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Real Estate & Property

Buying Property in Bulgaria as a Foreigner in 2026: Legal Guide

Land rules by nationality, due diligence, preliminary contracts, notarial deeds, taxes, mortgages, remote purchases and residence

YARD Law Co. · Legal position as at 7 October 2026 · Updated 15 October 2026

Can a foreigner buy property in Bulgaria?

Usually, yes. But the difficult word in that question is "property."

Bulgarian law treats an apartment, a building, the land beneath it, an agricultural plot, a forest, and a right to build as different legal assets. A foreign buyer can therefore be legally entitled to acquire the house while being unable to acquire the garden beneath it. An apartment may be available for direct purchase, but the ideal share of the underlying plot stated in the same title deed may require separate treatment.

The correct answer always starts by identifying:

  • the buyer's nationality and legal form;
  • the exact cadastral and title objects being transferred;
  • the current designation and permitted use of the property;
  • whether land, a building or a limited real right is being acquired;
  • whether the buyer is acting personally or through a Bulgarian company.

1. What can a foreigner own in Bulgaria?

The basic constitutional rule

Article 22 of the Bulgarian Constitution allows foreigners and foreign legal persons to acquire Bulgarian land where this follows from:

  • Bulgaria's accession to the European Union;
  • an international treaty that has been ratified, published and entered into force under the constitutional procedure; or
  • inheritance by operation of law.

The treaty route is deliberately narrow. The relevant ratification law requires a two-thirds parliamentary majority. An old friendship, trade or investment treaty should not be treated as an automatic permission to acquire land.

The Ownership Act makes the practical distinction:

  • foreigners may generally own buildings and limited real rights over Bulgarian real estate;
  • direct ownership of land by third-country nationals requires one of the constitutional grounds;
  • EU and EEA nationals may acquire land under the conditions resulting from Bulgaria's EU accession and the applicable legislation.

Quick ownership table

AssetEU/EEA individualThird-country individual
ApartmentYesGenerally yes
House or other buildingYesGenerally yes
Ideal share of the land beneath an apartmentYesMust be checked separately
Urban plot or gardenYesGenerally not directly, unless a qualifying treaty or inheritance exception applies
Agricultural landPossible, subject to special legislationHeavily restricted; treaty and company-ownership rules must be checked
Forest territoryPossible, subject to the Forest ActGenerally only under a qualifying treaty or inheritance exception
Right to buildYesGenerally yes

Apartments

A foreign national can normally buy an apartment directly.

The buyer should nevertheless read the title description carefully. The transaction may include:

  • the apartment as an independent cadastral object;
  • ideal shares in the common parts of the building;
  • a basement, attic, garage or parking space;
  • ideal shares of the underlying land; or
  • ideal shares in an existing right to build.

For a third-country buyer, ideal shares in the building's common parts are not the same issue as ideal shares in the land itself. The deed must be checked before anyone concludes that the entire title package can be transferred directly.

Houses

A third-country national can generally own the house as a building, but not automatically the land beneath and around it.

This distinction is regularly ignored in advertisements. A listing described as a "house with a 1,000 sq. m garden" may legally consist of:

  • a building;
  • an urban land plot;
  • additional agricultural land;
  • an access road owned by somebody else;
  • informal extensions that do not appear in the title or cadastre.

The buyer's right to use the garden, reach the public road and maintain utilities must be analysed separately from ownership of the building.

Agricultural land

Agricultural land requires specialist advice.

The Agricultural Land Ownership and Use Act contains nationality, corporate-ownership and residence-related restrictions. It also restricts certain Bulgarian companies whose ownership includes third-country persons or entities from prohibited jurisdictions. Incorporating an EOOD shortly before the purchase is therefore not a universal solution for agricultural land.

There is also an important 2026 legal inconsistency. Article 3c of the Act still contains a five-year residence or establishment requirement. However, the Court of Justice of the European Union held in Case C-562/22, JD v OB (preliminary ruling of 18 January 2024), that Article 63 TFEU precludes such a residence condition for the acquisition of agricultural land. National authorities may not apply domestic legislation contrary to directly effective EU law. The remaining nationality and corporate restrictions must nevertheless still be examined separately.

A buyer should therefore reject both simplistic claims:

  • "Every EU citizen must first live in Bulgaria for five years"; and
  • "Anyone can buy agricultural land through a newly incorporated Bulgarian company."

Neither statement is legally reliable.

Forest territory

The Forest Act has its own ownership regime. EU and EEA persons may acquire forest territory subject to the applicable rules. Third-country buyers generally require a qualifying treaty or acquisition by inheritance by operation of law.

Certain third-country heirs who acquire forest land by statutory inheritance may be required to transfer it within three years. The same warning applies to certain inherited agricultural land. This should not be generalised into a rule that every non-EU heir must always sell: the person's nationality, treaty position and the specific statutory exception matter.

