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Beware Scams in Bulgaria

Last activity 23 December 2023 by SimCityAT

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Johnavann
Real Estate Mafia!   Is it real?  Is this true?   YES and Yes!  It is organized and targets the elderly, those who are sick or in divorce or other legal issues.   
Does the Law allow it?    Yes and encourages it as many attorneys and Judges are in on the scam. 
Can your own attorney move your title out of your name and into his?   YES and it is hard to prove or recover.

1.  The Power of attorney scam.   Your attorney or real estate agent will ask for a power of attorney to close or supervise a transaction.   If you do not provide one likely they will advise you "That's the way it is done here!"   This is the most common form of conversion.   While you may see that  your title has been cleared and in your name in the registry, the POA will likely be used again in a few years if you have not cancelled it.  Just do not agree to any POA to anyone regardless of the circumstances or trust level.  This scam is for purchase, sale, proceeds, as well as registration of cars and anything of value that requires a license, or tax.  It comes in multiple forms, elderly care, disputes in divorce etc.   Beware of any attorney who offers to provide you the full service.   No!   Insist on attending the closing yourself at the \notary office and be sure you understand the documents with a written translation.  You may never see the attorney or agent again however in a few years you will discover that your property has been sold.

2.  The false loan, lien scam.   In addition to being used with the POA Scam, it is also used in the purchase or sale scam.  You or another at closing  can (or the POA)  sign a false loan document and the scammer will foreclose on the property,    The Notary's are often in on these deals, so you really cannot trust a Bulgarian Notary or a Bulgarian Attorney,  It is better to spend the money for a International Firm to assure ethics.  No wonder almost every migration officer will tell you to be careful in any transactions. 

3.  Divorce Scam.   This is a good one, Divorces are expensive and the attorney will offer to handle everything for you in a contingency fee.   Say they will charge no fees and only take half of what you receive. (That is after fees of course and you might get 20%)  Of course many women in divorce will accept this as each must pay their own fees in Bulgaria.   This is where the Real Estate mafia will step in, and file a "Spousal Abuse" complaint against the husband to remove him from the home.   Then send in in body guards to place the woman on drugs and control her movements, have her sign false liens, and begin to remove the appliances, windows etc. and sell them as it takes months to go to court and even longer for a decision.   By then the house has been stripped and foreclosed on and the woman forced on to the streets.   This happened to my ex wife and while I would not wish this on anyone she refused an upfront settlement of 50% when the attorneys said she could get 100%,  She is now homeless and I am rebuilding the shell of the house.  Is there any recourse?   Yes, she committed a criminal act which the police will not prosecute and I can sue her for the damages and losses that I absorbed from my 50% but she is broke and now on the street!   Hw can this be legal?   Believe me it is in Bulgaria and most attorneys walk away when the Real Estate mafia is involved as it is a loss for everyone and of course the government allows this by lack of prosecution. 

My advice to anyone is to only buy in the name of a corporation, only you should be the manager and not trust your spouse, attorney, CPA, etc.  and better to rent instead of buy. Real Estate in Bulgaria does not appreciate.   Yes, it only depreciates.   Check it out!  Same for a car.   

You have all read about the tax fraud nightmares that come home to roost at your feet due to the tax avoidance from sellers. 

OTHER topics are the Public Hospitals.   They are not up to third world standards.  Some  Police and Judges can purchased for a paltry sum.  Many Bulgarian men regularly beat their wives.   Wages are below poverty levels for many and perhaps the majority.   Think carefully about investing in The wild Bulgarian Melee!   This country is 30 years away from basic laws and accountability.   
HelenDinBG

@Johnavann I’m sure the things you say do happen, but my experience has been nothing like that. I got to know my “agent” now friend, over a number of phone calls after watching his videos of our property and others. When I finally visited in person, meeting the agent, the lawyer and the seller I was immediately satisfied to give t he agent  and the lawyer POA for the house purchase. it was mid pandemic and travel was not easy so to even have this option made the purchase a viable prospect.

