can be withdrawn once the purchase has been completed).
>Municipal tax: 2% of the taxation estimated price (payable upon completion).
>Annual property tax: 0.15% of the taxation estimated value.

It is important to note that there is no Capital Gains tax to pay when you eventually sell the property.

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Purchase example

House and Land costing 20,000GBP

After signing the "Commission" contract and "Power of Attorney" at our offices in London you will be asked to pay a security deposit of 10% of the purchase price or 2,000 GBP whichever is lower.

Our solicitors will prepare a document for you to sign in front of a Bulgarian Notary which registers your land owning Bulgarian Limited company. The property is then registered at the Tax Office and Land Registry.

Upon completion you will receive all papers relating to the property and the company.

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