SUCCESSION OF IMMOVABLE PROPERTY
Purchasing of land or other immovable property (building, apartment, limited property right) in Bulgaria by foreign citizens is treated mainly by the private law particularly by the Property Law but as there is an international element the Private International Law Code (PILC) (Promulgated, State Gazette No. 42/17.05.2005, amended, SG No. 59/20.07.2007, effective 1.03.2008) shall be applicable. (See Article 1. (1) 2. of the PILC “The provisions of this Code shall govern the law applicable to relationships at private law with an international element...”
In respect of the succession relationships according to the Private International Law Code, Art.89 “Succession to immovable property shall be governed by the law of the State in which the said property is situated.” So, if a foreigner acquires an immovable property in Bulgaria, by law the Bulgarian legislation shall govern the succession relationships including:
1. the time and place of opening of the succession;
2. the range and precedence of the heirs, devisees and legatees;
3. the respective shares of the heirs, devisees and legatees;
4. the capacity to inherit;
5. the assumption of the obligations of the deceased and the apportionment of the said obligations among the heirs, devisees and legatees;
6. the acceptance and renunciation of succession;
7. the time limits for acceptance of the succession;
8. the disposable part of the estate;
9. the conditions for material validity of the will.
It is the same if the person decide to dispose of the property thereof by means of a will – the relations shall be governed by the law applicable according to Article 89 herein. If it is the case, a separate will regarding the immovable property in Bulgaria shall be prepared which shall be suordinated under the BG legislation (making and revocation).
Here it is important to be noted that according to the BG Succession Act the will could be handmade or made before the Notary who shall keep the will till the death of the antecessor. Having said that, it follows that if a will of a foreigner shall be treated by the BG legislation, it shall be handmade by the antecessor or should be made before the Bulgarian Notary who shall keep the will so that the form of the will required by law to be valid.
On the other hand, according to Article 90. (2) “A will shall be formally valid if it conforms to the law of the State:
1. in which it was made, or
2. of which the testator was a national at the time of making the will or upon death, or
3. in which the testator was habitually resident at the time of making the will or upon death, or
4. in which the immovable property subject to the will is situated.”
The hypothesis are numerated alternatively. If the first three hypothesis are met, it is most likely other requirements regarding the form of the will to be in force. If it is the case, the following question comes into being: How the form of the will will be observed in accordance with the requirements of the Bulgarian Succession Act which shall apply and if the Bulgarian Notary must know the requirements of each state of which the antecessor could be national? There is almost no practice in respect of the succession relationships with an international elements where the Bulgarian legilsation in force shall apply and the recognizing of foreign wills is almost unknown.
But, it could be an exception of the law of the state where the immovable property is situated: “The antecessor may designate the law of the State of which the said antecessor was a national at the time of the designation to govern the succession to the whole of the estate thereof.”- Art. 89 (3) of the PILC. It follows that the applicable law regarding the estates depends on the antecessor`s will and the antecessor may decide to include the acquired in Bulgaria estate in the generall will which shall be treated by the law of the state of which he was a national. In any case “The designation of applicable law and the revocation of the said designation must be expressed in a statement made in accordance with the formal requirements for testamentary dispositions.” (Art. 89(4) of the PILC)
This article was created by Valova&Angelova law firm.