Authored by the expert who managed and guided the team behind the Bulgaria Property Pack
Everything you need to know before buying real estate is included in our Bulgaria Property Pack
Looking to buy property in Bulgaria as a foreigner? You're in the right place.
Bulgaria offers EU citizens direct property ownership rights, while non-EU buyers need to set up a company for land purchases. The Bulgarian property market presents strong investment opportunities with gross rental yields reaching 5.15% in coastal cities like Burgas as of June 2025.
If you want to go deeper, you can check our pack of documents related to the real estate market in Bulgaria, based on reliable facts and data, not opinions or rumors.
EU citizens can buy all property types in Bulgaria directly, while non-EU nationals must establish a Bulgarian company to purchase land or houses with gardens. The process takes 2-4 weeks, costs around 5-8% in total fees, and can be completed remotely with power of attorney.
| Aspect | EU/EEA Citizens | Non-EU Citizens |
|---|---|---|
| Apartments | Direct ownership allowed | Direct ownership allowed |
| Houses with land | Direct ownership allowed | Company required |
| Agricultural land | Prohibited | Prohibited |
| Mortgage availability | Up to 80% LTV | Up to 80% LTV |
| Transfer tax | 0.1-3% of price | 0.1-3% of price |
| Capital gains tax | 10% if sold within 3 years | 10% if sold within 3 years |
| Rental income tax | 10% flat rate | 10% flat rate |
Fact-checked and reviewed by our local expert
Yeheli Samuels 🇧🇬🇮🇱
CEO and Founder, Dira Bulgarit - Israeli real estate in Bulgaria
What can foreigners actually buy in Bulgaria, and what are the nationality-based restrictions?
Foreigners can freely purchase apartments in Bulgaria regardless of their nationality, since apartment ownership doesn't include the land beneath the building.
EU and EEA citizens enjoy the same property rights as Bulgarian nationals. They can directly buy houses with gardens, regulated building plots, and commercial properties in their own name. This equal treatment stems from Bulgaria's EU membership obligations and makes the Bulgarian property market particularly accessible for European buyers.
Non-EU citizens face more restrictions in the Bulgarian real estate market. While they can buy apartments directly, they cannot personally own land. To purchase a house with a garden or any property that includes land ownership, non-EU nationals must establish a Bulgarian limited liability company (OOD). The company then becomes the legal owner of the land, while the individual owns the company.
All foreigners, regardless of nationality, are prohibited from purchasing agricultural land, forest land, or vineyards in Bulgaria. This restriction applies even to EU citizens and represents one of the few areas where foreign ownership remains completely restricted as of June 2025.
It's something we develop in our Bulgaria property pack.
Do I need a visa or residence permit to buy property, and does ownership help with residency?
You don't need any visa or residence permit to purchase property in Bulgaria - the country allows foreign property ownership regardless of your residency status.
However, property ownership alone doesn't automatically grant you residency rights in Bulgaria. Simply buying an apartment or house won't qualify you for a residence permit. The Bulgarian government maintains a clear distinction between property ownership and residency rights.
If you invest at least BGN 600,000 (approximately EUR 300,000) in Bulgarian real estate, you may qualify for an extended residence permit. This investment threshold opens the door to Bulgaria's investor residency program, but you'll first need to obtain a Type D long-stay visa before applying for the extended residence permit.
After maintaining extended residence for five continuous years, you become eligible to apply for permanent residency in Bulgaria. Following another five years of permanent residence, you can apply for Bulgarian citizenship. This creates a potential 10-year pathway from property investment to citizenship, provided you meet all requirements and maintain your investment.
Can I buy property remotely, or must I be physically present in Bulgaria?
You can complete the entire Bulgarian property purchase process remotely without ever setting foot in the country.
The key to remote property purchases in Bulgaria is granting a notarized power of attorney to a trusted representative. This person - typically your lawyer or real estate agent - can sign all documents, attend the notary appointment, and complete the transaction on your behalf. The power of attorney must be properly notarized in your home country and apostilled for use in Bulgaria.
All stages of the purchase process, from initial negotiations to the final notarial deed signing, can be handled remotely. Your representative can conduct property viewings, negotiate terms, sign the preliminary contract, transfer payments, and complete the final purchase at the notary office. Many Bulgarian law firms specializing in real estate offer comprehensive remote purchase services for foreign buyers.
