Investments

After the political changes in the early 90’s and the transformation of the Bulgarian economy into a market economy, many business opportunities have emerged. As a result, foreign investors from all over the world have invested in different economic sectors in the country. Ranging from private investors who were buying houses in the countryside and holiday homes at the seaside, to multinational corporations who have invested in the largest Bulgarian enterprises, all investors were faced initially with the legal challenges in Bulgaria. Our advisors and solicitors have provided their expertise in order to legally safeguard the investor’s interests and to avoid any potential pitfalls after the purchase of the assets in Bulgaria.

We provide services mainly in two different circumstances. Often, the investor has already identified the asset he wants to purchase and needs solid legal backup in order to complete the transaction. Our services in this case start with the due diligence report and go through the preparation of the sales contract, taking into account all circumstances, tax consequences and other legal issues. Our support doesn’t end at that point – we continue to support the client in the event of any issues that may arise after the deal has been completed in order to fully protect the investor’s interests. The other instance when our intervention is required is when the investor wants us to search and identify for him a suitable asset in specified sector. In this case, we provide a number of actions in order to spot the best business opportunity. Naturally, we follow up the deal to its whole length and ensure safe and legal transfer of the assets to the client.

Investment in real estate developments is largely done through participation in large-scale projects and in many cases it begins from the very first phase – the design and planning. This stage is often loaded with enormous amount of administrative and legal hurdles. The complexity of the procedures that need to be followed is often a strong detergent to the foreign investor. With our assistance however, these processes can be easily streamlined and all necessary formalities can be met and the relevant permissions and approvals obtained.

The construction process then continues with the project management of the building activities, which is another test for the investor, as he has to deal with all subcontractors – civil engineers, architects and supervisors. This poses additional legal challenges. Our experienced specialists in the field are able to provide invaluable legal support by drafting all building and other contracts and documents as well as preparing the necessary formalities for the issuance of the final notary deeds for the property. We have successfully intervened in different projects and have transferred the foreign investor’s desires and practices into his Bulgarian project, thereby accomplishing the highest standards and legal conformity. The due diligence we prepare is another essential part of each similar project and includes all necessary checks about encumbrances and the existence of legal permits and permissions. The client can benefit from our legal experience and can better concentrate on his core business activities, thereby saving time and money.

Real estate transactions are, from a legal point of few, a transfer of property rights. These transactions entail substantial costs and may lead to different tax consequences for both the buyer and the seller. Some of the costs involved are statutory and predictable (can be calculated precisely prior to the deal being signed). The precise structuring of the real estate transfer is essential in order to prevent any additional unforeseen costs, as well as to minimize any negative tax consequences for the parties involved. This is always a big challenge to any foreign investor, who is unaware of the different domestic laws in Bulgaria. Normally, the choice of how to finalize the deal is either by purchasing of the property directly or by taking over the shares of the commercial entity that owns the real estate. As a general rule, the transfer is done in front of Bulgarian notary public.

In the course of our work, we have identified alternative arrangements for real estate purchases, which we can offer to the client and adapt to his personal financial and tax circumstances. In some cases, similar arrangements may provide a substantial benefit to the customer. Depending on the type of property and the needs of the client, we are able to recommend the most suitable structure of the real estate deal, thereby explaining all associated risks and benefits. Finding the best balance between those is the most essential part of the real estate transaction planning.