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Power of Attorney?

Discussion in 'Bulgaria Property' started by Topcat1961, Aug 13, 2008.

  1. Topcat1961

    Topcat1961 Banned

    Does a POA in Bulgaria have to be notorised?

    Is there a difference between an authorisation form (signed by me) to allow a lawyer to sign specific listed documents and to effect payments to the developer and a POA?

    Are they actually the same thing?

    Is it correct for a legal company in Bulgaria to call an 'Authorisation' form a POA?

    Sorry for lots of questions but I'd be grateful for some advice with this before I instruct new lawyers.

    Thanks
     
  2. sjioverseas

    sjioverseas New Member

    Hi a usefull place to look at is the MyNotary website you will find everything you need about notarial questions there the is also a site called notary bulgaria which is pretty useful. In answer to your question poa in bulgaria do need to be notarised
     
  3. Zeiad Yehia

    Zeiad Yehia New Member

    Hi Topcat,

    I'm an "Egyptian" solicitor, and subsequently this is not a professional post which I'm writing here since I do not practice in Bulgaria, but however, and since I was having thoughts of buying a house in Bulgaria, I was wandering in Bulgaria's various threads here, and when I saw your post, I couldn't help researching it. I am pasing below some information that might be useful for you or anyone else who's enquiring about the legalities of purchasing a property in Bulgaria.


    Ownership of Real Estate in Bulgaria

    The amendments to Article 22 of the Constitution of the Republic of Bulgaria (State Gazette No. 18/2005), in connection with harmonisation of the Bulgarian legislation with the acquis communautaire, introduced a change in the arrangements for acquisition of a right or ownership over land by non-resident natural persons and legal entities in Bulgaria.

    According to the amendments, foreigners and non-resident legal entities may acquire a right of ownership over land in three cases:

    1. if they are nationals of Member States of the European Union: according to the conditions and within the time periods arising from the Treaty concerning the Accession;

    2. by virtue of an international treaty which has been ratified, promulgated and entered into force by the Republic of Bulgaria;

    3. through legal inheritance.

    In respect of the persons:

    who are citizens of the European Union (incl. nationals of Iceland, Liechtenstein and Norway) and legal entities registered in EU Member States;
    persons outside the European Union,
    two different arrangements have been established for acquisition of a right of ownership.

    1. Citizens of the European Union (including nationals of Iceland, Liechtenstein and Norway) and legal entities registered in EU Member States

    Arrangements for the right of ownership over zoned land

    According to the Treaty concerning the Accession of the Republic of Bulgaria and Romania to the European Union (the Accession Treaty) and the Act concerning the conditions of accession of the Republic of Bulgaria and Romania and the adjustments to the treaties on which the European Union is founded, as from 1 January 2007 the citizens of the European Union, as well as the nationals of Iceland, Liechtenstein and Norway (as Contracting Parties to the Agreement on the European Economic Area), may acquire a right of ownership over land for residence оr for carrying out economic activities, provided that they are legally resident in Bulgaria. The Ownership Act, as last amended and supplemented, provides that citizens of the EU, including nationals of Iceland, Liechtenstein and Norway, who are not permanently resident in Bulgaria, as well as non-resident legal entities formed in accordance with the laws of the Member States may acquire land for secondary residences upon the lapse of five years from the date of accession, i.e. after 1.01.2012. Within the meaning given by the Ownership Act, "secondary residence" is a residence other than the primary residence located within the territory of another EU Member State. Per argumentum a contrario, it follows that the EU citizens, including the nationals of Iceland, Liechtenstein and Norway, who are permanently resident in Bulgaria, may acquire ownership over land for secondary residences right after 1.01.2007.

    Article 16 of the Act on Entry into, Residence in, and Exit from, the Republic of Bulgaria by Citizens of the European Union and Family Members Thereof defines as follows a "citizen of the European Union permanently resident in the Republic of Bulgaria":

    A person who has resided continuously in the Republic of Bulgaria for five years and who meets one of the following conditions:

    1. the person has worked during the preceding year before the date of termination of the contract in an employed capacity or in a self-employed capacity, has attained retirement age or is entitled to take early retirement, and has resided continuously in the Republic of Bulgaria for more than three years;

    2. the person does not work in an employed or self-employed capacity by reason of a permanently reduced capacity to work and has resided continuously in the Republic of Bulgaria for more than two years;

    3. the person is a worker or a self-employed person who has lost his or her capacity to work as a result of an accident at work or occupational disease;

    4. the person is a worker or a self-employed person who, after three years of continuous residence and employment in the Republic of Bulgaria, works in such capacity in another Member State while retaining his or her place of residence in the Republic of Bulgaria to which he or she returns at least once a week.

    Absences not exceeding six months a year, or absences of a longer duration for compulsory military service, or one absence of a maximum of 12 consecutive months for important reasons or for posting in another State do not interrupt the period of residence. According to Item 6 of § 1 of the Supplementary Provisions of the Act, "important reasons" means pregnancy and childbirth, serious illness, study or vocational training.

