Buying Property in Bulgaria as a Foreign Buyer

Two contracts, one deed

A typical Bulgarian purchase is structured in two stages: a preliminary contract fixing price, timing and default consequences, and the final notarial deed, which alone transfers ownership and must be executed by a notary in prescribed form. Signing the preliminary contract without title checks is the single most common mistake of foreign buyers.

Due diligence before signing

Before any money moves, the seller’s title must be verified in the Land Registry and the property cards: the chain of ownership going back to the restitution era, surviving encumbrances, mortgages, tenancy or use rights, unfinished construction and permitted-use issues, and unpaid utility or maintenance charges. Restitution claims on seaside and resort properties in particular still surface years after a purchase if this review is skipped.

Taxes and fees

The buyer pays a transfer tax under the Local Taxes and Fees Act, set by the municipality within a statutory band, plus notarial fees. Sales of newly constructed buildings by a VAT-registered developer fall under the VAT regime applicable to construction; resales of used property are not subject to VAT. Holding property carries an annual municipal tax and, in condominiums, maintenance-fee obligations under the Condominium Act.

Foreign ownership of land

Apartments, offices and built premises can be acquired directly by foreigners. Land is the exception: agricultural land is restricted for non-EU acquirers, and the established lawful route for foreign buyers of plots is ownership through a Bulgarian company that holds the land.

Closing mechanics

We recommend staged payment or escrow against registration rather than cash at the notary; the notary submits the deed for registration ex officio, but we verify the entry in the Land Registry, the tax filings at the municipality and the name changes at the utility companies.

How we help

Full title review with a written risk report, drafting of the preliminary contract with price-protection clauses, presence at the notary, escrow structuring, registration, tax filings and utility transfer — for buyers, and for sellers of Bulgarian property living abroad.

This page is generated by the firm’s neural network from firm data. It is informational only and not legal advice. For a specific case, consult a lawyer.

Advocast — Bulgarian Law Firm | Sofia, Bulgaria | Phone: +359 888 30 82 82 | law@rashkov.eu | advocast.bg (Bulgarian-language site)