wtruckyboy
I and my bulgarian wife have had no such issues..as her sister in law handled the case..the builder was paid directly via our bank. That was 15 yrs ago..we have a lawyer that handle other stuff for us and is 100%
Brilliant.
Tbh..i think you are angry at your own situation..and i feel sorry for the mess your in..even for your wife who is on the streets..find that hard to swallow.i think your angry with her too.
I'm not saying it didnt happen..for i have heard of similar stories
Not with buying..but changing the deeds..it took her 4 yrs to get the property back..no body needs a poa
Unless their not here to view and buy and sign..and i assume thats what happened.its open to abuse when people buy on the internet..agents say..we can do it for you..no way would i do that.
Good luck to you.
Guest7632
@Johnavann

@Johnavann

Did something go wrong for you Bulgaria?

Did your ex wife scam you? Now you need to take down the whole country?

How on earth can anyone with a POA sell your property years later?

Explain how they would come up with the  declarations only the owner can sign? They are only valid for a year?

If you are so concerned and paranoid you could set a time limit to any POA anyway?

What about the loans? How do they take out the loans? If the POA does not allow them to do so? If you are so paranoid just dont include a cause for loans.

@Johnavann Seek help for your own issues, Bulgaria is not to blame.
euronomad
While I agree with the notion that we should not overgeneralize and not overly stigmatize Bulgaria I think we should at the same time warn people about all the potential scams that are running here. Bulgaria is still an underdeveloped country whose standards don't match up with Western Europe and that's the reason why real estate is so cheap here. If you have any Bulgarian friends they will be the first to confirm it. There's no free lunch.

At the same time it offers a huge growth potential and very low taxes. I expect Bulgaria to outperform most western European countries in the next 20 years and to increase its GDP per capita above levels in Greece and Italy. I don't agree with the statement that Bulgarian real estate only depreciates over time. If you bought during the last 5 years you probably made a high return on your investment but if you bought at the peak of the 2000s bubble you might have incurred a loss. Also, I think that home prices in eastern Europe will outperform those in western Europe in the next 10 years because of the low Govt, business and private debt levels here.

Not all lawyers here are fraudsters. Mine actually prevented me from buying an apartment without own electricity account in a very problematic building in which most owners we not able to use their apartments anymore because the management company turned off their water and electricity.

If you invest here you should only invest a limited fraction of your wealth and spend some time and money on due diligence. It is a good advice not to use PoA but to do everything in person with a translator and use a real estate lawyer from a different region. Make sure to keep most of your wealth abroad if you move here!
Guest7632
Why should we keep most of our wealth abroad?

Sounds like tax fraud or smt.
euronomad


@GB_2_BG Because the legal system in Bulgaria is systematically corrupt and cannot be trusted to protect you from fraudulent schemes. Someone might claim that you owe him money and use the legal system successfully to go after your assets. The risk is much higher if you are foreigner because of information asymmetry and language barriers. Here's one example:
[link moderated] 

There are lots of such scams. One Bulgarian entrepreneur told me that someone successfully managed to block his account for months just by claiming that he had an unpaid bill. I'm not sure what tax fraud would have to do with where you keep your assets. These days there are CRS and information exchange happening in most emerging & developed countries. There's actually a higher chance that the Bulgarian tax authority will be informed about your wealth if you keep it in a western European country than in Bulgaria. Most tax fraud happens here in Bulgaria if something is paid in cash without receipt and not booked.

Newlifebg
Hi folks,In our personal experience...There's more chance of being ripped of by an xpat than a Bulgarian...Twice we got stung by expats and it was Bulgarian,s that pointed it out...A Tax dodge and just down right Theft...Seems Dishonesty is in all nationalities..
gwynj
@Johnavann - Sorry to hear of your trials and tribulations.

He is a frequent contributor, and I believe I've spotted mentions of hotels and finance, and such. So my impression is that he is wealthier than the average bear (and perhaps more obviously so). As such, I'd guess that he is more likely to be targeted by bad hombres.

