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Learn more about the manager resignation of Bulgarian company. What are the process, timeframe and the requirements to resign from being a manager?

Manager resignation. Resign from being manager.

View the full story here: https://innovires.com/manager-resignation-resign-being-manager/

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Learn more about the share transfer and stock transfer of a Bulgarian LTD and JSC companies. What are the process, timeframe and the requirements?

Share transfer. Stock transfer - Bulgaria

View the full story here: https://innovires.com/share-transfer-stock-transfer-bulgaria/

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Learn more about the ownership change of a Bulgarian company. What are the process, timeframe and the requirements?

Ownership change

View the full story here: https://innovires.com/ownership-change/

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Learn more about the insolvency procedure in Bulgaria – when the procedure applies and what are the stages.

Insolvency procedure

View the full story here: https://innovires.com/insolvency-procedure/

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Learn what are the requirements, steps, and timeframe when it comes to a liquidation of a Bulgarian company. Check when the procedure applies.

Liquidation of a Bulgarian company

View the full story here: https://innovires.com/liquidation-of-a-bulgarian-company/

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Learn what are the requirements to transfer company shares of a Bulgarian LTD and what are the recent changes in the law.

Transfer of company shares in Bulgaria. What is new ?

View the full story here: https://innovires.com/transfer-company-shares-bulgaria-new-regulation/

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Company Opening in Bulgaria Video

Hello! For the new year, we want you to be prepared for seeing new opportunities and really saving some taxes. See here a video overview of the whole company incorporation and business creation process in Bulgaria: https://youtu.be/Exd6mECsvFo

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Innovires Legal wishes you a Merry Christmas and Happy New Year!

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Renting a property

New Post has been published on https://innovires.com/renting-a-property/

Renting a property

The main stages of renting a property in Bulgaria are the following:

Finding Property

Most often, though not necessarily, assistance in finding a suitable property is provided by real estate agencies. Commissions for the services rendered on the transaction should be paid to the respective agency. The amount of the commission is negotiated between the agency and the client and usually, it is 50% from the first rent payment.

No matter whether you are going to buy or rent a property, we highly recommend a full property check. Numerous lessees are now experiencing problems with the property that they rented because they did not seek independent legal advice and instead used lawyers which were recommended by the estate agent or developer and in some cases were acting for both parties. Always appoint a lawyer who is experienced in property conveyance and fully independent of anyone else involved in the transaction, incl. the estate agent or the landlord.

Rental Contract

With the conclusion of a rental agreement according to Bulgarian law, the lessor obligates himself to provide a property to the lessee for temporary use, and the lessee undertakes to pay him a certain price.

The rules regarding lease agreements are enshrined in the law of obligations and contracts, in Articles 228 to 239.

Unless otherwise agreed, the lessor is bound to hand over the property in a state which is appropriate to the use it has been leased for and maintain this state for the duration of the contract. If the leased object was not handed over in a proper condition, the lessee may claim its repair or a proportionate reduction in lease price or may cancel the contract of lease. In all cases, he is entitled to claim damages.

According to Bulgarian law, the lease agreement may not be signed for a period longer than 10 years, unless it is a commercial transaction.

If the contract is made for a longer period it has validity for only ten years.

What is very important to check in the rental contract before signing is:

What exactly are your obligations and what is the default for non-performance?

How is the payment method determined?

How can you terminate the contract?

Is there a clause for automatically renew?

We can assist you with:

Complete property check up

Assistance with finding the desired property

Drafting and revising the renting contract

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In case you need additional support and information, do not hesitate to contact us.

Desislava Dimitrova

Why us.

    

Legal issues can very easily get in the way of running a business. Having to take time out of a busy schedule to address these situations can take attention away from important issues at hand. Experienced business law attorneys can help to minimize these distractions and let business owners to concentrate on what they do best: run their businesses.

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Property as investment

New Post has been published on https://innovires.com/property-as-investment/

Property as investment

Properies in Bulgaria are also considered as good investment.

Bulgaria real estate market is pointed as highly dynamic. With an average of 41% growth in sales and 18% rental growth, the luxury property market is dynamically marking the first half of 2017, according to latest statistics. Up to November 2017, the increase in the prices of the properties in the capital – Sofia from the beginning of the year is approximately 14%. Another 10% is expected in 2018.