2. What does this mean for British, American, Russian, Ukrainian and Turkish buyers?

British citizens

For new acquisitions, a British citizen is a third-country national following the end of the Brexit transition period.

A British buyer can generally own an apartment, a house as a building and a right to build. Direct acquisition of the underlying land should be treated under the third-country rules. Property acquired validly before Brexit was not confiscated or automatically lost; the issue concerns the legal basis for new acquisitions.

US citizens

US citizens are also third-country nationals.

The 1992 Bulgaria-US investment treaty is not a blanket right for US nationals to buy Bulgarian land. In Decision No. 33/2021, the Supreme Court of Cassation formulated only a conditional treaty test (no Bulgarian notification preserving the restriction, and an acquisition qualifying as a treaty investment) and remitted the case; it did not declare the US citizen an owner. The Constitutional Court has separately stated that the Article 22 treaty exception does not apply to pre-2007 treaties, so an ordinary transaction should proceed on the basis that the treaty alone is insufficient.

Russian citizens

A Russian citizen falls under the third-country land rules.

Russian nationality is not, by itself, a universal statutory prohibition on buying a Bulgarian apartment or building. A separate sanctions analysis is nevertheless mandatory. The buyer, beneficial owner, payment bank, source of funds and any person controlling the transaction must be screened. EU asset-freeze rules prohibit making funds or economic resources available to listed persons, and restrictions affecting particular Russian banks can make an otherwise lawful purchase impossible to complete.

Ukrainian citizens

A Ukrainian national is also a third-country national for Bulgarian land-ownership purposes.

Temporary protection, prolonged residence or another Bulgarian immigration status does not convert the person into an EU or EEA national. It may affect immigration and identification documents, but not the constitutional classification of land ownership.

Turkish citizens

Turkish citizens are third-country buyers. They may normally acquire apartments, buildings and limited real rights, but direct land ownership requires a specific treaty or other constitutional ground.

For US, Russian, Ukrainian and Turkish buyers, the practical starting position should be:

The apartment or building may be acquired directly. The land must be analysed separately. Do not assume a treaty exception until it has been identified and checked.

3. Can a foreigner buy land through a Bulgarian company?

Often, yes, but this should be a deliberate ownership structure, not a last-minute workaround.

A Bulgarian EOOD or OOD is a Bulgarian legal person even where all of its capital is owned by a foreigner. It can generally own ordinary urban land.

That structure is commonly used where a third-country buyer wishes to acquire:

  • a house and the underlying urban plot;
  • development land;
  • commercial premises with adjoining land;
  • a hospitality or rental business;
  • several properties operated as one investment.

It is usually unnecessary for an ordinary apartment purchase.

When the structure is legitimate

A company structure is commercially coherent where the property is genuinely being acquired as a business or investment asset, particularly where the company will:

  • develop or reconstruct the property;
  • operate a hotel, guest house or rental business;
  • employ staff or contract service providers;
  • account for rental or business income;
  • obtain business finance;
  • hold several related plots or buildings.

The risks

The company, not the shareholder, owns the property.

That has practical consequences:

  • company creditors may enforce against the property;
  • annual accounting, tax filings and beneficial-owner compliance are required;
  • personal use by the shareholder may create accounting or tax issues;
  • the exit may be an asset sale or share sale, each with different tax and due-diligence consequences;
  • the shareholder's heirs inherit shares or membership rights, not the real estate directly;
  • the company's bank may require extensive KYC and source-of-funds documentation;
  • incorporating the company does not create a Bulgarian residence right.

For agricultural land, the ownership of the Bulgarian company itself must be checked against Article 3(7) of the Agricultural Land Ownership and Use Act. A company controlled by an ineligible third-country person may itself be prohibited from acquiring the land.

4. When is a right to build the answer?

A right to build (право на строеж, or superficies) is a limited real right allowing a person to construct and own a building on land owned by somebody else.

The Ownership Act also permits an existing building to be transferred separately from the land where the legal title supports separate ownership. A third-country national may generally acquire this limited real right even where direct land ownership is unavailable.

It can be useful where:

  • a developer retains ownership of the land;
  • a foreign buyer will own the building but not the plot;
  • a landowner contributes the land to a joint development;
  • the parties deliberately separate land ownership from building ownership.

It is not equivalent to owning the garden.

The deed must define access, utilities, construction parameters, common areas, maintenance and any rights over the remaining land. An unexercised right to build generally lapses after five years, so the construction stage and any interruption must be checked.

5. The property purchase process in Bulgaria

A properly organised cash purchase of a resale apartment can often be completed in approximately two to four weeks. A mortgage, foreign documents, inheritance issues, company incorporation or title defects can extend the process to four to eight weeks or longer.