Certainly, johnavann is correct that a POA is a very powerful legal instrument, and it's definitely sensible to try to limit its scope (a "special power for x", rather than a "general power") and its duration... and be very careful about who we delegate it to. And, indeed, whether we really need to give a POA, instead of going to the notary ourselves.

I spent many years in Latin America, and I found it particularly corrupt, and a very risky place for a naive Brit. I lost 2 very valuable properties in Panama and Chile as a result of lawyer malfeasance, POA abuse, and dishonest notaries enabling the fraud. It can and does happen, and it's extremely painful. And, after, one might tend to be rather suspicious and risk-averse (and a lot poorer, which definitely doesn't help).

Thankfully it is relatively rare, and getting rarer, as almost all countries are trying to reduce the level of corruption.

In comparison to Latin America, I find Bulgaria a little haven. It's in the EU and higher standards apply. Even if it were the worst performer in the EU, that's still better than lots of countries in the world! I can see that there is still corruption here, but it seems to me to be at a higher level where serious money is involved. I don't see much at the day-to-day level (traffic police, local government offices) that would affect me, or most typical expats.

Moreover, in several countries where I experienced high levels of poverty (Panama, Brazil, Argentina), that poverty directly translated into higher levels of crime... especially against wealthy (or relatively wealthy) expats. Bulgaria, even though it's poor, seems to be very good on safety and street crime. In other countries I avoided public transport and minimized my pocket valuables, and perhaps left my phone at home (and certainly didn't use it in public). Here, I've always felt completely safe. And almost all the Bulgarians I've met have been friendly and helpful. My village neighbours, in particular, have been especially welcoming. Overall, I've had a great experience in Bulgaria, and I'm very happy here. And I highly recommend it to others. (Especially if they have savings/international pension/remote income. If they have to work here, for a Bulgarian salary, I'm not quite so enthusiastic!)

Bulgaria is the poorest country in the EU. But the EU is a very wealthy bloc in global terms. And there's nothing sinister about this: all the former soviet countries are relatively poor, as they started from a very low base with the fall of communism. As a poor country, you expect lower salaries, but also lower living costs (including property). A Bulgarian pensioner can suffer greatly and find it very difficult to survive here (the pensions are very low). While expats with a little money can be extremely comfortable, especially if they have a juicy pension from western Europe or North America.

As to real estate, it is demonstrably rising. Although it very clearly favours the largest cities (as you'd expect, this is where most ordinary folks want to go, as the jobs are there). Over the last 10 years or so, it has certainly been a rising market. How long it continues, who knows. But with very high inflation, and negative interest rates, that means most folks would rather buy property than keep savings, so the short-term is definitely up.
kaththomas2017
Our estate agent tried to tell us not to bother return to Bulgaria to sign for our house she wanted POA and because I was due to have an operation which meant that I wouldn't be able to return to sign off she deliberately put the signing off date back so I'd not be able to get there. However my operation was delayed but I didn't tell her so we were able to sign and hand over the balance for the purchase to the sellers in person. She also tried to get us to leave the deeds and house keys with her " for safe keeping" but we refused her generous offer because we knew it would cost us a monthly fee at least, however she did manage to RIP us off to the tune of 2k euro by telling us that a neighbour had control of our water supply and that the company had to use diggers to create a new pipe line and supply, she treated my request for a receipt with contempt and I found out later that water works on the public highway are the responsibility  of the water company and that we should have only paid for the new connection and meter in our garden. I'm so glad that we got shut of her and her company and if I ever see her again it will be way too soon.
bestlikefromme
@Johnavann,  All

You wrote : " You have all read about the tax fraud nightmares that come home to roost at your feet due to the tax avoidance from sellers.  "

I do not know about that " tax fraud nightmares with  tax avoidance from sellers.  " .
Would you ( of some one else ) give me detail about this ?

Note : My husband and I  from US, and do not familiar with Bulgaria .

We are thinking to buy the apartment/townhome  near  the sea  for the year-round living ( with retirement visa )
with the budget around $150-200K.

