Bulgarian mortgages can have a term up to 35 years depending on lender, but have a maximum age of 70 by which the mortgage must be repaid.

Mortgages for non-residents are in euro. Bulgaria is a full EEC member.

Depending on the lender used the maximum Loan to Value available is:

• Houses:  85%, (Sofia, Plovdiv, Varna, Bourgas, Rousse, Pleven, Stara Zagora, Veliko Tarnovo, & Blagoevgrad only)
  80%. Elsewhere  except the above towns.
• Flats 60%
• Land 60%   (Development Land)

Repayment and Interest Only mortgages are available, with fixed rates and variable rates. APR is between 8-9%, although low start mortgages are available.

As well as mortgages both bridging loans and staged construction loans are available.

Bulgarian lenders fees are usually around 1% of the mortgage amount.

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.

Non-residents must be aware that in Bulgaria they have a "Government Tax Estimation Price" which is similar to our ratable value and "Purchase Price". The "tax estimation price" is for the purposes of real estate taxation and is calculated by the municipality. It is often 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.

When obtaining a non-resident mortgage in Bulgaria, it is required by law for the banks to have a correspondence address of a legal entity within the country.

For the purchase of land according to the Bulgarian Law of Trade, a non Bulgarian purchaser has to set up a company. The process is easy, takes from 5 to 20 days and costs €500 which includes the payment of the notary fees, stamp duty, and some other taxes. Required starting capital fund for the company is minimum €2550 which is 100% refundable after the registration of the company is completed. Once you have a registered company, the company is allowed to own as many properties as you wish.