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
Yes, US citizens can legally buy residential property in Bulgaria in 2026, but there is one important nuance: you can buy buildings and apartments freely, but direct ownership of land is restricted for non-EU foreigners.
Bulgaria adopted the euro on January 1, 2026, which has simplified pricing and eliminated currency exchange risk for many foreign buyers.
We constantly update this blog post to reflect the latest rules, taxes, and market conditions in Bulgaria.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Bulgaria.
Fact-checked and reviewed by our local expert
Yeheli Samuels 🇧🇬🇮🇱
CEO and Founder, Dira Bulgarit - Israeli real estate in Bulgaria
Can a US citizen legally buy residential property in Bulgaria right now?
Can I buy a home in Bulgaria as a US citizen in 2026?
As of early 2026, US citizens can legally purchase apartments, condominiums, and houses in Bulgaria in their own name, though direct land ownership remains restricted under Bulgarian constitutional law for non-EU foreigners.
The standard buying process for a US citizen in Bulgaria involves hiring a local lawyer, signing a preliminary contract with a deposit (usually 10%), completing notary verification and deed preparation, and then registering the property with the Bulgarian Registry Agency.
What makes your experience different as an American buyer is not legality but rather practical friction: you will need to navigate document apostille requirements, source-of-funds verification, and potentially set up a Bulgarian bank account for payments and ongoing utility bills.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Bulgaria.
Are there many Americans buying property and living in Bulgaria in 2026?
As of early 2026, the American expat community in Bulgaria numbers in the low thousands nationwide, making it a relatively small but growing segment of foreign residents compared to Bulgarian diaspora returnees and other EU nationals.
American property buyers and residents in Bulgaria concentrate primarily in Sofia neighborhoods like Lozenets, Ivan Vazov, and Oborishte, in Plovdiv's Kapana district, along the Black Sea coast in Varna and Burgas, and in the mountain town of Bansko which has become popular with remote workers.
The top three reasons Americans choose to buy property in Bulgaria are the remarkably low cost of living (often 50% to 70% less than US cities), the flat 10% income tax rate, and the country's EU membership which provides access to the Schengen zone and European healthcare systems.
The American expat community in Bulgaria is growing steadily, driven by the rise of remote work, Bulgaria's affordable real estate prices, and the recent euro adoption in January 2026 which has increased investor confidence and simplified transactions for international buyers.
Do foreigners have the same buying rights as locals in Bulgaria?
As of early 2026, foreign buyers have nearly equal rights to Bulgarian citizens when purchasing apartments and buildings, but non-EU foreigners including Americans face constitutional restrictions on direct land ownership that do not apply to Bulgarian nationals or EU citizens.
The main property types restricted for American buyers in Bulgaria are undeveloped land plots and agricultural land, which cannot be purchased directly in a personal name, though houses with land can be acquired through a Bulgarian company structure that holds the land portion.
We cover all these things in length in our pack about the property market in Bulgaria.
Can I buy property in Bulgaria without a residence permit?
As of early 2026, Bulgaria does not require foreign buyers to hold a residence permit in order to purchase residential property, meaning you can buy an apartment or house in Bulgaria while living anywhere in the world.
The process for buying property in Bulgaria while living abroad typically involves appointing a Bulgarian lawyer through a notarized power of attorney (which must be apostilled and translated), and that lawyer can then represent you at the notary signing and property registration without you needing to be physically present.
Owning property in Bulgaria does not automatically grant you residency or a visa, though Bulgaria does offer a residence-by-investment pathway that requires purchasing real estate worth at least 300,000 euros if you want to pursue that route separately.
The main practical challenge for non-resident buyers completing a property purchase remotely in Bulgaria is ensuring your power of attorney and source-of-funds documentation are correctly apostilled, translated into Bulgarian, and accepted by the notary, which can cause delays if not prepared properly in advance.
Can US citizens own land in Bulgaria?
As of early 2026, US citizens cannot own land directly in Bulgaria in their personal name because the Bulgarian Constitution restricts land ownership to Bulgarian nationals, EU/EEA citizens, and cases covered by specific international treaties or inheritance.
Bulgaria operates primarily on a freehold ownership system where you own the property outright, but for non-EU foreigners the practical structure often involves full personal ownership of the building combined with company ownership of any associated land.
The specific land categories in Bulgaria where foreign ownership restrictions apply include all undeveloped plots, agricultural land, and forest land, while "ideal shares" of land attached to apartment buildings can typically be acquired by foreigners as part of the condominium purchase.
Please note that we have a dedicated blog article about the land buying process in Bulgaria here.
What documents will I need to buy in Bulgaria?
