Financial Preparation

• Determine your total investment budget (property + transaction costs + reserves)
• Establish a currency exchange strategy (BGN is pegged to Euro at fixed rate of 1.95583)
• Research historical EUR/USD or EUR/CAD exchange rates for timing considerations
• Set up international wire transfer capabilities with your home bank
• Consider opening a Bulgarian or EU bank account (increasingly accessible for non-residents)
• Evaluate tax implications in both Bulgaria and your home country
• Understand that mortgage financing is limited for non-residents (cash purchases are standard)

Market Research

• Identify target regions based on investment goals (urban rental, holiday rental, lifestyle purchase)
• Research region-specific price trends, tourism statistics, and infrastructure projects
• Join online forums for property investors (Facebook groups, Expats in Bulgaria)
• Subscribe to property market reports (Bulgarian National Bank, major agencies)
• Analyze EU funding projects and transportation improvement plans
• Research seasonal tourist flows for holiday rental investments
• Plan a preliminary market visit to evaluate areas firsthand
• Understand the significant price differences between primary markets (Sofia, Varna) and secondary/rural markets

Professional Network Development

• Connect with Bulgarian attorneys specializing in real estate for foreigners
• Identify reputable real estate agencies with English-speaking agents
• Research property management companies in your target market
• Establish contact with currency exchange specialists for larger transfers
• Connect with tax advisors familiar with Bulgarian and North American tax systems
• Find qualified building inspectors or architects for property evaluation
• Connect with other foreign investors through social media groups and forums
• Consider working with relocation consultants for broader support

Expert Tip: Bulgaria’s property market shows significant seasonal patterns, with coastal properties peaking in summer months and ski properties in winter. For better negotiation leverage, consider property viewing in shoulder seasons (April-May or September-October for coastal properties; October-November for ski properties) when sellers may be more motivated and prices more flexible. Off-season visits also allow you to evaluate areas without the distortion of peak tourist crowds.

Recent Regulatory Update: Bulgaria has streamlined the company formation process through digitalization initiatives, with most documentation now available electronically. Company registration typically takes 3-5 business days, and a local director is not required (foreign owners can serve as managers). The minimum capital requirement for an EOOD is just 2 BGN (approximately €1), though most professionals recommend capitalizing with at least €1,000 for better credibility.

Banking Setup

• Bulgarian Bank Account Options:
  • Major local banks: UniCredit Bulbank, DSK Bank, First Investment Bank
  • International banks with Bulgarian presence: Raiffeisen, Eurobank
  • Digital solutions: Revolut, Wise offer EU IBAN accounts usable in Bulgaria
• Account Opening Requirements:
  • Passport/identification
  • Bulgarian PIN number (can be obtained at bank)
  • Proof of address (in home country)
  • Some banks may require reference letters
  • In-person appointment typically required
  • Company documentation (if opening corporate account)
• Banking Considerations:
  • Accounts available in multiple currencies (BGN, EUR, USD)
  • Online banking with English interface at major banks
  • Debit cards issued with most accounts
  • Annual maintenance fees typical (€50-100)
  • Significant documentation for large transfers (anti-money laundering)

Financing Options

The Bulgarian property market operates primarily on cash purchases for foreign buyers, with limited mortgage options:

1. Bulgarian Bank Mortgages:
   • Availability: Limited for non-residents, especially non-EU citizens
   • Deposit Requirements: Typically 30-50% for foreign buyers
   • Interest Rates: 3-5% for EUR loans (higher than Western European rates)
   • Term: Usually maximum 15-20 years for non-residents
   • Documentation: Extensive income verification, credit history, property appraisal
2. Developer Financing:
   • Some developers offer payment plans (especially in resort developments)
   • Typically require 20-30% down payment
   • Usually short-term (2-5 years)
   • Higher effective interest rates than bank loans
   • Limited to new development properties
3. Home Country Financing:
   • Refinancing existing properties in North America
   • Home equity lines of credit (HELOCs)
   • Personal loans secured against home country assets
   • Often more accessible than Bulgarian financing

Most North American investors opt for cash purchases due to the relatively low property prices in Bulgaria compared to North American and Western European markets. This approach also simplifies the transaction process and avoids currency risk on loan repayments.

