Company Registration | Money Transfer | Property Insurance
Mortgages | Special Customer Care | Furnishing Packs
Becoming Director
At the moment Bulgarian law does not allow foreigners to own Bulgarian land. However, this is going to change in the next couple of years alongside with the through overhaul of the judicial system preceding the country's accession to the EU scheduled for 2007.
For the time being, for any Bulgarian property purchase it is necessary to establish a limited company that can own land in Bulgaria. Doing this, you will register yourself as a company director. Forming a limited company, through a solicitor is straightforward, taking about a month and costing about £ 600
Who and How can form a limited liability company (Ltd.)?
The person/persons (foreign or local) will be liable for the company's obligations to the value of his/hers share in the company's registered capital. Once you have chosen which property to buy, you will instruct a Preliminary Contract to be drawn up and pay a 10% deposit. Then the lawyer checks Title. You also set up a company which requires opening a bank account (small fee applies) with the deposit of 5000 BG Lev. It is required that at least 70% (3,500 leva) of the capital is raised at time of registration.
At the time of submission the following documents must be available to the court:
1. Articles of incorporation
2. Memorandum for appointment of Director/ Directors
3. Proof that each shareholder has paid at least one third of its interest, but not less than 10 leva
4. Proof that at least 70 per cent of the registered capital has been paid.
AllBulgarian legislation is published in the State Gazette - the official paper of Bulgarian State. So the publication of the company entry in the Commercial Register does not complete your company formation, it announces to the general public the act of formation.
The process of forming a company can take between few days and few weeks.
Finally, the new company need to register immediately with the National Tax Register Authority.
You can have confidence in the legal process. It's normal for the Lawyer to represent both sides, as in France, for example, and the lawyer is legally bound to be diligent. If there is the slightest irregularity in a property's paperwork, you will be advised accordingly. And it's worth nothing that owning through a limited liability company affords excellent legal protection.
How much does it coast?
The only charges that we make are for transfer fees. Moneycorp will charge you £15 per transfer (£4 for transfers made under a Regular Payment Plan). We do not charge for guidance and market information.
What is the minimum amount that I can transfer?
The minimum amount is usually £ 5,000 (or currency equivalent) but we have facilities within the TTT Moneycorp group to transfer smaller amounts. The minimum amount for transfer made under a Regular Payment Plan is £250 per month.
When can I trade with us with Moneycorp?
You can trade with us over the telephone once you have opened a Trading Facility. Our office hours are 7:30 am to 10:30 pm, Monday to Friday and 10:00 am to 4:00 pm, Saturday and Sunday.
How is Moneycorp regulated?
We are regulated by Her Majesty's Revenue and Customs and our Money Laundering Regulation Number is 12114128. The Company has been certified to ISO 9000 Quality Assurance since 1996. This entails a regular audit of all of our practices and procedures by external ISO inspectors.
How long do transfers take?
Depending on cut-off times, transfers to Europe and North America usually arrive on the same day and transfers to destinations further afield usually take two days.
When do I need to send my funds to Moneycorp?
Moneycorp will only require your funds once you have agreed and booked a contract. Our staff will inform you of when and how to transfer your funds and will explain everything to you to ensure that your transaction proceeds smoothly.
How much can I save?
This is dependent on the markets but a better rate of exchange will always save you money and the larger your transaction, the more money you will save.
Timing your transaction is crucial. As exchange rates can fluctuate by as much as 10% and more in relatively short space of time, you could save 10% or more.
What do I do now?
You will need a Trading Agreement, which you should complete and return to us in order to open a Trading Facility. If you do not have a Trading Agreement, or you require any further information, please call our team now on +44(0)1273 802292. Alternatively, you can email us at info@britishdevelopments.com. Our website (www.britishdevelopments.com) will provide you with further information regarding our services and will also allow you to keep up to date on the currency exchange rates that will affect the price of your overseas property.
With office hours of 7:30 am to 10:30 pm, Monday to Friday and 10:00am to 4:00pm, Saturday and Sunday, you can deal with us at a time that is convenient to you.
What is an insurance policy?