In US real estate process is very formal and secure ( US  offer Real Estate Escrow , Real estate contracts that  are governed by federal statutes & state statutory & common law  and Deed insurance ) .....so we are not prepare for Scams in Bulgaria
but I an ready to do my " home work "

All advice and/or suggestions will be much appreciated and welcomed !  :)
N.
Guest7632
People cut corners to save a few pennies.

The so called " tax fraud nightmares with  tax avoidance" is when the seller and buyer under declare the price of a property to pay lower purchae taxes.

Hardly unique to Bulgaria is it?

How many expats have got into trouble for it? I would estimate somewhere around zero to none.
bestlikefromme
Great !  So I removed that the so called " tax fraud nightmares with  tax avoidance"
from my nightmares list . :)

What "Made in Bulgaria" real estate  nightmares should I add to my list ?
Guest7632
"Made in Bulgaria" scams?

Compared to Greece f.e Bulgaria is a land of saints. There's nothing like the quit deeds you have in your own country. You cant dispose of liens and burdens as easily as thick scaremongers make out.
gwynj
tax fraud nightmares

It has happened, and it's obviously unpleasant, so I don't want to minimize the pain/upset of folks that have experienced it. However, most people who complain about the tax fraud issue are conflating three problems: under declaration, outright fraud (or at least very sharp dealing), and company vs personal ownership. I'll explain below, for those that like to know how stuff works. :-)

However, you can avoid this issue (and most scams, attempted scams) by:

(a) Using a reputable agent (they do exist).

(b) Using a reputable attorney (they also exist), as an extra protector of your interests (only a notary is required, an attorney is an optional extra).

(c) Doing your research (much easier these days, thanks to the internet). Bulgaria doesn't have the trove of property info that you get in the USA via Zillow, etc. But there are multiple agents with multiple listings in the same cities/towns, so you can see what's the ballpark price. And Google Maps has streetview of loads of Bulgaria already so even if you can't look at your house (I could in UK), you can look at the area.

(d) Buy in your personal name rather than via a company (as a simplification, this is a non-EU citizen restriction, in relation to houses).

(e) Pay the right person, at the right time. If you send your realtor 200k, then even reputable ones will wonder whether their reputation is worth 200k! :-)

(f) Be very careful about POAs. I've given them, but for purchase only, and I didn't give them the money AND the POA. As then they enjoy the money, and don't bother using the POA. :-)

(g) Go look at the property/location first! (And look at several others before deciding.)

(h) In general, live a simple, easy life with one property, enjoying your life/retirement in Bulgaria. In which case, there are very limited opportunities for anyone to cheat you.

Now, back to the notorious Bulgarian tax fraud scam...

The simple act of under-declaration is officially illegal, and the notary documents include declarations by the seller and buyer that the price is the true price, etc. And I encourage you to avoid under-declaration, if you can.

However, it is extremely common, and many sellers will insist on doing on it, with envelopes of cash changing hands at/near the notary office. And if you insist on NOT doing it, they will either not go through with the sale, or they will increase the sale price so that their NET proceeds are the same. Usually, the seller will explain what he wants to do, and why, and you then know to bring the cash with you. (You can pay the whole transaction in cash if you want, but usually you transfer directly to the seller the official purchase amount.) You should not expect to see 90% discount to the real price... maybe they want 20% or 30% of it in cash.

At the time of the sale, there is no big issue... it lowers transaction costs for both buyer and seller. And it usually lowers the buyer's ongoing property taxes (as it's based on the value in the notary act).

The problem comes when, years later, the owner wants to sell. So now their profit on the sale (and hence any income tax due) is much higher (your sale price - the fake low price). Which kinda forces you to do the thing that, years before, you were complaining about (i.e. do a big under-declaration of your selling price)! Even here, for Bulgarians (and other EU citizens, and permanent residents) it's usually no big deal as there is an income tax exemption on your main property.

