A foreign buyer's guide to purchasing property in Bulgaria

Property in Bulgaria draws growing interest from EU nationals and third-country citizens alike. Favourable taxation, fairly affordable prices and a varied market make it appealing for both home and investment purchases.

Rules for foreign buyers of Bulgarian real estate vary with three key factors: whether the buyer comes from an EU/EEA member state or a third country, whether the property is urban land, agricultural land or forest, and whether the buyer is a natural person or a legal entity.

Below we cover the main rules for foreigners acquiring real estate, the documents needed, how the transaction proceeds, and the particular restrictions to bear in mind when making such investments.

1. General and constitutional legal framework

The right of ownership, together with its inviolability, is protected by the Constitution of the Republic of Bulgaria (Art. 17, paras 1 and 3). The main limit for foreigners is Art. 22, para 1. Under it, foreign legal entities and foreign nationals can become owners of land in only three situations: on terms that follow from Bulgaria joining the European Union, by a ratified international treaty, or by succession by law.

Art. 29, para 4 of the Law on Property (LP) develops that principle. Unless a specific law says something different, foreign nationals and foreign legal entities may freely become owners of buildings and of limited real rights, the right to build being one example.

2. The EU and EEA regime for nationals and legal entities

Natural persons and legal entities of EU member states, along with those of countries party to the Agreement on the European Economic Area (EEA), are in a position as close as possible to that of Bulgarian citizens.

Urban properties (buildings and land): Provided the general statutory requirements are met, these buyers may freely become owners of buildings and apartments and of the land attached to them (regulated land plots) (Art. 29, paras 2 and 3 LP).

Agricultural land and forests: Bulgaria's Treaty of Accession to the EU provided a seven-year transitional period. It expired on 31 December 2013, and since then EU/EEA nationals and legal entities have had the right to acquire agricultural land and forests in Bulgaria.

Key development (EU law): Case C-562/22 (JD v OB) was decided by the Court of Justice of the European Union on 18 January 2024. Art. 3c of the Law on Ownership and Use of Agricultural Land (LOUАЛ) requires five years' residence in Bulgaria, and the Court found that this conflicts with the free movement of capital protected by Art. 63 TFEU. Bulgarian legislation formally retains the provision; yet because EU law prevails, EU/EEA nationals and legal entities should not have it applied to them.

3. Buyers from third countries: nationals and legal entities

Persons and entities from outside the EU/EEA face a considerably stricter regime, above all for land.

Urban properties (buildings and apartments): These persons may buy buildings, and acquire limited real rights over immovable property, without restriction. Case law holds that the constitutional ban on land acquisition does not reach a transaction transferring a building with the land it stands on once construction is fully completed; see Decision No 210 of 27 December 2016 of the Supreme Court of Cassation (Civil Case No 1739/2016).

Agricultural land and forests: Third-country nationals and legal entities may not acquire ownership of agricultural land and forests, save in two cases:

1. Succession by law — the one universal route by which these persons can obtain land.
2. International treaty — Bulgaria and the third country concerned must be bound by a treaty that is ratified, published and in force and that allows such acquisition.

A third-country national who receives agricultural or forest land by inheritance must pass ownership to a person entitled to acquire it, and has three years from the opening of the succession to do so.

4. How a purchase proceeds

A notarial deed completes any purchase of real estate in Bulgaria, whatever the structure. The main steps are:

• a legal review of the property carried out first;
• a preliminary contract signed together with a deposit;
• the property's tax assessment certificate and cadastral sketch are collected;
• the notarial deed is signed before the notary of the district where the property is located;
• entry of the deed in the Registry Agency.

5. Legal entities and investment: special rules

Companies with foreign participation: Agricultural land is off-limits to a Bulgarian company with partners or shareholders who are nationals or legal entities from third countries (Art. 3, para 7 LOUАЛ), and the courts enforce that ban rigorously.

Investment and right of residence: An extended residence permit may be obtained by a foreign national who invests BGN 600,000 or more in real estate on Bulgarian territory.

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