How to Buy Property in Bulgaria
Buying real estate in Bulgaria remains consistently popular among foreigners due to a combination of two main factors: affordable prices and access to the Black Sea coastline. Elsewhere in Europe, it is difficult to find seaside properties within the €30,000 range, but in Bulgaria, such offers still exist — and in significant numbers.
In neighboring Romania, the Black Sea property market is also expanding, but prices there are on average 20–30% higher, although everything depends on the type of property. Luxury homes are similarly priced in both countries.
From this guide, you’ll learn who is eligible to buy property in Bulgaria, under what conditions, and what a prospective buyer needs to complete a transaction.
Advantages of Buying Property in Bulgaria
Real estate prices in Bulgaria remain one of the most affordable countries in Europe for purchasing real estate. According to BulgarianProperties (2024), the average price per square meter in Sofia is €1500—2500. On the Black Sea coast (Varna, Burgas), prices range from €1000—1800/m², while in ski resorts like Bansko, it’s €800—1300/m². Apartments in Sunny Beach start at €30,000, and a 40 m² studio in Sozopol can be purchased for €28,000—35,000. Comparable properties in Spain start from €80,000.
Key advantages:
- Eligibility for residency. Ownership of property worth at least €306,000 grants the right to apply for a D visa and subsequently for a residence permit.
- Cost of living. According to Numbeo, rent in Bulgaria is 104–168% cheaper than in France and 28% cheaper than in Poland. Goods and services in Sofia are 44% cheaper than in Germany. A couple can live in Sofia on €1,200/month, which includes rent (€400), utilities (€150), groceries (€500), and leisure (€150).
- Investment potential. The Bulgarian property market grows at a steady 7% annually. In major cities, growth reaches up to 10%, and in coastal cities like Varna and Burgas, 3–5%.
Disadvantages of buying property in Bulgaria:
- Restrictions for non-EU citizens. Foreigners from non-EU countries can freely purchase apartments, but buying land or a house with land requires setting up a Bulgarian company.
- Seasonal rental demand. Resort areas are highly dependent on the tourist season (June to September). Off-season rental demand can drop by 70–80%, reaching only 20–30% of summer levels.
- Stagnation in rural areas. While urban and coastal land is actively developed, the rural real estate market is stagnating. House prices in small towns and villages range from €300—600/m², but developer-built properties in Bulgaria are almost nonexistent in these areas.
Legal Aspects of Buying Property in Bulgaria
Real estate transactions in Bulgaria are governed by the Law on Ownership (Zakon za sobstvennosti, 2024 edition, published in Darzhaven Vestnik No. 45/2024) and the Law on Foreigners in the Republic of Bulgaria (Zakon za chuzhdentsite v Republika Bălgaria, 2024 edition). According to these laws, EU citizens have the same rights as Bulgarian citizens and can purchase apartments, houses, and land plots without restrictions.
Citizens of non-EU countries can also acquire real estate, but not land. To buy land or a house with a plot, it is necessary to register a Bulgarian legal entity (OOD — equivalent to an LLC) in accordance with the Commercial Law (Targovski zakon, Article 113).
The property purchase process can be carried out independently or through an agent. In the first case, you’ll need to conduct the due diligence yourself, but you can save a considerable amount of money:
- Independent search. The easiest way to search for real estate in Bulgaria is through platforms such as Imot.bg, BulgarianProperties.com, or listings in the Darzhaven Vestnik. The only drawback is the requirement to know Bulgarian or English.
- Search via an agent. A licensed real estate agent will select properties, arrange viewings, and verify documentation. This saves time and eliminates language barriers. However, the agent’s commission of €1500—2000 increases the overall cost.
A realtor or lawyer can also represent you in remote purchases. They search for and inspect properties, then send you photos and videos for review.
After selecting a property, due diligence must be conducted. If you’re searching independently, this includes:
- Checking the property title via the Cadastre Agency (Agencia po geodezia, kartografia i kadastar).
- Obtaining a debt clearance certificate from the property management company.
- Obtaining a certificate of encumbrance from the cadastre.
If using an agent, the realtor usually coordinates this process through a lawyer.
