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Bulgaria – Property Financing

Mortgages for Foreign Nationals in Bulgaria

Bulgaria, situated in Southeastern Europe, has become an attractive destination for foreign nationals looking to invest in its real estate market. In this article, we will explore the availability of mortgages for foreign nationals in Bulgaria, identify local lenders that provide mortgage services, discuss deposit requirements for property purchases, and clarify the responsibilities of new property owners concerning outstanding debts on the property.

Availability of Mortgages for Foreign Nationals

Bulgaria generally welcomes foreign nationals to invest in its real estate market, and the availability of mortgages for non-citizens is favorable. The process for obtaining a mortgage in Bulgaria is typically straightforward, although specific requirements and conditions may vary among lending institutions.

Foreign nationals interested in securing a mortgage in Bulgaria should be prepared to provide proof of a stable source of income and demonstrate their ability to repay the loan. While there are usually no legal restrictions on foreign nationals acquiring mortgages, each bank or financial institution may have its own set of eligibility criteria.

Typically, foreign nationals are required to have a Bulgarian bank account to facilitate mortgage payments and transactions related to the property purchase. Some lending institutions may also require borrowers to have a registered address in Bulgaria or a legal entity established in the country.

Local Lenders Providing Mortgages

Bulgaria boasts a variety of local banks and financial institutions that offer mortgage services to both citizens and non-citizens. Some prominent local lenders that provide mortgages in Bulgaria include:

  • UniCredit Bulbank: UniCredit Bulbank is one of the largest banks in Bulgaria and offers various mortgage products, including options for foreign nationals.
  • DSK Bank: DSK Bank is a leading bank in Bulgaria and provides mortgage solutions to eligible applicants, including foreign nationals.
  • First Investment Bank (Fibank): Fibank offers mortgage services to both residents and non-residents interested in purchasing property in Bulgaria.

These banks typically have dedicated mortgage departments to assist foreign nationals throughout the mortgage application process, including collecting the necessary documentation and explaining the specific requirements for obtaining a mortgage in Bulgaria.


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Deposit Requirements for Property Purchases

When purchasing property in Bulgaria, deposit requirements may vary depending on the lending institution and the terms of the mortgage. In general, property buyers are expected to make a down payment that typically ranges from 20% to 30% of the property’s purchase price.

The deposit amount can vary significantly between lenders and may be influenced by factors such as the applicant’s creditworthiness, the type of property being purchased, and the loan-to-value (LTV) ratio set by the lending institution. Some lenders may offer more competitive terms and lower deposit requirements to attract foreign buyers.

It’s essential for property buyers to be aware of additional costs associated with property purchases in Bulgaria, such as property transfer tax, notary fees, and legal expenses. These expenses can impact the overall financial commitment when buying a property in Bulgaria.

Responsibility for Outstanding Debts

When acquiring property in Bulgaria, new property owners are generally not responsible for any outstanding debts or financial obligations related to the property that occurred before the purchase. However, conducting due diligence is crucial to ensure a transparent and secure transaction.

As part of the property purchase process in Bulgaria, a comprehensive due diligence procedure is typically conducted. This involves verifying the property’s ownership history, identifying any encumbrances or liens, and confirming whether there are any outstanding debts or mortgages associated with the property.

The seller is typically responsible for ensuring that the property has a clear title and is free from any encumbrances or financial obligations that could affect the buyer. Sellers are expected to resolve any outstanding debts or liens on the property before completing the sale.

Working with experienced real estate professionals, including real estate agents, attorneys, and notaries, can provide valuable assistance throughout the property purchase process in Bulgaria. These professionals can help buyers navigate the legal and financial aspects of acquiring property and ensure that all necessary due diligence is carried out.

In summary, foreign nationals can generally obtain mortgages in Bulgaria, subject to specific eligibility criteria and requirements set by local lenders. Notable local lenders offering mortgage services include UniCredit Bulbank, DSK Bank, and First Investment Bank (Fibank). Deposit requirements typically range from 20% to 30% of the property’s purchase price. New property owners in Bulgaria are generally not responsible for outstanding debts on the property, provided they conduct proper due diligence and work with experienced real estate professionals.


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