Currency Management

The Bulgarian Lev (BGN) is pegged to the Euro at a fixed rate of 1.95583 BGN per EUR, creating unique currency considerations:

• Exchange Rate Stability:
  • BGN/EUR rate is fixed, removing Euro exchange risk
  • Real currency exposure is USD/EUR or CAD/EUR
  • Bulgaria’s planned Euro adoption (expected 2025-2026) will eliminate exchange considerations
• Currency Services:
  • Specialized services like Wise, OFX, or Moneycorp typically offer better rates than banks
  • Bulgarian banks offer reasonable rates for EUR to BGN conversion
  • USD or CAD can be converted directly to BGN at banks but typically with higher spreads
• Payment Strategies:
  • Most property transactions conducted in Euros despite prices quoted in BGN
  • Notary fees and local costs paid in BGN
  • Consider timing larger transfers with favorable exchange rates
  • Bank transfers required for property transactions (no cash purchases permitted)

The currency stability provided by the Euro peg and upcoming Euro adoption makes Bulgaria’s currency situation less volatile than many emerging markets. This reduces one common risk factor for foreign real estate investors, though USD/EUR or CAD/EUR fluctuations remain relevant.

Property Search Resources

• Online Property Portals:
  • Imot.bg – Bulgaria’s largest property portal (partial English version)
  • Imoti.net – Comprehensive listings with good search filters
  • BulgarianProperties.com – English-language portal focused on foreign buyers
  • PropertyInBulgaria.com – Specializes in foreign investors
• Real Estate Agencies:
  • Bulgarian Properties (largest agency serving foreign buyers)
  • Colliers, Cushman & Wakefield (for commercial properties)
  • Address Real Estate (strong in Sofia and major cities)
  • Local agencies in specific regions (often best for rural properties)
  • Note: Unlike North America, agency regulation is limited, and most represent sellers
• Off-Plan/Developer Opportunities:
  • Major developers maintain sales offices in resort areas
  • Pre-construction discounts often available (20-30% below completion price)
  • New developments regularly featured at international property exhibitions
  • Require additional due diligence on developer track record
• Direct Listings and Auctions:
  • Facebook groups for specific regions
  • Bank auctions of foreclosed properties
  • Municipal auctions for certain properties
  • Direct contacts in village properties

Property Viewing Trip Planning

For overseas investors, an efficient property viewing trip is essential:

1. Pre-Trip Research:
   • Identify 10-15 potential properties before arrival
   • Schedule viewings in advance with agencies
   • Research neighborhoods thoroughly online
   • Connect with local attorneys before arrival
   • Understand regional differences (prices vary dramatically by location)
2. Trip Logistics:
   • Plan at least 4-7 days per region being considered
   • Consider seasonal factors (especially for coastal/ski properties)
   • Arrange local transportation (car rental recommended outside Sofia)
   • Stay in the area where you’re considering buying
   • Book accommodations that match your investment target (hotels for urban, holiday rentals for resort areas)
3. During Viewings:
   • Take detailed photos and notes
   • Check building quality thoroughly (construction standards vary widely)
   • Ask about building management and maintenance
   • Verify utility connections and internet availability
   • Visit at different times of day (especially important in resort areas)
   • Explore surrounding neighborhood thoroughly
4. Additional Considerations:
   • Meet with attorneys during the trip (not just agents)
   • Talk to other foreign owners in the area
   • Investigate local amenities and services
   • Verify accessibility in off-season periods (for resort properties)
   • Research local rental management companies if planning to rent

Property Evaluation Criteria

Assess potential investments using these key criteria:

• Location Factors:
  • Transport links (airports, major roads, public transportation)
  • Walking distance to amenities (shops, restaurants, beaches, ski lifts)
  • Year-round accessibility (crucial for mountain and some rural properties)
  • Tourism infrastructure for holiday rentals
  • Distance to major cities and employment centers
  • Planned infrastructure improvements
• Building Quality:
  • Age and condition of property
  • Construction quality (varies significantly in Bulgaria)
  • Energy efficiency (heating costs are significant in winter)
  • Building materials and insulation
  • For apartments: management company reputation and common areas condition
  • For houses: structural integrity, roof condition, utilities
• Rental Potential:
  • Rental yield compared to area average
  • Seasonal vs. year-round rental potential
  • Target tenant demographic (expats, locals, tourists)
  • Competition from similar properties
  • Local regulations regarding short-term rentals
  • Potential for value-add improvements
• Financial Considerations:
  • Price per square meter compared to area average
  • Maintenance fees and common charges
  • Local tax assessment
  • Utility costs (especially heating in winter)
  • Potential capital appreciation based on local trends
  • Renovation costs if applicable

