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No More Cash Purchases For Properties In Bulgaria

In accordance to the amendment of the Law of the Notaries

and the Notary Activity in Bulgaria (article 25, paragraph 9 and 10), all payments for property purchases with a price above 10000 BGN should be carried out either by a special notary's bank account or an initially approved bank account.

When the payments are conducted to the notary's bank account, a preliminary agreement is signed between the notary public and the parties involved in the sale. Also, the parties' present certify payment orders to the notary when there are some installments due before the notary deal. No contract is applicable to the notary's bank account for any obligations of the notary (Article 25 a, paragraph 3).

This change in the Law will be put in force from July 1st 2011. The reason for its establishment is versatile. First, this will serve as prevention of  money laundering. Second, the origin of the funds will be cleared up in advance. Third, there will be no room for hiding the real price of the asset and paying fewer taxes to the state.

The current legislation remains applicable for payment on any property sales that have been carried out before July 1st, 2011.

The new amendment will aid security of the property sale transactions in the future.

Written by Home Point BG