On the other hand, through acquiring a property in Bulgaria every non-eu citizen could obtain a permanent residency and long-term visas. The regular scheme is to obtain visa D, which is a 3-month single entry visa for Bulgaria and when they arrive here, they apply for an extension of this visa into a 1-year multiple entry visa. After that, they continue to extend the visa.

In case you need additional support and information, do not hesitate to contact us.

Desislava Dimitrova

Why us.

    

Legal issues can very easily get in the way of running a business. Having to take time out of a busy schedule to address these situations can take attention away from important issues at hand. Experienced business law attorneys can help to minimize these distractions and let business owners to concentrate on what they do best: run their businesses.

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Preliminary contract

New Post has been published on https://innovires.com/preliminary-contract/

Preliminary contract

Ahe purchase of a real estate in Bulgaria in general consists of two phases:

The first one is the signing of a preliminary contract. The preliminary contract according to the Bulgarian law is a promise for selling the real estate and it includes all the details of the future deal, a term in which the property must be sold, terms to finish the construction in case the property is in process of construction, etc. Usually, the preliminary agreement is signed when the property is not ready to be sold and the parties agree on the terms of the future purchase deal.

The second one is transferring the ownership of the property with a notary deed.

In both cases before signing each if the two of the contracts, a complete due diligence of the property shall be made. Learn more here.

The essential and main difference between the two contracts occurs in the legal effect of each contract.

The preliminary contract is concluded in written form. It is not obligatory but sometimes the parties want their signatures to be notarized. The preliminary contract in compliance with the Obligations and Contracts Act shall contain provisions concerning the essential terms of the final contract as the exact description of the property, the price, as well as term for conclusion of the final contract, have to be included. The preliminary contract for purchasing of a real estate is considered valid only in case the real estate is individualized in details.

In most of the cases, the signing of the preliminary contract leads to paying a part of the purchase price for the property which after that is deducted from the final price.

In case the seller does not fulfill his obligation to transfer the real estate with a notary deed, the purchaser signed a preliminary contract has two options:

to claim the double refund of the paid amount on the ground of the preliminary contract;

to ask the court to announce the preliminary contract as a final contract and to transfer the ownership. The ruling of the court serves as a final contract and shall contain the essential provisions of the preliminary contract.

If both sides are acting with a good will, the procedure ends with a notary deed and transfer of the ownership. It is a common practice and it is highly recommendable that the seller presents a certificate for encumbrances for the real estate – mortgages, distrains, registered claims, justified right of use etc. – by the day of the signing of the notary deed.

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Contact us if you need additional information or need of legal assistance during the process of buying a property in Bulgaria.

Desislava Dimitrova

Why us.

    

Legal issues can very easily get in the way of running a business. Having to take time out of a busy schedule to address these situations can take attention away from important issues at hand. Experienced business law attorneys can help to minimize these distractions and let business owners to concentrate on what they do best: run their businesses.

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Real estate

New Post has been published on https://innovires.com/real-estate/

Real estate



Buying and selling

  

Renting

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Preliminary contract

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Property due diligence

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Properties as investment

  A main focus of our expertise is providing a full range of services to foreign and local clients regarding real estate transactions, incl. buying, selling, renting, making due diligence or investing.

We offer a complete legal assistance includes full representation – from the stage of searching a property to the stage of the negotiations and to preliminary sale agreements preparation up to the finalization of the notary deeds for property acquisition and the closing up of the administrative procedures for registration of the acquired property for tax and statistical purposes.

At Innovires, we know that real estate transactions in Bulgaria can be complicated and confusing. We assist clients to address a wide range of concerns, including:

Buying, selling or renting a property in Bulgaria

Providing professional legal advice and support in preparation of all kinds of documents related to real estate transactions

Assistance with choosing an appropriate real estate upon preliminary set criteria

Complete due diligence process (obligatory in Bulgaria!)

Tax planning

Consultations regarding property acquisition, management, and disposition

Negotiations and representation

Assistance for obtaining a bank loan or giving a mortgage

Assistance of changing the status of real estate

Our lawyers have wide experience in the area of legal representation and court claims connected with construction defects of real properties in Bulgaria, contractor disputes, landlord and tenant disputes.

