Declarations Required When Selling Property Under a Power of Attorney

Regardless of whether the seller and the buyer appear in person before the notary or are represented by an authorised representative, they are obliged to sign several declarations upon the sale of property. The circumstances stated in these declarations cannot be declared by an authorised representative, even if that representative has been expressly authorised to do so.

Upon the sale of property under a power of attorney, the party represented by an authorised representative must certify these declarations before a notary in advance.

If the seller or the buyer is abroad, they may certify the declarations at the Bulgarian embassy or consulate. The declarations may also be certified before a local notary in the relevant country. In that case, however, they will need to be apostilled and legalised in Bulgaria. We would remind you that the power of attorney for the sale of property may be certified abroad only at a Bulgarian embassy or consulate, since the law requires certification of both the signature and the content.

When the transaction is executed before the notary, the authorised representative must present the following declarations in the original:

Declaration under Article 25(8) of the Notaries and Notarial Activity Act

This is the so-called Declaration of Citizenship and Civil Status. It is completed by both the seller and the buyer.

The declaration under Article 25(8) of the NNAA is in an approved form. It states the marital status of the parties to the transaction. Since, in property transactions, it is relevant what the seller's marital status was when they acquired the property and what it is as at the date of the sale, the declaration must also set out:

• the date of contracting the marriage and with which person;
• the date of termination of the marriage due to divorce or the death of the spouse;
• any previous marriages, respectively with which persons, on which date and for what reason they were terminated (divorce, death).

Each of the parties to the transaction – seller and buyer – certifies one copy of this declaration. Where there are several sellers or buyers, each of them completes and certifies a separate declaration.

We draw your attention to the fact that the Declaration under Article 25(8) of the NNAA is valid only until the end of the calendar year in which the notarial certification was made.

Declaration under Article 264(1), (2) and (4) of the Tax and Social Insurance Procedure Code

As of 3 May 2024, the so-called Declaration of Absence of Liabilities to the State for Taxes, Duties and Mandatory Social Insurance Contributions under Article 264 of the ДОПК is no longer required. It has, however, been replaced by a new declaration by which the seller gives their consent for the notary to carry out an electronic check with the НАП as to the existence or absence of any outstanding liabilities subject to enforcement.

The new declaration under Article 264(1), (2) and (4) of the ДОПК is in a prescribed form and is completed and certified only by the seller.

The buyer does NOT certify a declaration under Article 264 of the ДОПК.

The declaration under Article 264(1), (2) and (4) of the ДОПК is certified in 2 copies.

Declaration under Article 72(2)(1) of the Tax and Social Insurance Procedure Code

Notaries require this declaration only from the seller. It too is in a prescribed form.

The buyer does NOT certify a declaration under Article 72(2)(1) of the ДОПК.

Declaration under Article 42(2)(2) of the Measures Against Money Laundering Act

This is the so-called Declaration that the seller or the buyer is not a prominent public figure (politically exposed person) – for example, a member of parliament, a minister, a mayor, a member of a governing body of a political party, and so on. The same circumstances must also be declared in respect of the members of their families, including relatives of the second degree of collateral kinship.

The declaration under Article 42(2)(2) of the ЗМИП is in a prescribed form and is completed by both the seller and the buyer of the real estate.

Declaration under Article 59(1)(3) of the Measures Against Money Laundering Act

This is the so-called Declaration of Beneficial Owners. Where the seller or the buyer of the property is a company, its manager or executive director must complete such a declaration. The declaration under Article 59(1)(3) of the ЗМИП is likewise in a prescribed form.

The declaration of beneficial owners is NOT certified by sellers and buyers who are natural persons.

Declaration under Article 66(2) of the Measures Against Money Laundering Act

This is the so-called Declaration of the Origin of Funds. It too is in an approved form.

The buyer is obliged to declare the origin of the funds with which they are purchasing the real estate. Please note that if the income consists of savings from employment remuneration, the employer must also be indicated, as well as the period over which the funds were saved. If part of the funds comes from a bank loan, its amount and the bank from which it was granted must be indicated.

The seller does NOT certify a Declaration under Article 66(2) of the ЗМИП.

Should you require a consultation in connection with the purchase and sale of real estate, the review of documents or the drafting of a preliminary contract, please contact us on telephone 0887550706 or by e-mail: [email protected]