The essential documents a US citizen needs to purchase property in Bulgaria include a valid passport, proof of funds (bank statements showing the money trail), a Bulgarian tax identification number, and if buying remotely, a notarized and apostilled power of attorney with certified Bulgarian translation.
Yes, a Bulgarian tax identification number is required for foreign buyers in Bulgaria because you will need it to register the property, pay the transfer tax, and handle ongoing annual property taxes, and your lawyer can typically arrange this for you during the buying process.
A Bulgarian bank account is not legally mandatory to complete a property purchase in Bulgaria, but it is highly recommended because it simplifies payment of the purchase price, ongoing utility bills, and annual property taxes, and it also creates clean records for your US tax reporting obligations (FBAR/FATCA).
Bulgarian notaries and banks will typically require proof of funds showing where your money came from, and you may need to provide a local contact address in Bulgaria for receiving tax notices and official correspondence related to your property.
We have a whole section dedicated to all the documents you need in our Bulgaria property pack.
Can a foreign-owned company buy property in Bulgaria?
As of early 2026, a foreign-owned company registered in Bulgaria can legally purchase any type of residential property including land, which is why this structure is commonly used by Americans who want to buy houses with yards or standalone villas.
Americans who need to acquire land in Bulgaria typically register a Bulgarian limited liability company (called an OOD or EOOD), which costs around 1,800 euros including legal fees and takes approximately two to three weeks to set up, and this company then holds the property while the American owns 100% of the company shares.
Owning property through a Bulgarian company does not automatically lower your taxes compared to personal ownership; in fact, it typically increases your ongoing compliance costs because you will have annual accounting requirements, corporate filings, and potentially additional US reporting obligations for foreign entities.
The main drawback of using company ownership for residential property in Bulgaria is the added complexity and cost: you face annual accounting fees of 500 to 1,500 euros, potential US forms like Form 5471 for controlled foreign corporations, and more complicated exit planning if you later want to sell or transfer the property.
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What taxes and fees will I pay in Bulgaria in 2026?
What are buyer taxes in Bulgaria in 2026?
As of early 2026, the main buyer tax in Bulgaria is the municipal transfer tax, which ranges from 0.1% to 3% of the purchase price depending on the municipality, with major cities like Sofia, Plovdiv, Varna, and Burgas charging the maximum 3%, meaning on a 100,000 euro apartment you would pay 3,000 euros (about 3,300 USD) in transfer tax alone.
The individual tax components in a Bulgarian property purchase include the municipal transfer tax (0.1% to 3%), the notary fee (approximately 0.1% to 1% with a maximum cap of about 3,000 euros), and the Registry Agency registration fee (0.1% of the purchase price), which together form the core government-mandated buyer costs.
Buyer tax rates in Bulgaria do not differ based on whether you are a foreigner or a local, and there is also no distinction in rates for primary residences versus investment properties, making the tax treatment straightforward and equal for all buyers regardless of nationality or intended use.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Bulgaria.
What are other closing costs in Bulgaria in 2026?
As of early 2026, total closing costs (excluding the transfer tax) that a buyer should budget for in Bulgaria typically range from 1% to 4% of the purchase price, meaning on a 100,000 euro property you would pay approximately 1,000 to 4,000 euros (1,100 to 4,400 USD) in additional fees beyond the buyer tax.
The main closing cost categories in Bulgaria include notary fees of 0.1% to 1% (around 100 to 1,000 euros on a 100,000 euro purchase), legal fees of 500 to 2,000 euros, Registry Agency fees of 0.1% (100 euros), real estate agent commission of 3% to 3.6% (3,000 to 3,600 euros), and document translation/apostille costs of 100 to 300 euros.
The closing costs that are negotiable or optional in Bulgaria include the real estate agent commission (which can sometimes be split with the seller or reduced for cash buyers) and legal fees, while notary fees and government registration fees are fixed by law and cannot be negotiated.
The single closing cost item that tends to surprise foreign buyers the most in Bulgaria is the real estate agent commission, which at 3% to 3.6% is often paid entirely by the buyer and can add 3,000 to 7,000 euros to a typical apartment purchase that many first-time buyers do not initially factor into their budget.
Are there hidden fees foreigners miss in Bulgaria right now?
The estimated total amount of commonly overlooked fees foreign buyers encounter in Bulgaria ranges from 500 to 2,000 euros (550 to 2,200 USD or approximately 1,000 to 4,000 Bulgarian leva), covering items that many international purchasers fail to include in their initial budget.
