Buying Property in Bulgaria as a Foreigner — Step by Step (2026)

What you will learn

• What types of property EU citizens and non-EU citizens can own
• How the land restriction is addressed through a Bulgarian EOOD
• The 10-step procedure — from searching for a property to registration in the Property Register
• A 12-point due diligence checklist
• All costs for purchasing a property worth EUR 100,000
• Mortgage conditions for foreign buyers
• How a property purchase of EUR 300,000+ can lead to a residence permit
• Your obligations after the transaction — tax declaration, BULSTAT registration, utility transfers

EU vs non-EU — what is permitted

The Bulgarian Constitution (Art. 22, para. 1) establishes the principle that foreigners and foreign legal entities may not acquire ownership of land, except through inheritance by operation of law. This principle has, however, been substantially relaxed for EU citizens through the Accession Treaty and subsequent amendments to the Ownership Act and the Agricultural Land Ownership and Use Act.

Property type	EU/EEA citizens	Non-EU citizens
Apartments and condominium units	Free acquisition	Free acquisition
Standalone buildings	Free acquisition	Free acquisition
Regulated land plots	Free — since 1 January 2012	Prohibited — only through a Bulgarian company
Agricultural land	Free — since 1 January 2014	Prohibited — only through a Bulgarian company
Forest land	Free — since 1 January 2014	Prohibited — only through a Bulgarian company

Legal basis

• Art. 22 of the Constitution — fundamental restriction on foreign land ownership
• Art. 29, para. 3 and 4 of the Ownership Act — exception for EU and EEA citizens
• Art. 3, para. 7 of the Agricultural Land Ownership and Use Act — lifting of the moratorium for EU citizens from 2014

An important distinction: ownership of a building (or a unit in a building) is separate from ownership of the land. This is why a citizen of any country in the world may purchase an apartment in Sofia, Plovdiv, Varna, or on the coast — as long as they are not acquiring the land plot itself.

The workaround for non-EU citizens — EOOD

If you are a citizen of a country outside the EU and EEA and wish to acquire a regulated land plot, agricultural or forest land, the only lawful route is through a Bulgarian commercial company.

How it works

1. Register an EOOD (single-member limited liability company) — the minimum share capital is EUR 1. The procedure takes 3–5 business days at the Commercial Register.
2. The company purchases the property — since the EOOD is a Bulgarian legal entity, it faces no restrictions on acquiring any type of real estate, including land.
3. You are the sole owner of the capital — you control the company and, indirectly, the property.

What to keep in mind

• The company must maintain accounting records and file annual tax returns, even if its sole activity is holding the property.
• If the property is sold, the tax consequences are governed by the Corporate Income Tax Act — the corporate tax rate is 10%.
• If you distribute the profit as a dividend, an additional 5% dividend tax applies.
• Annual costs for maintaining the EOOD (accounting, fees, annual financial statements) range from EUR 500 to EUR 1,500.

This structure is entirely lawful and widely used by citizens of Russia, Ukraine, the United Kingdom (post-Brexit), Turkey, China, and other non-EU countries.

Step-by-step procedure for buying property

Step 1. Search for a suitable property

Start with a clear idea of the purpose — residential use, rental investment, holiday home, or commercial property. The most popular listing platforms in Bulgaria are imot.bg, imoti.net, and homes.bg. If you are looking for coastal or mountain resort properties, working with a local broker who knows the area is advisable.

Pay attention to the following:

• Location and infrastructure
• Year of construction and building condition
• Existence of an occupancy permit (Act 16)
• Legal status of the land plot (for houses)
• Estimated rental yield

Step 2. Engage a lawyer

This is the most important step, particularly for foreign buyers. Your lawyer will carry out the legal due diligence, prepare or review the preliminary contract, and represent you at the notarial transaction.

Under Art. 18 of the Obligations and Contracts Act, the transfer of ownership of real estate requires a notarial deed. The notarial deed is a mandatory form for validity — without it, there is no transfer of ownership.