Those are practical planning ranges, not statutory deadlines.

Step 1: Identify the buyer and the exact property

Before making a binding offer, establish:

  • whether the buyer is purchasing personally or through a company;
  • whether the title includes land;
  • the cadastral identifiers of every apartment, building and plot;
  • the buyer's intended use;
  • whether mortgage finance is required;
  • whether the buyer is married and which matrimonial-property regime applies.

This first stage prevents the common mistake of negotiating the price before discovering that the buyer cannot directly acquire part of the asset package.

Step 2: Obtain the initial seller documents

At a minimum, request:

  • the seller's title deed and all prior deeds needed to understand the title chain;
  • a current cadastral scheme or sketch;
  • the seller's identification or company documents;
  • an encumbrance certificate;
  • inheritance and civil-status documents where relevant;
  • building permits and commissioning documents;
  • the draft reservation or preliminary agreement;
  • documents for parking spaces, storage rooms and ideal shares.

The Property Register certificate alone is not sufficient.

Step 3: Sign a reservation agreement only if necessary

Reservation agreements are not a mandatory stage.

They are usually drafted by the agent or developer and may protect the agent's commission more effectively than the buyer's position. A reservation payment should be made only after the document states:

  • when it is refundable;
  • what documents the seller must produce;
  • whether the purchase depends on satisfactory legal due diligence;
  • whether it depends on mortgage approval;
  • what happens if the property is encumbered or misdescribed;
  • whether the agent acts for one or both parties.

Step 4: Complete legal and, where needed, technical due diligence

Legal due diligence should be completed before the buyer commits a substantial non-refundable amount.

For land, a new build, a converted building or a commercial project, the legal review should run alongside technical and planning review by an architect, surveyor or engineer. A lawyer can verify the legal status of a permit; an architect must usually confirm whether the intended reconstruction is technically and planning-compliant.

Step 5: Negotiate the preliminary contract

The preliminary contract should contain the essential terms of the final sale and the transaction safeguards discussed below.

It is not merely an agent's administrative form. It is usually the document that allocates the principal financial and title risks between signing and completion.

Step 6: Complete the financing and AML file

Before fixing the final notary date, confirm:

  • mortgage approval and drawdown conditions;
  • buyer and seller bank accounts;
  • source-of-funds evidence;
  • translations and legalisations;
  • the payment mechanism;
  • release of any existing mortgage;
  • whether a notary special account or bank escrow will be used.

Step 7: Prepare and sign the notarial deed

The deed is executed before a notary whose area of practice covers the location of the property.

The notary verifies the formal transaction requirements, identity, authority, title documents and statutory declarations. The notary is neutral. The notary does not act as the buyer's independent lawyer and does not negotiate the buyer's commercial protections.

Step 8: Registration and post-closing work

Following execution, the deed is presented for registration in the Property Register.

Post-closing work may include:

  • obtaining a registered certified copy;
  • BULSTAT registration where applicable;
  • confirming the municipal tax account;
  • notifying the condominium manager;
  • transferring utility accounts;
  • notifying the insurer and mortgage bank;
  • recording possession and meter readings.

6. Preliminary contracts and deposits

Bulgarian law requires the preliminary contract for a real-estate transaction to be in writing. It should contain the essential terms of the intended final transaction. A party may, in appropriate circumstances, ask the court to declare the preliminary contract final under Article 19(3) of the Obligations and Contracts Act.

The final transfer itself requires a notarial deed.

How much is the usual deposit?

There is no statutory percentage.

For residential transactions, 5-10% of the price, often 10%, is common market practice. Higher staged payments are common in off-plan transactions, but they create materially greater insolvency and title risk.

Is the deposit automatically lost if the buyer withdraws?

No. The answer depends on what the agreement actually says.

A payment may be:

  • a refundable reservation payment;
  • an advance part-payment;
  • earnest money under Article 93;
  • a contractual penalty;
  • an agency fee;
  • a combination of the above.

Where a payment is validly agreed as earnest money under Article 93:

  • if the party who paid it defaults, the other party may withdraw and retain it;
  • if the party who received it defaults, the innocent party may withdraw and claim double;
  • the innocent party may instead seek performance and damages under the general rules.

Merely writing "deposit" in English does not necessarily produce those consequences.

Essential preliminary-contract protections

A buyer's contract should normally address:

  • exact property and cadastral identifiers;
  • price and whether VAT is included;
  • payment schedule and bank accounts;
  • title and encumbrance warranties;
  • removal or release of existing mortgages and attachments;
  • due-diligence and mortgage-approval conditions;
  • deadline and documents for completion;
  • possession, keys and meter readings;
  • outstanding condominium and utility charges;
  • penalties and termination rights;
  • allocation of taxes, notary fees, agency fees and bank costs;
  • developer delay, force majeure and insolvency risk;
  • area or specification changes;
  • long-stop date and refund mechanism.