Our experience

Innovires represented and advised locals as well as foreigners from almost all EU countries, USA, Middle East and Africa. We worked locally in Sofia and in the same time in all the regions of Bulgaria, incl. the famous ski-resorts Bansko, Borovets and Pamporovo, as well as beach resorts – Sunny Beach, Sozopol, Varna, Balchik and Golden Sands.

Why Bulgaria

Real estate market

No restrictions

Bulgaria economy

Low interest rates

Rental returns increase

Taxes

Bulgaria real estate market is pointed as highly dynamic. With an average of 41% growth in sales and 18% rental growth, the luxury property market is dynamically marking the first half of 2017, according to latest statistics. Up to November 2017, the increase in the prices of the properties in the capital – Sofia from the beginning of the year is approximately 14%. Another 10% is expected in 2018.

European Union citizens can now purchase properties in Bulgaria, including land.  The 5-year moratorium on land purchases, set as a condition in the Accession Treaty between Republic of Bulgaria and The European Union, was lifted on January 1, 2014.

EU citizens and legal person are allowed to buy houses with gardens and regulated plots of land in Bulgaria on their own names.

When it comes to Non-EU citizens, they can also buy houses and regulated plots but through a Bulgarian company. The incorporation takes 3-5 working days. Learn more here.

Bulgaria’s economy expanded by 2.9% in 2017, an improvement from annual growth rates in 2016 and 2015, mainly due to higher net exports and public investment, according to the International Monetary Fund (IMF). The economy is expected to expand by another 3% in 2018, according to the IMF. Bulgaria is in top 3 countries in EU when it comes to economy increase.

Interest rates in Bulgaria continue to decline. The average mortgage interest rate for BGN-denominate loans fell to a record low of 4.3% in 2017, from 6.34% in November 2014, according to the Bulgarian National Bank.

Sofia has moderate to good gross rental yields – i.e., the rental return on a property if fully rented out, before all expenses.  Yields in the center were around 6.76% in 2017, up from about 4.7% to 5.7% in the same period last year, based on recent Global Property Guide research. Yields in the suburbs are also moderately good, ranging between 5% and 6.5% over the same period.

Bulgaria has one of the lowest tax burdens in the whole EU and this applies also when it comes to real estate.

Real estate annual tax – 0.01%- 0.45% Transfer tax – 0.1%- 3.0%

The rate is set by each municipality according to the location of the real estate. The taxable base can be the market price, specifically determined tax value or the gross book value. Keep in mind that there is no tax for agricultural land and forests.

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Company registrationIP LawBusiness LawReal estateBank account openingDebt recoveryOther

Desislava Dimitrova

Why us.

    

Legal issues can very easily get in the way of running a business. Having to take time out of a busy schedule to address these situations can take attention away from important issues at hand. Experienced business law attorneys can help to minimize these distractions and let business owners to concentrate on what they do best: run their businesses.

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Learn more about tax highlights in Bulgaria – lowest corporate tax and personal income tax In EU, Value added tax, other taxes, duties, and fees.

Tax highlights in Bulgaria

View the full story here: https://innovires.com/tax-highlights-in-bulgaria/

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Learn more about tax highlights in Bulgaria – corporate tax, personal income tax, Value added tax, other taxes, duties, and fees.

Tax highlights in Bulgaria

View the full story here: https://innovires.com/tax-highlights-in-bulgaria/

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Learn more about bank account opening in Bulgaria for a foreign entity – EU and NON-EU (offshore).

Bank account opening in Bulgaria for a foreign entity

View the full story here: https://innovires.com/bank-account-opening-in-bulgaria-for-a-foreign-entity/

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How about running a business remotely in low tax country within the EU? Only 10% tax. Have you thought of doing business in Bulgaria fully remotely?

Doing business in Bulgaria fully remotely

View the full story here: https://innovires.com/doing-business-bulgaria-fully-remotely/

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Bulgaria is considered as one of the most favorable countries in Europe to invest. See why in 10 interesting facts.

Why choose Bulgaria to invest

View the full story here: https://innovires.com/why-choose-bulgaria-to-invest/