Inheritance of real estate of a foreigner in Bulgaria
August 25, 2024
The death of a foreign citizen – the owner of real estate leads to the transfer of ownership to his heirs, but – who are they?
This article reveals the peculiarities of inheriting real estate in Bulgaria, when the property is owned by a foreigner.
In recent years, thousands of foreign citizens from Great Britain, Russia, and many other countries have purchased real estate in Bulgaria. For some, these properties are a good investment, for others – a place to rest, for others – a place to establish a permanent residence in the country.
Inheriting real estate purchased by a foreigner in Bulgaria, however, gives rise to some complications. Particularities specifically in relation to real estate are provided for by the legal framework both for the heirs and for the potential buyers of such property. Few think about what happens to the property when the foreign owner dies. In this article, we will discuss the legal steps to be taken in such a case.
Care is always required in the presence of a legal case with an international element. The cases related to the inheritance of real estate in Bulgaria are particularly significant, given the risks for the buyer of such property. Different hypotheses are possible, which we must distinguish when we have real estate in Bulgaria that has become the object of inheritance.
Applicable law:
Each country regulates inheritance matters according to its own law. In cases with an international legal element – such as when the owner of a property is a citizen of one country, and the property is located on the territory of another, the so-called conflict norms. These norms determine whether the law of the country of which the foreigner is a citizen or the law of the country where the property is located applies to the inheritance.
Pursuant to Article 14 of the Bulgarian Code of Private International Law, Bulgarian courts and other bodies are competent for claims and other proceedings related to inheritance, when the testator at the time of his death had a habitual residence in the Republic of Bulgaria. Again, the Bulgarian court is competent if the testator was a Bulgarian citizen, as well as when part of his property is located in the Republic of Bulgaria.
The stated competence of the Bulgarian court refers to the following claims:
– claims for inheritance, for the destruction or reduction of bequests
– claims for division of inheritance and for annulment of voluntary division
Again, the Bulgarian law is also applied in cases where the testator is a Bulgarian citizen, but the inheritance was discovered abroad. The aforementioned claims can be filed at his last permanent address in the Republic of Bulgaria or before the court in the area where his properties are located.
Two other very important rules are regulated in Article 89 of the CPIL:
– Inheritance of movable property is governed by the law of the country where the testator had his habitual residence at the time of his death.
– Inheritance of immovable property is governed by the law of the country where the property is located.
Based on the above, the conclusion is the following: in the case of a foreign testator who has left immovable property in Bulgaria, the circle of his heirs is one for movable property and another for immovable property. Thus, if the owner of the property is a citizen of, for example, Russia, then his heirs in Russia will inherit all his property according to the rules of the Russian Federation. These rules are not the same as the Bulgarian ones, including they provide for acceptance of inheritance within 6 months. However, the heirs of this foreign citizen to his property in Bulgaria will be determined according to Bulgarian legislation.
An additional complication in many cases is the presence of a legal aid contract between the two parties. In the event that such exists and regulates matters of inheritance law, the content of its clauses should be examined carefully on a case-by-case basis.
Determination of the heirs of a property /real estate/ in Bulgaria
TheBulgarian law allows inheritance both by law and by will. A will plays a key role in the inheritance process, if one is made. If the deceased has made a valid will, the inheritance is carried out according to its provisions, provided that they do not conflict with the applicable law. Otherwise, inheritance takes place according to the statutory provisions for intestate inheritance.
According to Bulgarian law, each testator leaves behind a circle of potential heirs, who are arranged in rows. The rule is that the closer line of heirs excludes the more distant. There are four lineages. It is the heirs of the testator who can dispose of property in Bulgaria acquired by inheritance.
- Determination of the heirs: the first line of succession includes the descendants of the deceased (children, grandchildren, great-grandchildren). Children inherit, and grandchildren and great-grandchildren inherit only by substitution – if the testator’s child has died before him or is unworthy according to the law. This order includes both birth and adopted children. If there are no successors in this row, we move to the second, third and fourth rows. The husband of the deceased also inherits. In order to determine the exact quotas, reliable information about the testator’s marital status and relatives is necessary.
- Issuing a certificate for heirs: After the heirs have been determined, in order to proceed with the sale of the inherited property, it is necessary to issue a certificate indicating the kinship relationship between the testator and his heirs.
- In Bulgaria, this is the certificate for heirs. Many other countries also issue such a certificate for heirs. If the deceased was a citizen of a member state of the European Union, the heirs can obtain a European Certificate of Succession. In the event that the testator is a citizen of a third country (for example, Russia), the heirs must present to the notary an identical certification document, which indicates who the testator’s closest relatives are. In case the testator lived on the territory of Bulgaria, the consulates of the respective countries often issue certificates for his heirs.
- Legitimation of the heirs: After the heirs obtain a certificate of heirship, they can legitimize themselves before a notary and enter into a contract for the sale of the inherited property. The certificate of heirs and other necessary documents – such as a death certificate – are presented to the notary.
- Registration and transfer of the property. After all the procedures related to the clarification of inheritance law issues have been completed, if the heirs have decided to conclude a contract for the sale of the property, a notarial deed is drawn up. The notarial deed of purchase and sale is entered in the Property Register. This is a mandatory condition that will give publicity to the established right of ownership. Realization of a real estate transaction is done in conjunction with all other necessary documents for the transfer of ownership of the inherited property.
The death of a foreign owner of real estate in Bulgaria poses a number of legal and administrative challenges to the heirs. It is important to know the applicable law and follow all procedures in order for the property to be properly inherited. In such cases, it is recommended that the heirs consult an experienced lawyer/lawyer to avoid legal problems and ensure proper property settlement.
In case you have questions or a case, write to us at: office@lexsofia.com
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