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Steps after buying a new property

Posted by Анна on April 11, 2024
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In the minds of most people, purchasing a new home concludes with the notary act. It would be wonderful if this were true, but unfortunately, it is not. If you are about to purchase a new home, you need to familiarize yourself with the procedures that follow once you have acquired ownership and notify the respective companies of the change. Here’s where to start:

Declaring the Property

Since January 1, 2019, individuals are no longer required to declare acquired real estate to the respective municipality. The responsibility for this procedure now lies with the notary. However, if the property was not declared before January 1, 2019, the seller must do so by submitting a Declaration under Article 14 of the LMDT (Local Taxes and Fees Act). In this case, the property owner will be fined and must pay the due property taxes for the last five years.

For newly constructed residential buildings subject to commissioning under the Spatial Development Act (SDA), tax declarations for annual tax assessment are not required.

The Local Taxes and Fees Act (LMDT) provides certain reliefs for tax determination in two cases. The first applies to property that is a primary residence, entitling the obligated person to a 50% reduction in the tax amount. The second applies to property that is the primary residence of a person with a reduced ability to work between 50% and 100%. In this case, the tax reduction is 75%, and an additional 5% discount can be applied if the tax is paid before April 30.

Transferring Utility Accounts

To ensure you won’t have to cover possible unpaid utility bills of previous owners, one of the first things to do is to transfer the utility accounts.

CEZ Bulgaria

To re-register a household consumer with CEZ Bulgaria, all old debts must be cleared. Once this is confirmed, you can re-register at a CEZ Bulgaria center with the following documents: application form, customer number (ITN), identification document of both the new owner and the one transferring the account. You must also provide a document proving ownership of the property, such as a notary deed.

EVN

The new owner of a property in Southeastern Bulgaria must notify EVN of the change within 30 days, submitting the following documents: an application for the “Account Change” service, notary deed, court decision, and certificate of heirs.

Tenants can also change the account, provided they submit a notarized lease agreement and the owner’s notarized consent.

Sofiyska Voda AD

In case of a change in property ownership, the new and/or previous owner must notify Sofiyska Voda of the change within 30 days. To change the property ownership, you will need to provide the following documents: the customer number with Sofiyska Voda AD of the previous owner and the current water meter readings of the property; application (completed on site); property ownership document (notary deed, certificate of heirs).

Toplofikatsiya Sofia AD

The new property owner must notify the company of the ownership change within 30 days and provide: a standard application form (available on the company’s website); a copy of the notary deed and a notarized settlement protocol for the annual equalization account.

Registration Obligation in BULSTAT

Register This obligation arises only for foreigners who have acquired property in Bulgaria. A foreigner who has acquired property in the Republic of Bulgaria must register in the BULSTAT register within 7 days from the acquisition date by submitting a Registration Application under Article 3, Paragraph 1, Item 10 of the BULSTAT Register Act (for foreign individuals without EGN/NLN).

Permanent Address

You can change your permanent address at the municipality or mayor’s office where the property is located. You will need an ID card, birth certificate, and notary deed. Within 30 days after that, you must submit an application to change your identification documents at the respective Regional Police Department (RPD) of the Ministry of Interior to avoid a fine.

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