Hi All
Thought I would share with you the kind of thing I get every month from my solicitor, and it may answer a couple of questions?
BGtraveller and Blinky agree with both your statements and happy to answer any questions anyone has about me. just though I would be helping by showing one of the services that are available. Individuals choice at the end of the day.
Latest update from BGLegal
The new 2012 year has just started and we already have received numerous letters with request to provide up-to-date information about:
- whether it is true that after 1st of January 2012 there is no need a foreigner to register a legal entity if he wants to buy a plot of land in Bulgaria
- preparing and submitting of Annual reports of Bulgarian companies for 2011
In the present newsletter we shall try to give the most complete information regarding all those matters.
If there is anything that you still need further explanation, then please send us your feedback to our Facebook page, or email to
[You must be registered and logged in to see this link.] so that we can write about the issue you are particularly interested in.
Sincerely,
Galina Georgieva
No Need Of A Company
To Buy Land In Bulgaria?
In Bulgaria the legal regime for acquisition of title and using of the ownership right over the real estates by foreigners is regulated by the Constitution of Bulgaria, by the Ownership Act and the Agricultural Land Ownership"
.
According to those Acts and the Constitution foreign physical persons and legal persons may acquire a right of ownership of land in the following cases:
- under the conditions and terms arising from the Contract for accession of the Republic of Bulgaria to the European Union
- by virtue of an international agreement which has been ratified, which has been promulgated, and which has entered into force for the Republic of Bulgaria
- through legal succession.
The legal framework for the acquisition of title over land plots is regulated in the third part of the Annex 6 of the Treaty of Accession of Bulgaria and Romania to EU as this Treaty says that:
- Bulgaria may maintain during five years from the date of accession the restrictions laid down in its legislation on the acquisition of ownership over land for secondary residences by nationals of the Member States or the States which are a party to the European Economic Area Agreement (EEAA) non-resident in Bulgaria and by legal persons formed in accordance with the laws of another Member State or of an EEAA State.
Note: secondary residence is any residence different from the main residence located on the territory of any country in EC
- Bulgaria may maintain in force for seven years from the date of accession the restrictions laid down in its legislation on the acquisition of agricultural land, forests and forestry land by nationals of another Member State, by nationals of the States which are a party to the European Economic Area Agreement and by legal persons formed in accordance with the laws of another Member State or an EEAA State.
this means that Bulgaria has a right not to allow acquisition of ownership over land for secondary residences by foreigners for 5 years after the date of accession which means till 1st January 2012 BUT it does not mean that Bulgaria is obliged to allow such acquisition exactly on 1st of January 2012.
Lifting of such restriction is connected with changes that should be applied to several Bulgarian legal acts and secondary legislation instruments, which changes were not made yet, nor there has started parliamentary discussion over it, which means that foreigners still should register a company in case they want to buy a land plot for secondary residences.
The Notary chamber of the Republic of Bulgaria had admitted that it is expected the Ownership Act to be changed as this change will be published and announced in the official state newspaper of Bulgaria - the State Guazette.
Bulgaria Legal will be happy to inform you about this change once it becomes official.
ANNUAL TAX RETURN COMPANY - 2012:
From 1st of January 2012 has started the period for the submission of the Annual Financial and Tax Reports of each and every Bulgarian company no matter whether it is actively trading or not as this period will last till the end of March 2012 for the Tax report and till end of June for the Annual Financial Report.
First of all what is the annual tax return - it is a form with information about tax financial result of the company and the annual corporation tax due which should be submitted according to the Article 92 of the Corporate Income Tax Act of Bulgaria.
There are other declarations as per the Corporate Tax Law and the Law for Taxation of the Persons' Income. For more information whether and how you are taxed in Bulgaria, please ask our Chief Accountant at
[You must be registered and logged in to see this link.]There are two kinds of the tax return: nil and not nil.
Nil tax return should be submitted in case the company had no expenses or incomes during the entire 2011.
Normal tax return should be submitted in case the company have has at least one expense or income during 2011.
EXPENSES ARE: electricity and water bills and other utility bills, municipality or real estate taxes, receipts and invoices for services, etc. Buying a property by the company is also an activity, which means that if your company had bought a real estate or a car your company has to submit a tax return WHICH IS NOT NIL.
No matter if it is nil or not the tax return consists of following documents:
1/ Tax Return Declaration - a 6 pages-form approved by the Ministry of Finance;
this document should be submitted to the National Revenue Agency as the deadline for submission is 31st March 2012.
2/ Statistic Declaration - 53 pages-form approved by the National Statistics Institute (NSI);
this declaration should be submitted to the NSI till 31st March 2012.
3/ Balance Sheets also called Financial Report should be submitted to the Trade Register till 30th of June 2012. The balance sheets consist of 5 attachments:
- Balance sheets report;
- Report for incomes and expenses;
- Report for the cash flow;
- Report for the capital;
- Attachment with explanations for the accountancy policy of the company.
Penalties for not submitting the necessary documents, described above:
Tax Return Declaration - from 700 BGN to 3,000 BGN
Statistic Declaration - from 1,000 BGN to 2,000 BGN
Balance Sheets - from 2,000 BGN to 4,000 BGN
Bulgaria Legal
8 Stefan Stambolov street, office 1, floor 1
Varna, 9000
Bulgaria Legal
We now have a UK telephone number which will connect you directly to our Bulgarian Office
or indeed our UK Office. Used with your free calling plans or
free mobile minutes this can mean free calls to us!
01916408899
Bill
Wed Jan 18, 2012 2:37 pm
) then please put his/her name forward.
) and see what they have to say.
but you are right what BGT has said here is oh so true do be very careful when picking a lawyer and get plenty of recommendations from others who have used them and also bear in mind that some people are agents for lawyers just as they are also agents for estate agents who obviously will gain from recommendations so you don't really want to get into that sort of this either. Good look and remember......... Be careful.