Expert Tip: Pay particular attention to the build quality of Bulgarian properties, especially in resort developments built during the 2000-2008 boom period. Construction standards improved significantly after Bulgaria joined the EU in 2007, with better building codes and enforcement. For older properties or those in resort areas, it’s advisable to hire an independent building inspector or engineer to assess construction quality, as issues like inadequate insulation, poor waterproofing, or substandard electrical systems can significantly impact long-term maintenance costs and rental potential.

Legal Due Diligence

• ✓
  Title Verification: Confirm ownership through Property Registry extract (Удостоверение за тежести)
• ✓
  Encumbrance Check: Verify no mortgages, liens, or restrictions on the property
• ✓
  Building Documentation: Check building permit, Act 15 (completion of construction), Act 16 (permission to use)
• ✓
  Cadastral Map Entry: Verify property is correctly registered in cadastral map
• ✓
  Tax Valuation Certificate: Obtain current tax assessment document
• ✓
  Seller Verification: Confirm seller’s identity and right to sell
• ✓
  Condominium Documentation: Review Condominium Management Act documentation for apartments
• ✓
  Regulations Check: Verify zoning regulations and future development plans

Physical Due Diligence

• ✓
  Property Inspection: Professional assessment of structural integrity and systems
• ✓
  Building Condition: Check for moisture issues, cracks, subsidence, insulation
• ✓
  Utility Connections: Verify all utilities are properly connected and functional
• ✓
  Measurement Verification: Confirm actual size matches documented size
• ✓
  Common Areas (if applicable): Inspect maintenance, security, accessibility
• ✓
  Internet/Telecom: Check broadband availability and mobile coverage
• ✓
  Renovation Assessment: Obtain estimates if improvements planned

Financial Due Diligence

• ✓
  Comparative Market Analysis: Verify price aligns with recent comparable sales
• ✓
  Utility Bill Review: Examine historical utility costs (especially heating)
• ✓
  Tax Verification: Confirm property tax amounts and payment status
• ✓
  Maintenance Fee Verification: Check condominium fee history and reserves
• ✓
  Rental Market Analysis: Research realistic rental expectations with local agencies
• ✓
  Property Management Quotes: Obtain management cost estimates if applicable
• ✓
  ROI Calculation: Develop detailed cash flow projections and return analysis

Expert Tip: Bulgarian property transactions require careful documentation verification. While the title system has been modernized since EU accession, property disputes still occur, particularly with older or rural properties. A thorough title search should include checking the Property Registry, cadastral maps, and municipality records. Pay special attention to any discrepancies between the documented property size and actual measurements, as size mismatches can lead to legal complications. Your attorney should conduct a title search spanning at least 10 years to identify any potential inheritance claims or historic restitution issues.

Offer and Preliminary Contract

1. Initial Offer: Typically made verbally through the real estate agent
2. Negotiation: Price and terms discussed between parties
3. Preliminary Contract (Предварителен договор):
   • First legally binding step in the process
   • Outlines key terms (property details, price, timeline, conditions)
   • Typically requires deposit of 10-20% of purchase price
   • Should include clear conditions and contingencies
   • Can be registered with the notary for additional security

The preliminary contract is significantly more important in Bulgaria than similar documents in North America. It establishes legally binding commitments between the parties, and deposits are generally non-refundable unless specific conditions in the contract are not met. This highlights the importance of thorough due diligence before signing the preliminary contract.

Final Contract and Notarization

1. Document Preparation:
   • Final title checks and documentation
   • Preparation of notarial deed
   • Verification of payment arrangements
2. Notary Process:
   • Both parties meet at notary office
   • Notary reads full contract in Bulgarian (translation provided if needed)
   • Both parties sign the notarial deed
   • Notary fees paid (based on property value)
3. Payment:
   • Balance payment typically made via bank transfer
   • Some transactions use escrow accounts for security
   • Cash payments discouraged and limited by anti-money laundering regulations
4. Registration:
   • Notary or attorney registers the deed with the Property Registry
   • New ownership officially recorded
   • Registration typically takes 1-3 days
5. Key Exchange and Utilities:
   • Keys handed over after final payment confirmation
   • Utilities transferred to new owner
   • Property tax registration updated

The entire process from preliminary contract to final completion typically takes 2-4 weeks for straightforward transactions, though it can be longer if company formation is required or for more complex properties. For foreign buyers unable to be present, proper power of attorney arrangements can allow the process to complete without their physical presence.

