Published on and written by Cyril Jarnias
The rise of cryptocurrencies has transformed numerous economic sectors worldwide, and Bulgaria’s real estate market is no exception to this digital revolution. More and more buyers and sellers are seizing this opportunity to energize and simplify the real estate market through the use of digital currencies like Bitcoin or Ethereum. These new payment methods offer faster, more secure, and cross-border transactions, attracting interest from both domestic and international investors. As regulations continue to evolve to adapt to this trend, the integration of cryptocurrencies as real estate transaction tools in Bulgaria could well redefine conventional practices and open up new market perspectives.
The Cryptocurrency Phenomenon in the Bulgarian Real Estate Market
The Rise of Cryptocurrencies in Bulgarian Real Estate: A Revolution in Motion
The Bulgarian real estate market is undergoing significant transformation with the increasing integration of cryptocurrencies in transactions. This trend, which has been gaining ground since 2023, has considerably influenced market dynamics, attracting new investors and changing traditional practices.
The Evolution of the Bulgarian Real Estate Market
In 2025, the Bulgarian real estate sector shows robust growth, with a 10.70% price increase compared to the previous year. Since 2015, prices have nearly doubled, recording a spectacular progression of 85.50%. This upward trend is partly explained by the influx of foreign investors, attracted by lucrative opportunities and favorable taxation.
- Sofia: Average price of €2000/m² for new properties
- Plovdiv: Between €1200 and €1400/m²
- Coastal areas: High demand, particularly in Sunny Beach
The Impact of Cryptocurrencies on the Market
The adoption of cryptocurrencies in real estate transactions has opened new perspectives for local and international investors. This trend has particularly appealed to a new generation of buyers, familiar with blockchain technologies and seeking alternatives to traditional payment methods.
Dmitri Krastev, real estate analyst in Sofia, comments: “The integration of cryptocurrencies has energized our market, attracting tech-savvy investors from around the world. We’ve observed a 15% increase in transactions involving cryptocurrencies since 2024.”
Legislative and Regulatory Framework
Bulgaria has made significant progress in regulating crypto-assets. The draft law on crypto-asset markets (BCAM), published in August 2024, aims to align national legislation with the European MiCA regulation.
Key regulatory points:
- The Financial Supervision Commission (FSC) and the Bulgarian National Bank (BNB) designated as competent authorities
- Requirement to obtain a license to offer crypto-asset related services
- Preparation of a “white paper” for public offerings of crypto-assets
Elena Petrova, cryptocurrency law specialist, explains: “The new regulatory framework offers greater legal security, encouraging more players to enter the market. This should stimulate innovation and growth in the real estate sector.”
Concrete Transaction Examples
Several real estate transactions using cryptocurrencies have been recorded in Bulgaria:
According to the website bta.bg, expert Yordan Yordanov indicates that: “In our country, real estate transactions with cryptocurrency have already been carried out, Yordan Yordanov, director and co-owner of the company ‘Nov Dom 1’, which operates mainly in Sofia and Varna, told BTA. He specified that the company had discussions with notaries and their position was that there were no problems with implementing such purchases and sales. The company is also discussing an option to launch properties for sale in ether or bitcoin cryptocurrencies, Yordanov added. However, his position is that this is how properties belonging to the company, not its clients, can be offered. The main problem with cryptocurrency is not the existence of legal obstacles to its use, but its uncertainty, the expert believes. He specified that its owner doesn’t know when to sell and thus falls into the trap of waiting. ‘The money is there, but we don’t know if and by how much it will increase, there’s no regulation and while we wait, the value can decrease,’ Yordanov emphasized.”
Opportunities and Challenges
The integration of cryptocurrencies in Bulgarian real estate presents both opportunities and challenges:
- Easier access for international investors
- Faster and less expensive transactions
- Diversification of payment options
- Cryptocurrency volatility
- Need for technical expertise to secure transactions
- Adaptation of real estate professionals to new technologies
Nikolay Dimitrov, CEO of a blockchain-based real estate platform, shares: “We’re seeing growing interest in cryptocurrency transactions, particularly among foreign investors. However, it’s crucial to educate the market about the associated benefits and risks.”
