Bulgaria Eases Ban on Property Cash Buys
New rules that envisage that all property transactions in Bulgaria must be carried out via bank transfer will not be applied to deals worth less than BGN 10,000.
"The threshold will be introduced to avoid unnecessary complications for the buyers and sellers of land and property in small villages," Emil Radev, MP from the ruling GERB party and member of the judicial commission in parliament, announced.
The rules that envisage that all property transactions in Bulgaria must be carried out via bank transfer were approved at first reading by the MPs at the end of January.
There is hope that the new rules will help to reduce property fraud and money laundering, as well as ensuring that all fees and taxes owing to the state are paid.
As well as reducing corruption, it also aims to ensure that all fees and taxes owed to the state are paid, through the creation of a State Depositary Bank which would serve as a guarantee for all payments in the form of the state acting as custodian for deposits.
The legislative changes will require that both the vendor and the buyer specify their bank accounts for conducting a property deal. Alternatively, they could use the account of their notary public.
The conditions for depositing money into bank accounts as part of the deal will be specified by the respective sides in written agreements.
There is also hope that the new laws may inspire more confidence from overseas property buyers.
But, there are risks to this new system, as sellers and buyers may want to avoid the new fee charged by the bank for servicing the transactions.
Text source: novinite.com
Image: BGnes
To see the presentation of the company, please follow the link:
Presentation of Mirela Real Estate
(19.02.2010)