Bulgaria (BG)
Bulgaria is the oldest state in Europe (founded 681 AD), a member of the European Union since 2007, and one of the most affordable countries for expats in the EU.
Buying Property in Bulgaria
The full buying process, transaction costs, mortgage, and legal requirements.
Bulgaria offers some of the most affordable property prices in the EU, with an active market in Sofia, the Black Sea coast (Sunny Beach, Sozopol, Nessebar), and ski resorts (Bansko). As of 1 January 2026, Bulgaria adopted the euro at the irrevocably fixed rate of BGN 1.95583 per EUR 1, eliminating currency risk for eurozone buyers. EU/EEA citizens can purchase all property types freely, including land. Non-EU citizens may freely purchase apartments and buildings but cannot own land directly under Article 22 of the Bulgarian Constitution — to buy a house with a garden or a plot, non-EU nationals must set up a Bulgarian-registered company (e.g., EOOD/OOD) to hold the land. All foreign property buyers who are not Bulgarian citizens must register with the BULSTAT Register within 7 working days of signing the notarial deed.
Rent vs. Buy
Renting for the first 1–2 years is advisable while you learn the market and establish residency. Property prices in Sofia rose 5–10% per year in 2022–2025 and a further 8–10% is projected for 2026 driven by euro adoption. The gross rental yield in Sofia is 4–6%. Transaction costs are moderate (typically 4–6% of purchase price including all fees). For Black Sea resort apartments purchased as investments, rental income is seasonal and management costs are high.
Buying Process — Step by Step
Search and view properties
2–8 weeksUse imot.bg, address.bg, or homes.bg, or engage a real estate agent. For new builds, visit show apartments and verify the developer's permit status. Consider an independent buyer's agent who represents only your interests.
Check ownership restrictions for your nationality
1–2 weeksEU/EEA citizens: no restrictions. Non-EU citizens: confirm whether you intend to purchase an apartment (permitted directly) or a house with land (requires a Bulgarian company — EOOD or OOD). If a company is needed, allow 1–2 weeks for incorporation before proceeding.
Negotiate offer and agree preliminary terms
1–2 weeksNegotiate directly or through an agent. In Bulgaria, the asking price is typically 5–10% above the expected sale price. Verbal agreements have no legal force — everything must be in writing.
Legal due diligence — Property Register search
1–2 weeksHire a Bulgarian attorney (адвокат) to: search the Property Register (portal.registryagency.bg) for title history, confirm ownership, check for mortgages/liens/easements, review building documentation, and confirm there are no outstanding construction violations or encumbrances. A certified property extract (справка) costs EUR 5–8.
Obtain municipal tax valuation certificate
1–2 weeksThe seller obtains a tax valuation certificate (данъчна оценка) from the municipality — required to calculate transfer tax. Valid for 6 months. Transfer tax is calculated on whichever is higher: the purchase price or the tax valuation.
Sign preliminary contract and pay deposit
1 weekSign a preliminary purchase-sale contract (предварителен договор). The typical deposit is 10% of the agreed price. This contract is legally binding: if the buyer withdraws, the deposit is forfeited; if the seller withdraws, they must return double the deposit.
Final notarial deed and payment
1–2 hours appointment; 1–3 working days for registrationAttend the notary office (нотариус) with the seller. The notary verifies title, reads the full deed aloud, witnesses signatures, and immediately submits the deed to the Property Register. Final payment is made by bank transfer — cash payments above EUR 10,000 require AML documentation.
BULSTAT registration and post-purchase administration
1–2 weeksAll non-Bulgarian-citizen property owners must register with the BULSTAT Register at the local Registry Agency office within 7 working days of signing the notarial deed. Then notify the local municipal tax office of the purchase, register with utility companies, and — for apartments — join the building's owners' association (Etazhna Sobstvenost).
