Guide · Bulgarian Property Law
Buying Property in Bulgaria: A Legal Guide for Foreign Buyers
Author: Velizar Telbiyski - Legal Assistant at Sheyredov Law Firm·Last updated:
Buying a home, holiday apartment or investment property in Bulgaria is a relatively clear procedure when ownership, encumbrances, the cadastre, the zoning status and the construction papers have been checked before any money moves. For foreign buyers, risk most often arises with land, new construction, older inherited properties, deals signed by proxies and unclear maintenance obligations.
What a foreign buyer may acquire
Foreign nationals and foreign legal entities may acquire ownership of land under the conditions arising from Bulgaria's EU membership, by virtue of an international treaty ratified, promulgated and in force for Bulgaria, and through statutory inheritance.
- Nationals and legal entities of EU member states or EEA states may acquire land subject to the statutory requirements and the conditions linked to Bulgaria's EU accession.
- Foreign nationals and foreign legal entities may acquire buildings, self-contained units and limited rights in rem over real estate, unless a statute provides otherwise.
- For buyers outside the EU/EEA, the acquisition of land must be analysed separately, according to the applicable international treaty, the type of land and the structure of the transaction.
The purchase step by step
1. Who buys and how
First decide whether the buyer acquires the property personally or through a company. Personal ownership is usually the simplest route for apartments, self-contained units and buildings. Where land is bought by an individual or company from outside the EU/EEA, the restrictions under the Constitution and the Ownership Act must be analysed separately. If a Bulgarian company is used, the usual choice is a limited liability company, which may be formed by one or more persons, the members being liable for the company's obligations up to their contribution.
2. Legal due diligence before the deposit
Check the chain of ownership and the seller's rights; registered deeds, mortgages, injunctions and other encumbrances in the Property Register; the identity of the property under the cadastre and whether the title documents, the cadastral map and the physical situation agree; the zoning designation of land and whether development is permitted; and, for new construction, the building permit, the approved investment designs, the construction stage and the documents for putting the building into operation. The cadastre and the Property Register are linked through the property identifier, and since 09.02.2026 the cadastral map and registers are created, maintained and kept in digital form.
3. Preliminary contract and deposit
The preliminary contract should regulate at least: the precise identification of the property; the price and the currency of payment; the deadlines and conditions for payment; who bears the transaction costs; which documents the seller must produce; the conditions for returning or retaining the deposit; and the consequences of encumbrances, a refusal to complete before the notary, or a discrepancy in the cadastre or the construction papers. For a property under construction, payments should be tied to verifiable construction stages and documents, not merely to calendar dates.
4. Documents and representation
The usual file includes the title documents, a cadastral sketch or scheme, encumbrance certificates, the tax valuation, declarations by the parties and evidence of paid local taxes, to the extent required for the particular transaction. If the buyer cannot attend in person, the transaction may be arranged through a representative, but the form, content and legalisation of the power of attorney must be agreed with the notary in advance. Where a merchant acts through a commercial proxy, the proxy must be expressly authorised to dispose of or encumber real estate.
5. Notary deed and payment
The deed is executed before the notary competent for the location of the property. Payment should be structured so that the buyer does not lose control over the funds before the deed is signed and entered. On a transfer of real estate, property tax due up to the transfer, including for the month of the transfer, is paid by the transferor before the deal.
6. Registration and after-purchase steps
After signing, the notary deed is entered in the Property Register, which is kept and maintained by the Registry Agency. Where property is acquired for consideration or free of charge under Section III of the Local Taxes and Fees Act, no declaration for annual property tax is filed; enterprises file information on the book value and other circumstances relevant to the tax. The buyer owes the annual tax from the beginning of the month following the month of the transfer, unless it has been paid by the transferor.
