The Constitutional Restriction

The Bulgarian Constitution (Article 22) provides that foreign citizens and foreign legal entities may not acquire ownership of land in Bulgaria except through legal inheritance. This restriction applies to non-EU citizens and companies registered outside Bulgaria.

EU citizens gained full rights to purchase land in Bulgaria in 2014, following the end of the transitional period after Bulgaria’s EU accession.

Who Is Affected?

The land ownership restriction applies to:

• Citizens of non-EU/EEA countries (e.g., USA, UK post-Brexit, Russia, Turkey, Middle Eastern countries)
• Companies registered outside Bulgaria regardless of where their owners come from
• Stateless persons without EU citizenship

The restriction covers all types of land, including:

• Urban building plots
• Agricultural land
• Forest land
• Recreational land

Legal Alternatives for Non-EU Citizens

Despite the restriction, non-EU citizens have several legal paths to effectively control and use land in Bulgaria.

1. Register a Bulgarian Company

The most common solution is forming a Bulgarian-registered EOOD or OOD. A Bulgarian company — even if 100% owned by a non-EU citizen — is a Bulgarian legal entity and can purchase land without restrictions.

Advantages:

• Full ownership rights through the company
• Land is a company asset with tax benefits
• Can be combined with business activities

Considerations:

• Annual accounting and reporting costs
• Company must remain active and compliant
• Transfer of the property requires either selling shares or selling the land from the company

2. Right of Use (Право на ползване)

A non-EU citizen can acquire a limited real right of use over land without owning it. This right allows you to:

• Use the land for its intended purpose
• Build on the land (if combined with a building right)
• Enjoy the fruits and income from the land

The right of use can be:

• Perpetual or for a fixed term
• Registered in the property registry for legal protection
• Inherited by successors in some cases

3. Right to Build (Суперфиция)

A right to build allows a foreigner to construct a building on someone else’s land. Once constructed, the foreigner owns the building but not the land underneath. This is commonly used for:

• Residential construction on leased or family-owned land
• Commercial projects where land purchase is not possible
• Developments in areas with affordable land but restricted ownership

4. Long-Term Lease

Foreigners can enter long-term lease agreements for land:

• Lease terms of up to 10 years for agricultural land (renewable)
• Lease terms of up to 10 years for other land types
• Lease can be registered in the property registry for protection against new owners
• Provides practical control without formal ownership

Special Rules for Agricultural Land

Agricultural land has additional restrictions even beyond the general foreign ownership rules:

• Only individuals or legal entities registered as agricultural producers may acquire agricultural land
• Companies whose ownership includes non-EU citizens face additional scrutiny
• The local municipal agricultural land commission may have right of first refusal

These rules are detailed further in our article on agricultural land purchase.

Inheritance Exception

The Constitution allows foreigners to acquire land through inheritance. If a non-EU citizen inherits land in Bulgaria:

• The inheritance is legally valid
• The foreigner becomes the rightful owner
• However, some legal scholars argue the foreigner may be required to dispose of the land within a reasonable period

Practical Advice for the Troyan Area

The Troyan region has attractive land for foreign buyers interested in mountain properties, agricultural projects, or rural tourism. For non-EU citizens, forming a Bulgarian company is the most straightforward path to land acquisition. The process is quick, affordable, and provides a compliant legal framework.

Get Legal Guidance

Navigating land ownership restrictions requires careful legal planning. Attorney Biser Dimov in Troyan regularly assists non-EU clients with company formation for property acquisition and advises on the best legal structure for their investment goals. Contact us for a consultation on your options.