Bulgarian Real Estate Laws And Regulations You Need To Know

Published on October 21, 2025 and written by Cyril Jarnias

Bulgaria, a European Union member state since 2007, is attracting more and more foreign investors thanks to its dynamic real estate market and attractive prices. Whether you want to acquire a secondary residence on the Black Sea coast or invest in a rental property in Sofia, it is crucial to understand the legal and tax framework governing real estate in this Eastern European country. This article presents the main laws and regulations you need to know to succeed in your real estate project in Bulgaria.

Property Rights for Foreigners: A Progressive Opening

Since Bulgaria’s accession to the European Union, the rules regarding the acquisition of real estate by foreigners have evolved significantly. Today, citizens of the EU and the European Economic Area (EEA) enjoy the same rights as Bulgarians when it comes to property purchases.

For EU/EEA Nationals: – No restrictions on purchasing real estate, including land – Ability to acquire primary residences, secondary homes, or commercial properties – Right to purchase properties in one’s own name or through a Bulgarian company

For Non-EU/EEA Nationals: – Permission to purchase apartments and buildings – Prohibition on acquiring land in one’s own name – Possibility to bypass this restriction by creating a Bulgarian company to purchase land

It is important to note that restrictions on the purchase of agricultural land were lifted in 2014 for EU citizens, opening up new investment opportunities in the agricultural sector.

Real Estate Legal Framework: Constantly Evolving Laws

The Bulgarian real estate market is governed by a set of laws and regulations aimed at protecting the rights of owners and investors. Here are the main texts to know:

1. The Property Law This fundamental law defines the different types of properties (private, public, municipal) and outlines the rights and obligations of owners. It notably guarantees the right to use and dispose of real estate properties.

2. The Territorial Development Law This text regulates land use planning, urban planning, and construction. It sets the rules for obtaining building permits and defines buildable zones.

3. The Cadastre and Land Registry Law This law organizes the registration of real estate properties and guarantees the transparency of transactions. Every purchase must be recorded in the land registry to be legally recognized.

4. The Condominium Management Law It regulates the management of condominium buildings, defining the rights and duties of co-owners as well as the functioning of general meetings.

These laws are regularly updated to adapt to market developments and European standards. For example, in 2020, amendments to the Territorial Development Law were adopted to simplify building permit procedures and encourage investment.

Real Estate Taxation: An Attractive Regime for Investors

Bulgaria stands out for its particularly advantageous real estate taxation, making it a sought-after destination for international investors. Here are the main aspects to know:

• Transfer taxes: between 0.1% and 3% of the property value, depending on the municipality
• Notary fees: approximately 0.1% to 1% of the purchase price
• Cadastre registration fees: 0.1% of the property value

Annual Property Tax The property tax is calculated based on the tax value of the property, which is generally lower than its market value. The rate varies between 0.01% and 0.45% depending on the municipality.

Tax on Rental Income Rental income is subject to income tax at a flat rate of 10%, one of the lowest in Europe. Expenses and depreciation are deductible.

Real Estate Capital Gains Capital gains realized from the resale of a property are taxed at a rate of 10%. However, a full exemption applies if the property has been held for more than 3 years and it is the owner’s primary residence.

Corporate Tax For investors who choose to hold their properties through a Bulgarian company, the corporate tax is set at 10%, a very competitive rate at the European level.

Owner Rights and Protections: A Strong Legal Framework

Bulgarian law offers extensive protection to real estate owners, whether residents or non-residents. Here are the main rights enjoyed by property owners in Bulgaria:

1. Inviolable Property Right The Bulgarian Constitution guarantees the inviolability of private property. Expropriation is only possible in exceptional cases, for public needs, and with fair compensation.

2. Freedom of Disposition Owners have the right to sell, rent, mortgage, or transfer their property by inheritance without particular restrictions.

3. Protection Against Illegal Occupants Bulgarian law provides for quick eviction procedures in case of illegal occupation of a property. Owners can appeal to the authorities to recover their property.

4. Landlord Rights Landlord-owners enjoy great contractual freedom. They can freely set the rent amount and lease conditions. In case of non-payment, the eviction procedure is relatively quick (2 to 3 months on average).

5. Preemption Right In condominiums, owners have a preemption right in case of the sale of a unit by another co-owner.

6. Protection for Off-Plan Buyers Bulgarian law strictly regulates off-plan sales (VEFA) to protect buyers. Developers are required to provide bank guarantees and ensure project transparency.

It is important to note that these rights apply equally to Bulgarian and foreign owners, thus ensuring strong legal protection for all investors.

Recent Regulatory Developments: Towards More Transparency and Efficiency

The regulatory framework for real estate in Bulgaria is undergoing constant changes aimed at improving market transparency and facilitating investments. Here are the most significant recent changes:

1. Cadastre Digitalization Since 2019, Bulgaria has accelerated the digitization of its cadastre. Today, over 97% of the territory is covered by the electronic cadastre, allowing quick and reliable access to property information.

2. Simplification of Construction Procedures Amendments to the Territorial Development Law, which came into effect in 2020, simplified building permit procedures. Timeframes have been reduced, and some small-scale projects now benefit from a streamlined procedure.

3. Strengthening Anti-Money Laundering Measures In 2023, Bulgaria strengthened its controls on real estate transactions as part of the fight against money laundering. Notaries and real estate agents are now required to report suspicious transactions.

4. New Rules for Short-Term Rentals In response to the growth of platforms like Airbnb, new regulations were introduced in 2024 to regulate short-term rentals. Owners must now register with local authorities and comply with certain safety and hygiene standards.

5. Tax Incentives for Energy Renovation As part of its environmental policy, Bulgaria introduced tax incentives in 2025 to encourage energy renovation of buildings. Owners can benefit from tax deductions for work that improves the energy efficiency of their properties.

These developments demonstrate the willingness of Bulgarian authorities to modernize the real estate sector and align it with European best practices. They contribute to strengthening the attractiveness of the Bulgarian market for foreign investors.

Conclusion: A Promising Real Estate Market for Savvy Investors

Real estate in Bulgaria offers great opportunities for foreign investors, thanks to a stable legal framework, advantageous taxation, and still attractive prices. Whether you’re considering acquiring a secondary residence on the Black Sea coast, a rental apartment in Sofia, or agricultural land, it is essential to understand the specifics of the Bulgarian market.

The recent regulatory developments, aimed at increasing transparency and efficiency in the sector, further enhance Bulgaria’s appeal as a real estate investment destination. However, as with any investment abroad, it is recommended to work with local professionals (lawyer, notary, real estate agent) to secure your project and navigate the Bulgarian legal and tax environment with confidence.