Transaction Costs

Budget for these typical transaction expenses:

• Local Tax (Municipal Tax):
  • Typically 2-3% of purchase price (varies by municipality)
  • Usually split between buyer and seller, but negotiable
• Notary Fees: 0.4-1.5% of property value, sliding scale (higher percentage for lower-value properties)
• Property Registry Fee: 0.1% of property value
• Real Estate Agent Commission:
  • 2-3% + VAT, typically paid by seller
  • Occasionally buyer pays commission for buyer’s agent services
• Attorney Fees: €300-1,000 depending on complexity
• Translation Services: €50-200 if needed
• Company Formation Costs: €1,000-1,500 if purchasing through company
• VAT: 20% applies to new construction (less than 5 years old), but not to resale properties

Total transaction costs for foreign investors typically range from 5-7% of the purchase price for resale properties, with potentially higher costs for new constructions or properties requiring company formation. These costs should be factored into your overall investment calculations.

Expert Tip: For foreign buyers unable to be present for the entire transaction process, a properly executed power of attorney is essential. This document must be notarized in your home country and then apostilled (for US and Canadian documents) to be recognized in Bulgaria. The power of attorney should be specific about what actions are authorized (signing preliminary contract, final contract, making payments, etc.). Many attorneys recommend preparing this document before traveling to Bulgaria to view properties, as it provides flexibility if you decide to purchase but cannot stay for the entire process.

Administrative Tasks

• ✓
  Property Tax Registration: Register with municipal tax office as new owner
• ✓
  Utility Transfers: Register with utility companies (electricity, water, heating)
• ✓
  Condominium Registration: Join homeowners’ association for apartments
• ✓
  Building Insurance: Arrange coverage (usually inexpensive in Bulgaria)
• ✓
  Property Management Setup: Arrange management if not personally occupying
• ✓
  Tax ID Registration: Obtain Bulgarian tax number if planning to rent property
• ✓
  Company Maintenance: Set up accounting services if property owned through company

Regulatory Compliance

Rental properties in Bulgaria must comply with several regulations:

• Tourist Rental Registration:
  • Short-term tourist rentals require registration with local municipality
  • Property categorization certificate (star rating) for tourist accommodations
  • Tourist tax collection and remittance obligations
• Safety Requirements:
  • Fire safety compliance for rental properties
  • Regular safety inspections for tourist accommodation
  • Health and hygiene standards for tourist rentals
• Tax Compliance:
  • VAT registration required if annual rental income exceeds BGN 50,000 (approx. €25,000)
  • Income tax declarations for rental income
  • Annual property tax payments
• Company Compliance (if applicable):
  • Annual financial statements
  • Corporate tax filings
  • VAT reporting if registered

The regulatory requirements for rental properties in Bulgaria are less burdensome than in many Western European countries. However, professional property management is recommended for foreign owners to ensure compliance with all local regulations, particularly for properties intended for tourist rental.

Record Keeping

Maintain comprehensive records for tax and legal purposes:

• Property Documents:
  • Notarial deed (Final ownership document)
  • Preliminary contract
  • Property sketches and floor plans
  • Building permits and completion certificates
  • Tax assessment documentation
• Financial Records:
  • All property-related expenses with receipts
  • Annual tax payments
  • Condominium fee payments
  • Utility payments
  • Insurance policies and payments
  • Rental income records
• Rental Documentation:
  • Rental agreements
  • Tourist accommodation registrations
  • Tourist tax collections and payments
  • Property management agreements
• Company Documentation (if applicable):
  • Company registration documents
  • Annual financial statements
  • Tax filings
  • Corporate resolutions

Bulgarian tax authorities require records to be kept for 5 years, though 10 years is recommended. Digital record-keeping systems with secure backups are strongly recommended, particularly for overseas investors managing properties remotely.

Expert Tip: For remote management of Bulgarian properties, consider setting up electronic utility payments through direct debit arrangements with a Bulgarian bank account. Many utilities now offer online account management, making it easier to monitor and manage your property from abroad. For physical mail and administrative matters, a professional property management service can serve as your local representative, handling day-to-day issues and forwarding important documents. This is particularly important for seasonal properties that may be vacant for extended periods.