Legal fees typically range from EUR 300 to EUR 1,500, depending on the complexity of the transaction and the value of the property.

Step 3. Legal due diligence

Your lawyer conducts a thorough review of the property. The detailed 12-point checklist is set out in a separate section below.

Legal due diligence usually takes between 5 and 10 business days and includes checks at the Property Register, the Cadastre, the municipality, and other institutions.

Step 4. Preliminary contract and deposit

Following a successful due diligence, the parties proceed to sign a preliminary contract under Art. 19 of the Obligations and Contracts Act. Standard practice is for the buyer to pay a deposit of 10% of the purchase price.

The preliminary contract is examined in detail in a separate section below.

Step 5. Arrange financing

If you plan to use a mortgage, it is advisable to obtain pre-approval from the bank before signing the preliminary contract. More on the conditions for foreign mortgage borrowers appears in the “Mortgages for foreigners” section below.

If you are buying with available funds, ensure you can transfer the amount by bank wire. Under the Cash Payment Restriction Act, payments of EUR 5,113 or more must be made by bank transfer.

Step 6. Gather the required documents

As a foreign buyer, you will need:

• Valid passport (or ID card for EU citizens)
• Tax identification number (LNCh) — a personal foreigner’s number issued by the National Revenue Agency
• Certificate of marital status — from your country, with apostille and Bulgarian translation
• Power of attorney — if you will not attend the transaction in person (with notarial certification and apostille)
• Certificate of declared data — from the NRA, confirming you have no tax liabilities in Bulgaria (or that you are acquiring property for the first time)

The seller, in turn, provides: notarial deed, tax assessment, cadastral sketch or plan, certificate of no encumbrances, certificate of heirs (for inherited property), and other documents as applicable.

Step 7. Completion of the transaction — notarial deed

The transaction takes place before a notary in the district where the property is located. The notary verifies the identity of the parties, the seller’s ownership right, the absence of encumbrances, and reads the notarial deed aloud.

If you do not speak Bulgarian, the presence of a sworn translator is mandatory. The translator interprets the notarial deed orally during the transaction and signs the deed alongside the parties.

Notarial fees are determined by the Schedule of Notarial Fees and include:

• Fee for drafting the notarial deed
• Registration fee (0.1% of the value)
• Local acquisition tax (varies by municipality — approximately 3% in Sofia)

Step 8. Payment of the price

Payment is made by one of the following methods:

• Bank transfer — the most common option, mandatory for amounts over EUR 5,113
• Escrow account — recommended for higher-value properties, since the funds are released only after the notarial deed is registered
• Notary’s account — some notaries offer this option as an additional safeguard

When transferring funds from abroad, ensure the bank statement clearly shows the origin of the funds — Bulgarian banks observe strict anti-money laundering rules.

Step 9. Registration in the Property Register

After the transaction, the notary files an application for registration of the notarial deed with the Registry Agency (Property Register). Registration is typically completed within 1–3 business days.

Only after registration is the transaction enforceable against third parties. In other words, registration is the moment from which you are officially the owner as regards everyone.

Step 10. Post-purchase actions

After completing the transaction, you have several mandatory steps:

1. Tax declaration — file a declaration under Art. 14 of the Local Taxes and Fees Act with the municipality where the property is located. The deadline is 2 months from acquisition.
2. BULSTAT registration — if you are a foreign individual owning property in Bulgaria, you must register in the BULSTAT Register within 7 days of acquisition.
3. Transfer of utility accounts — electricity, water, heating, internet. You will typically need to visit the relevant utility company offices with the notarial deed.
4. Property insurance — although not mandatory (except with a mortgage), it is strongly recommended.

Due diligence checklist — 12 points for a legal review

Legal due diligence is the foundation of every secure real estate transaction. Missing even one of the following checks can lead to serious financial losses or legal disputes.

