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) 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 decides 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 Bulgarian 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.

The Bulgarian legislation regarding the form of the will is very strict in order of recognition of the heir by will and registration of the will in the Land registry.

There are many cases when the decesaed makes a general will abroad under the provisions of the respective foreign law, but including disposition with properties all over the world, including properties in Bulgaria. We could not recommend such practice because, after the will is opened and presented in Bulgaria, it must be registered in the Bulgarian Land Register where the new owner of the property should be specified. However, as the will has been made in another country, there could be missing elements in the form required under the Bulgarian law, which could lead as consequence the will not to be registered and the inheritance by law shall apply.

Having in mind the above mentioned, we recommend the Bulgarian  properties to be arranged separately, keeping the Bulgarian requirements, which are very formal.

This article was created by Valova&Angelova law firm.