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As of July 1, 2011 all property transactions carried out for property in Bulgaria must be by bank transfer as the Bulgarian parliament announced earlier this month that cash property purchases will be banned, reports Bulgarian property experts House Sales Bulgaria (http://www.housesalesbulgaria.com/).

In a bid to reduce money laundering and fraudulent purchases of real estate in Bulgaria, the authorities will ban cash property transactions in the country for all property worth more than BGN 10,000 (in order to simplify the process for those buying property and land in small villages). The ban, which will come into affect on the 1st July, is also aimed at ensuring that all fees and taxes from purchases of property in Bulgaria are paid to the state. According to the Novinite.com, the Sofia news agency, these taxes will be paid “through the creation of a State Depositary Bank which serves as a guarantee for all payments in the form of the state acting as custodian for deposits”.

This new legislation will ensure that both those who buy and sell property in Bulgaria will have to reveal their bank account details in the property transaction in order to facilitate the purchase, rather than have the option to pay in cash and not reveal their banking information. The only alternative to revealing their bank account information will be to use the account of their notary public. Both the buyer and the vendor will agree conditions for depositing money into the respective bank accounts in a formal, written contract as part of the property deal. Banks in Bulgaria will charge a fee for facilitating the property transactions via bank transfer, something which will be unavoidable for people who want to buy and sell property in Bulgaria as of July of this year.

It is thought that this new legislation could be good news for real estate in Bulgaria as a whole, however, even given the creation of an additional bank fee. Any tightening up of the purchase process for property in Bulgaria instills confidence in overseas purchasers.
To view the latest property listings on the market in Bulgaria visit http://www.housesalesbulgaria.com/.