1. Ownership verification — chain of title for the past 10 years through a search at the Property Register (Registry Agency). Confirm that the seller is the actual owner.
2. Encumbrances check — certificate confirming no registered mortgages, seizures, claims, or other encumbrances on the property.
3. Cadastral check — sketch or plan from the Geodesy, Cartography, and Cadastre Agency (AGKK). Verify that the boundaries and area match the description in the notarial deed.
4. Zoning and planning status — enquiry at the municipality regarding the property’s designation, zoning, and permitted construction under the Spatial Planning Act.
5. Building permit and occupancy permit (Act 16) — for new buildings, verify the existence of a valid building permit and occupancy permit.
6. Restitution claims — especially for properties built before 1990. Check whether any restitution claims are pending or possible.
7. Co-ownership — if the property is co-owned, all co-owners must consent to the sale. Failure to obtain consent may allow the transaction to be challenged.
8. Seller’s marital status — if the property is matrimonial community property, both spouses must consent to the sale.
9. Tax assessment — current tax assessment from the municipality, confirming that all taxes and fees on the property are paid.
10. Illegal construction — verify there are no unauthorised alterations, extensions, or additions that could be subject to demolition under the Spatial Planning Act.
11. Common parts check — for condominiums, review the internal rules, general assembly resolutions, and any outstanding contributions to the renovation fund.
12. Environmental check — for agricultural land or properties near industrial zones, check for contamination, protected areas, or usage restrictions.

Preliminary contract

The preliminary contract under Art. 19 of the Obligations and Contracts Act is a legally binding document that obliges the parties to conclude a final contract (notarial deed) under specified conditions and within a specified timeframe.

Mandatory clauses

• Property identification — exact address, cadastral identifier, area, boundaries
• Price and payment method — total price, deposit amount, payment schedule for the balance
• Deadline for completion — specific date or period within which the notarial deed must be executed
• Penalty clauses — if the seller defaults — return of the deposit in double; if the buyer withdraws — forfeiture of the deposit
• Seller’s representations — that they are the owner, that the property is free of encumbrances, that there are no legal disputes
• Termination conditions — under what circumstances each party may withdraw

Deposit

The standard deposit is 10% of the purchase price. The deposit serves two functions:

• Confirms the seriousness of the buyer’s intention
• Serves as compensation in case of default (Art. 93 of the Obligations and Contracts Act)

If the seller withdraws from the transaction, they owe the buyer double the deposit. If the buyer withdraws — the deposit is forfeited.

Right to claim under Art. 19, para. 3

If the seller refuses to execute the notarial deed despite a valid preliminary contract, the buyer has the right to file a claim in court requesting that the preliminary contract be declared final. The court judgment replaces the notarial deed.

Costs of buying a property for EUR 100,000

The following table illustrates the typical costs when purchasing a property worth EUR 100,000 in Sofia:

Cost item	Rate / basis	Amount for EUR 100,000	Who pays
Local acquisition tax (Sofia, ~3%)	3% of price	EUR 3,000	Buyer
Notarial fee	Per schedule	~EUR 375 + VAT	By agreement*
Registration fee (Registry Agency)	0.1%	EUR 100	Buyer
Broker’s commission	2–5%	EUR 2,000–5,000	Buyer**
Legal fees	Fixed	EUR 300–1,500	Buyer
Sworn translator	Fixed	EUR 100–300	Buyer
Certificates and fees	Fixed	~EUR 50–100	Seller
Total (without broker)		EUR 3,925–5,275
Total (with broker)		EUR 5,925–10,275
Percentage of purchase price		~5.5–10%

* Traditionally the buyer pays the notarial fee, but this is negotiable.

** The commission may also be charged to the seller — check in advance.

As a foreign buyer, plan for additional 5.5% to 10% of the property value for all associated costs.

Mortgages for foreigners

Obtaining a mortgage in Bulgaria as a foreign national is possible, though not all banks offer this option.

Which banks lend to foreigners

As of 2026, UniCredit Bulbank is among the few banks in Bulgaria that offer mortgages to foreign citizens without a residence permit requirement. Other banks such as Postbank (Eurobank) and UBB (KBC Group) also lend to foreigners, but typically require long-term or permanent residence.