An insurance policy is a legally binding contract between an insurance company and the person who buys the policy, commonly called the "policyholder", who also is often the person insured.
In exchange for payment of a specified sum of money, called the "premium" , the insurance company agrees to pay for certain types of loss or damage as specified by the contract. When a loss occurs which meets all of the requirements described by the terms of an insurance policy, the loss is said to be "covered" by that policy.
What is an "insurable interest"?
A person has an "insurable interest" in something when loss or damage to it would cause that person to suffer a financial loss or certain other kinds of losses. For example, if the house you own is damaged by fire, the value of your house has been reduced, and whether you pay to have the house rebuilt or sell it at a reduced price, you have suffered a financial loss resulting from the fire. By contrast, if your neighbor's house, which you do not own, is damaged by fire, you may feel sympathy for your neighbor and you may be emotionally upset, but you have not suffered a financial loss from the fire. You have an insurable interest in your own house, but in this example you do not have an insurable interest in your neighbor's house.
A basic requirement for all types of insurance is the person who buys a policy must have an insurable interest in the subject of the insurance. You have an insurable interest in any property you own or which is in your possession.
For purposes of life insurance, everyone is considered to have an insurable interest in their own lives as well as the lives of their spouses and dependents. For property and casualty insurance, the insurable interest must exist both at the time the insurance is purchased and at the time a loss occurs. For life insurance, the insurable interest only needs to exist at the time the policy is purchased.
How does an insurance policy "protect" me?
Insurance policies offer protection against economic loss, that is, loss or damage which can be measured in purely financial terms and compensated by money. For example, an insurance policy can pay for the cost to repair or replace a damaged automobile or to rebuild a building damaged by fire, for the cost of medical treatment for an injury or illness or for the lost income of a person who dies or is unable to work. The purpose is to place the injured party, as nearly as possible, in the same financial position as if the loss had not occurred.
It is important to understand this limitation of insurance, since there are many types of losses which can not be compensated by money. For example, insurance can not replace a life or take away the emotional injury or pain which often accompanies an accident or serious illness or compensate for loss of the "sentimental" value of an item of property. When you buy homeowners property insurance, for example, you are insuring only the economic value of the home, i.e., the cost to repair or rebuild it.
Are there any government agencies that regulate how insurance companies operate?
Insurance companies in the United States are regulated primarily by the individual states. There is no federal regulatory agency that oversees insurance companies. The name of the insurance regulatory agency typically is "Department of Insurance", "Division of Insurance," " Insurance Bureau" or something similar. This agency is headed by a state government official usually called the "Commissioner of Insurance", " Director of Insurance", or a similar title. The Commissioner of Insurance is an elected official in some states and in other states is appointed by the Governor.
A primary function of each state's Department of Insurance is to assure that insurance companies operating in the state are financially sound, so that the company will have the financial ability to meet its obligations to pay claims. Insurance companies are required to meet certain financial requirements and are required to demonstrate periodically (at least annually) to a state's Department of Insurance that they continue to meet or exceed the minimum financial requirements in order to continue to conduct business in the state. The Department of Insurance can take various actions against an insurance company that fails to conduct its business in a financially sound manner, including action to cause the company to cease operation in the state.
Most states have laws regulating the conduct of insurance business to ensure fairness in the way companies deal with applicants for insurance and policyholders. One of the functions of a Department of Insurance is to enforce these so-called "unfair trade practices" and "unfair claims practices" laws by investigating complaints by consumers and taking action, when appropriate, to get companies to stop conduct that violates the laws and impose penalties for violations. Other duties of a Department of Insurance include reviewing and approving the policy forms used by insurance companies and approving rates charged for various types of insurance to assure compliance with state laws that regulate insurance rates.
What are "exclusions" and "limitations" and how do they affect my coverage?
An "exclusion" is a statement in an insurance policy which describes a condition or type of loss that is not covered by the policy. An exclusion is an exception to the general statement of coverage contained in the policy. For example, an auto liability policy typically states that it will pay damages for bodily injury or property damage for which an insured becomes legally responsible because of an auto accident. The same policy typically would have " exclusions" that provide, for example, that there is no coverage if the injury is caused intentionally or if the injury is caused by a person who uses an insured vehicle without permission.
