Due to the lower taxes on vehicles a lot of foreigners buy and/or register a car in Bulgaria.
When buying a car in Bulgaria, foreigners who reside permanently in the country may choose between two options:
- to register the car as individuals, or
- to register the car as a company asset.
Foreigners with a temporary residence permit may set up a limited liability company and register the car as a company asset.
The necessary documents for the transfer of ownership of the car in Bulgaria are as follows:
- Sale and Purchase Contract certified by the notary public;
- Vehicle Registration Certificate Part I and Vehicle Registration Document Part II;
- Document evidencing that the vehicle tax for the current year is paid;
- Third Party Liability Insurance;
- Certificate for the insurance value of the vehicle issued by the insurance company;
- Declaration by the seller that he/she does not incur any outstanding and coercively enforceable obligations for taxes, customs duties and compulsory social-insurance contributions;
- Declaration of citizenship and civil status by the seller.
The price cannot be lower than the insurance value of the car. Please keep in mind that there are limits for cash payments in Bulgaria. If the price is equal to or in excess of BGN 10,000 (approx. EUR 5,110) or their equivalent when payments are made in foreign currency the payment shall be made via bank transfer.
Moreover, the buyer must pay a local Vehicle Acquisition Tax. The amount of the tax is determined by the municipal administration where the vehicle is registered. For Sofia it is 3 % of the price. Notary fees are due, too.
More often the costs related to the transfer of ownership are payable by the buyer. It is also possible the costs to be shared by the parties.
Within one month the buyer has to register the car with the Regional office of the Traffic Police Directorate. It is not necessary to replace the registration plates.
As well, when buying a second hand car (more than 6 months since the date of first registration and mileage of more than 6 000 km), the new owner has to notify the insurance company. Otherwise, the car insurance will be invalid.
It is also important to note that the new owner does not have to declare the vehicle with a municipality. The notary public and the Traffic Police inform the municipality about the transfer of ownership of the car.
Upon transfer of ownership of a car, the new owner will not pay the annual tax on vehicles if the seller has paid the said tax for the time remaining until the end of the calendar year (wherein the transfer was effected).
For more information or if you want to buy a car in Bulgaria please do not hesitate to contact us by e-mail firstname.lastname@example.org.