So where it gets more unpleasant is if you, as a non-EU citizen, buy via a company. Then (from what I can gather from others discussing this) the income tax exemption goes away, and also VAT unexpectedly rears its ugly head. So now the whole transaction got a lot more expensive. This aspect can be avoided by buying a flat (without common parts of the land), as we can buy those in our personal name. So this is a problem  experienced most often by Brits who bought village houses.

As @GB_2_BG said, you never hear of the authorities taking action against folks for this under-declaration.

The fraud/sharp dealing usually occurs when an unscrupulous agent or lawyer is involved, so the 50,000 euros property is actually a 5,000 euros property. They've marked it up, or done the deal direct with the seller. (Who, as usual, wants to under-declare, so it's 2,000 euros in the notary act.) This exploits the language gap (seller only speaks Bulgarian, buyer only speaks English)... and lack of research/knowledge of the buyer (so you haven't checked the area to see if village houses there are selling for 50k). And if we give a POA to the agent/lawyer, you're not at the notary reading the contract. It's a legal requirement for a translator to be there for foreigners, so they would be reading out... blah, blah, blah... 2,000 euros... At which point, you would throw a hissy fit, and storm out and not sign! :-)

Even so, it doesn't affect your enjoyment of your new house. And if you spend 10 years turning it into a palace, it's still fine. But when you sell it for 100k euros, you've now got a 98k profit... and a 20k VAT bill. And if you paid 50k... and 2k to your agent in commission... and 30k in renovation costs... you've made a loss... and the whole drama has come as a huge shock. Especially as you now figure out that it was your agent (or lawyer) who did best on the deal with the sneaky 45k markup.
Guest7632
tax fraud nightmares



But when you sell it for 100k euros, you've now got a 98k profit... and a 20k VAT bill. And if you paid 50k... and 2k to your agent in commission... and 30k in renovation costs... you've made a loss... and the whole drama has come as a huge shock. Especially as you now figure out that it was your agent (or lawyer) who did best on the deal with the sneaky 45k markup.
- @gwynj


This nightmare scenario assumes the future100k buyer will want the full price declared and they want to pay higher taxes.

Not likely.

Why lose any sleep? How many of us will ever net such profits on our homes?











gwynj
@GB_2_BG

Totally agree with you, of course! I was trying to show how unlikely the nightmare scenario really is. I think it happens in a tiny percentage of cases, and that, for most folks, there is absolutely nothing to worry about.
Guest7632
I still dont see any scams?

You highlighted greed on the part of agents and lawyers but where is the actual scam?

If people are making 45k markups this must be a bloody good place to do business in.

Can someone show me a real scam in Bulgaria?
gwynj
@GB_2_BG

"The fraud/sharp dealing usually occurs when an unscrupulous agent or lawyer is involved, so the 50,000 euros property is actually a 5,000 euros property."

If your professional advisor (realtor or attorney) marks up a property, or does a side deal, or otherwise is a double-dealer working against your interest... so that they make 45k, instead of you bagging a bargain. Well, you're absolutely right, it's not illegal! :-) Perhaps it's just greed, or it's my stupidity, or their cunning. But that's why I said it's sharp practice / unethical. And we can empathize with someone who's a victim of this kind of behaviour, and understand why they might describe it as a scam or a fraud.
Guest7632

@gwynj  I hear you gwynj. Although not a scam its not a pleasant experience for anyone.

Johnavann

@GB_


I do not blame Bulgaria however this is real.  No one can say that the country is not evolving and developing the laws annually and given the complexity there are many loopholes.   Those are the invitation for the unscrupulous to exploit.   Look online for "Bulgarian Real Estate Mafia" (BREM),   I am sad for my ex wife for falling for the scam as it was her 50% that she was scammed out of,  not mine.   She hired the attorney from the BREM as she did not want to pay her attorney an hourly fee, she was advised to not do this and while the settlement was readily agreed to, she was a victim post divorce as a naïve woman taken advantage of.   A more cautious person would have seen through the scam.   Even the judge who approved the settlement warned her to seek competent and independent post marital advice.  She chose to rely on the BREM.   Somehow the attorney also got her car--a very expensive car. 