A provision found in some policies which is similar to an exclusion is called a "limitation". A limitation also is an exception to the general statement of coverage but is applicable only under certain circumstances or for a specified period of time. For example, a health insurance policy often contains a "preexisting conditions" limitation, which states that the coverage does not apply to an illness or other medical condition that has been treated or diagnosed within a certain period of time (e.g. six months) prior to the beginning of the policy. However, after the policy has been in effect for a specified period of time (often six months to one year), the limitation will no longer apply and subsequent treatment for the preexisting illness or condition will be covered.
Since exclusions and limitations "take away" some of the coverage of the policy, the law requires that they be clearly written and very specific. In the event of a reasonable difference of opinion over how to interpret the meaning of an exclusion or limitation, a court generally will resolve the dispute in favor of the policyholder by adopting the narrowest or most restrictive interpretation.
What coverage do I get from a homeowners policy?
Homeowners insurance includes a broad package of both property and liability coverage, many of which cover activities away from and not in any way connected with your home. Homeowner's insurance pays for the repair or rebuilding of a house which is damaged by fire or numerous other causes, such as wind damage, freezing and vandalism, just to name a few. However, earthquake and flood, among other things, are not covered unless specifically provided and paid for. This type of policy also pays for replacement of the personal items inside your home if they are damaged by the same causes that damage the house or if they are stolen.
A Homeowner's policy also covers your legal liability which could arise if someone is injured on your property and also for certain types of actions which occur away from your property that could result in your being legally liable for damages (Homeowner's insurance will not cover liability that is normally covered by other types of policies, such as auto, professional liability or business insurance). Your Homeowner's liability insurance pays the damage for which you become liable, up to the dollar amount of liability coverage that you purchased. Without this type of liability insurance, all of your personal assets could be at risk if you are sued and found to be responsible for causing injury to someone or damage to another person's property.
If I own a house, am I required to buy homeowners insurance?
Unlike automobile insurance, there usually is no law that requires a homeowner to have insurance. However, if you borrow money to buy a house, the bank or loan company will take a "mortgage" or "deed of trust" to protect its interest until the loan is repaid. The mortgage or deed of trust will require that you have an adequate amount of insurance to cover the repair or rebuilding of the house in the event it is damaged. Normally you will be required to name the mortgage company as a "loss payee" on your policy, which means that if the house is damaged, the insurance payment will go to the loan company, or jointly to both you and the loan company, to assure that the money is used to rebuild or repair the house or, if you choose not to rebuild, to pay off the loan.
If I do not own property, but only rent a house or apartment, do I still have a need for insurance?
Even if you do not own the building where you live, it is likely you have valuable personal items which would be expensive to replace if they are stolen or damaged by fire or some other cause. Also, you still have potential legal liability to someone who is injured on property you occupy, even if you are not the property owner. A "Renters Policy" is essentially like a Homeowners Policy but without coverage for the buildings or structures. Because of this, Renters Policies usually cost far less than Homeowners Policies.
There usually are no legal or contractual requirements to have a Renters Policy, although it is possible that, by the terms of some leases, tenants may be required to have insurance to cover their liability exposure if someone is injured on the rented premises. Leases should be read very carefully to determine what insurance, if any, a tenant is required to have.
What happens if I injured myself at my friends house?
If your friends are homeowners, they probably have homeowners insurance to protect them if someone is injured on their property. If they are renters, they may have renters insurance, or some type of umbrella coverage, for the same reason. Also, if they are renters, the land owner probably has insurance coverage for claims filed on the property.
Should I have insurance on the building?
The homeowner should always carry fire and liability insurance on the building, even though the construction has not completed.
What kinds of insurance should I buy for my commercial building?
Property damage insurance will help protect your investment if your building is damaged or destroyed by fire or other causes. Public liability coverage will protect you if someone is hurt in the building and sues you.
But also consider rent interruption insurance to make sure you do not lose rental income while you are repairing damage caused by a fire or tornado.
