Right of Use (Usufruct) Over Property in Bulgaria — Guide (2026)

What Is the Right of Use (ZS Arts. 56–62)

Under Art. 56 of the Ownership Act (ZS), the right of use encompasses the right to use the thing according to its intended purpose and the right to collect the fruits thereof, without altering its substance.

The right of use is:

• A real right — it is enforceable against everyone, including the owner and subsequent acquirers of the property.
• A personal right — it is connected to the person of the usufructuary and cannot be transferred to other persons.
• Not inheritable — it terminates upon the death of the usufructuary (if created for life).
• Follows the property — even upon sale or public auction of the property, the right of use is preserved.

What Does “Bare Owner” Mean

When a right of use is created, the property owner becomes the so-called “bare owner” (nuda proprietas). They retain the right of ownership but lose the entitlement to use — they cannot inhabit the property, let it out, or collect income from it while the right of use is in force.

Difference Between Right of Use and Lease

Practical implication: The right of use provides far stronger protection than a lease. The usufructuary is protected even upon a change of owner, whereas a tenant may be evicted by the new owner with notice.

Creation of the Right of Use

1. By Notarial Deed (most common method)

The right of use over immovable property is created by a notarial deed registered with the Registration Service (Art. 18 ZS).

The most common situations in practice:

a) Retention of the right of use upon transfer: The owner sells, donates or transfers the property against a maintenance and care obligation, while retaining for themselves the right of use. A typical case: a parent donates an apartment to their child but retains a lifetime right of use.

b) Separate creation: The owner creates a right of use in favour of a third party by a separate notarial deed. The creation may be for consideration (onerous) or gratuitous.

c) Creation in favour of a third party upon sale: Upon selling a property, the seller may retain a right of use not for themselves but for a third party (e.g. for their parent).

2. By Will

The testator may bequeath to the legatee a right of use over a specific property, with ownership passing to the heirs. The will must comply with the formal requirements of the Inheritance Act.

3. By Prescription

The right of use may be acquired by prescription through continuous exercise for 10 years (for bona fide possession — 5 years), by analogy with the rules on acquisitive prescription (Art. 79 ZS). In practice, this scenario is rare.

Required Documents for Creation

• Title deed for the property
• Current cadastral sketch from AGKK (if the property is in an area with a cadastral map)
• Tax assessment of the property (from the municipality)
• Marital status certificate
• Encumbrance certificate
• Identity documents of the parties

Rights of the Usufructuary

The usufructuary has the following rights (Arts. 56–57 ZS):

1. To use the property in accordance with its intended purpose — to live in it, use it for business activities, etc.
2. To collect the fruits — rent, rent for agricultural land, natural fruits (harvest from agricultural land, fruit from orchards).
3. To let the property — the usufructuary may let the property to third parties and collect the rent. The owner has no right to this income.
4. To assert real-right claims — the usufructuary may defend their right against both third parties and the owner himself (negatory claim).

Obligations of the Usufructuary (Arts. 57–58 ZS)

1. To maintain the property in the condition in which it was received, but they are not liable for wear and tear resulting from ordinary use (Art. 57 ZS).
2. To pay the costs connected with use — taxes, waste collection fees, utilities (electricity, water, heating), insurance (Art. 57 ZS).
3. To insure the property in favour of the owner and to pay the insurance premiums (Art. 57 ZS).
4. Not to substantially alter the thing — the usufructuary may not carry out major repairs, conversions or changes that alter the purpose of the property without the owner’s consent.
5. To notify the owner of any encroachment upon the property and of unforeseen damage (Art. 58 ZS).
6. To return the property to the owner upon termination of the right.

Disputed issue: In cases of gratuitous creation of the right of use, there is conflicting case law on who bears taxes and expenses. Recommendation: Always include an express clause in the notarial deed on the allocation of expenses.

Tax Aspects

Tax Upon Creation

Creation of the right of use is subject to local tax under the Local Taxes and Fees Act (ZMDT):

• Tax base: The tax assessment of the right of use, determined under Appendix No 2 to ZMDT. For a lifetime right of use, the tax assessment represents a percentage of the tax assessment of the entire property, depending on the age of the usufructuary.
• Tax rate: Determined by the municipal council — typically between 0.4% and 3% of the tax assessment. For donations between direct-line relatives — a reduced rate.
• Notarial fee: Proportional to the certified pecuniary interest.

Property Tax

Where a right of use has been created, the property tax (Art. 11(3) ZMDT) is the obligation of the usufructuary, not the owner.

Tax Upon Termination

Upon termination of the right of use (e.g. death of the usufructuary), the bare owner acquires full rights over the property. This does not give rise to an additional tax obligation — tax was paid at the time of the original transfer.

Termination of the Right of Use — 5 Grounds

1. Death of the Usufructuary

If the right was created for life (without a fixed term), it terminates automatically upon the death of the usufructuary. The right of use is not inherited by the usufructuary’s heirs.

2. Expiry of a Fixed Term

If the notarial deed specifies a fixed term (e.g. 10 years), the right terminates upon expiry. If the usufructuary dies before the term expires, the right terminates upon death.

3. Renunciation by the Usufructuary

The usufructuary may voluntarily renounce their right. Renunciation is effected by a notarially certified declaration, which must be registered with the Registration Service at the location of the property (by analogy with Art. 100 ZS).

4. Non-Exercise for 5 Years (Art. 59(3) ZS)

If the usufructuary does not exercise their right for 5 consecutive years, the right is extinguished by prescription. “Non-exercise” means that the usufructuary has not lived in the property, has not let it, has not collected any fruits — i.e. has in no way exercised the substance of the right.

Important: Extinction by prescription does not occur automatically — the owner must invoke it for it to take effect.

5. Judicial Termination at the Owner’s Request (Art. 61 ZS)

The owner may seek judicial termination of the right of use in the following cases:

• The usufructuary is using the property in a manner that threatens it with destruction or causes significant damage
• The usufructuary breaches their essential obligations
• The usufructuary substantially alters the thing

Additional Grounds

• Destruction of the property — if the property is destroyed (by natural disaster, fire, etc.).
• Merger — if the usufructuary becomes the owner of the property (by inheritance, purchase).

Practical Examples

Example 1: Donation with Retained Right of Use

Maria (72 years old) donates her apartment to her daughter Elena, retaining a lifetime right of use. Maria continues to live in the apartment. Elena is the “bare owner” — she cannot inhabit the property or let it while Maria is alive. Upon Maria’s death, the right of use terminates automatically and Elena acquires full ownership rights.

Example 2: Sale of Property with Registered Right of Use

Ivan wishes to sell an apartment in which his grandmother Petra has a lifetime right of use. The sale is possible, but the buyer will acquire the property encumbered with the right of use. In practice, the value of such a property is significantly lower, as the buyer will not be able to use it while the usufructuary is alive.

Example 3: Non-Exercise for 5 Years

Georgi was granted a right of use over a village house but has not visited for 6 years, has not paid taxes, and has not let the property. The owner may invoke Art. 59(3) ZS and seek recognition of the extinction of the right of use by prescription.

Frequently Asked Questions

Conclusion

The right of use (usufruct) is one of the three limited real rights under Bulgarian law, alongside the right of construction (superficies) and servitudes. It allows the holder to use another person’s property and to collect the fruits thereof, without being the owner. This guide has examined the legal framework, methods of creation, rights and obligations, and grounds for termination.

If you need advice on creating, terminating or dealing with a right of use, the team at Innovires Legal can help. Contact us for a consultation.

This article is prepared for informational purposes only and does not constitute legal advice. For specific legal matters relating to the right of use, we recommend consulting a lawyer.