As for the comments about the lack of clarity in the laws it too is real.   Yes indeed, a POA lasts only for one year however there are many cases where the Notary and the Scammer work in unison and sell the house with a forged deed.   They get the money and are not prosecuted.


The point of the posting is to have your eyes wide open.   I have had a number of real estate transactions as I have a number of hotel and investment properties and my only actual experience was seeing my ex wife get scammed.    So long as you are cautious,  suspicious and are aware then you should not have any issues.   I see posts of dealing with long term friends, relatives.   I am referring to those outside of that group. 

Johnavann

@Newlifebg


Bg does not have a corner on the market of bad actors.   Read the posts more carefully and you will see that the focus is the inconsistency in the laws as they evolve.   It is like rearranging a puzzle and when one item changes there are unintended consequences.  In this case it is the attorneys and YES Bulgarian attorneys who are the perpetrators aided by other bad actors. 

Johnavann

@GB_2_BG


It seems that you are aiming to defend Bulgaria and not diving into the issue.   I love it here.   I do know expats who have been taken with the tax hit by the low price declaration and then selling years later.  Let's not focus on personal attacks but look a little deeper.   I am pleased that this topic is getting a lot of traffic and comment as you should be.  Bulgaria is a beautiful country, wonderful, culture, food, history and opportunity.   It is evolving and on par with other countries who have evolved and had had the same growing pains.  It is still the wild west and all should believe in "caveat emptor"  as well as "simper ubi, sub ubi."

Guest7632

@GB_

there are many cases where the Notary and the Scammer work in unison and sell the house with a forged deed.  They get the money and are not prosecuted.


.If a notary is willing to risk his position and massive earnings? Now thats a big big IF.


Then how will the forged deed make it past the court and registry agency after the notary?!?!?!?@?!?@?!?!?!?@


Impossible.


If true? Post a real example

Guest7632

Hello

Guest7632

@Johnavann


Thank you for your post. I'm extremely surprised this post hasn't been censored by the moderator on this forum. My post and email address were censored in 2020 simply for telling the truth about my experience, which is that I was lured to Bulgaria by property agents in 2020 to be baited and switched. Yet what I experienced there, aside from the Realtor implying she would have sex with me if I bought the house. is nothing like what you are writing.


Your post makes me happy that only my time and money were wasted in Bulgaria.


I received a COVID sanctions pass from the Bulgarian Ministry of Economics after filing Financials (bank account information, US tax returns, etc.) through my attorney there. Americans were blacklisted during COVID. I received an exemption after using the attorney.


I emailed and called the property brokers the same day to confirm we could tour 5 houses there. They said YES all are ready, please come to see. When I arrived - all 5 houses could not be seen. I was redirected to houses I had no interest in seeing. Overpriced, and expensive with undesirable locations. It was a classic bait and switch scheme that cost me $10,000 usd in tickets, hotels, taxi's, food and time wasted.


My "favorite" house was a 90m2 ground level "villa" for 80,000 EUR, that the seller would reduce to 60,000 EUR. It required a HOA contract with monthly maintaining  fees forever on the 10m2 patch of grass. The seller was present, and assured me not only was his Villa the best in Bulgaria, but his wall mounted 9000 BTU air conditioning unit cost 3000-4000 EUR. So I was actually getting the house for 3000-4000 EUR less in addition to the big discount. I looked up the model and number on my phone and it was actually 350 EUR.


The villa walls were paper thin. And as the Broker said, you will have the entire place to yourself because nobody stays here for the winter.  Great selling point.


I think a shallow glance could tell you the moderator of this forum is working with the Real Estate Industry there.


I have never seen a country with brokers that not only openly lie, but scam from the start, then ADMIT they do this all the time, otherwise nobody would visit. In other words, I can presume from my experience, most of the houses you see online, well, you know the rest. And you don't need me to say it.  I had to lose $10,000 USD on finding out the hard way. AND I lost the house I wanted to purchase in Serbia, which skyrocketed in value from 60,000 EUR to 150,000 EUR in 2 years.