Steps to finalize the purchase of Bulgarian property:
- Preliminary Agreement. If the property is legally clear, a preliminary contract is signed. It includes the price, terms, and a deposit (typically 10%, e.g., €5000 for a €50,000 apartment). This is signed with a lawyer or, if through an agent, with the realtor.
- Notarization. After the deposit is paid, the purchase contract is signed in front of a notary (either in person or by proxy). At this stage, the notary fee and property transfer tax must be paid. The meeting is arranged by the realtor (if involved), the buyer (if independent), or a legal representative (if remote).
- Registration with cadastre and tax authorities. Article 113 of the Law on Ownership requires registering the ownership in the cadastre. This is done by submitting the notarized deed to the Cadastre Agency (Agencia po geodezia, kartografia i kadastar), either by the buyer or via their realtor/lawyer.
Requirements for purchasing property in Bulgaria
- A foreign passport or EU ID card (notarized copy).
- Proof of financial means, such as a bank statement (translation into Bulgarian may be required, typically €50—100; for large transactions over €100,000, this is standard practice).
- A valid visa (national Bulgarian or Schengen) is required to confirm the legality of entry.
- A bank account in a Bulgarian bank is required to facilitate the payment and cover taxes.
Financial Aspects of Buying Property in Bulgaria
Purchasing real estate in Bulgaria involves mandatory one-time costs that amount to 5–10% of the property price. All payments must be made through a Bulgarian bank account. The main expenses include:
- Notary fee: 0,1–1% of the cadastral (assessed) value of the property, but not less than €50.
- Property transfer tax: 2–3% of the cadastral value, depending on the municipality.
- Realtor’s fee: 2–5% of the property price. Typically, both the buyer and seller share this cost.
- Legal services: legal representation by a lawyer for document review costs €500—1500.
Property taxes in Bulgaria:
- Annual property tax: 0.15–0.3% of the cadastral value, set by the local municipality.
- Garbage collection tax: €50—100 per year.
- Rental income tax: 10% of net rental income (i.e., after deducting expenses such as utilities).
Real estate taxes in Bulgaria are identical for foreigners and Bulgarian citizens. The only additional costs for foreigners are related to document translation and bank account setup fees.
Although not legally mandatory, home insurance in Bulgaria is required when buying real estate in coastal areas. Typically, a standard policy that covers fire, flooding, and theft is sufficient. However, some property management companies may require comprehensive coverage, including third-party liability insurance.
The cost of house insurance in Bulgaria ranges from €100 to €300 per year, depending on the policy and provider. It is advisable to select a local insurer licensed by the Financial Supervision Commission.
Property Prices in Bulgaria
Prices often depend on the type of property, and in Bulgaria, there is a clear regional distribution. For example, expensive apartments in the Bulgarian real estate market are predominantly located along the Black Sea coast. In the foothills of Bulgaria’s many mountain ranges, mid-range houses and apartments are more common. The most affordable properties are found in flat rural areas; however, demand for them is limited due to underdeveloped infrastructure and the often questionable condition of the houses themselves.
Average Bulgaria real estate prices (per square meter):
|
City/Region |
Apartments (€) |
Houses (€) |
New Developments (€) |
|
Sofia |
€1500–2500 |
€1200–2000 |
€1800–3000 |
|
Varna |
€1200–2000 |
€1000–1800 |
€1500–2500 |
|
Burgas |
€1000–1800 |
€900–1600 |
€1300–2200 |
|
Plovdiv |
€900–1500 |
€800–1400 |
€1200–1800 |
|
Bansko |
€800–1300 |
€700–1200 |
€1000–1600 |
|
Rural Areas |
€300–600 |
€200–500 |
€500–800 |
Actual properties in Bulgaria
Foreign nationals are eligible to apply for mortgages in Bulgaria with interest rates ranging from 3% to 5% annually. The standard down payment is 20–40% of the property value, and loan terms vary between 5 and 20 years.
Documents required for property buy in Bulgaria through mortgage:
- A valid foreign passport.
- Proof of income, translated into Bulgarian (€20—50).
- Credit history (required by some banks).
- A preliminary purchase agreement.
Banks that provide mortgages for buying property in Bulgaria as a foreigner:
- UniCredit Bulbank.
