People often ask us whether Bulgaria is a good place to buy a car and the answer is yes, it is. In fact, Bulgaria is well known as one of the biggest markets for second-hand vehicles (car, trucks, motors etc.). The best thing is that prices are sufficiently lower than in most EU countries. The law does not put any restrictions regarding the car sellers. Second-hand cars can be purchased both in car showrooms and from companies dealing in resale. They can also be bought directly from the owners.
The most popular websites for buying and selling vehicles in Bulgaria are:
www.cars.bg
www.mobile.bg
www.auto.bg
When buying a car in Bulgaria, there are actually 2 options: 1) to register the car as a personal or 2) to register it as a company asset. We propose to become a permanent resident of Bulgaria, in case you choose to register the car as a personal asset. If you choose the alternative option, the best way to do it is via Bulgarian limited company. Incorporating a company in Bulgaria is easy and affordable option. You can learn more here.
But what is the procedure?
The car is purchased with an agreement for purchase and sale. The specified value of the car cannot be lower than the insurance value of the car. The taxes and charges for signing the agreement for sale and purchase before the notary public amount to approximately 2,5% from the specified value of the vehicle.
What should I look out for in the agreement for purchase and sale?
In Bulgaria, it is not possible to buy a car online as, by law, the contract must be in writing, contain both parties’ details, the price and the description of the vehicle. The signatures of both parties must be witnessed by a notary. You should definitely read the contract carefully and only sign contracts you understand. Some traders try to exclude legal guarantee rights by claiming that the contract is a business-to-business contract or that the car is sold “without warranties” (only in business-to-consumer contracts would such a clause be considered null and void).
How could I pay?
You can pay for the car in cash if the amount of up to BGN 9 999 (approximately EUR 5 110). Beyond that limit, payments should be made via a bank. When entering or leaving Bulgaria, you must declare any sum of money of or equivalent to EUR 10 000 and above to customs using a specific form.
What documents are required?
• Vehicle Registration Certificate Part I and Vehicle Registration Document Part II;
• Document confirming paid vehicle tax for the current year;
• Third Party Liability Insurance policy;
• Certificate for the insurance value of the vehicle;
• Agreement for sale and purchase;
• Invoice;
• Declaration by the seller for absence of liabilities to the state budget subject to execution (declaration pursuant to Art.264, Para. 2 of the Tax and Insurance Procedure Code, signed when vehicle ownership is being transferred).
Is the seller obliged to provide a vehicle inspection?
The seller does not have to give the consumer a technical report. They only have to provide the technical inspection document. In Bulgaria, cars must pass their first vehicle inspection 3 years after they are first registered and then every year.
Within 14 calendar days of completion of the transaction the new owner has to re-register the vehicle with the local Traffic Police Office by providing the below documents:
• Agreement for sale and purchase;
• Vehicle Registration Certificate Part I and Vehicle Registration Document Part II;
• Document confirming paid vehicle tax for the current year plus an extra copy;
• Third Party Liability Insurance Policy;
• Document and certificate for technical inspection.
Please note, that within 3 months’ period of completion of the transaction the new owner should declare the vehicle with municipality by providing the abovementioned documents.
For additional information about how to buy a car in Bulgaria, do not hesitate to contact us.