7. What documents does the foreign buyer need?

The exact package depends on whether the buyer is an individual or company and whether a mortgage is involved.

An individual buyer commonly needs:

  • a valid passport or EU identity card;
  • proof of permanent address;
  • marital-status and marriage documents;
  • evidence of the applicable matrimonial-property regime;
  • source-of-funds documents;
  • a power of attorney if represented;
  • bank and tax identification information requested by the notary or bank.

Is an LNC required?

An LNC (личен номер на чужденец) is not a legal precondition for buying property.

It is issued in connection with Bulgarian immigration and residence records. A nonresident foreign owner who has no Bulgarian EGN or LNC may instead be subject to registration in the BULSTAT Register after acquiring Bulgarian real estate.

Is a Bulgarian bank account required?

Not as a general condition for acquiring ownership.

It is nevertheless often useful for:

  • mortgage drawdown;
  • local taxes and utility payments;
  • condominium charges;
  • rental income and expenses;
  • transaction-price payments;
  • demonstrating an auditable payment trail.

A mortgage bank will normally require an account with that bank.

Do foreign documents need an Apostille?

It depends on the country, the document and any applicable treaty.

A foreign public or notarised document will commonly require:

  1. an Apostille under the Hague Convention, or consular legalisation where the Convention does not apply;
  2. a Bulgarian translation in the form accepted by the notary or authority.

A bilateral legal-assistance treaty or an EU instrument may remove authentication for particular documents. This should not be generalised to every power of attorney or company document. The Ministry of Foreign Affairs confirms that documents from states without an applicable waiver require Apostille or consular legalisation and Bulgarian translation.

8. Can the whole purchase be completed remotely?

A cash purchase can often be completed remotely by power of attorney.

The power of attorney must comply with the form of the authorised transaction. For a real-estate deed, the signature and content must generally be notarised simultaneously.

It may be signed:

  • before a Bulgarian consular officer abroad; or
  • before a foreign notary, followed by Apostille or legalisation and Bulgarian translation where required.

Bulgarian consular guidance expressly requires simultaneous certification of signature and content for real-estate powers of attorney.

What should the power of attorney contain?

It should be transaction-specific and address:

  • the exact property or clearly limited acquisition parameters;
  • maximum purchase price;
  • authority to negotiate and sign the preliminary and final contracts;
  • payment method and authorised bank account;
  • authority to create a mortgage, only if required;
  • statutory declarations;
  • taking possession and receiving keys;
  • registration and post-closing applications;
  • whether substitution is permitted;
  • expiry or completion of the mandate.

Authority to receive the purchase money in cash, transfer it to another person or contract with oneself should not be included casually. Article 38 of the Obligations and Contracts Act restricts self-contracting and representation of both parties unless expressly authorised.

A scanned power of attorney or ordinary electronic signature is not a substitute for the required notarial form.

A second practical limit is banking. The deed may be signed remotely, while the mortgage bank or the bank opening a company account may still require the borrower, manager or beneficial owner to attend personally for KYC.

9. When does ownership pass?

In an ordinary sale, ownership passes when the valid final transfer agreement is concluded in the legally required notarial form, provided that the seller owns the property and the transaction is valid.

It does not pass merely because:

  • the preliminary contract was signed;
  • the deposit was paid;
  • possession or keys were handed over;
  • the entire price was transferred.

Article 24 of the Obligations and Contracts Act provides the underlying consensual transfer rule, subject to the required form.

What does registration do?

Registration protects the buyer's title against competing third parties and establishes registry priority. An unregistered deed cannot normally be relied on against a third party who acquired and registered a competing right from the same owner in the legally protected circumstances.

Registration is therefore critical, even though it is not ordinarily the constitutive moment of the sale itself.

The registered deed should be obtained and checked after completion. Payment-release arrangements should also account for the interval between signing and confirmation of registration.

10. What does proper property due diligence cover?

Title chain

The review should establish how the seller acquired title and whether every transfer in the relevant chain was valid.

There is no safe universal rule that reviewing only the last deed or only the last ten years is sufficient. Restitution, inheritance, matrimonial property, company transformations, acquisitive prescription and historical state or municipal ownership may require a longer review.

The cadastral map identifies the property but does not itself prove ownership.

Mortgages, attachments and registered claims

Searches should cover:

  • contractual and statutory mortgages;
  • attachments and enforcement measures;
  • registered claims;
  • rights of use;
  • easements;
  • leases subject to registration;
  • pending division or ownership proceedings;
  • insolvency or enforcement involving the seller.

The underlying registered acts must be read. A certificate stating that entries exist is not enough to determine their scope, priority or release mechanism.