The top three hidden or unexpected fees that foreign buyers most often fail to budget for in Bulgaria are document apostille and certified translation costs (100 to 500 euros), building management/maintenance fees for apartments (200 to 800 euros annually), and the cost of setting up a Bulgarian company if land is involved (1,500 to 2,000 euros).
The ongoing annual costs that foreign property owners in Bulgaria often underestimate include annual property tax of 0.01% to 0.45% of assessed value (typically 50 to 200 euros), garbage collection fees (50 to 150 euros), building maintenance fees for condominiums (200 to 800 euros), and utility connection or standing charges even when the property is unoccupied (100 to 300 euros).
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Bulgaria.
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.
Can I get a mortgage as a US citizen in Bulgaria in 2026?
Do banks lend to US citizens in Bulgaria in 2026?
As of early 2026, several Bulgarian banks do lend to US citizens for property purchases, though the process involves stricter documentation requirements and higher down payments compared to what Bulgarian residents face.
US citizens generally receive similar treatment to other non-EU foreign nationals when applying for mortgages in Bulgaria, meaning Americans are not specifically disadvantaged or advantaged compared to other third-country buyers, but all non-residents face more scrutiny than locals.
The main reason some Bulgarian banks are hesitant to lend to American borrowers specifically is the additional compliance burden created by US tax reporting requirements like FATCA, which requires foreign banks to report information about American account holders to the IRS.
The typical approval success rate for US citizens applying for property loans in Bulgaria is moderate, with well-documented applicants who have stable verifiable income and a substantial down payment having reasonable chances, while those with complex income sources or minimal documentation often find cash purchases more practical.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Bulgaria.
What down payment do American people need in Bulgaria in 2026?
As of early 2026, the minimum down payment required for US citizens to obtain a mortgage in Bulgaria is typically 30% to 50% of the property value, meaning on a 100,000 euro apartment you would need 30,000 to 50,000 euros (33,000 to 55,000 USD) upfront.
The typical down payment range for foreign buyers in Bulgaria spans from 30% at the lower end for well-qualified applicants with strong documentation to 50% for higher-risk profiles, compared to 15% to 20% that Bulgarian residents typically need.
Yes, a larger down payment in Bulgaria does generally improve your mortgage terms and interest rate, because Bulgarian banks view higher equity as reduced risk, and putting down 40% to 50% instead of the minimum can result in better rates and smoother approval.
You can also read our latest update about mortgage and interest rates in Bulgaria.
What interest rates do US citizens get in Bulgaria in 2026?
As of early 2026, mortgage interest rates for US citizens in Bulgaria typically range from 3.5% to 5% annually for euro-denominated loans, which is higher than the 2.5% to 3.2% rates that well-qualified Bulgarian residents receive.
Interest rates for foreign buyers in Bulgaria are generally 0.5% to 2% higher than rates offered to local residents, reflecting the additional risk and administrative complexity banks face when lending to non-residents with foreign income sources.
Variable-rate mortgages are far more common for foreign buyers in Bulgaria, with approximately 99% of new loans being floating-rate products, while fixed-rate options exist but typically add 0.5% to 1% to the base rate and are less commonly offered to non-residents.
The single factor that has the biggest impact on the interest rate a US citizen will be offered in Bulgaria is the quality and verifiability of their income documentation, because Bulgarian banks heavily discount rates for borrowers with stable, easily-verified EU-source or employment income versus self-employed or complex US income streams.
Can I use US income to qualify in Bulgaria right now?
The estimated acceptance level of US-sourced income for mortgage qualification in Bulgaria is moderate to good, with most major banks willing to consider American salaries and business income as long as it is properly documented and verifiable through official channels.
Bulgarian banks typically require US citizens to provide tax returns (Form 1040), W-2 statements or 1099s, employer verification letters, and bank statements showing consistent income deposits, all of which may need certified translation into Bulgarian.
Alternative income verification methods accepted by some Bulgarian banks when standard US documentation is insufficient include international accountant certifications of income, asset-based lending where the property value and your liquid assets support the loan, and in some cases a Bulgarian co-signer or guarantor with local documented income.
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How do US taxes interact with owning property in Bulgaria?
Do I have to declare the property to the IRS from Bulgaria?
The estimated IRS reporting requirement for US citizens who own property in Bulgaria is relatively minimal for the property itself: simply owning foreign real estate does not trigger a special IRS form, but any rental income you earn or capital gains when you sell must be reported on your regular US tax return.
There is no specific IRS form required just for owning foreign real estate in Bulgaria, but if you hold the property through a foreign company, you may need to file Form 5471 (for controlled foreign corporations) or Form 8865 (for foreign partnerships), and if you have foreign financial accounts exceeding thresholds, Form 8938 and FBAR may apply.