Bank transfers make payment straightforward for remote buyers. You can transfer the deposit and final payment directly from your home country bank to the seller's Bulgarian account. Some buyers also open Bulgarian bank accounts remotely to facilitate the transaction, though this isn't mandatory.
What's the complete step-by-step process for buying Bulgarian property as a foreigner?
The Bulgarian property purchase process follows a structured legal framework designed to protect both buyers and sellers.
| Step | Action Required | Timeframe |
|---|---|---|
| 1. Property Selection | View properties, negotiate price and terms | Variable |
| 2. Preliminary Agreement | Sign preliminary contract, pay 10% deposit | 1-2 days |
| 3. Due Diligence | Legal checks on title, permits, encumbrances | 3-7 days |
| 4. Company Formation | Register Bulgarian company (non-EU buyers only) | 5-10 days |
| 5. Final Contract | Sign notarial deed, pay remaining balance | 1 day |
| 6. Registration | Notary registers ownership in Property Register | 7 days |
| 7. Tax Registration | Register for property tax with municipality | Within 2 months |
Essential documents you'll need include: valid passport, bank receipt for payment, declaration of origin of funds, declaration of citizenship and marital status, and power of attorney if buying remotely. The seller must provide proof of ownership, tax evaluation certificate, marital status certificate, and certificate showing no encumbrances on the property.
The notary plays a crucial role in Bulgarian property transactions. They verify all documents, ensure legal compliance, draft the final deed, collect transfer taxes, and register the new ownership. The entire process typically takes 2-4 weeks from initial agreement to receiving your title deed.
Don't lose money on your property in Bulgaria
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Should I hire a local lawyer, and what exactly do they do in the transaction?
While Bulgarian law doesn't mandate using a lawyer for property purchases, hiring one is strongly recommended for foreign buyers navigating an unfamiliar legal system.
A Bulgarian property lawyer conducts comprehensive due diligence on your chosen property. They verify the seller's ownership rights, check for any debts or liens against the property, ensure all building permits and planning permissions are in order, and confirm the property's legal status matches what's being advertised. This investigation often uncovers issues invisible to foreign buyers.
Your lawyer also handles all contract preparation and review. They'll draft or review the preliminary agreement, ensure all terms protect your interests, negotiate any necessary amendments, and prepare all documents for the notary. If you're buying remotely, your lawyer can represent you at the notary with power of attorney.
For non-EU buyers requiring a company to purchase land, the lawyer manages the entire company formation process. They'll register your Bulgarian limited company, ensure proper shareholding structure, maintain the company's legal compliance, and handle annual filing requirements. Expect to pay between EUR 500-1,500 for comprehensive legal services, depending on transaction complexity.
What are all the taxes, fees, and costs involved in buying and selling Bulgarian property?
Bulgarian property transactions involve several mandatory costs beyond the purchase price.
Property transfer tax varies by municipality, ranging from 0.1% to 3% of the purchase price. Sofia typically charges around 2.5%, while smaller towns may charge less. Notary fees range from 0.1% to 1.5% of the property value but are capped at approximately EUR 3,100 for expensive properties. You'll also pay a registration fee of about 0.1% to record your ownership in the Property Register.
Real estate agent commissions in Bulgaria typically run 2.5% to 6% of the purchase price. In Sofia, the standard buyer's commission is 3%. Some agencies charge both buyer and seller, while others split a single commission. Legal fees for a property lawyer range from EUR 500 to EUR 1,500, depending on transaction complexity.
Annual property ownership costs include property tax of 0.1% to 0.45% of the cadastral value, waste disposal fees set by each municipality, and typical utility bills of EUR 60-150 monthly. When selling, you'll pay 10% capital gains tax if you sell within three years of purchase. Hold the property for more than three years, and the sale becomes tax-exempt for your primary residence.
It's something we develop in our Bulgaria property pack.
Can foreigners get mortgages in Bulgaria - what are the rates and requirements?
Bulgarian banks do offer mortgages to foreign nationals, making property purchases more accessible for international buyers.
Foreign buyers can typically borrow up to EUR 250,000 with a maximum term of 25 years. Banks generally finance up to 80% of the property value for completed properties, dropping to 70% for properties under construction. All mortgages for foreigners are denominated in EUR, eliminating currency risk for European buyers.