Are there legal limitations on insurance company business practices?
State insurance laws impose many requirements and limitations on the way insurance companies conduct their marketing, underwriting (determining which policyholders or risks to accept or reject for coverage) and rate making activities. In some instances, these laws also limit an insurance company's ability to cancel or discontinue coverage once a policy has been issued. In general, there are many restrictions and limitations applicable to personal or " consumer" insurance, such as personal auto, homeowners and individual or small group health insurance. There usually are fewer restrictions applicable to business and commercial insurance. The specific requirements and limitations often vary a great deal from state to state.
Can I cancel my policy at any time and will there be a penalty?
As a general rule, a policyholder may elect to cancel an insurance policy at any time by giving notice to the insurance company. In some cases you may be required to return the original policy or sign a "policy release" , and of course you will be responsible for any premium earned through the date of cancellation.
How we can help you to finance your overseas home by using the Bulgarian property as security?
If you require finance to purchase your overseas Bulgaria property, then our Financial Services - Licensed Credit Broker (who have had over 20 years experience in the market) could assist. Using the Bulgarian property as security a Repayment mortgage could be raised, depending on individual requirements.
Based on the valutation or purchase price, whichever is the lower, of the Bulgarian residential property, UK & Irish Nationals (and non-UK Nationals on a case by case basis) can borrow up to 70% for purchases and re-mortgages for Home Improvements. Mortgages for other purposes may be considered - contact us for further information.
Please note, that if the property is an apartment being built, funds are not available until the completion and the apartment has been legally registered in your name. The same will also apply for a new house/villa, but in this case, if the land is already purchased and registered in the name of a Bulgarian Company (with you as legal owner of that Bulgarian Company), stage payments may then be available on a drawdown basis to construct the property - full details on request.
For all schemes there is a minimum loan of 25 000 EUR, no maximum, available in Euros only. The maximum term of the loan is 25 years - available up to age 70. Current interest rate as at 7th February 2005 is approx 7.00% in Euros.
At British Developments we want you to be absolutely delighted with your property in Bulgaria purchase, we want you to have the time of your life and we promise to do as much as we can, to make sure that happens. So when you buy or rent, we like to think you will come back again and recommend us to friends and family!
Insurance
For your total peace of mind we have arranged a special cover with Insurance Services for unoccupied and holiday homes.
Money transfer
Using a bank to make your currency transactions means accepting the exchange rate that they offer, which is likely to be uncompetitive. We offer you greater flexibility and a proactive managed approach to ensure you get the very best exchange rate. Transfering money from your UK account directly to your Bulgarian bank account.
- The most competitive exchange rates available, saving you money
- Friendly, expert staff to guide you
- No commission charges to use our services
- Secure company trading foreign currency since 1979, providing you with total peace of mind
Car hire
If you want to pack as much experience into your holiday as you can and can't bear the thought of having to spend more than a day at one place, then we have just the thing for you. You can pre-book your car with us and enjoy the opportunity to explore your destinations in Bulgaria, at your own pace.
Development
We can design change status of the land, renovate old properties, build to your specification and requirements. All our works include guarantee!
You may wish to discuss the options of how thefurnishing packs can be adapted to meet your needs prior to placing an order we would be happy to talk with you or answer your questions by e-mail.
Prices
There are likely to be slight differences up and down in the price due to individual variations with certain items:
- The size of the windows/doors and the quotes for the blinds
- The number of light fittings required
- The size of the kitchen (usually the standard is about 2.5mtr)
- What electrical equipment is required
- How many will be using the apartment
- The additional sheet outlines in detail what each of the packages comprises of.
- About 60% deposit from the value of the order is required to proceed an order. The balance - within 5 days after delivery.
- All prices include VAT and payment is made through SWIFT bank transfer.
- Orders are completed within 30 days approx from ordering.
- An Invoice and Assignment Contract will be sent upon receiving the order.
- Express orders are possible at about 25% extra, to be completed within 10 working days.
- Discounts are only possible for ordering in advance (5%), multiple units or returning clients (5%), volume (from 3 to 8%).
- Enquiries are processed within one working days.
to the top