    Arrangements for the right of ownership over agricultural land, forests and forestry land

    As from 1 January 2007, according to the Bill for amendment of the Agricultural Land, Forests or Forestry Land Ownership Act, ownership over the said types of land may be acquired solely by those citizens of the European Union who are self-employed agricultural producers intending to reside permanently in the Republic of Bulgaria. They are required to be recorded in this capacity according to the procedure established by the BULSTAT Register Act. In case such persons discontinue their activity as agricultural producers, they are obliged to transfer the agricultural land they own to persons who have the right to acquire such land. These restrictions will lapse after the expiry of the seven-year transitional period, i.e. after 1 January 2014.

    2. Natural persons and legal entities outside the European Union

    Foreigners may acquire a right of ownership over buildings and parts of buildings, as well as limited real rights. Under Bulgarian law, "limited real right" means a right of use, a building right and easements (a right of passage through the property of another person, etc.)

    At present, any foreigner who inherits land in Bulgaria is obliged to transfer his or her right of ownership over such land to a resident natural person or legal entity within three years after the opening of the succession, unless an international treaty provides otherwise. The draft for amendment of the Property Act limits the applicability of this restriction to the cases where agricultural land or forestry land is inherited.

    Legal entities registered in Bulgaria are treated as resident persons, regardless of the percentage of the foreign participating interest. In this way, non-resident persons may acquire full rights of ownership over land, including rights to agricultural land, in case they incorporate a company or participate in a joint venture according to the Bulgarian legislation.

    Taxes and fees

    According to the Local Taxes and Fees Act, a tax is due on the immovables and limited real rights acquired against consideration. The tax is paid by the acquirer of the thing. Where the parties have agreed to share the tax, they incur joint liability. Where it is agreed that the tax will be paid by the transferor, the other party is a guarantor.

    The local tax upon acquisition of a real estate is 2% of the higher of the tax-assessed value and the agreed selling price as declared in the title deed.

    The buyer must also pay a notarial fee on acquisition of ownership over the real estate according to the Notaries and Notarial Practice Act. The exact amount of the notarial fee is determined according to the Rate Schedule of Notarial Fees (Article 8) as follows:



    Certified proprietary interest (BGN)
    Notarial fee (BGN)

    Up to 100.00
    15.00

    From 100.01 to 1,000.00
    15.00 + 1.5% of the excess over 100.00

    From 1,000.01 to 10,000.00
    28.50 + 1% of the excess over 1,000.00

    From 10,000.01 to 50,000.00
    118.50 + 0.5% of the excess over 10,000.00

    From 50,000.01 to 100,000.00
    318.50 + 0.2% of the excess over 50,000.00

    Over 100,000.00
    418.50 + 0.1% of the excess over 100,000.00 but not more than 3,000.00




    VAT is due at 20% of the amount net of the taxes and fees paid. The following deals are exempt from VAT:

    purchases of buildings or of part of buildings, which are not new, including the land adjacent to the building, as well as the creation and transfer of other real rights to them (unless the supplier exercises a right of option for taxation);
    purchases of agricultural land and forestry land (provided its intended use has not been altered to "land for construction work").
    Documents required for the notarial proceeding:

    1. draft of a title deed;

    2. documents certifying the identities of the parties to the transaction;

    3. notarised power of attorney, in case some of the parties is represented by an authorised representative;

    4. documents certifying the right of ownership;

    5. declarations certifying the civil, marital and property status of the parties;

    6. a declaration by the transferee regarding the origin of the financial resources, in the cases where the value of the transaction exceeds BGN 30,000;

    7. a declaration by the translator, to the effect that the translation executed by him or her is full, true and correct;

    8. a certificate of tax assessment and of taxes paid;

    9. a receipt for a local tax paid.

    Obligation for registering in BULSTAT Register

    Non-resident natural persons or legal entities, who or which acquire a real estate in Bulgaria and who or which are not already entered in the BULSTAT Register on other grounds, are obliged to record themselves in the Register so as to be assigned a Unified Identification Code. The application for registration must be submitted within seven days after acquisition of the real estate to the registry office exercising competence over the location of the immovable property.

    Source:
    InvestBulgaria Agency
     
  4. rabarbaro

    rabarbaro New Member

    I've discovered that is has to be notarized and "postilled".
    It means you have to do it at the Bulgarian Embassy or Consulate.
    I sent the first POA only signed, as nobody had told me something different.
    They then asked me to have it notarized, and I did it in a notary office here, in italy.
    It was not enough...
    I then discovere that I had to go at the Bulgarian Embassy and they do it in few hours, no problems. And cheaper than the notary ...
     
  5. thetravelbug

    thetravelbug Banned

    Does a POA in Bulgaria have to be notorised?

    Yes if making a POA here in Bulgaria it must be signed in front of a notary

    Is there a difference between an authorisation form (signed by me) to allow a lawyer to sign specific listed documents and to effect payments to the developer and a POA?

    |Yes a POA is a specific legal document giving someone power to act on your behalf for certain (or unlimited) things for a certain period or limited period. It will contain specific wording. An authorisation form could technically be anything written by one person authorising another to do certain acts and is not the same as a power of attorney.

    Are they actually the same thing?

    No

    Is it correct for a legal company in Bulgaria to call an 'Authorisation' form a POA?

    It really depends on the content and legal structure of the document, more than the title. if not signed in front of a notary then not a POA.
     
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