As of June 2025, mortgage interest rates in Bulgaria average 2.79% to 2.82% annually for foreign borrowers. These competitive rates make Bulgarian property financing attractive compared to many other European markets. Banks typically require proof of stable income, property valuation report, life insurance policy, and comprehensive property insurance.
- 1. Arrange pre-approval before making an offer to strengthen your negotiating position2. Provide at least three months of bank statements showing regular income3. Maintain a debt-to-income ratio below 40% for better approval chances4. Consider using a mortgage broker familiar with foreign buyer requirements5. Budget for additional costs like property valuation (EUR 150-300) and insurance premiums
How does Bulgaria tax rental income and capital gains for foreign property owners?
Bulgaria applies a flat 10% tax rate on rental income for non-resident property owners, making it one of Europe's most favorable tax regimes.
Non-resident landlords cannot claim any deductions against rental income - the 10% tax applies to gross rental receipts. You must file annual tax returns by April 30th for the previous year's income. Many foreign owners appoint a local accountant or property management company to handle tax compliance, typically costing EUR 200-500 annually.
Capital gains taxation depends on how long you've owned the property. Sell within three years of purchase, and you'll pay 10% tax on the profit. Hold the property for more than three years, and the sale becomes completely tax-exempt for one property. If you own two properties, the exemption period extends to five years. Properties acquired through inheritance are immediately exempt from capital gains tax.
Bulgaria has double taxation treaties with over 70 countries. These agreements typically allow you to offset Bulgarian taxes against your home country tax obligations, preventing double taxation on the same income. Check your country's specific treaty terms to understand your total tax liability.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Bulgaria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Which Bulgarian cities and regions are most popular with foreign buyers?
Sofia dominates as Bulgaria's capital and economic powerhouse, attracting professionals and investors seeking stable rental returns.
The Sofia property market offers the country's best employment opportunities, international schools, and modern amenities. Foreign buyers particularly favor neighborhoods like Lozenets, Vitosha, and Boyana for their proximity to Vitosha Mountain and international community. Average prices in central Sofia range from EUR 2,500 to EUR 3,500 per square meter as of June 2025.
Plovdiv appeals to culture enthusiasts and digital nomads with its UNESCO-listed old town and vibrant arts scene. Bulgaria's second city offers significantly lower prices than Sofia - around EUR 1,200 to EUR 1,500 per square meter - while maintaining excellent infrastructure and a large international community. The city's universities ensure steady rental demand from students.
Coastal cities Varna and Burgas attract retirees and vacation home buyers. Varna, the "Sea Capital," combines year-round city amenities with beach access, while Burgas offers slightly lower prices and proximity to popular resorts like Sunny Beach and Sozopol. Both cities see strong summer rental demand, with properties near the beach commanding premium prices.
Bansko has emerged as Bulgaria's premier ski resort and digital nomad hub. The town offers modern ski facilities, fast internet, and a growing expat community. Property prices vary significantly by location and season, ranging from EUR 1,100 to EUR 1,500 per square meter. Year-round tourism makes Bansko attractive for short-term rental investments.
Where can I find the best rental yields and capital appreciation potential in Bulgaria?
Burgas leads Bulgarian cities with gross rental yields averaging 5.15% as of mid-2025, driven by strong tourism and reasonable property prices.
The Bulgarian Black Sea coast continues attracting both tourists and long-term residents, creating diverse rental opportunities. Burgas properties benefit from proximity to the airport, multiple beaches, and lower purchase prices than neighboring Varna. Studio apartments in Burgas average EUR 63,000, generating monthly rents of EUR 270-350 depending on location and season.
Varna follows closely with 5.06% average yields, combining higher property values with strong rental demand. The city's universities, IT sector growth, and port economy ensure year-round tenant demand. Digital nomads increasingly choose Varna for its coastal lifestyle and urban amenities, pushing up both rents and property values.
Plovdiv offers 4.70% yields with excellent capital appreciation potential. The city's ongoing urban regeneration, European Capital of Culture legacy, and growing tech sector make it attractive for long-term investors. Property prices remain 40-50% below Sofia levels while rents continue climbing.
For tourism-driven investment, Bansko and Borovets ski resorts offer seasonal rental opportunities with yields varying dramatically between winter peak and summer low seasons. Coastal resort towns like Sozopol and Nessebar provide strong summer returns but require careful management of seasonal vacancy.
It's something we develop in our Bulgaria property pack.
How much does property cost per square meter across Bulgaria's different regions?
