How a Non-EU Foreigner Can Purchase a House or Land in Bulgaria

Bulgaria, a member of the European Union since 2007, has emerged as one of the most appealing real estate markets in Eastern Europe for international investors and lifestyle buyers alike. Nestled between the Black Sea coast, the Balkan Mountains, and borders with Romania, Serbia, North Macedonia, Greece, and Turkey, the country offers diverse landscapes—from sunny beaches in Varna and Burgas to ski resorts in Bansko and historic cities like Sofia and Plovdiv. For non-EU foreigners (citizens of countries outside the European Union, such as the United States, United Kingdom post-Brexit, Canada, Australia, Russia, China, or India), purchasing property in Bulgaria presents unique opportunities and challenges.

As of November 2025, Bulgaria’s property market remains robust, with average house prices around €1,200–€1,500 per square meter in urban areas and significantly lower in rural regions (€500–€800/m²). Coastal apartments can fetch €2,000–€3,000/m² in prime locations like Sunny Beach, while mountain chalets in Borovets appeal to winter sports enthusiasts. The appeal lies in low property taxes (0.1–0.45% annually), affordable living costs, and potential rental yields of 5–8% in tourist areas. However, non-EU citizens face restrictions under Bulgarian law, particularly regarding land ownership, stemming from Article 22 of the Bulgarian Constitution, which prohibits direct foreign ownership of land by non-residents unless they establish a local company or gain residency.

This comprehensive guide, exceeding 2,000 words, delineates the step-by-step process for non-EU foreigners to acquire houses or land in Bulgaria. It covers legal frameworks, practical procedures, costs, risks, financing options, and post-purchase considerations, drawing on current regulations from the Bulgarian Ministry of Justice, Cadastre and Property Registry, and real estate practices as of late 2025.

Legal Framework: Key Restrictions and Pathways for Non-EU Buyers

Bulgarian law distinguishes between EU/EEA citizens (who enjoy full ownership rights akin to locals) and non-EU foreigners. The primary barrier is land ownership: non-EU individuals cannot directly own land plots, including those with buildings, without intermediaries. This stems from the 2005 EU Accession Treaty, which allowed a moratorium on foreign land purchases until 2014 for agricultural land, but constitutional restrictions persist for all non-EU buyers.

Allowed Purchases:

• Apartments and Houses in Buildings: Non-EU foreigners can directly buy apartments in multi-unit residential or commercial buildings, as these are classified as “condominium” ownership under the Condominium Ownership Act. The land beneath the building is owned proportionally by all unit owners, bypassing direct land title issues.
• Commercial Properties: Offices, shops, or hotels can be purchased directly if structured as business assets.

Restricted Purchases:

• Standalone Houses with Land: A single-family house on its own plot requires land ownership, which is prohibited directly.
• Vacant Land or Agricultural Plots: Direct ownership is forbidden; even forested or urban land falls under this.

Primary Pathway: Establishing a Bulgarian Company

The most common and legally sound method for non-EU foreigners to own land is by registering a limited liability company (OOD – Obshtestvo s Ogranichena Otgovornost) in Bulgaria. The company, owned 100% by the foreigner, purchases the property in its name.

• Why it Works: Bulgarian companies, regardless of foreign ownership, are treated as domestic entities under the Commerce Act. Thus, the OOD can own land unrestrictedly.
• Alternatives:
  • Obtain Bulgarian residency (e.g., via investment under the Investment Promotion Act, requiring €511,000 in government bonds or business creation employing 10 Bulgarians).
  • Long-term lease (up to 99 years) with purchase options, though less common.
  • Marriage to a Bulgarian citizen transfers rights but is not advisable for transactional purposes.

As of 2025, no EU-wide harmonization has lifted these restrictions, though bilateral treaties (e.g., with the US or UK) facilitate company setups without reciprocity issues.

Step-by-Step Guide to Purchasing Property via Company Formation

Step 1: Preliminary Research and Budgeting (1–2 Months)

Begin with market analysis. Use platforms like Imoti.net, BulgarianProperties.com, or international sites like Rightmove Overseas. Engage a licensed real estate agent registered with the National Real Estate Association (NREA). Agents charge 3% commission, split between buyer and seller.

• Property Types for Non-EU:
  • Apartments: Ideal for direct purchase; e.g., a 2-bedroom in Sofia costs €100,000–€150,000.
  • Houses: Target those in condominiums or buy via company for detached properties (€150,000–€300,000 in rural areas).
  • Land: 500–1,000 m² plots near the coast (€50–€100/m²) or mountains (€10–€30/m²).

Factor in costs:

• Property price.
• Notary fees: 0.1–3% (sliding scale based on tax assessment value).
• Local tax: 2–3% of tax value.
• State fee: 0.1%.
• Lawyer: €1,000–€2,000.
• Company setup: €500–€1,500.
• Annual maintenance: €200–€500 for company.

Total additional costs: 4–6% of purchase price.

