Can Foreigners Buy Property in Bulgaria?

Yes, but with important distinctions. EU citizens can freely purchase buildings and apartments in Bulgaria. Non-EU citizens can also buy buildings but face restrictions on land ownership. Understanding these rules is the first step to a successful property purchase.

Legal Restrictions on Foreign Buyers

EU/EEA Citizens

• Can purchase buildings, apartments, and land without restrictions
• Same rights as Bulgarian citizens for all property types
• No requirement to form a company

Non-EU Citizens

• Can purchase buildings and apartments freely
• Cannot directly own land — must either form a Bulgarian company or acquire a right of use
• A Bulgarian-registered company (even 100% foreign-owned) can buy land without restrictions

This land restriction is the main reason many non-EU investors register a Bulgarian company before purchasing property.

The Property Purchase Process

Step 1: Find and Verify the Property

• Identify the property through agents, listings, or personal search
• Verify the property title at the Registry Agency
• Check for encumbrances — mortgages, liens, claims, or pending litigation
• Confirm the cadastral data matches the actual property boundaries

Step 2: Preliminary Agreement

A preliminary contract is commonly signed, which includes:

• Property description and cadastral identification
• Agreed purchase price and payment schedule
• Deposit — typically 10% of the purchase price
• Deadline for completing the notary deed
• Penalties for withdrawal by either party

Step 3: Due Diligence

Before signing the final deed, thorough checks should cover:

• Ownership history for the past 10 years
• Tax status — confirm no outstanding property taxes
• Utility debts — check for unpaid electricity, water, and heating bills
• Building permits — verify the property was legally constructed
• Zoning compliance — confirm permitted use matches your intended purpose
• Condominium obligations — if buying an apartment, check for unpaid maintenance fees

Step 4: Notary Deed

The final transfer happens before a Bulgarian notary public:

• Both parties (or their representatives with notarized power of attorney) appear before the notary
• The notary reads the deed aloud and verifies identities
• Payment is typically made by bank transfer before or at the signing
• The notary submits the deed for registration at the Registry Agency
• Ownership transfers upon registration

Costs of Buying Property

Budget for the following expenses beyond the purchase price:

Cost	Amount
Local transfer tax	0.1–3% (set by municipality, typically 2–3%)
Notary fee	0.1–1.5% (scaled by property value)
Registration fee	0.1% of the declared value
Lawyer’s fee	Negotiable, typically 1–2%
Agent’s commission	2–3% (usually paid by buyer)

Total additional costs are approximately 5–8% of the purchase price.

Common Pitfalls for Foreign Buyers

• Skipping legal checks — never buy without a title search and encumbrance check
• Relying solely on the agent — agents represent the seller’s interest; hire your own lawyer
• Underestimating renovation costs — older Bulgarian properties often need significant work
• Ignoring ongoing costs — property tax, maintenance fees, and utility costs continue after purchase
• Language barriers — all legal documents are in Bulgarian; ensure you have proper translations

Buying Property in the Troyan Area

The Troyan region offers excellent value for foreign buyers:

• Prices significantly below Sofia and Black Sea coast averages
• Charming mountain properties with renovation potential
• Growing tourism infrastructure supporting rental income
• Beautiful natural surroundings including the Troyan Balkan and Central Stara Planina

Get Legal Support for Your Purchase

Buying property in a foreign country requires careful legal guidance. Attorney Biser Dimov in Troyan provides comprehensive support for foreign property buyers, from title verification and due diligence to representation at the notary signing. Contact us before making any commitments to protect your investment.