Seller identity and authority

For an individual seller, verify:

  • identity;
  • capacity;
  • marital status;
  • applicable matrimonial-property regime;
  • title and inheritance position;
  • any power of attorney and whether it remains valid.

For a company seller, verify:

  • current Commercial Register status;
  • representation;
  • articles or constitutional documents;
  • shareholder or board approvals where required;
  • insolvency, liquidation and enforcement status;
  • beneficial ownership and sanctions;
  • authority of any attorney.

Co-owners and inheritance shares

Every owner whose right is being transferred must participate or be validly represented.

Where only an ideal share is being sold to an outsider, Article 33 of the Ownership Act may require the seller first to offer the share to the other co-owners on the same terms.

Inheritance due diligence should establish:

  • the complete circle of heirs;
  • the applicable succession law in cross-border cases;
  • the effect of any will;
  • each heir's exact quota;
  • whether title was later divided or transferred;
  • whether an heir has accepted, renounced or disposed of the inheritance;
  • whether reserved-share claims remain relevant.

A certificate of heirs identifies persons entered as heirs. It is not, by itself, proof that the deceased owned everything described by the seller.

Spouses and mortgage structures

Do not assume that the name in the deed tells the entire matrimonial position.

Where Bulgarian matrimonial law applies:

  • property acquired during marriage through joint contribution may be matrimonial community regardless of the name in the deed;
  • disposition of community property requires both spouses;
  • obligations undertaken for family needs may create statutory joint and several liability.

The ownership position, the borrower's personal liability and the property's mortgage exposure are three separate questions. A spouse who is not named as borrower may still be affected, while a spouse who contributes to the price does not automatically obtain a defined 50% share.

For foreign spouses, the applicable matrimonial-property law and any foreign marital agreement or property regime must also be checked.

11. New construction: Acts 14, 15 and 16

These terms are often used inaccurately in advertisements.

Act 14

Act 14 concerns acceptance of the completed building structure. It is associated with the "rough construction" stage.

It does not mean that the apartment is finished, legally occupiable or free of title defects.

Act 15

Act 15 records completion of the construction and readiness for the commissioning process, including handover between the construction participants.

It does not itself authorise occupation.

Act 16 and commissioning

"Act 16" is commonly used as shorthand for the final commissioning stage, but not every building receives a document literally called Act 16.

Depending on the construction category, the final document may be:

  • a permit for use issued following the applicable state procedure; or
  • a certificate of commissioning issued by the competent municipal authority.

Article 178 of the Spatial Development Act prohibits using a construction before it has been commissioned in accordance with the law.

Act 16 or a commissioning certificate proves neither clean ownership nor absence of mortgages. Older lawful buildings may also have older-form documents rather than the current Act 16 terminology.

What else should be checked?

For new or reconstructed property:

  • ownership of the land;
  • valid right to build;
  • final building permit;
  • approved designs;
  • construction protocol and book;
  • material deviations;
  • Act 14 and Act 15;
  • final commissioning document;
  • cadastral recording;
  • utility connections;
  • energy and technical documentation;
  • warranties and defect procedures.

12. Intended use, access and development potential

A buyer acquiring a former school, factory, office or large house for conversion should not stop at title due diligence.

Ownership does not prove that the proposed hotel, clinic, office, restaurant or residential development is legally feasible.

The review should examine:

  • the detailed development plan and zoning;
  • permitted land and building use;
  • need for change of use;
  • legal road access;
  • easements and utility routes;
  • parking requirements;
  • fire-safety and accessibility requirements;
  • cultural-heritage restrictions;
  • environmental constraints;
  • public-use designation;
  • subdivision or consolidation requirements;
  • whether neighbouring or access plots belong to third parties;
  • structural and technical feasibility.

A cadastral line touching a road does not necessarily establish usable legal access.

This is where legal due diligence must be coordinated with an architect, surveyor or engineer. A lawyer should not purport to certify structural integrity or development capacity without the relevant technical professional.

13. Condominium debts and local taxes

For an apartment, request information from the condominium manager concerning:

  • unpaid management and maintenance charges;
  • repair-fund contributions;
  • approved major works;
  • special assessments;
  • pending court or enforcement proceedings;
  • disputes concerning common areas;
  • house rules and restrictions affecting short-term rental.

The Condominium Ownership Management Act requires the manager to keep information about owners' obligations and provides a basis for issuing relevant information or certification.

Accrued arrears are not automatically transformed into the buyer's personal debt merely because the apartment is sold. They should nevertheless be cleared contractually before completion. Approved future works, enforcement measures and disputes can create real practical exposure.

The seller's enforceable public liabilities are also relevant. Article 264 of the Tax and Social Security Procedure Code provides for an electronic notarial check, with mechanisms for clearing liabilities from the transaction price where applicable. That statutory check does not replace verification of condominium, utility and property-specific issues.