Bulgarian Tax Obligations

• Property Acquisition Taxes:
  • Municipal transfer tax: 2-3% of purchase value (varies by municipality)
  • VAT: 20% on new construction (under 5 years old) only
  • No stamp duty equivalent in Bulgaria
• Annual Property Tax:
  • Very low by international standards (0.01-0.45% of tax assessed value)
  • Tax assessed value typically much lower than market value
  • Payable in two installments annually
  • Varies by municipality and property location
• Waste Collection Fee:
  • Annual fee charged alongside property tax
  • Based on property value or waste generation estimates
  • Relatively modest (€50-150 annually for most properties)
• Income Tax on Rental Income:
  • 10% flat rate on rental profits for individuals (one of Europe’s lowest)
  • 10% corporate tax rate for company-owned properties
  • Deductible expenses limited to 10% of gross income for individuals
  • More extensive deductions possible for company-owned properties
• Capital Gains Tax:
  • 10% on property sold within 3 years of acquisition
  • Exempt from capital gains tax after 3 years of ownership for individuals
  • Corporate owners pay 10% on gains regardless of holding period
  • Primary residence exemption available under certain conditions
• Value Added Tax (VAT):
  • 20% on commercial property rentals (residential rentals are VAT exempt)
  • VAT registration threshold: BGN 50,000 (approx. €25,000) annual turnover
• Inheritance/Gift Tax:
  • Spouses and children exempt from inheritance tax
  • Other heirs: 0.4-6.6% depending on relationship and municipality
  • Exemption threshold of BGN 250,000 (approx. €125,000) in most cases

Home Country Tax Obligations

Bulgaria has tax treaties with both the United States and Canada which help prevent double taxation. However, the interaction between tax systems is complex and requires professional guidance from advisors familiar with both jurisdictions.

Tax Planning Strategies

• Entity Structure: Evaluate whether personal ownership or Bulgarian company optimizes tax position
• Holding Period Planning: Consider the 3-year holding period for capital gains exemption
• Expense Tracking: Maintain meticulous records of all allowable expenses
• VAT Strategy: Analyze whether voluntary VAT registration provides advantages
• Rental Income Structure: Consider long-term vs. short-term rental tax implications
• Company Profit Extraction: Plan optimal method for extracting profits from Bulgarian companies
• Treaty Benefits: Utilize provisions in U.S./Canada-Bulgaria tax treaties
• Inheritance Planning: Structure ownership to minimize inheritance taxes for non-direct relatives

Bulgaria offers one of Europe’s most favorable tax environments for property investors, with low property taxes, a flat 10% income and corporate tax rate, and capital gains exemption after three years. Professional tax advice is still recommended to optimize your specific situation and ensure compliance with both Bulgarian and home country tax requirements.

Expert Tip: One of Bulgaria’s most attractive tax features is the capital gains exemption after three years of ownership for individuals. This makes a “buy, improve, and sell” strategy potentially very tax-efficient, as any appreciation after the three-year mark is completely tax-free for individual owners. For properties held in company structures, however, capital gains are taxable regardless of holding period. This creates an important consideration when deciding between personal and company ownership – the company structure is necessary for non-EU citizens buying land, but personal ownership offers significant tax advantages for properties intended for medium-term resale.

Selecting a Property Manager

Evaluate potential property managers using these criteria:

• Experience with Foreign Investors:
  • Track record managing properties for overseas owners
  • English language proficiency
  • Experience with international payment processing
• Professional Accreditations:
  • Membership in professional associations
  • Business registration and insurance
  • References from other foreign clients
• Market Knowledge:
  • Specialization in your property type/location
  • Understanding of target tenant/guest demographic
  • Local market pricing knowledge
• Client Communication:
  • Regular reporting systems
  • Transparent financial accounting
  • Responsive to international time zones
  • Modern communication channels (WhatsApp, email, etc.)
• Maintenance Capability:
  • Reliable contractor network
  • Emergency response procedures
  • Winter maintenance protocols (critical in mountain areas)
• Marketing Capacity:
  • Digital marketing presence
  • International listing site partnerships
  • Seasonal marketing strategies