- DSK Bank.
- Postbank.
Each of these banks may impose additional requirements, such as a certificate of no criminal record, depending on the borrower’s profile and the loan amount.
Residence Permit Through Real Estate Ownership in Bulgaria
Owning property in Bulgaria opens up the possibility to obtain a Type D visa and a temporary residence permit (TRP), and in certain cases, permanent residence (PR).
Under Article 24(1) of the Law on Foreigners, non-EU citizens are eligible to apply for a long-term Type D visa as real estate owners in Bulgaria. The property must be valued at a minimum of €306,000 (600,000 BGN) and registered in the name of the applicant.
Applications must be submitted at the Bulgarian consulate in the applicant’s country of residence after the purchase is complete. Required documents include:
- Passport (valid for at least 18 months).
- Notarized copy of the title deed (Notarial Act).
- Bank statement showing a minimum deposit of €2000.
- Health insurance for the applicant.
- Criminal record certificate.
- Type D visa application form (available at www.mfa.bg).
The Type D visa grants permission to reside in Bulgaria for 12 months. After arrival, the applicant may apply to convert it into a temporary residence permit by submitting an application to the Migration Directorate (Direktsiya Migratsiya) in Sofia or a regional branch.
Application processing takes 1–3 months. Upon approval, the applicant receives a residence russiancard valid for one year, renewable annually. This residence status does not grant the right to work in Bulgaria.
Documents required for a temporary residence permit (TRP):
- Passport with a valid Type D visa.
- Title deed (Notarial Act).
- Bank statement from a Bulgarian bank showing €2000—3000 in available funds.
- Valid health insurance policy.
- Certificate of address registration (issued by the municipality).
Permanent residence (PR) becomes available after 5 years of continuous legal residence in Bulgaria, while retaining ownership of Bulgaria real estate investment. The total time spent outside Bulgaria must not exceed 30 months during the five-year period.
Alternatively, permanent residence can be obtained within 1 year by investing at least 1 million BGN (~€512,000) into the Bulgarian economy. Eligible investments include:
- Government bonds.
- Shares in Bulgarian companies.
- Other forms of state-approved capital investment.
Frequently Asked Questions About Real Estate in Bulgaria
Can foreigners get a mortgage in Bulgaria?
Getting a mortgage in Bulgaria as a foreigner is possible, but local banks, like UniCredit Bulbank, DSK Bank, or Postbank, offer mortgages in euros to avoid currency risks. Applicants usually need a down payment of 20–40% of the property’s value, and interest rates range from about 3.5% to 5% per year for euro loans.
To qualify, a person needs to show proof of stable income, like salary statements or tax returns, and a clean credit history, though banks are stricter with foreigners and may ask for extra documents, such as utility bills or a Bulgarian co-applicant to lower their risk. Without a residence permit, approval can be tougher, and some banks may refuse outright.
Is it required to have property insurance in Bulgaria?
Property insurance isn’t mandatory by law, so you won’t be forced to get a policy for your apartment, villa, or holiday home. However, it’s highly recommended to have one, especially for properties like coastal apartments or mountain chalets in places like Sunny Beach or Bansko, which are often left empty or rented out to tourists.
Without insurance, you’re on your own if a fire, flood, theft, or even an earthquake — common in some Bulgarian regions — damages your property. A good policy can cover the building, furniture, appliances, and even liability if a tenant or guest gets injured or damages someone else’s property. Holiday home insurance Bulgaria can also protect against lost rental income if the property becomes unusable due to an accident.
What are the best places to buy property in Bulgaria?
The most demanded property is located in the Bulgarian capital. Sofia is a solid choice for those who want city life. It’s the capital, with steady demand for rentals due to its universities and businesses, and apartments go for about 1500 to 2500 euros per square meter.
Varna is the second popular place to buy property in Bulgaria. It offers a mix of city and beach, with apartments priced between 600 and 1500 euros per square meter, making it a practical option for vacation homes or renting out. Sunny Beach and Nessebar are less popular, but also appeal to tourists with coastal beaches. Mountain lovers prefer affordable apartments in Bansko near the Pirin Mountains. The prices here start from around 500 euros per square meter.
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