I appreciate your post and am shocked it hasn't been deleted yet.


I tell as many people who will listen about my negative Real Estate experience in Bulgaria to discourage as many Americans as possible from being victimized. Thank you.

lk760

@euronomad Please advise why you believe Bulgaria will outperform Western Europe in the next 2 decades? I would like to know more.

SimCityAT

I appreciate your post and am shocked it hasn't been deleted yet.


-@landroversalesEU


This post has ben here a year, and has not broken any rules, so why would it be deleted?

grumpyoldbird

@gwynj can I just clarify that information?

No tax scam involved, but if I buy a cheap house and renovate it. It's my only house, so it's not a second home, am I subject to tax if and when I come to sell, or if I croak and its passed to my kids, are they subject to tax? If it is taxable, is it only on profits and are the cost of renovations, deducted from those profits?

Cheers

Johnavann

@bestlikefromme


My comments have created heated responses. That is good that people become aware. of the potential pitfalls.


As for the comments about Tax avoidance schemes that come home to roost the following is the prevailing one.


When one purchases a home in Bg an unscrupulous seller will ask for a good portion in cash to reduce the VAT (20%) that must be paid.  The sale must be recorded and sales tax (VAT) must be collected.   So on a E100,000 sale, there is E20,000 tax due from the seller.  By asking the buyer to reflect a purchase price for the Buyer of E50,000 then the seller only pays E10,000 in tax and saves on tax to the tune of E10,000.


Years later, it comes home to roost.  How?  In this explanation, the Buyer enjoys appreciation and eventually chooses to sell for E150,000.  The buyer has actually enjoyed a gain of $50,000.  His tax gain from the official records is E100,000 because his cost is recorded in the records at the reported price of E50,000 many years ago when the property was first purchased.  So now the unsuspecting buyer pays E20,000 VAT (20% of the gain) instead of E10,000 VAT ((20% of his actual gain of E50,000)

Johnavann

@HelenDinBG



In any profession the majority of people are true professionals and choose to expand their business by building referrals.   Yes, in Bg there are bad apples just like in every country in the world.   


The point is to make one aware of the potential IF one runs into a bad apple.    I do firmly believe that any person unfamiliar with local customs, laws etc is low hanging fruit for an unscrupulous person.  Foreigners are more likely to be unfamiliar than locals.  That is the point.  To provide information to those who are unfamiliar. 

Johnavann

@wtruckyboy


Gosh Trucky Boy!   How opinionated and personal you make this seem.   I truly enjoy my situation in Bulgaria to the point that it is now my permanent home.   I view the purpose of my postings to provide guidance for those who are seeking it and not to paint with a broad brush and condemn all Bulgarians. 


Let's be honest, Bulgaria is a corrupt country from the top down.  Organized crime has a firm foothold here.  Yet that is no different than another country in the world.  Some are better and some are worse.  As I said in an earlier post--those new to any new culture who are unfamiliar with the local laws and corruptions are an easier target than those who are familiar.   

Johnavann

@Guest7632


Come now 7632! Really?


What caused you to leap to that conclusion? Perhaps you are reading too much of Flagman.BG and not reading the postings with clarity.  I choose to make Bg my permanent home. I ENJOY MY LIFE HERE.  As posted earlier, The purpose is to provide warning and information to those who are unfamiliar with the potential abuses that can occur.


As for Bg. It is a corrupt country from the top down. It has organized crime connected directly to the government. It is a puppet of the the United States.  Having said that, all countries are corrupt and some are more corrupt and some less corrupt than Bulgaria. Most are puppets of Russia, United States or China.  While Bulgaria is not a third world country many of its population have been denied rightfully earned benefits due to corruption and turn to scams to survive. The likeliest target of any scam is a rube---A Stranger in a Strange Land---the person unfamiliar with the local laws and what to look out for to be safe.  That is the purpose of my postings---I am not writing to the happy and safe people tucked away in their utopia and my postings clearly state their intent.  I have travelled to many countries in the world including those in war and am confident that there is no country that is utopia.  If I attack anyone it is those who are leaders in the corruption scams---it is trickle down. As for your personal comments and observations about my being angry---Really? Is it necessary to discredit my intent?

