Buying real estate in Bulgaria as a foreigner

Bulgaria is an increasingly popular destination for real estate investment by both EU nationals and citizens of third countries. A favourable tax regime, comparatively accessible prices and a diverse property market make the country an attractive destination for residential and investment purchases.

The regime for acquiring real estate in Bulgaria by foreigners is differentiated and depends on three key factors: the nationality of the acquirer (EU/EEA member state or third country), the type of property (urban land, agricultural land or forest), and the legal status of the buyer (natural person or legal entity).

This article examines the main rules for acquiring real estate as a foreigner, the documents required, the transaction procedure, and the specific restrictions that should be taken into account when making such investments.

1. Constitutional and general legal framework

The Constitution of the Republic of Bulgaria guarantees the right of ownership and its inviolability (Art. 17, paras 1 and 3). The principal restriction for foreigners is set out in Art. 22, para 1 of the Constitution, under which foreign nationals and foreign legal entities may acquire ownership of land only under conditions arising from Bulgaria's accession to the European Union, by virtue of a ratified international treaty, or through succession by law.

The Law on Property (LP) develops this principle by allowing foreign nationals and foreign legal entities to freely acquire ownership of buildings and limited real rights (such as the right to build), unless a specific law provides otherwise (Art. 29, para 4 LP).

2. Regime for EU and EEA nationals and legal entities

Nationals and legal entities from EU member states and from countries party to the Agreement on the European Economic Area (EEA) enjoy a regime as close as possible to that applicable to Bulgarian citizens.

Urban properties (buildings and land): They may freely acquire ownership of buildings, apartments and the land attached to them (regulated land plots) in compliance with the general statutory requirements (Art. 29, paras 2 and 3 LP).

Agricultural land and forests: Following the expiry of the seven-year transitional period provided for in the Treaty of Accession of Bulgaria to the EU on 31 December 2013, EU/EEA nationals and legal entities obtained the right to acquire agricultural land and forests in Bulgaria.

Key development (EU law): By its judgment of 18 January 2024 in Case C-562/22 (JD v OB), the Court of Justice of the European Union held that the requirement of five years' residence in Bulgaria set out in Art. 3c of the Law on Ownership and Use of Agricultural Land (LOUАЛ) is incompatible with the principle of free movement of capital under Art. 63 TFEU. Although the provision formally remains in Bulgarian legislation, under the principle of primacy of EU law it should not be applied to EU/EEA nationals and legal entities.

3. Regime for nationals and legal entities from third countries

For nationals and legal entities from countries outside the EU/EEA the regime is considerably more restrictive, particularly as regards land.

Urban properties (buildings and apartments): Such persons may freely acquire ownership of buildings and limited real rights over immovable property. Case law, including Supreme Court of Cassation Decision No 210 of 27 December 2016 (Civil Case No 1739/2016), confirms that the constitutional prohibition on acquiring land does not apply to transactions by which ownership of a building and the land on which it stands is acquired, where construction has been fully completed.

Agricultural land and forests: Acquisition of ownership of agricultural land and forests by nationals and legal entities from third countries is prohibited, except in two cases:

1. Succession by law — the only universal means of acquiring land available to such persons.
2. International treaty — where a ratified, published and in-force international treaty exists between Bulgaria and the relevant third country that permits such acquisition.

A third-country national who acquires agricultural or forest land by inheritance is required within three years of the opening of the succession to transfer ownership to a person who is entitled to acquire it.

4. Specific rules for legal entities and investments

Companies with foreign participation: A Bulgarian company whose partners or shareholders are nationals or legal entities from third countries may not acquire agricultural land (Art. 3, para 7 LOUАЛ). Case law strictly enforces this prohibition.

Investment and right of residence: A foreign national who invests an amount of not less than BGN 600,000 in real estate on the territory of Bulgaria may obtain an extended residence permit.

5. Purchase procedure

Regardless of the structure, the purchase of real estate in Bulgaria is completed by a notarial deed. The main steps are:

• preliminary legal due diligence on the property;
• signing a preliminary contract with a deposit;
• obtaining a tax assessment certificate and a cadastral sketch;
• signing the notarial deed before the notary in the district of the property;
• registration of the deed with the Registry Agency.

How we can help

We carry out legal due diligence on the property, advise on the optimal acquisition structure, draft the preliminary contract and coordinate the notarial transaction.

Contact us for full support.

Related articles

• Legal due diligence in real estate transactions
• Declaring a Preliminary Contract Final
• Residence for foreign nationals who acquire property in Bulgaria