Costs of the purchase
| Local acquisition tax | Due on a transfer for consideration of real estate or a limited right in rem. As a rule paid by the acquirer, unless agreed otherwise. The exact rate is checked against the ordinance of the relevant municipality. |
|---|---|
| When the acquisition tax is paid | The tax is paid on the transfer of the real estate or the limited right in rem. |
| Notary fee | Determined under the applicable notary tariff in force on the date of the deed. |
| Registration fee | Due for the entry of the notary deed in the Property Register; confirm the current rate at the time of the transaction. |
| Legal fees | Agreed in advance according to the scope of the due diligence, the contract, the negotiations, attendance at the deed and the post-registration steps. |
| Agency commission | Payable only where there is a contract with an agent; the amount is a matter of agreement. |
| Annual property tax | Set by the municipal council within a range of 0.1 to 4.5 per mille of the tax valuation. |
| Payment deadlines for the annual tax | Two equal instalments - by 30 June and by 31 October; a 5% discount applies on payment in full by 30 April. |
Risks foreign buyers most often meet
- Off-plan purchases: check that the construction is permitted. Construction may be carried out only if authorised, and the building permit is issued on the basis of an approved investment design where one is required. Check also whether the permit has been notified to the interested parties and whether there is a risk of appeal. Completion of a building for tax purposes is established by a certificate for putting into operation or a permit for use.
- Land bought by individuals or companies from outside the EU/EEA: acquisition is limited to the cases under the Constitution and the Ownership Act, so check whether an applicable international treaty, statutory inheritance or another admissible structure exists.
- Discrepancies between the documents, the cadastre and the physical situation: the cadastre and the Property Register are linked through the property identifier, but the description in the deed, the cadastral scheme and the actual boundaries must still be reconciled.
- Zoning restrictions and inability to build: for land, check whether the plot is regulated, what development is permitted, the parameters of the detailed development plan - designation, permitted activities, density, intensity, green area and building lines - and whether the size of the plot allows the intended construction.
- Older rural properties, inheritance and co-ownership: shares of co-owners are presumed equal until proven otherwise, and each co-owner shares in the benefits and burdens in proportion to their share, so check that all owners take part in the deal or are duly represented.
- Unpaid local taxes: on a transfer, the tax due up to the transfer, including for the month of the transfer, is paid by the transferor before the deal; the buyer owes the tax from the beginning of the following month, unless already paid by the transferor.
How we help
We act only for the buyer. We run the due diligence, negotiate and draft the preliminary contract, structure the payment mechanics, attend the notary - in person or through a representative - and complete the registration and post-purchase formalities. Our fee is agreed before we start.
Related: full property law service for buyers and ownersFrequently asked questions
Can foreigners buy property in Bulgaria?
Yes, with an important distinction. Foreign individuals and foreign legal entities may acquire buildings, self-contained units and limited rights in rem over real estate, unless a statute provides otherwise. Land is different: it may be acquired only under the conditions of the Constitution and the Ownership Act - including the conditions arising from Bulgaria's EU/EEA membership, a ratified international treaty in force, or statutory inheritance.
Does the buyer have to be in Bulgaria to complete the purchase?
The transaction can largely be prepared remotely. If the buyer cannot attend, signing through a representative is arranged with an express power of attorney whose form, content and legalisation must be agreed in advance with the notary. Where a merchant acts through a commercial proxy, the proxy must be expressly authorised to dispose of or encumber real estate.
What are the total costs of buying property?
Budget for local acquisition tax, the notary fee, the registration fee, legal fees and, if an agent is used, commission. Acquisition tax is due on a transfer for consideration of real estate or a limited right in rem and, as a rule, is paid by the acquirer unless agreed otherwise. The exact percentages for acquisition tax, notary fees and registration fees must be checked against the tariffs and the relevant municipal ordinance in force on the date of the deed.
What should be checked before a deposit is paid?
Title and the chain of ownership, entries in the Property Register (mortgages, injunctions and other encumbrances), the cadastral identifier and whether the documents, the cadastral map and the physical situation match, the zoning status and permitted development, the tax position, and for new builds the building permit and the documents for putting the building into operation. Construction may be carried out only if permitted under the Spatial Development Act.
Is annual property tax payable?
Yes. Buildings, self-contained units in buildings and certain plots are subject to annual property tax. The rate is set by the municipal council within a statutory range of 0.1 to 4.5 per mille of the tax valuation. The tax is payable in two equal instalments - by 30 June and by 31 October - with a 5% discount for payment in full by 30 April.
Must the property be declared to the municipality after purchase?
For property and limited rights in rem acquired for consideration or free of charge under Section III of the Local Taxes and Fees Act, no declaration for annual property tax is filed. Enterprises, however, file information on the book value and other circumstances relevant to the tax. The buyer owes annual tax from the beginning of the month following the month of transfer, unless the transferor has already paid it.
This guide is general information on Bulgarian law and is not legal advice for a specific transaction. Rules, tariffs and municipal rates change; please confirm the position for your property before you commit.