Restrictions on the Sale of Residential Real Estate in Bulgaria: A Comprehensive Guide for Buyers in 2025

Bulgaria remains one of the most attractive countries in Southeastern Europe for real estate investment. With its mild climate, low European prices, and full membership in the Schengen Area, the country draws thousands of foreign buyers annually. As of 2025, Bulgaria’s residential real estate market is growing at a rate of 7–10% per year, particularly in coastal regions and Sofia’s suburbs. However, the question “Are there restrictions on the sale of residential real estate in Bulgaria?” continues to be relevant for many expatriates, investors, and families planning to relocate. In this comprehensive guide, we will explore all the nuances, from the differences in rights for EU and non-EU citizens to the purchasing process, taxes, and potential risks. This will help you make an informed decision based on the current legislation in 2025.

Why Bulgaria Remains a Magnet for Investors

Bulgaria combines affordable prices (average cost per square meter in Sofia is €1,500–2,300, and on the Black Sea coast, €1,150–1,800) with high rental income potential (5–8% annually). Since joining the EU in 2007, the country has liberalized its real estate market, simplifying the process for Europeans. However, for citizens of non-EU/EEA countries, some restrictions related to land ownership persist. In 2025, the key laws—the Property Act and the Land Act—have not undergone significant changes, but oversight regarding money laundering and environmental safety has been strengthened. It’s important to note that “sale” here refers to both buying and reselling, with a focus on restrictions for foreign buyers.

Key Restrictions: Who Can Buy and What

Bulgarian legislation distinguishes between categories of buyers but is generally lenient. Let’s break it down by groups.

1. EU/EEA and Swiss Citizens: Full Freedom

For citizens of the 27 EU countries, Norway, Iceland, Liechtenstein, and Switzerland, there are no restrictions on purchasing residential real estate, including the land beneath it. You can freely buy apartments, houses, villas, or even land plots for construction. This includes:

• Apartments and townhouses: No restrictions.
• Houses with land plots: Full ownership rights, including the land.
• Commercial real estate: If it includes residential components.

In 2025, this rule remains unchanged, making Bulgaria an ideal choice for Europeans. For example, German or British retirees (post-Brexit, treated as third-country nationals but with special agreements) continue to actively invest in coastal villas.

2. Non-EU Citizens: Restrictions on Land, Not Buildings

For citizens of non-EU countries, such as Russians, Belarusians, Americans, Chinese, Turks, and others, Bulgaria imposes certain nuances related to national security and the protection of agricultural land. The main rule: you can buy buildings (apartments, houses), but the land beneath them remains owned by the Bulgarian state or a company. Specifically:

• Apartments in multi-family buildings: Full freedom to purchase in your own name. No restrictions—this is the most popular option for investors.
• Houses or villas with land plots: You purchase only the building, while the land is acquired through the creation of a Bulgarian company (LLC with a minimum capital of 2 leva, about €1). This is a standard practice: the foreigner becomes the owner of the company, which owns the land. The process takes 1–2 weeks.
• Land plots: Prohibited for non-EU individuals. Exceptions include agricultural land after 5 years of residency in Bulgaria or through a company.

In 2025, these rules have not been tightened, but additional checks have been introduced for large transactions (over €500,000) to verify funding sources. For example, Americans have full rights to buy apartments, as did Russians and Belarusians before sanctions, but land ownership requires a company.

3. Dual Citizenship and Residents

If you hold Bulgarian citizenship (through investment or ancestry), there are no restrictions whatsoever. Bulgaria’s “Golden Visa” program (investment of €512,000 in real estate) grants residency and removes all barriers, including land purchase. In 2025, the program was updated: the minimum investment increased by 10%, but family benefits were added.

The Purchase Process: Step by Step

Even with restrictions, the buying process is straightforward and takes 1–2 months. Here’s the basic outline:

1. Property Selection: Use websites like pallantrealestate.com. It’s recommended to inspect the property with a lawyer or real estate specialist.
2. Preliminary Contract: Reserve the property with a deposit (5–10% of the price), locking in the terms.
3. Document Verification: A lawyer checks for encumbrances (mortgages, liens). For non-EU citizens, company registration is required if land is involved.
4. Notarial Deed: The transaction is finalized with a notary (2–3 days). The notary registers the transfer of rights with the Registry Agency (ARCh).
5. Payment and Registration: Full payment is made via bank transfer, followed by tax payment and final registration (1–2 weeks).

In 2025, digitization has streamlined the process with online registration via eGov.bg. Total costs amount to 3–5% of the property price (notary, lawyer, taxes).

Taxes and Additional Costs: What to Consider

Sales and purchases are subject to taxes, but rates are low:

• Property Transfer Tax: 3% of the assessed value (not market value).
• Annual Property Tax: 0.1–0.45% of the property value (about €50–100/year for apartments).
• VAT on New Builds: 20%, but a preferential 9% rate applies to primary residences.
• For Non-EU Citizens: An additional 10% corporate tax for the company owning the land.

In 2025, a “green tax” (0.5% for energy-intensive properties) was introduced, but it’s minimal. For resale, a 10% capital gains tax applies if ownership is less than 2 years.

Risks and Tips: How to Avoid Problems

Despite the leniency, risks exist:

Fraud: Fake documents. Tip: Always work with a licensed lawyer.

Environmental Restrictions: Construction is prohibited within 100 meters of the coast in coastal areas.

Sanctions: For Russian and Belarusian citizens, additional banking checks have been in place since 2022, but transactions are still possible.

Tips:

• Choose an experienced realtor.
• Verify the property in the ARCh registry.
• For investments, focus on Sofia and its suburbs with infrastructure, Burgas, or Bansko: rental yields are 6–11%.

Relevance in 2025: Stability and Prospects

As of January 1, 2025, Bulgaria’s full integration into the Schengen Area has driven property prices up by up to 30%. Restrictions remain lenient, but the government is discussing stricter rules for speculators (a minimum 1-year ownership period for resale). Purchase safety is high: 95% of transactions occur without issues.

Bulgaria: An Accessible Market with Minimal Barriers

Restrictions on the sale of residential real estate in Bulgaria are minimal, primarily affecting land ownership for non-EU citizens, while apartments and houses are available to all. In 2025, the country remains a lucrative investment destination, especially given rising prices, the tourism boom, and the lowest taxes in the EU. If you’re planning a purchase, start with a consultation with our company—and Bulgaria could become your second home.