Johnavann

@Guest7632


A forged deed?   Impossible?   Yes indeed it is very possible and it does happen.   The following also happens.


  1. Recording a fake loan on a property and then processing it for collection sale.
  2. Attorneys regularly lying in court--and of course this can happen inn any country, but is more normal here.
  3. Paying Judges a bribe.  Yes-take the Judge to dinner, give him an envelope.   But Bg is not alone.  In Texas we still buy our judges through election donations. 
  4. Paying a bribe to get a building permit--a regular and expected part of the process for commercial development.
  5. Police hinting strongly for a bribe to not issue you a ticket.  Yes it happens and it has happened to me.



  9. The list goes on, however it is not just in Bulgaria, it happens all over the world and the less developed the country is the more is the opportunity for trickle down corruption. 


And, if you think there are no scams in Bulgaria, go for a drive on various roads in various cities.   Why for example when Inceratki is a district in Nessaber are there no paved roads--only dirt ones,   when in various areas of Nessaber and St Vlas there are some roads worthy of five star awards.   All are in the same tax district but the better roads are near the officials houses.      Not to belabor a point but when I was on the county commission board in Denton Texas, the road to my ranch became curbed and guttered when my neighbors roads stayed as trails.  I wonder why this fortunate event happened? 

SimCityAT

@Johnavann


You will not get a response from @Guest7632 as they are no longer Expat.com members.

sandrakassem2

@euronomad I’m trying to buy a property in a Bulgaria can you please advise me on a lawyer who can help me I tried to find one here in the U.K. but she didn’t deal with Smolyan region I don’t understand how can you deal with one region and not the other

Johnavann

@sandrakassem2


hello, it is very confusing and yes, you must have a local attorney specializing in each district because very few of them venture outside of their domicile district. Your broker can recommend an attorney and a notary, and there are many articles on this site that warn of potential scams.


That does not mean that you cannot have an expert attorney that is highly recommended and well qualified from another. Districk review the documents.

SimCityAT

@euronomad I’m trying to buy a property in a Bulgaria can you please advise me on a lawyer who can help me I tried to find one here in the U.K. but she didn’t deal with Smolyan region I don’t understand how can you deal with one region and not the other
-@sandrakassem2


She might not live close to the region.  Mine lives in my town, why would I have one that lives 400 miles away?

grumpyoldbird

@gwynj

Wow! That's taken some absorbing!

Ok...so I'm planning to buy a property with a friend. We're both from the UK, so will have to buy a company. We're hoping to buy from an English couple and we're planning to come out and see the house early next year.

As they're moving back to the UK, we can have their company with the house. They told us they paid more for the house than they're selling it for, as they bought it prior to the financial crash, which I can completely understand, as the same has happened to me, with my French house.

Any pitfalls I need to be aware of in this scenario?

philip Mckay

@grumpyoldbird

Sounds like your gonna be ok to me.

I was going to post something that actually happened to me back in 2007..  I bought my place on the black sea though Bulgarian properties who are very professional real estate company and was very impressed by them.. I was looking to buy a plot of regulated land near a ski resort and found a plot of land just outside of Smolyan and a stone's throw from Pamporovo on the Bulgarian properties site .. do anyway paid my deposit for 2000sqm  of land ..  things dragged on and on and the agent kept making excuses about why the land had not been processed so my uneasyness increased ..he then said to me that he could get it cheaper and that if I initiated a return of deposit from Bulgarian properties and then pay it to him so he could buy the land for me I immediatly contacted the head office who immediately investigated ... Turns out that probably this land didn't exist or was already sold.. luckily my deposit was with Bulgarian properties some others had paid deposits direct to him.. I got my deposit back .. and hope he is in jail by now ...  You just have to be so carefull .. just make sure whatever you do that your lawyer is very independent of the people Ur buying from and make sure that your paying into the Bulgarian company account that actually owns it

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