Ok, Jain

I can say all you have written is maybe true and you have your right to do it

But I just want to say, that many British came here with absolutely no idea, and the good thing is just less than 5 % had some problems from this matter

We as a real estate company sold many properties to British people in the past (nowadays is something different) and as we are part of one of the biggest real estate companies in the world, we do not have a single person to complain for this tax estimation price at all!

So you can urge them to run away, but all of them preferred to pay les tax instead of pay full DDs and more tax on top.

To conclude, this is just my opinion, of course you are right to look for your truth.

Hi Runchev, yes what I have written is true.

I think that those British or other foreigners who bought with an under-declared price were in the main told that it was normal practice and told they would save tax but never really asked or questioned this - nor did the agent supply full details on what would happen to them when they came to resell. Some gave power of attorney to the agent and did not find out about the lower price in the deeds until it was too late - being far too trusting. They now find themselves in a horrid capital gains tax situation.

I can't imagine anyone buying a property, if they had been told that they could save 50 pounds tax now but would be liable for maybe 5,000 pounds tax later when they come to sell, would have gone ahead. The problem is that the agents did not explain this - and, fair enough, the buyers did not question this purported 'tax saving' either.

Apart from that, there are also the legalities of the situation - with potentially a void contract, a claim from the state for avoiding tax, etc......

Plus, in many instances it was the agent pocketing the cash or the developer avoiding VAT - and it is the buyer left with the tax situation.

Whilst you say that less than 5% have this problem, we have a person on here talking about it right now, we also have heard from hundreds of readers in this situation; the lawyers who write for the magazine too have hundreds of readers complaining of this problem.

Yes, maybe the foreigners came here with, in your own words, "no idea" but that is no excuse to misinform them.

All the best,

__________________
Jain Goodall, Director, Quest Bulgaria Magazine

Independent advice and information for owning and buying property in Bulgaria
http://www.questbulgaria.com

I have read with horror how so many people have been ripped off due to lack of advise,or bad advise when buying in Bulgaria.I am interested in buying in Bulgaria in the near future and would like to know what is the normal practise (legally)when purchasing.
Are there different laws for purchasing land,off-plan ,or ready built proeprties,rules and regulations to renovate ?
Appreciated
Dotty

To the original poster - I think there is little you can do about the price on the notary deed. You will just have to take an accountant's advice as to how to minimise tax on resale at the time of resale.

As for taking the agent to court - do not bother. The court system here is slow, expensive and in most cases corrupt. It will take you years or stress, money and in the end you will likely get nowhere. Believe me I have been going through the legal system now for 2 years to get back the money I was done out of. Still ongoing and their lawyer as tried every dirty trick in the book - launching a criminal case against me for defamation, demanding money from me for various things, the original builder/agent has never once turned up to court and has ignored all legal appeals.

Notary Deed Price - yes it is common practice to put a lower price on but people should have it explained to them the consequences of doing this. I inform clients of the different between the 2, what tax consequences might me and so on, then they can make a decision. Some that are coming to live here decide on the lower price, those that are buying to resell and are in the UK, want the proper price.....

To Dotty - Your question is very wide but basically if buying an apartment you do not need a company to be formed, for land and houses you do. Apart from that procedure for buying more or less the same apart from if buying an off plan property payment s are staged to coincide with development progress, if buying a house say, then you pay deposit on agreeing purchase and signing contract and rest on completion, similar to UK.

Most problems stem from new builds and off plan developments, not older house purchases. But in any case you should ensure a lawyer checks paperwork. If I can help in any way please get in touch.

Rachel

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Bulgarian property for sale from just 4,000 Euros. Renovations, relocation, furnishing and free advice. Visit http://www.thetravelbug.org

Village houses to rent from 50E/mth - http://www.therentalbug.com

Hi Dotty

I wouldn't be put off by these horror stories; when you think of how many tens of thousands of people have bought in Bulgaria then this is a very very tiny percentage of people. Things have also improved significantly over the last few years.

The best thing is to do your research - you can never do enough - especially look for independent advice!

Rachel has covered the rough principles of purchasing off plan or existing property. Don't forget to get yourself an independent lawyer when buying - someone who will act in your interests alone.

The normal practice legally when purchasing is to put the full price in the deeds if that is what you are asking?

Naturally there are rules and regs for renovations as there are in any country and again you should take professional independent advice about these.

Any ideas what you might be looking for or what area you might prefer?

Please do ask as many questions as you need.

All the best
Jain and Chris

__________________
Jain Goodall, Director, Quest Bulgaria Magazine

Independent advice and information for owning and buying property in Bulgaria
http://www.questbulgaria.com

Hi Roythepower
Firstly you must appoint a bulgarian solicitor try tapping in new balkan law society and follow the links.I will speak to my bulgarian lawyer and ask them if they are currently taking on new buisness my mobil if you want a chat is 07831417567.
pete

Hello Roythepower

I understand that the law firm I gave to you has responded to your email today.

I also understand that, as they believe you are a Quest Bulgaria Magazine subscriber, they will undertake the preliminary investigation of all your documentation free of charge - you are very very lucky, as they are one of the most honest and best law firms in Sofia, totally dedicated to eradicating this kind of underhand practice which you have been victim to. I think your email may have lead them to believe you are one of our subs?

I just want to point out to everyone on this board that this kind of free service - both online via our site and privately - is actually only available to our subscribers.

I have not informed them that you are not actually a subscriber of ours in this instance as I believe this is a total misunderstanding. However, if anyone else wants this law firm to take on free work then I have told them you will submit to them your unique Quest Bulgaria reader number in order that they will do so.

I am sure you will get excellent advice and wish you all the very best in sorting this out

__________________
Jain Goodall, Director, Quest Bulgaria Magazine

Independent advice and information for owning and buying property in Bulgaria
http://www.questbulgaria.com

Jain,

Thank you so much for putting me in touch with your lawyers. She is willing to look over my contracts so fingers crossed that I will get a good resultand all thanks to Quest Bulgaria who were the only people who put me in touch with proper professional legal advice; well worth the subs and really helpful!"

hello jain first of all i have not got in touch with the solicitors that you told me about. I do not know who has but they are getting some benefit which should been mine. I too had heard about the 5 year rule but what i heard was that the british government had a treaty with Eastern European countries that if anyone invests for 5 years in eastern European, that the country invested in would not charge the investor capital gains tax and because of the treaty britain would not either. I have just got involved with another eastern europe property in slovakia because i was told this by a tax expert. I dearly hope this is correct

I am going to Bansko on friday, coming back on monday, JUST TO CHANGE THE LOCK, what a waste of time. I no longer feel safe in that country. Like i said i had heard about the 5 year invest pay no tax dodge and i thought it was true.