Management Agreement Essentials

Ensure your property management contract includes these key elements:

• Scope of Services: Detailed description of exactly what is included and excluded
• Fee Structure: Clear explanation of all management fees, commissions, and additional charges
• Contract Term and Notice Period: Duration of agreement and how to terminate
• Reporting Schedule: Frequency and format of financial and property condition reports
• Maintenance Authority: Spending limits for repairs without prior approval
• Rental Terms: Policies for rental rates, minimum stays, cancellations
• Owner Usage: Procedures for owner’s personal use of property
• Account Management: How rental income and expenses are processed
• Regulatory Compliance: Responsibility for permits, registrations, and tax filings
• Insurance Requirements: Coverage expectations and liability boundaries

The property management sector in Bulgaria has matured significantly in the past decade, with many companies now specializing in serving foreign investors. However, quality and service levels still vary considerably, making thorough vetting and clear contracts essential for successful remote ownership.

Expert Tip: For seasonal properties (beach or ski), consider management companies that operate in both markets. Some Bulgarian management companies have expanded to cover both summer coastal and winter mountain seasons, allowing for year-round rental potential and consistent management. Ask potential managers about their seasonal marketing strategies and occupancy rates during shoulder seasons. The best management companies develop specific approaches for different parts of the year and can provide realistic occupancy projections that account for seasonal fluctuations rather than simply promising unrealistic year-round returns.

Exit Options

Sale Process

When selling your Bulgarian property:

1. Pre-Sale Preparation:
   • Property presentation and staging
   • Address maintenance issues
   • Professional photography
   • Update property documentation
   • Consider timing (seasonal factors)
2. Agent Selection:
   • Local expertise in your property type
   • Marketing reach to appropriate buyer pool (domestic vs. international)
   • Commission structure (typically 3% + VAT)
   • Marketing strategy and timeline
3. Document Preparation:
   • Property title documentation
   • Tax assessment certificate
   • Proof of payment of all taxes and fees
   • Building documentation
   • Energy certificate if required
4. Sale Execution:
   • Preliminary contract with deposit
   • Final notarial deed preparation
   • Notarization and signature (power of attorney if not present)
   • Payment receipt (typically bank transfer)
   • Registration with Property Registry
5. Post-Sale Requirements:
   • Tax declarations in Bulgaria
   • Currency repatriation
   • Company dissolution if applicable
   • Home country tax reporting

The Bulgarian property sale process typically takes 1-3 months from listing to completion, with most of the complexity occurring in the preliminary stages rather than the final transaction. For foreign sellers not present in Bulgaria, a properly executed power of attorney is essential to facilitate the transaction.

Market Exit Timing Considerations

Several factors should influence your exit timing decision:

• Property Market Cycle: The Bulgarian market shows cyclical patterns, with the current phase showing steady growth after the post-2008 correction
• EU Integration Factors: Upcoming Euro adoption (2025-2026) and Schengen zone entry may create value appreciation opportunities
• Tax Optimization: The 3-year holding period for capital gains tax exemption (for individual owners) is a critical threshold
• Currency Exchange Rates: Monitor EUR/USD or EUR/CAD trends for favorable conversion periods
• Interest Rate Environment: Both Bulgarian and global rates impact buyer financing ability and demand
• Seasonal Considerations: Resort properties typically sell better during or just before their peak season
• Infrastructure Completions: Major transportation or development projects can create value jumps upon completion
• Regulatory Changes: Stay informed of property-related legislative changes that might impact foreign ownership

Bulgaria’s property market has matured significantly and now attracts a more diverse investor base than during its pre-2008 boom. Current market dynamics favor medium to long-term investment horizons (5-10 years) to capture the benefits of steady appreciation, rental returns, and potential EU-integration value increases. Investors should stay informed of Bulgaria’s progress toward Euro adoption and Schengen area membership, as these milestones have historically created property value increases in other EU accession countries.

Expert Tip: For properties owned through a Bulgarian company, consider selling the company shares rather than the property itself in some cases. This approach can offer tax advantages and simplify the transaction, particularly for foreign buyers who would otherwise need to establish their own company. However, this strategy requires careful legal and tax planning, as the buyer assumes all company liabilities. For individual owners who have held property for more than three years, direct property sale is usually more advantageous due to the capital gains tax exemption. Consult with a tax advisor to determine the optimal exit strategy for your specific situation.