Impact on Investors
The adoption of cryptocurrencies has had a significant impact on investor profiles in Bulgaria. There’s a notable increase in young, tech-savvy investors, often from the technology or finance sectors.
Looking at international data:
- 30% of real estate transactions involving cryptocurrencies are conducted by foreign investors
- 65% of buyers using cryptocurrencies are under 40 years old
- The volume of real estate transactions in cryptocurrencies increased by 200% between 2023 and 2025
Future Prospects
The future of Bulgarian real estate looks promising, with growing convergence between blockchain technologies and the traditional market. Experts predict a continued increase in cryptocurrency use in real estate transactions, driven by improved regulatory framework and growing adoption of blockchain technologies.
Maria Stoeva, economist specialized in emerging markets, concludes: “Bulgaria is positioning itself as an innovative hub for blockchain-based real estate. This trend could redefine sector practices and attract more foreign investment in the coming years.”
Good to know:
In Bulgaria, the acceptance of cryptocurrencies in the real estate market is experiencing notable growth thanks to the evolution of local legislation, which is becoming more welcoming to digital transactions. Several prestigious real estate projects in Sofia and Varna have already been acquired with Bitcoin and Ethereum payments, illustrating a real impact on investor behavior, both foreign and local. According to a recent study, nearly 15% of Bulgarian real estate agents facilitated at least one sale involving cryptocurrencies in 2023. However, although this trend offers new opportunities, particularly in attracting tech-savvy buyers and speeding up transactions, it also poses challenges, such as the volatility of digital currencies or the need for tax clarifications. For Vladislav Ivanov, a local cryptocurrency expert, “the integration of cryptocurrencies presents enormous potential, provided that regulations continue to adapt to the pace of innovation.” Real estate developers are adapting their offerings to capture this clientele, contributing to transforming the real estate landscape in Bulgaria.
Advantages of Real Estate Purchases with Bitcoin in Bulgaria
Potential Tax Benefits
Real estate purchases with bitcoin in Bulgaria offer interesting tax advantages compared to transactions in traditional currencies. Indeed, capital gains realized on cryptocurrencies are currently not taxed in Bulgaria, unlike gains in foreign currencies. Furthermore, income from bitcoin transactions is considered as income from the sale of financial assets and is subject to a favorable tax rate of only 10%.
Low Regulation and Opportunities for Buyers
The limited regulation of cryptocurrencies in Bulgaria creates a favorable environment for real estate transactions with bitcoin. Buyers benefit from greater freedom and fewer administrative constraints. For example, there’s no need to obtain a special license to conduct cryptocurrency operations, which significantly simplifies the purchasing process.
Flexibility and Transaction Speed
Real estate transactions with bitcoin are significantly faster than traditional methods. While international bank transfers can take several days, bitcoin transfers are almost instantaneous. This speed allows for faster purchase finalization, thereby reducing risks related to exchange rate fluctuations and administrative delays.
Investment Diversification
Using bitcoin for real estate purchases in Bulgaria offers a unique opportunity for diversification of investments. Investors can take advantage of bitcoin’s positive volatility to increase their real estate purchasing power. For example, an investor who has made significant gains in bitcoin could convert them into Bulgarian real estate properties, thus benefiting from a double investment opportunity.
Appeal to International Investors
Bitcoin, as a global and decentralized currency, attracts numerous international investors to the Bulgarian real estate market. Using bitcoin helps avoid high exchange fees and fluctuations in national currencies. This makes the Bulgarian real estate market more accessible and attractive to foreign buyers, who can conduct transactions without worrying about complications related to currency exchanges.
Testimonials and Concrete Examples
A real estate agency in Sofia reports a 30% increase in bitcoin purchase requests over the past year, mainly from European and Asian investors attracted by the simplicity and speed of transactions.
Future Prospects
With the growing adoption of cryptocurrencies and increasing interest from international investors, the Bulgarian real estate market appears well positioned to leverage this trend. Experts predict a significant increase in real estate transactions with bitcoin in the coming years, which could contribute to further energizing the sector and attracting new foreign investments to Bulgaria.