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Transfer tax (Данък при прехвърляне на имущество) | 2–3% of the higher of purchase price or tax valuation | Paid by buyer to the municipality. Sofia rate is 3%; Varna, Plovdiv, and Burgas approximately 3%; smaller municipalities typically 2–2.5%. Confirm the exact rate with your attorney before signing. |
| Notary fee (Нотариална такса) | Approximately 0.1–0.3% of property value (tiered, set by law) | Fixed scale regulated by the Notary Chamber. For a EUR 100,000 property: approximately EUR 200–300. Fee is split between buyer and seller by agreement. |
| Property Register fee (Вписване в Имотен регистър) | 0.1% of purchase price | Paid to the Registry Agency upon lodgement of the notarial deed. Mandatory. |
| Bulgarian attorney/lawyer fee | EUR 500–2,000+ | Not legally required but strongly recommended for due diligence. Some lawyers charge 0.3–1% of the purchase price. Always agree a fixed fee in writing. |
| Real estate agent commission | 2–6% of purchase price (typically 3% from buyer, 3% from seller) | Negotiable. Not legally mandated. Confirm in writing who pays and how much before signing any agent agreement. |
| BULSTAT registration | EUR 5–15 (administrative fee) | Mandatory for all non-Bulgarian-citizen buyers within 7 working days of signing the notarial deed. Carried out at the local Registry Agency office. |
| Annual property tax (Данък върху недвижимите имоти) | 0.01–0.45% of tax valuation per year | Paid to the local municipality. Minimum rate is 0.01%; Sofia and major cities typically 0.25–0.45%. Tax valuation is typically 50–70% below market value. Early payment (before 31 March) attracts a 5% discount. Note: if buying through an EOOD company, the CGT exemptions (primary residence held 3+ years, etc.) do not apply to the company — the company pays 10% CIT on all gains. |
| Municipal waste collection fee (Такса смет) | EUR 50–260 per year depending on municipality and property type | Annual fee for waste collection, paid to the municipality alongside property tax. |
The Notary — Mandatory for All Purchases
Notaries (нотариуси) are mandatory for all property purchases in Bulgaria. The notary verifies property title, confirms the identity of both parties, reads the full deed aloud, witnesses signatures, and immediately files the deed with the Property Register. Only deeds executed before a notary are legally valid for property transfer. Notary fees are set by law on a tiered scale regulated by the Notary Chamber. Find a notary at notarius.bg.
Mortgage
Bulgaria's mortgage market is well-developed and, since the 1 January 2026 euro adoption, is integrating with eurozone financing standards. As of Q1 2026, the average interest rate on housing loans in Bulgaria is approximately 2.45% per annum (APR approximately 2.77%), remaining among the lowest in the EU. Mortgage rates are expected to gradually converge toward the eurozone average of approximately 3–3.5% through 2026. UniCredit Bulbank offers a 5-year fixed rate from 2.89%; floating-rate products start from approximately 2.69%. Loan terms of 10–30 years are available.
20–30% of property value for standard mortgages. Some banks offer up to 90% LTV for premium borrowers with full Bulgarian income documentation. Non-EU buyers or non-residents typically need 30–40% deposit and must demonstrate stable documented income.
EU citizens with Bulgarian income can apply for mortgages on the same terms as Bulgarian citizens. Non-EU citizens face more hurdles: some banks require a longer Bulgarian residence history, and non-residents with only foreign income may need to provide tax returns or equivalent documentation from their home country. Some banks require a local co-guarantor. Non-residents wishing to borrow from Bulgarian banks should contact lenders directly before committing to a purchase.
Land Registry
The Property Register (Имотен регистър) is maintained by the Registry Agency (Агенция по вписванията) under the Ministry of Justice. All property transactions must be registered to be enforceable against third parties. After the notarial deed, the notary submits the registration electronically. The Property Register can be searched online via the EPZEU portal at portal.registryagency.bg. A certified property extract (справка) is essential due diligence and costs approximately EUR 5–8.
Taxes
Transfer tax: 2–3% of the higher of purchase price or municipal tax valuation (paid by buyer; Sofia and major cities 3%, smaller municipalities 2–2.5%). Notary fee: approximately 0.1–0.3% (tiered, set by law). Property Register fee: 0.1% of purchase price. Annual property tax: 0.01–0.45% of tax valuation (paid to municipality, with a 5% discount for early payment by 31 March). Municipal waste fee: EUR 50–260 per year. Capital gains tax on sale: 10% flat on profit (after a 10% statutory deduction). Exemptions: no CGT on one residential property held more than 3 years; no CGT on up to two other properties held more than 5 years; inherited property sales fully exempt. EOOD company buyers: CGT exemptions do not apply — the company pays 10% CIT on all gains regardless of holding period. Since 1 January 2026, all taxes and costs are denominated in euros (EUR) at the fixed rate of BGN 1.95583 = EUR 1.
New Build vs. Existing Property
New builds: often sold off-plan (на зелено) in resort areas. Verify the developer's building permit, legal title to the land, financial standing, and completion guarantees in writing before paying any deposit. Stage payments are common. Existing properties: more transparent pricing, immediate occupation, but may need renovation. Old panel-block apartments (panelki) are common and affordable but check structural condition, insulation, and any planned mandatory renovation levies.
Selling Property
Capital gains on property sales: 10% flat rate on the positive difference between sale price and acquisition cost, reduced by a 10% statutory deduction. Exemptions: sale of one residential property held more than 3 years — no tax; sale of up to two other properties held more than 5 years — no tax; inherited property sales — fully exempt. Real estate agent commission: 3–6% (paid by seller or split with buyer by negotiation). Notarial deed is required for all sales.
Useful Links
Property Buying
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