In this guide, we provide detailed information on how to purchase an apartment in Bulgaria, as well as information on average price ranges, hidden costs, and whether a mortgage is possible.

Foreigners from all countries can freely buy an apartment in Bulgaria. But with the purchase of a house with a plot of land, there will be difficulties—foreigners can buy land in Bulgaria only by registering a Bulgarian company in the company's name. The exceptions are applicable to the citizens of EU and European Economic Area (EEA) countries.

Step-by-step procedure for buying property in Bulgaria 

1. Open a bank account. 

Everything is clear here—from this account, you will be able to pay for the object and cover all additional charges.

Important. In Bulgaria, accounts cannot be opened for Russians without a residence permit. Buyers can transfer funds directly to the seller's or builder's account from a third country.  

2. Select and reserve an object.

To reserve the object, you need to make a deposit, which is usually not more than €3 thousand. The deposit is transferred to the agency's account based on the reservation agreement. This sum is included in the total price of the property, and will remain with the agency until the deal is finalized.

3. Sign a preliminary agreement and execute a notarial deed.

After the deposit is paid, you must sign a preliminary agreement with the owner within 30 days. This agreement establishes the main terms and conditions, which are then transferred to the notarial deed. Among these terms are a description of the property, the price, payment terms, and, for unfinished properties, the completion date.

Then a local notary, in the presence of the buyer and seller, will draw up a notarial deed (Title Deed), which is considered a legal document certifying ownership of the property.

4. Pay for the transaction.

Usually, after the notarial deed is signed, the buyer immediately transfers the remaining amount to the seller's account. Additional fees are also paid at this point.

Note that the cash payment is prohibited for any transaction with a value exceeding 10 thousand leva (€5,000).

5. Register ownership.

After the deal, the notary sends the documents to the district court, where the new data is entered into the public register. Within a week, the purchaser picks up an act bearing the registration of ownership stamped by the notary at their office.

It is important for legal entities to note that one week after receiving the notarial deed, they need to register with the Bulgarian National Statistical Institute. Registration of the property with the tax inspectorate is automatic upon the transfer of ownership.

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Additional expenses when buying real estate in Bulgaria

Ancillary costs when buying a home in Bulgaria are 3-11% of the transaction amount. These fees are:

  • Property transfer tax—0.1-3%. The exact figure depends on the region where you purchase the apartment.
  • The notary fee depends on the amount of the transaction and is usually equal to 0.1-1.5%.
  • The registration fee is 0.1%.
  • The agent's fee ranges from 2.5-6%. The share to be covered by the buyer will be spelled out in the contract.

The average cost of real estate in Bulgaria

You can buy a 90 sq.m. apartment in Bulgaria within the range of $100,000-$150,000.

The price to rent a one-bedroom apartment in Bulgaria is about $270-370. It is possible to rent a two-bedroom apartment in the country for $450-630.

In Bulgaria, average monthly utility costs are $115 (plus $12 for internet).

Buying a house with the mortgage in Bulgaria

Citizens and foreign residents in Bulgaria have easy access to credit, but banks almost always refuse to mortgage to foreigners who do not have a residence permit. Especially it concerns those foreigners who can't prove a close connection with Bulgaria and have no income on its territory.

People who work in Bulgaria or EU countries and have a confirmed legal income have more chances to get a credit. Also, chances increase for those who have stable and legal income from other sources, pay taxes correctly, have a positive credit history, and already own real estate in Bulgaria.

The interest rate on a 20-year fixed-rate mortgage in Bulgaria is 3.30%.

On our site, you can find the right real estate agency in Bulgaria or speak directly to the agent.