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Religion?
87% of the country's inhabitants follow the Bulgarian Orthodox religion. The remainder are Muslims, and there are a small number of Catholic and Christian sects. |
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Can I get a Bulgarian mortgage?
Yes there are a number of companies providing mortgages now but the interest rates are still higher than here in the UK as mortgages are in their infancy in Bulgaria. Rates are beginning to lower but vary between 5.95% to as high as 10%. Typically the loan amount is 70% maximum. The rates should drop now they are part of the EU however the administration is slow and some say laborious in its processing. If financing in the UK is an option for you then it is still cheaper and better to do so. |
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Do new buildings come with a guarantee?
There is a 1 year fixture and fittings guarantee with the developer and also a 10 year guarantee for structural work only and is from the Bulgarian National Buildings Standards Agency which is similar to the NHBC in the UK. They sign and certify the construction to get the final certificate Article 16. |
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If a claim is needed?
Any claim would need to be to the Bulgarian National Building Standards Agency, and not the developer. |
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How much is Capital Gains tax?
15% for property held up to 5 years. 0% thereafter. |
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And bringing funds back into the UK?
The UK and Bulgaria have a double tax treaty, so the 15% deducted in Bulgaria offset your income tax liability in the UK. |
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What is Transfer Tax?
2% of the market value of the property is paid to the municipality where the property is located. The notary fees are paid at completion paid on the higher of the market price, or the book rate as specified in a special chart. |
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What is the annual property tax?
The property tax is paid annually based on 0.15% of the property value. |
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Is Value Added Tax included?
All real estate transactions are subject to VAT at the uniform rate of 20% however prices shown are nearly always inclusive of tax. |
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Is the cost of living cheap in Bulgaria?
Yes food and drink are much cheaper than in the UK by as much as two thirds less depending where you are.
Transport by bus and train is incredibly cheap and better for long distances as by car travel the roads can be in poor condition and there is a lot of bare knuckle overtaking by drivers! |
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Home Insurance?
House insurance including liability cover for people renting is cheap at around £120 a year. |
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