Simply owning property in Bulgaria does not trigger US reporting requirements; the reporting obligations arise when you earn rental income (reported on Schedule E), sell the property for a gain (reported on Schedule D), or hold foreign financial accounts related to the property that exceed FBAR or FATCA thresholds.
Will I pay tax twice in the US and Bulgaria in 2026?
As of early 2026, the risk of actual double taxation for US citizens owning property in Bulgaria is low in practice because treaty provisions and tax credit mechanisms are designed to prevent you from paying full tax to both countries on the same income.
Yes, there is an active income tax treaty between the US and Bulgaria, published by the US Treasury and referenced on the IRS website, which provides rules for allocating taxing rights and preventing double taxation on rental income and capital gains from real estate.
The Foreign Tax Credit works by allowing you to claim a credit on your US tax return for income taxes you paid to Bulgaria, which directly reduces your US tax liability dollar-for-dollar up to the amount of US tax owed on that same foreign income, effectively preventing you from being taxed twice.
Whether Bulgarian property taxes are deductible on US federal tax returns depends on your specific situation: generally, foreign real property taxes on investment properties may be deductible as an expense, but the rules changed under the Tax Cuts and Jobs Act, so consulting a US CPA before claiming deductions is essential.
Do I need FATCA reporting when buying in Bulgaria?
The estimated FATCA reporting requirement for US citizens purchasing property in Bulgaria applies not to the property itself but to any foreign financial accounts you open, such as a Bulgarian bank account used for the purchase price, ongoing expenses, or rental income collection.
The FATCA thresholds that trigger Form 8938 reporting are foreign financial assets exceeding 50,000 USD at year-end (or 75,000 USD at any point during the year) for US residents, with higher thresholds of 200,000 USD at year-end for Americans living abroad, and the property itself generally does not count but your Bulgarian bank accounts do.
FATCA reporting (Form 8938) differs from FBAR (FinCEN Form 114) in that FBAR applies when your aggregate foreign financial accounts exceed 10,000 USD at any time during the year and is filed separately with FinCEN, while Form 8938 has higher thresholds, is filed with your tax return, and covers a broader range of foreign assets.
Consulting a US CPA before buying property in Bulgaria is strongly recommended, and the specific questions to ask include: how should I structure ownership to minimize US reporting complexity, what forms will I need to file if I open Bulgarian accounts, and how do I properly report any rental income or eventual sale proceeds?
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Bulgaria. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Bulgaria, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Bulgarian Constitution (Article 22) | Bulgaria's highest legal text defining who can own land and property. | We used it to anchor the core rule on foreign ownership of land. We then verified how the constitutional rule applies in practice through current market transactions. |
| Ministry of Finance - Local Taxes and Fees Act | Official government text setting the legal framework for property taxes. | We used it to define the legal ranges for property transfer tax. We also used it to explain why buyer taxes vary by municipality. |
| Bulgarian Registry Agency (EPZEU) | Official portal for Bulgaria's property register where ownership is recorded. | We used it to describe what property registration means in Bulgaria. We also used it to explain the official system for title records. |
| Bulgarian Notary Chamber Calculator | Run by the professional body of notaries with official tariff references. | We used it to ground our closing cost calculations in real fee structures. We also used it to verify typical fee components foreigners encounter. |
| UniCredit Bulbank - Non-Resident Mortgages | Major Bulgarian bank with a specific product for non-resident buyers. | We used it to confirm that mortgages for foreigners exist in practice. We used it to shape the documentation requirements section. |
| Bulgarian National Bank - Interest Rate Statistics | Central bank's official methodology for interest rate data. | We used it to keep mortgage rate statements anchored to official statistics. We also used it to frame rate estimates as market averages. |
| IRS - Bulgaria Tax Treaty Documents | Official IRS page linking to treaty texts for US tax compliance. | We used it to confirm the active US-Bulgaria income tax treaty exists. We also used it to guide readers to official treaty resources. |
| US Treasury - Bulgaria Tax Treaty PDF | Primary source treaty text from the US Treasury Department. | We used it to explain how double taxation is prevented through credits and treaty rules. We kept capital gains explanations aligned with treaty concepts. |
| IRS - FBAR Guidance | Official IRS guidance for foreign bank account reporting obligations. | We used it to explain that Bulgarian bank accounts can trigger FBAR. We highlighted this as a key compliance point for American buyers. |
| European Mortgage Federation - Hypostat Bulgaria | Industry report on Bulgaria's mortgage market from the European federation. | We used it to verify LTV ranges and lending practices for foreign buyers. We cross-referenced mortgage availability and typical loan terms. |
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