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Things to Know Before Buying Property in Bulgaria

If you're looking to invest in real estate, Bulgarian property is a great option to consider. Bulgaria offers many opportunities for foreign investors, with a stable economy and low property taxes. In this article, we'll discuss everything you need to know about buying Bulgarian property for sale.


Are you considering buying property in Bulgaria?


This guide offers information to assist you in making informed decisions when investing in Bulgarian real estate. Please note that individual circumstances may affect the buying process, so it is best to seek advice from a real estate professional.

Land Ownership in Bulgaria


Foreigners face some restrictions on owning Bulgarian land, according to the Bulgarian Act on Foreign Investment. EU citizens can own land for commercial or residential use, while non-EU citizens must register a Bulgarian Limited Company to own property with such land. The registration process is straightforward and takes around five working days, and can be done in person or by granting power of attorney to a solicitor or other trusted party such as Yantra Homes.

Forming a Limited Company in Bulgaria


Buying Property in Bulgaria Two types of companies are available: Limited Liability Companies, formed by two or more shareholders, and Sole Proprietor Limited Companies, which are owned by a single individual. The minimum required capital for the company is two levs. You are required to open a collective bank account and deposit the capital in it as a part of the company setup process. All necessary registration documents will be arranged by a solicitor. Once the company is set up, you can close the collective account and you can open a business bank account to make payments for property. It is also possible to open a personal bank account for transferring funds for property purchases.

The Preliminary Contract for Buying Property in Bulgaria


Church of the Forty Holy Martyrs Veliko Tarnovo When a suitable property is found, a Bulgarian Real Estate Agent would prepare a preliminary contract which protects the interests of both the buyer and seller. A 10% non-refundable deposit is required from the buyer. For completion in front of a notary, the seller must provide original ownership documents, an updated property plan, a tax assessment and other documents such as inheritance certificates or documents from the Property Register with no outstanding debts or court disputes.

Church of St. Demetrius of Salonica - Veliko Tarnovo To finalise the purchase, the buyer must provide minutes of the General meeting of the company containing a resolution to purchase real estate in Bulgaria. Payments for properties over 10,000 levs must be made through a bank, and taxes and notary fees must also be paid.

Owning a Bulgarian Limited Company legally requires an annual return, but if the company is not actively trading, this is a straightforward process. The purchase process usually takes four weeks, and the buyer must pay the remaining 90% of the property price, as well as taxes and notary fees, to obtain the title deeds for the property.


It is important to note that the fees and costs associated with buying property in Bulgaria can vary depending on the region and the specific property. It is recommended to work with a reputable real estate agency who can guide you through the buying process and help you understand all of the costs involved.

Buying property in Bulgaria - Additional Costs/Fees to be Paid


When buying property in Veliko Tarnovo with Yantra Homes, in addition to the price of the property the following costs/fees should be taken into consideration:

  • • The usual fee charged for setting up a Limited Company is Euro 300.00 including disbursals;

  • • Our agency fee is 3% plus VAT of the purchase price, subject to a minimum of Euro 750 plus VAT (Please note: In Bulgaria it is standard practice for the buyer to pay agency fees);


  • • Notary, stamp, court fees and property tax (legal fees) are approx 4 – 5% of the declared deed value (see Property Tax section above). (This fee is paid directly to the Notary Public);

  • • Property insurance is recommended and the cost varies depending on the type and location of the property.

Warning when Buying Properties in Bulgaria


View of the old town from Tsaravets Please note: In the past, it was common in Bulgaria for property sellers and buyers to declare a lower value than the actual price of the property on the title deed in order to save on property taxes. However, this is an illegal practice. Even though this might seem like a good idea at the time of purchase, it can end up causing problems for the buyer in the future, especially when it comes to selling the property and having to pay more in capital gains tax. So, it's important to declare the real price of the property on the title deed.

Choosing the right area to buy a property in Bulgaria


National Art Gallary Veliko Tarnovo When searching through Bulgarian property for sale, there are many options to consider. Veliko Tarnovo, for example, is a popular location for foreign investors due to its rich history and stunning architecture. Properties in Veliko Tarnovo range from small apartments to large villas, with prices varying depending on the size, location, and condition of the property.



Finally, it is important to note that Bulgarian property taxes are historically low, making Bulgaria an attractive place to invest in real estate.

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