Good to know:
Buying real estate with bitcoin in Bulgaria presents potential tax benefits, often more favorable than transactions in traditional currencies, due to taxation still developing on cryptocurrencies in the country. The current low regulation offers a relaxed transaction climate, simplifying procedures for buyers. Bitcoin transactions are fast and flexible, eliminating banking delays and complications of conversion rates. By leveraging bitcoin’s positive volatility, investors can diversify their real estate portfolios. Furthermore, bitcoin’s decentralized and global nature attracts international investors who wish to avoid exchange rate risks and related fees. For example, buyers have reported a smooth experience concluding real estate purchases quickly while limiting costs due to currency exchange, illustrating the attractive potential of this innovative payment method.
The Impact of Smart Contracts on Real Estate Transactions
Real Estate Revolution in Bulgaria Thanks to Smart Contracts
Smart contracts, based on blockchain technology, are set to radically transform the landscape of real estate transactions in Bulgaria. This innovation promises to make the process of buying and selling real estate properties more secure, transparent, and efficient, thus offering new perspectives for the Bulgarian real estate market.
Automation at the Heart of the Revolution
One of the main advantages of smart contracts lies in their ability to automate many steps in the real estate transaction process. In Bulgaria, where administrative procedures can sometimes be lengthy and complex, this automation could significantly accelerate transactions. For example, document verification, such as property titles or energy certificates, could be performed instantly through algorithms integrated into smart contracts.
Near-Instant Property and Fund Transfer
Using smart contracts would also allow for almost instantaneous property and fund transfer once all conditions are met. This execution speed strongly contrasts with current delays in Bulgaria, where a real estate transaction can take several weeks, or even months. Furthermore, the inherent security of blockchain would guarantee the integrity of these transfers, considerably reducing risks of fraud or error.
Cost Reduction and Elimination of Intermediaries
Another revolutionary aspect of smart contracts is their ability to significantly reduce costs associated with real estate transactions. By automating many processes and eliminating the need for certain traditional intermediaries, smart contracts could make buying and selling real estate properties more affordable for Bulgarians. This cost reduction could stimulate the local real estate market, making it more dynamic and accessible.
Regulatory Compliance and Challenges to Overcome
Despite these promising benefits, the implementation of smart contracts in the Bulgarian real estate sector faces several challenges. The main obstacle lies in adapting the current regulatory framework to integrate this new technology. Bulgarian authorities will need to work on developing specific laws and regulations to govern the use of smart contracts in real estate transactions, while ensuring these innovations respect consumer protection standards and anti-money laundering measures.
Current Trends and Future Prospects
Currently, several pilot projects are exploring the use of smart contracts in the Bulgarian real estate sector. For example, a startup based in Sofia is developing a blockchain platform that would allow buyers and sellers to conclude real estate transactions entirely digitally, using smart contracts to automate verification and property transfer processes.
Towards Gradual Adoption
Although widespread adoption of smart contracts in Bulgarian real estate may take time, sector experts are optimistic about their transformation potential. As the technology matures and the regulatory framework adapts, more and more real estate transactions in Bulgaria are expected to be facilitated by smart contracts, paving the way for a more efficient and transparent market.
Good to know:
In Bulgaria, blockchain-based smart contracts could revolutionize real estate transactions by making them more secure and transparent. These smart contracts allow for automated document verification, transferring property and funds almost instantly, which reduces the need for costly intermediaries. For example, an apartment in Sofia could be purchased using a smart contract that automatically verifies land registries, thus ensuring a smooth property transfer while complying with current Bulgarian regulations. However, implementing these technologies must face obstacles, including regulatory gaps, cybersecurity concerns, and integration into a legal framework often slow to adopt new technologies. Despite these challenges, growing interest in cryptocurrencies and digitalization in the Bulgarian real estate sector suggests gradual adoption of smart contracts, thus offering a modern solution to persistent problems of inefficiency and lack of transparency.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