Bulgarian property prices vary significantly between cities and neighborhoods, offering options for every budget.
| City/Region | Studio (EUR) | 1-Bedroom (EUR) | 2-Bedroom (EUR) | Price per m² (EUR) |
|---|---|---|---|---|
| Sofia (Center) | 110,000 | 153,000 | 234,674 | 2,500-3,500 |
| Plovdiv | 59,065 | 94,900 | 143,000 | 1,200-1,500 |
| Varna | 67,250 | 110,900 | 165,900 | 1,400-2,000 |
| Burgas | 63,000 | 86,213 | 138,500 | 1,200-1,800 |
| Stara Zagora | 48,000 | 74,000 | 106,600 | 900-1,200 |
| Bansko | 55,000 | 85,000 | 125,000 | 1,100-1,500 |
| Rural areas | 25,000 | 40,000 | 65,000 | 400-800 |
Sofia commands the highest prices due to its capital status and economic opportunities. Prime central locations like Boulevard Vitosha can exceed EUR 3,500 per square meter, while outer districts offer more affordable options around EUR 1,500-2,000. The city has seen approximately 200% price growth over the past decade.
Coastal properties show significant seasonal price variations. Beachfront apartments in Varna or Burgas command 30-50% premiums over inland properties. Resort developments in Sunny Beach or Golden Sands often price below city apartments but may carry higher maintenance fees and seasonal limitations.
Mountain resort properties in Bansko and Borovets range widely based on proximity to ski lifts and amenities. Ski-in/ski-out properties command the highest prices, while apartments further from the slopes offer better value for long-term residents.
What mistakes do foreigners commonly make when buying Bulgarian property, and how can I avoid them?
The biggest mistake foreign buyers make is not hiring an independent lawyer to conduct proper due diligence on their property purchase.
- 1. **Skipping legal due diligence**: Many buyers rely solely on estate agents instead of hiring independent lawyers. This leads to missed encumbrances, unpaid taxes, or illegal building modifications. Always hire your own lawyer who works exclusively for your interests.2. **Misunderstanding land ownership rules**: Non-EU buyers often attempt to purchase houses with land directly, not realizing they need a Bulgarian company. This causes delays and additional costs. Research ownership structures before viewing properties.3. **Ignoring property debts**: Unpaid utility bills, property taxes, or maintenance fees can transfer to new owners. Insist on certificates proving all taxes and fees are paid before signing anything.4. **Not verifying building permits**: Especially common with newer constructions or renovated properties. Illegal modifications or missing permits can prevent future sales or lead to demolition orders. Have your lawyer verify all permits match the actual property.5. **Overlooking ongoing costs**: Buyers focus on purchase price while ignoring maintenance fees, property taxes, and utility costs. In some resort complexes, annual fees can reach EUR 1,000-2,000. Budget for all ongoing expenses before purchasing.
Additional mistakes include paying for property viewings (never required), not registering for property tax within two months (leading to penalties), and assuming property purchase grants automatic residency rights. Some buyers also overpay by not researching market prices or fall for too-good-to-be-true deals that often involve legal problems.
Protect yourself by working with licensed professionals, never transferring money outside official channels, getting everything in writing, and taking time to understand all documents before signing. If deals pressure you to act immediately, walk away - legitimate opportunities don't disappear overnight.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
The Bulgarian property market offers compelling opportunities for foreign investors in 2025, with competitive prices, strong rental yields, and a straightforward purchase process.
Whether you're seeking a vacation home on the Black Sea coast, a rental investment in Sofia, or a retirement property in historic Plovdiv, understanding the legal framework and avoiding common pitfalls will ensure a successful purchase. Take time to research your chosen location, work with qualified professionals, and consider both immediate costs and long-term investment potential.
Sources
- Bulgarian Properties - Property Buying Procedure
- Bulgarian Properties - FAQ
- Apart Hotel - Can Foreigners Buy Real Estate in Bulgaria
- Plan Bulgaria - Residency Through Property Investment
- Bolgaria Dom - Step by Step Guide for Foreign Investors
- Mercury Estate - Taxes and Expenses FAQ
- Global Property Guide - Bulgaria Rental Yields
- Global Property Guide - Bulgaria Taxes and Costs
- Global Property Guide - Bulgaria Mortgage Interest Rates
- Investropa - Bulgaria Real Estate for Foreigners