Buying real estate in Bulgaria as a foreigner

Foreign nationals may acquire real estate in Bulgaria, but constitutional restrictions apply to land. The right structure for the transaction is of key importance — a mistake here can render the acquisition void.

What foreigners may acquire

EU and EEA nationals may acquire land in Bulgaria on the same terms as Bulgarian citizens. Non-EU nationals, however, may not acquire land (plots) directly in their own name — the Bulgarian Constitution expressly prohibits this. Apartments, studios and offices in buildings may be purchased freely.

Solution through a company

The practical solution for non-EU nationals wishing to acquire land is to incorporate a Bulgarian commercial company (LLC or sole-member LLC). The company is a legal entity under Bulgarian law and may acquire any property without restriction. The foreign national is the sole owner of the company and thereby exercises economic control over the property.

Purchase procedure

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

• preliminary legal due diligence on the property (see our separate article);
• 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.

Tax burden

The purchase triggers local transfer tax (calculated on the higher of the tax-assessed value and the purchase price) and a notarial fee. On a future sale, the foreign national is liable to capital gains tax under the Personal Income Tax Act or Corporate Income Tax Act — depending on the structure.

Financing

Foreign nationals may apply for a mortgage loan with a Bulgarian bank, but terms vary depending on the country of origin. When purchasing through a company, standard corporate bank financing is available.

How we can help

We carry out legal due diligence on the property, advise on the optimal structure, draft the preliminary contract and coordinate the notarial transaction. Contact us for full support.