Introduction
Bulgaria has become an attractive destination for foreign real estate investors due to its affordable property prices, EU membership, and growing economy. However, understanding the legal framework and tax implications of real estate investments is crucial to avoiding complications and ensuring a profitable and secure transaction.
At Legal Frame Law Office, our team of expert real estate lawyers in Bulgaria specializes in assisting foreign investors with property transactions, due diligence, contract drafting, and legal compliance. This guide outlines the key legal and tax considerations when investing in Bulgarian real estate.
1. Can Foreigners Buy Property in Bulgaria?
Foreigners can buy property in Bulgaria, but there are some restrictions based on nationality and property type.
✔ Foreign individuals (non-EU citizens) – Can buy apartments and buildings, but cannot own land directly unless they form a Bulgarian company.
✔ EU citizens and companies – Can buy land, houses, and commercial properties without restrictions.
✔ Foreign companies (outside the EU) – Must register a Bulgarian company to purchase land.
At Legal Frame Law Office, we assist foreign investors in structuring their property purchases legally and efficiently.
2. Steps to Buy Property in Bulgaria as a Foreigner
To safely acquire real estate in Bulgaria, foreign buyers must follow a structured legal process:
Step 1: Find a Suitable Property
- Research real estate markets in Sofia, Plovdiv, Varna, Burgas, and resort areas.
- Work with a trusted real estate agent and a real estate lawyer in Bulgaria.
Step 2: Perform Legal Due Diligence
Before signing a contract, Legal Frame Law Office conducts a full legal check to ensure:
✔ The property has a clear title (no mortgages or liens).
✔ The seller has the legal right to transfer ownership.
✔ The property has valid building permits and documentation.
Step 3: Sign a Preliminary Contract
✔ Defines the purchase terms, payment schedule, and obligations.
✔ A deposit (usually 10% of the price) is required to reserve the property.
✔ This contract must be reviewed by a lawyer to protect your rights.
Step 4: Complete the Notary Deed (Title Transfer)
✔ The final Notary Deed (property ownership document) is signed before a Bulgarian Notary Public.
✔ The buyer pays the remaining amount and official fees.
✔ The property is officially registered in the Bulgarian Property Register.
At Legal Frame Law Office, we represent foreign buyers throughout the entire real estate purchase process, ensuring full legal protection.
3. Taxation for Foreign Real Estate Investors in Bulgaria
Investing in Bulgarian real estate comes with certain tax obligations. Foreign buyers must be aware of:
A) Property Transfer Tax
✔ Varies by municipality (between 2-3%) of the purchase price.
✔ Paid upon registration of the Notary Deed.
B) Annual Property Tax
✔ Between 0.1% and 0.3% of the property value.
✔ Paid annually to the local municipality.
C) VAT on Real Estate Purchases
✔ No VAT on resale properties.
✔ 20% VAT on new properties from developers.
D) Capital Gains Tax
✔ 10% tax on profits from property sales (if sold within 3 years).
✔ Exemption applies if the property has been owned for more than 3 years.
✔ Legal Frame Law Office provides tax compliance services to ensure foreign investors optimize their tax strategy in Bulgaria.
4. Can Foreigners Buy Land in Bulgaria?
✔ EU citizens can buy land without restrictions.
✔ Non-EU citizens can buy land only through a Bulgarian company.
✔ Agricultural land has special restrictions, requiring additional approvals.
If you are a non-EU investor interested in purchasing land in Bulgaria, our real estate lawyers at Legal Frame Law Office can assist with company registration and compliance.
5. Investment Opportunities in Bulgaria’s Real Estate Market
Foreign investors can explore various real estate investment options in Bulgaria:
✔ Residential Apartments – High rental demand in Sofia, Plovdiv, Varna.
✔ Tourist Properties – Beachfront apartments in Sunny Beach, Golden Sands, Burgas.
✔ Commercial Real Estate – Offices, retail spaces, and industrial properties.
✔ Rural Properties – Low-cost countryside houses for renovation.
Our lawyers in Bulgaria help investors secure real estate transactions and navigate legal regulations smoothly.
6. How Legal Frame Law Office Helps Foreign Property Investors
At Legal Frame Law Office, we specialize in real estate law and provide legal assistance for foreigners buying property in Bulgaria. Our services include:
✅ Legal due diligence on property titles.
✅ Drafting and reviewing sales contracts.
✅ Company registration for land purchases.
✅ Representation at the Notary Public.
✅ Property tax planning and compliance.
✅ Resolving property disputes and litigation.
📩 Contact Legal Frame Law Office Today!
📞 Phone: +359876413004
📧 Email: office@legalframe.bg
🌍 Website: www.legalframe.bg
