What the foreign citizens should be careful about when making investments in Bulgaria?
1.If a foreign citizen, acquiring property or land in Bulgaria, is married to a Bulgarian citizen:
Under the Bulgarian family law the property acquired during the marriage became a common matrimonial property regardless of whose name it is required. However, as the Bulgarian legal system is a formal system, we are strongly recommending the name of both spouses to be included in the Title deed. It is because if one of the spouses has not been mentioned in the Notary deed but he or she has paid the full purchase price, this spouse will became only a co-owner of the property but he or she will not be allowed, in case of future divorce disputes, to claim for “an exclusive ownership” over the property, basing on the fact that he or she has ensured the full purchase price (so called “transformation of the common matrimonial property”).
2. Special requirements for foreign citizens when signing notarial documents (for purchase deals and others):
When acquiring a property in Bulgaria, the foreign citizens must sign a couple of notarial documents (all the documents related with buying or selling properties should be notary verified and are signing only in Bulgarian language). So far, if the foreigner is not understanding Bulgarian language, then he must be accompanied by a licensed translator who should translate all the documents in the respective foreign language, certifying that the foreign citizen had fully understood the content of the signed documents. Otherwise, the documentation signed by the foreigner for the purpose of the deal, is disputable and could not be able to make a legal effect.
3. When the foreign citizens are buying or selling properties in Bulgaria through a local representative:
We strongly recommend to sign a specific power of attorney only for the purpose of the deal or only for signing of the title deed as well as to limit the POA for a specific period, not a general power of attorney, so that they could avoid any future legal problems.