14. Off-plan purchases: what actually protects the buyer?

An off-plan buyer usually pays substantial amounts before acquiring ownership of a completed apartment.

A preliminary contract is a contractual claim. It is not ownership and does not, by itself, give the buyer priority over the developer's secured creditors.

The main risks

  • the developer does not own the land or hold a sufficient right to build;
  • the land is already mortgaged;
  • the construction loan does not contain an effective unit-release mechanism;
  • the building permit is not final or has expired;
  • the developer becomes insolvent;
  • the design, area or specification is changed;
  • construction is delayed indefinitely;
  • the buyer's mortgage is refused;
  • the apartment is not commissioned;
  • the developer sells or encumbers rights inconsistently;
  • the advertised price excludes VAT, connection charges or finishing work.

The protections that matter

The contract should combine several safeguards:

  1. Independent due diligence on the developer, land, financing, permits and right to build.
  2. Milestone payments linked to objectively verified construction stages.
  3. A binding mortgage-release mechanism or bank undertaking for the specific apartment.
  4. Escrow, a notary special account or bank guarantee where commercially available.
  5. A prohibition on new encumbrances, backed by a meaningful remedy.
  6. A long-stop date, refund mechanism and balanced delay penalties.
  7. A technical specification annex and rules on area variation and price adjustment.
  8. Earlier acquisition of a registrable real right, where the legal and commercial structure permits it.

A large contractual penalty is not real security if the developer is insolvent. The strongest protection is limiting the amount paid before the buyer receives a registrable right, a mortgage release or equivalent effective security.

15. Purchase costs and taxes

Bulgaria adopted the euro on 1 January 2026 at the fixed conversion rate of EUR 1 = BGN 1.95583. Property prices and transaction costs should now be budgeted in euro, although some statutes and historic documents still display legacy lev amounts.

Local transfer tax

The acquirer is normally the taxpayer.

Each municipality sets its rate within the statutory range of 0.1% to 3%. The tax base is generally the higher of:

  • the agreed purchase price; and
  • the municipal tax valuation.

Sofia applies the maximum 3% rate.

Notary fee

The notary fee is calculated progressively under Item 8 of the Tariff to the Notaries and Notarial Activities Act, based on the material interest, normally the higher relevant value used for the transaction.

VAT is added to the notary's taxable fee.

A written preliminary calculation should be requested because additional certifications, copies, declarations, escrow arrangements and mortgage work may affect the total.

Property Register fee

The state registration fee is generally 0.1% of the material interest under the Registry Agency tariff.

Agency commission

There is no statutory commission.

For resale transactions, a buyer-side commission of approximately 2.5-3% plus VAT is common market practice, although the rate and payer are entirely contractual. In some new developments the developer pays the agent.

The buyer should establish before viewing or reserving:

  • whether the agent represents the seller, buyer or both;
  • when the commission becomes due;
  • whether it remains payable if the transaction fails;
  • whether VAT is included;
  • whether the same property has been introduced by another agent.

VAT

The advertised price must state whether VAT is included.

A private resale is often outside or exempt from VAT, while sales by developers, new buildings, building land and company sellers require a transaction-specific VAT analysis. It is unsafe to assume either that VAT is always payable or that it is never payable.

16. Annual property tax and garbage fee

Annual property tax

Municipal councils set the annual real-estate tax within the statutory range of 0.1 to 4.5 per mille of the applicable tax base.

For an individual owner, the base will commonly be the municipal tax valuation. Company-owned and non-residential properties may follow different valuation rules.

Garbage fee

The municipal-waste fee is not a single national percentage.

It funds statutory service components such as:

  • collection and transport;
  • treatment and disposal;
  • cleaning of public areas.

The assessment method and rate depend on the municipality and the applicable local ordinance. The 2026 waste-fee reforms and transitional provisions make it particularly unsafe to copy a formula from another municipality.

After completion, the buyer should confirm that:

  • the municipality has received the acquisition data;
  • the tax account identifies the correct owner and property;
  • the buyer's correspondence address and identifier are recorded;
  • any additional statutory declaration has been filed;
  • the garbage-fee status is correct.

17. Tax on resale

Citizenship does not determine Bulgarian tax residence.

Bulgarian tax residents

Bulgarian tax residents are generally taxed on worldwide income, subject to domestic exemptions and applicable treaties.

Under Article 13(1)(1) of the Personal Income Tax Act, the following disposals may be exempt where the statutory holding periods are met:

  • one residential property held for more than three years; or
  • up to two other immovable properties, together with qualifying agricultural and forest property, held for more than five years.

Where the gain is taxable, the taxable income is generally the positive difference between the sale price and acquisition price, reduced by the statutory 10% expenses. The personal income-tax rate is 10%.

