In Bulgaria, you can no longer buy houses for cash

14.07.2011 06:40
Articles about real estate | In Bulgaria, you can no longer buy houses for cash Since July 1, Bulgaria can not buy a house for cash. The country's authorities instructed all the payments in the sale of real estate worth more than 5 thousand euro to pass through the bank.

Moreover, since Friday seller and the buyer under pain of criminal punishment must sign a document which confirms that the amount paid for the house, the documents specified in full.

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Bulgarian authorities have tightened regulations severely buy real estate in the country. Two fundamental changes. The first is from July 1, all real estate transactions at the cost of more than 10 thousand leva (about 5 thousand euro) must go through a bank. Transaction for cash, which is higher that amount, are outlawed.

The second change is that the parties will sign the deal a special declaration, which in jeopardy confirm that the amount transferred on the account, is the actual price of real estate. So lawmakers seeking to eliminate the widespread registration of real estate tax assessment, as reflected in the contracts the minimum price, and the remaining money to the buyer pays the seller "around the corner."

Corresponding changes deputies Bulgarian parliament adopted at the beginning of May. Then they refused to support a further amendment of the Government, which meant tightening liability for notaries public for the fact that the seller is the real owner of the property and no encumbrances.

Russian experts are split in assessments of how the new rule will affect the Russian buyers. For example, the CEO of the company "MIEL-DPM» Natalia Zavalishin assured EUROMAG, that most deals with the Russians in Bulgaria and had passed through the bank. "The amount of BGN 10 thousand - this is where some five thousand euros, quite enough to buy property in Bulgaria. I do not think it will change something in terms of payment for housing in Bulgaria "- she explained.

President of International Real Estate Agency Gordon Rock Stanislav Zingel takes a different view. However, he says, "the cash form of payment - this is not the desire to Russians, the buyer, and urged the Bulgarian builder." "For the Russians, because of the relatively low value of the Bulgarian real estate, there are no complications and risks to pay the full amount by bank transfer - from your checking account in a Russian bank. The desire of the Bulgarian developers to make a cash payment is understandable, "- he said the magazine EUROMAG.

Zingel confident that with the introduction of the new law will reduce the proportion of cash payments, but will not stop because of the parties there is always the possibility of "an oral agreement for payment of the amounts of cash to bypass the tax." "Although provided for this liability, there are enough developers who want a similar way to reduce their tax burden, and many buyers who would agree with this payment scheme. Otherwise, the developer can assign a price to be higher than if you pay cash. After taxes, depending on the value of the transaction amount for new housing up to 27% of its value, and for the second - up to 7%, "- said the expert.

However, he is confident that the new rules does not reduce the number of Russians wishing to buy property in Bulgaria. "This law is a downside - introduced legislative changes to improve market transparency, safety and security of Russian buyers in Bulgaria," - said Stanislav Zingel.

Natalia Zavalishin said that interest in Bulgaria is, and not small. "You could say that a little less than before the crisis began to budgets, but the buying activity is sufficient," - she explained.

Especially that real estate prices in the country plummeted. According to statistics, in the first quarter of this year, the housing market in Bulgaria was in sixth place in the world in terms of falling prices - the price of flats had lost about 6% of its value over the same period last year. Stronger prices declined only in Russia (14%), Ireland (12%), Dubai (8%), Ukraine (7%) and Greece (6.2%). But Russia's ambassador to Bulgaria said earlier that this year the number of Russians who have bought property in Bulgaria, will double from a year earlier.

Currently, the cost of housing in Sofia is 830-930 euros per square meter, down 9%. In Plovdiv property prices dropped by 8% and 7% in Varna.
Content tags: Overseas property Housing
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