QUICK LINKS: Bulgaria Guide - Bulgaria Discussion Forum - Bulgaria Property Listings

TIP: Want to use the forums? Register your account here!

Property in Bulgaria is the fastest growing asset in the country. In recent years the property prices in Bulgaria have increased by more than 25% in general. Some real estate has gone up by 50% in one year, especially in Sofia, in the Black Sea beach resorts (Sunny Beach) and in the ski resorts (Borovets, Bansko). The improved economic conditions, political and social stability in Bulgaria over recent years have brought a real boom in the prices of property in Bulgaria. Another important factor for the rising property market is the huge tourism potential in the country. There are great natural attractions - high mountains, the beautiful and clean Black Sea coast, preserved rural areas, minimum urbanisation, thousands of years of history, etc. Nowadays Bulgaria is considered to be the fastest growing tourism market in Europe. This is something that foreign buyers of property in Bulgaria appreciate the most. Together with the constantly rising prices, buying property in Bulgaria is attracting a lot of interest from investors.

Full EC membership is scheduled for 2007. Bulgaria is a politically stable country, and the introduction of a currency board in 1997 stabilised the country's economy. Looking forward to 2007, Bulgarian laws are improving and changing in accordance with the laws in the countries of the European Union. Bulgaria has one of the most liberal foreign investment laws in the region. Foreign investment typically assumes one of the following forms: establishing a joint venture with existing companies, state-owned or private; acquiring a company through privatization; setting up a new (green field) venture; or making a portfolio investment. Foreign investors can purchase property in Bulgaria directly or through a local company. Only Bulgarian-resident individuals and entities can own land, while non-residents personally may acquire only buildings. Therefore if foreign citizens want to invest in property in Bulgaria, they must register a Bulgaria based company. As soon as the company is registered any properties/property in Bulgaria may be purchased in the company name. The most common type of organization for foreign investors is a limited liability company. Other forms are companies limited by shares (joint stock companies), joint enterprises, business associations, general partnerships, limited partnerships, and sole proprietorships.

The law does not limit the extent or amount of foreign participation in companies. Foreign individuals and companies can open an unlimited number of accounts in Bulgarian banks, in any hard currency or the local Bulgarian Levs. There is talk that soon the main law in Bulgaria, the Constitution, will be changed so that all foreigners who wish to acquire property in Bulgaria will be able to do so personally without registering a local company.

Added March 2007 by Jade:
A word of warning! Any Brits who have bought property with land, and the land being placed in the name of a Bulgarian, look into changing this now so that you can have land in your name, as our so-called Bulgarian friend keeps demanding money for this to be changed but originally this was just going to be a quick trip to the notary and pay just for the documents to be changed, but it seems we are in a no-win situation. Officials at our nearest police station keep asking us why this person owns our land - we explained about embassy in uk, but if we wanted to sell our house, he may not want to sell the land where would we be then?

--

Information courtesy of Bulgarian Properties Ltd

Got something to add to this section? Spotted something which should be changed? Please let us know!

Click here to return to the contents page for "Bulgaria - an expatriate guide."