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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!
|
Lender |
Max
Loan |
Rate |
Bank
Fee |
Max Term |
Interest |
Redemption |
Currency |
|
Piraeus
Bank |
80% |
5.99% |
1%
- 1.5% |
20 years |
6 Months |
3% Yr 1 |
BGN |
| |
|
|
|
|
|
2% Yr 2 |
USD |
| |
|
|
|
|
|
1% Yr 3 |
Euro |
|
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.
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