Parameter	Value
Maximum loan-to-value (LTV)	70%
Maximum term	25 years
Interest rate type	Variable
Loan currency	EUR or BGN
Down payment	Minimum 30%
Property insurance	Mandatory
Life insurance	Usually mandatory

Required documents for a mortgage

• Valid passport
• Income certificate from your employer or tax return (from your home country)
• Bank statements for the last 6–12 months
• Employment contract or proof of business activity
• Property documents (preliminary contract, tax assessment, cadastral sketch)
• Credit history (if applicable)

Practical tips

• Start the mortgage application before signing the preliminary contract so you know the exact approved amount.
• The approval process may take 3–6 weeks.
• A variable interest rate means your monthly payment may change — build a buffer into your budget.
• The bank will require a property appraisal by a licensed valuator — this appraisal may differ from the purchase price.

Residence permit through property purchase

Purchasing real estate in Bulgaria can serve as a basis for a temporary residence permit under the Foreigners in the Republic of Bulgaria Act (Foreigners Act).

Conditions

• Minimum property value: EUR 300,000 (or the equivalent in BGN)
• The property must be located in Bulgaria
• The buyer must be a non-EU/EEA citizen
• The property may be residential or commercial

What you receive

• Temporary residence permit — issued for 1 year and renewable
• Right to reside in Bulgaria without day limits
• Free travel in the Schengen area for up to 90 days within a 180-day period (following Bulgaria’s Schengen accession)
• After 5 years of continuous residence — right to apply for permanent residence
• After permanent residence — eligibility to apply for Bulgarian citizenship

Procedure

1. Purchase a property worth at least EUR 300,000
2. Obtain the notarial deed and register it in the Property Register
3. Apply for a Type D visa at the Bulgarian consulate in your country
4. After entering Bulgaria — apply for a temporary residence permit at the Migration Directorate of the Ministry of Interior
5. Receive your foreigner’s identity card

Important notes

• The property value is determined by the purchase price stated in the notarial deed, not the tax assessment.
• You may combine multiple properties, provided their total value exceeds EUR 300,000.
• The residence permit does not automatically grant the right to work — a separate work permit is required for that.

Post-purchase obligations

Owning real estate in Bulgaria creates certain ongoing obligations that you must observe, whether or not you reside in the country.

Taxes

• Real estate tax — set by the municipality and payable annually. Rates range from 0.01% to 0.45% of the tax assessment value. If paid in full by 30 April, you receive a 5% discount.
• Waste collection fee — also annual, set by the municipality.
• Rental income tax — if you rent out the property, you owe income tax. The rate for individuals is 10%.

Maintenance

• Condominium contributions — if the property is in a residential building, monthly maintenance fees apply.
• Renovation fund — mandatory under the Condominium Management Act.
• Insurance — recommended, especially for holiday properties left unoccupied for extended periods.

Administrative obligations

• BULSTAT registration renewal — upon any change of data.
• Tax declaration update — upon any change of circumstances (renovation, change of purpose, rental).
• Compliance with general assembly resolutions — for condominiums.

Frequently asked questions

Conclusion

Buying real estate in Bulgaria as a foreign citizen is a fully achievable and legally regulated procedure. The key to a successful transaction lies in three elements: a well-informed buyer, thorough legal due diligence, and competent legal representation.

Whether you are an EU citizen looking for a holiday property on the Black Sea coast, or a non-EU investor planning to build a portfolio of apartments in Sofia — the legal framework allows you to achieve your objectives, provided the statutory requirements are met.

The Innovires Legal team can assist you at every stage of the process — from legal due diligence on your chosen property, through preparation and review of the preliminary contract, to representation at the notarial transaction and post-purchase actions. Contact us for a consultation.

Legal notice: This article is prepared for informational purposes and does not constitute legal advice within the meaning of the Attorneys Act. The information is current as of the date of publication (March 2026) and may change with amendments to the applicable legislation. For a specific legal analysis tailored to your situation, please consult a lawyer. Innovires Legal accepts no liability for actions taken solely on the basis of the information in this article.