Step 2: Company Registration (1–2 Weeks)

Hire a Bulgarian lawyer specializing in foreign investments (find via the Bulgarian Bar Association). The process is streamlined under the 2023 Commercial Register amendments.

• Requirements:
  • Minimum capital: BGN 2 (€1).
  • Articles of Association: Drafted in Bulgarian, notarized.
  • Director: Can be the foreigner or a nominee (with power of attorney).
  • Address: Virtual office (€200/year) suffices; no physical presence needed initially.
• Procedure:
  1. Reserve company name via the Commercial Register (online, free).
  2. Notarize documents at a Bulgarian notary (remote via apostilled power of attorney).
  3. Deposit capital in a Bulgarian bank account (open remotely with some banks like UniCredit Bulbank).
  4. Register with the Registry Agency (BULSTAT) – €50 fee, 3–5 days.
  5. Obtain VAT number if needed (for rentals).

Total time: 7–14 days. Post-Brexit, UK citizens follow the same; US citizens benefit from streamlined e-signatures.

Step 3: Property Search and Reservation (2–4 Weeks)

• View properties in person or virtually.
• Conduct due diligence:
  • Title deed (Titulna Knizka) check via Cadastre Agency (online portal, €10).
  • Encumbrances: Mortgages, liens, or disputes.
  • Zoning: Ensure building permits for land.
  • Environmental checks for coastal/rural properties.

Sign a preliminary contract (reservation agreement) with €1,000–€5,000 deposit (refundable if issues arise).

Step 4: Final Contract and Notarization (1 Week)

• Draft purchase contract in Bulgarian (lawyer translates).
• Notary deed: Mandatory for transfer. Non-EU buyers attend via power of attorney or in person.
• Payment: Via bank transfer to seller’s account; escrow recommended.

For company-owned property: The OOD signs as buyer.

Step 5: Registration and Taxes (1–2 Weeks)

• Register deed with Property Registry (part of Cadastre).
• Pay transfer taxes within 60 days.
• Update company records if needed.

Total timeline: 2–4 months.

Financing Options for Non-EU Buyers

Bulgarian banks lend to non-EU via companies:

• Mortgages: Up to 70% LTV for OOD purchases; interest 3–5% (EURIBOR + margin).
• Requirements: Company financials, property valuation (€300–€500).
• International banks: HSBC or Raiffeisen offer cross-border loans.

Cash purchases dominate among non-EU (60% of transactions per 2025 NSI data).

Costs Breakdown with Examples

Example 1: Apartment Purchase (Direct, €120,000 in Varna)

• Price: €120,000
• Notary: €1,200 (1%)
• Local tax: €3,000 (2.5%)
• Agent: €3,600
• Lawyer: €1,000
• Total extras: ~€8,800 (7.3%)

Example 2: House with Land (€200,000 in Bansko via OOD)

• Price: €200,000
• Company setup: €1,000
• Notary: €2,000
• Taxes: €5,000
• Valuation/Checks: €800
• Total extras: ~€10,000 + annual €300 company fee.

Annual property tax: 0.15% of tax value (€300 for €200,000 property).

Risks and Mitigation Strategies

• Legal Risks: Illegal constructions common in rural areas (20% per 2024 reports). Mitigate with full cadastre sketches and architect certificates.
• Currency Fluctuations: Prices in EUR; pay in BGN to avoid losses.
• Market Volatility: Post-COVID tourism boom stabilized, but energy crises affect rentals.
• Fraud: Use NREA agents; verify seller ID.
• Inheritance: Company shares transfer easily, avoiding probate.

Post-Purchase: Residency, Rentals, and Maintenance

• Residency: Property ownership via company qualifies for D-visa (extended stay), leading to permanent residency after 5 years.
• Rentals: Golden Visa-like benefits absent, but yields high. Platforms: Airbnb, Booking.com. Manage via property firms (€100/month).
• Utilities: Connect via EVN or local providers; EU standards.
• Selling: No restrictions; capital gains tax 10% if sold within 3 years (exempt after).

Regional Highlights

• Black Sea Coast: Direct apartment buys; tourism-driven.
• Sofia: Urban apartments; appreciating 8–10% annually.
• Rural/Mountains: Land via company; eco-tourism potential.
• Agricultural Land: Restricted; company mandatory, plus SAPS subsidies if farmed.

Recent Changes and Future Outlook

In 2025, digital cadastre (fully online since 2024) speeds processes. EU Green Deal influences energy-efficient properties (EPC mandatory). Proposed 2026 amendments may ease company requirements for residential land, but unlikely.

Empowering Your Bulgarian Dream

Purchasing property in Bulgaria as a non-EU foreigner is feasible, secure, and rewarding with proper planning. The company route, while adding a layer, ensures full control and aligns with thousands of successful transactions annually (over 5,000 foreign buys in 2024 per NSI). Consult professionals early—lawyers, agents, and accountants—to navigate nuances. Bulgaria’s blend of affordability, beauty, and EU membership makes it a gateway to European living. Whether for retirement, investment, or vacation, start with due diligence, and your Bulgarian property could be a cornerstone of international diversification.