Nonresidents

A gain from Bulgarian real estate is Bulgarian-source income.

Nonresidents may be subject to Bulgarian final tax. EU and EEA residents have statutory routes for equivalent treatment or annual recalculation in specified circumstances, including access to applicable exemptions where the evidentiary requirements are met. Third-country nonresidents require separate domestic-law and treaty analysis.

Double-tax treaties

Most double-tax treaties permit Bulgaria to tax gains from Bulgarian immovable property.

The treaty may then require the seller's state of residence to provide a foreign-tax credit or exemption. A treaty should not be described as automatically removing Bulgarian tax.

Where a Bulgarian company owns the property, the personal exemptions above do not apply. Corporate-income-tax and possible VAT consequences must be calculated separately.

18. Paying from abroad and AML checks

A clean title does not guarantee that the money will pass the bank's compliance review.

Bulgarian banks, notaries, real-estate agents and lawyers acting in specified transactional roles are subject to anti-money-laundering obligations. They may need to establish:

  • the buyer's identity;
  • the ultimate beneficial owner;
  • the ownership and control structure;
  • the purpose of the transaction;
  • the source of the purchase funds;
  • the origin of the buyer's overall wealth in higher-risk cases;
  • sanctions and politically exposed person status;
  • the consistency of the transaction with the buyer's profile.

Where the required due diligence cannot be completed, the obliged institution may refuse the transaction or business relationship.

Source-of-funds documents

Depending on the source, prepare:

  • bank statements showing accumulation and transfer;
  • salary records and tax returns;
  • company accounts and dividend resolutions;
  • a prior property-sale agreement;
  • inheritance or probate documents;
  • investment statements;
  • loan documents;
  • gift agreement and evidence of the donor's funds;
  • certified translations where necessary.

Article 66 of the Measures Against Money Laundering Act regulates clarification of the origin of funds and normally requires corroboration through the statutory methods rather than an unsupported declaration alone.

A third-party payer should be disclosed before completion. An unexplained transfer from a relative, shareholder or unrelated company may delay or block the payment.

Cash payments

A property price should be paid by bank transfer.

Bulgarian cash-payment law requires account-based payment where the amount reaches the statutory threshold and also captures linked instalments made on the same legal basis. In 2026 the practical threshold corresponding to the statutory BGN 10,000 amount is EUR 5,112.92. Splitting one purchase obligation into smaller cash instalments does not avoid the rule.

19. Escrow and notary special accounts

A Bulgarian notary may operate a special bank account for money connected with a notarial transaction under Article 25a of the Notaries and Notarial Activities Act.

The release conditions should be set out in a written agreement. They may include:

  • execution of the deed;
  • confirmation of registration;
  • release of the seller's mortgage;
  • absence of a newly registered attachment;
  • delivery of possession;
  • delivery of specified original documents.

The special account segregates the transaction money from the notary's own assets and creditors. It does not compensate for defective title or inadequate due diligence.

A commercial-bank escrow account may also be available, but availability, price and KYC timing differ between banks.

20. Can a foreigner obtain a Bulgarian mortgage?

There is no general legal prohibition on lending to a foreign buyer.

Bulgarian banks do grant mortgages to some nonresident and foreign-income borrowers. Approval is nevertheless considerably more selective than for a locally employed resident.

The bank may assess:

  • nationality and residence;
  • country and currency of income;
  • employment or business history;
  • credit record;
  • source of the buyer's equity;
  • loan-to-value ratio;
  • property type and location;
  • age and term;
  • insurance;
  • sanctions and geographic risk;
  • availability of Bulgarian service and enforcement arrangements.

Some Bulgarian banks currently advertise products for nonresidents or persons receiving income abroad, confirming that mortgage lending is possible but institution-specific.

The buyer should obtain meaningful pre-approval before signing a preliminary contract with a non-refundable payment.

The bank's valuation and internal legal review are performed for the bank's protection. They are not a substitute for independent buyer due diligence.

21. Does buying property give a Bulgarian residence right?

Ordinary ownership does not give a residence right.

An EU or EEA citizen relies on the applicable free-movement regime. A third-country national requires a separate legal ground under the Foreigners in the Republic of Bulgaria Act. Ownership may help prove accommodation, but accommodation is not itself an immigration basis.

Is there a property-investment residence route?

Yes, but it is not an ordinary "buy a home and receive residence" scheme.

Article 24(1)(19) of the Foreigners in the Republic of Bulgaria Act provides a prolonged-residence route for a real-estate investment of at least EUR 306,775.13 for each principal applicant. The statutory text still refers to BGN 600,000, but that amount converts automatically to EUR 306,775.13 under Bulgaria's euro-conversion legislation.

