Setting up a company in Bulgaria can seem a daunting prospect that can add confusion and worry to any Bulgarian land or property purchase.
It is therefore important to firstly know if you need to even partake in this activity.
Bulgarian law states that only a Bulgarian citizen or Bulgarian company can legally own land in Bulgaria.
This means that non-Bulgarian citizens (i.e. a citizen of any other country) cannot legally own land or property in Bulgaria.
However, there is nothing stopping a non-Bulgarian citizen owning a Bulgarian company.
Therefore overseas investors looking to buy land or property in Bulgaria can legally open a company in Bulgaria and then purchase the land or property through that Bulgaria company.
This is completely legal and above board and is done every single day by investors.
It is just a formality.
Company formation in Bulgaria is expected to be a necessity in owning Bulgarian land or property until 2014.
At this time Bulgaria will have to come into line with EU requirements meaning then that Bulgarian company formation will no longer be required.
Until then though it is likely you will need to open a Bulgarian company.
Opening a company in Bulgaria is required for land ownership or the owning of property on its own land or with land included.
That is to say that if you wish to purchase a property in Bulgaria that sits on its own plot of land then you will have to open a Bulgarian company.
However, if you are looking to purchase an apartment then Bulgarian company formation may not be required.
As most apartments do not come with their own land it is often possible to purchase and legally own an apartment in Bulgaria without having to set up a company in Bulgaria.
Opening a Bulgarian company is easy and very similar to here in the UK.
It can be done be an appointed agent to complete the legalities and therefore often just requires you to sign a few forms and the rest will be done on your behalf.
The only other requirement then would be to file a tax return each year which, again, can be done on your behalf.
As the Bulgarian company is only being used to 'hold' the land or property it is essentially not trading and therefore there is no tax to actually pay, it is again just the formality of filling a 'nil returns' tax return.
This can be done on your behalf at very minimal cost and with very little hassle.
Bulgarian company formation and Bulgarian tax returns can all sound very daunting and sometimes even puts off prospective buyers but it genuinely is a very simple affair.
It is all completely legal, approved and a simple formality.
The whole thing, as previously mentioned, requires nothing more than the signing of a few forms and that's it.
You do not require any knowledge or understanding of business or Bulgarian law to set up a company and byu a Bulgarian property.