The investment must be fully paid, with the funds received through an account at a Bulgarian licensed credit institution. If loan funding is used, the outstanding part of the loan may not exceed 25%. The investment may be made directly or through a Bulgarian company in which the applicant owns more than 50%, provided the same amount is invested in its capital and the company acquires Bulgarian real estate of the required value.

A person who obtained prolonged residence under Article 24(1)(19) and maintained the investment for five years may apply for permanent residence under Article 25(1)(17). The provision does not itself require five years of continuous physical presence, but permanent residence remains subject to the application, certification and general statutory requirements.

The former investment-citizenship route has been repealed. Buying Bulgarian property does not directly produce citizenship.

22. Five mistakes foreign buyers repeatedly make

The scenarios below are general illustrations of common risks, not accounts of particular cases.

1. Paying a reservation fee before checking what is actually being sold

The buyer negotiates a "house with land", pays 10%, and only afterwards discovers that part of the plot is agricultural, the access road belongs to somebody else or the buyer cannot directly own the land.

Better approach: obtain the title, cadastral documents and buyer-eligibility analysis before making a non-refundable payment.

2. Treating ownership, mortgage security and personal loan liability as the same issue

A married couple assumes that a deed stating both names means ordinary 50/50 ownership and that only the named borrower can be pursued by the bank.

Both assumptions may be wrong.

Better approach: analyse separately:

  1. who owns the property;
  2. who owes the bank personally;
  3. whose property secures the mortgage;
  4. which matrimonial-property law applies.

3. Believing Act 14 or Act 15 means the apartment can be occupied

The buyer releases most of the price when the structure is complete, although the developer's land mortgage remains and there is no binding unit-release undertaking.

Better approach: connect payments to independently verified construction milestones, mortgage release and a credible route to commissioning.

4. Checking title but not access, zoning or lawful use

A building may have clean title yet be unsuitable for the buyer's intended hotel, clinic, office or redevelopment because of zoning, access, parking, fire-safety or change-of-use restrictions.

Better approach: combine legal title work with planning and technical due diligence.

5. Assuming a power of attorney solves every remote-purchase issue

The buyer gives broad authority to sign and pay, then learns that the bank still requires personal KYC or that the attorney can receive and redirect the price.

Better approach: use a narrow transaction-specific power of attorney and coordinate the notary, payment bank and mortgage bank before it is signed abroad.

How YARD Law can help

YARD Law assists foreign buyers with ownership-structure analysis, property due diligence, preliminary contracts and powers of attorney. See our real estate practice, how we act for foreign clients, and our guides to company formation in Bulgaria, foreign documents and Apostilles, inheritance in Bulgaria for foreigners and whether a Bulgarian company gives you residence. Reading Bulgarian? See also Покупка на имот в България: правна проверка и рискове.

Frequently asked questions

Can a British citizen buy an apartment in Bulgaria?

Yes. A British citizen can generally own an apartment directly. The deed should be checked for any ideal share in the underlying land, because the UK is now a third country for new land acquisitions.

Can an American buy a Bulgarian house with a garden?

An American may directly own the house or other buildings, but should not assume that they can also take title to the garden or plot. For an ordinary urban property, the land is commonly acquired through a Bulgarian company or another legally eligible owner. Agricultural and forest land require separate advice and may not be suitable for the standard company structure.

Do I need a Bulgarian bank account or LNC?

Neither is a universal legal precondition for a cash purchase. An LNC exists in connection with residence status. A foreign owner without an EGN or LNC may require BULSTAT registration. A Bulgarian bank account becomes practically important for mortgages, local payments and transaction administration.

Can I complete the purchase without travelling to Bulgaria?

Often yes, through a properly notarised power of attorney. The power must satisfy the special form requirements and may require Apostille or legalisation and Bulgarian translation. A mortgage bank or company bank may still require personal attendance for KYC.

Is my deposit refundable if I change my mind?

Not automatically. It depends on whether the payment is a reservation fee, advance, earnest money or penalty and on the agreed termination conditions. The word "deposit" does not answer the question.

Does owning Bulgarian property give me residence?

No. Ordinary ownership of Bulgarian property does not by itself confer residence. A qualifying third-country national may apply under the real-estate investment route only where the investment reaches EUR 306,775.13 per principal applicant and the statutory payment, funding, visa and immigration conditions are satisfied. Eligible family members may normally use the separate family-reunification route without making the same investment themselves.

Legal notice: This guide states the general Bulgarian-law position as at 7 October 2026. Property eligibility, title, tax, sanctions, matrimonial property, immigration and treaty treatment depend on the buyer and the specific asset. It is not a substitute for transaction-specific legal and technical due diligence. Prepared by the legal team at YARD Law Co., a law firm based in Sofia, Bulgaria.

Buying property in Bulgaria from abroad?

Ownership structure, due diligence and the preliminary contract, checked before you pay a deposit.