Everything about renting, buying and selling real estate in Bulgaria. Features and documents for purchasing housing. Advantages and disadvantages. Registration of residence permit, permanent residence and citizenship when purchasing real estate in Bulgaria.
Any foreigner can buy real estate in Bulgaria, even without personal presence at the transaction. The buyer needs to select an object, agree on a price, contact a notary to check the documents and formalize the transaction, and also register the property with the relevant authority under the Ministry of Justice of Bulgaria. To sell, exchange or other transactions with Bulgarian real estate, you need to draw up a notarial deed and register it with a notary in the area where the property is located.
The purchased housing can be rented out or a visa based on real estate can be opened (national multiple visa) and you can stay in the country for up to 180 days a year, which gives you the right to obtain a residence permit. With this residence permit, foreigners can visit all EU states without a visa, study for free in Bulgarian schools and universities, then obtain permanent residence and subsequently apply for citizenship , in other words, an EU passport . According to the Law on Bulgarian Citizenship , the application is submitted after 5 years of permanent residence or after 3 years if married to a citizen of the country.
Rights and obligations of foreign buyers
Foreigners have the right to freely purchase residential and commercial real estate: for example, office space, apartments and apartments in Bulgaria. Restrictions apply only to houses, villas and detached buildings. All foreign citizens who live outside the EU can register objects with land plots with land and just land only in the name of a legal entity. To do this, you need to open a company in the country.
When purchasing real estate, a foreigner receives residence rights in Bulgaria:
- on the basis of a long-term national visa D, which allows you to cross the border multiple times and stay in the country for up to 180 days a year;
- on the basis of a residence permit – the Law “On Foreigners” provides this opportunity to the applicant and his spouse, as well as children under 18 years of age in case of purchasing real estate in the amount of 307,000 EUR (600,000 BGN).
The owner of Bulgarian real estate must submit an application for tax registration 2 months from the date of purchase. You will have to pay real estate and utility taxes. Payments are made gradually throughout the year: part – until March 31, then – until June 30, then – until September 30 and part – until November 30. If the entire amount is paid at once, the state offers a 5% discount.
How to find suitable property?
In Bulgaria, you can find housing on your own or seek help from a real estate company. By collaborating with agencies, you don’t have to constantly monitor sites with advertisements.
Independent search
Websites with real estate advertisements (for example, home2u.bg, imot.bg) offer apartments and houses throughout the country.
The only intermediary you cannot do without when purchasing real estate in Bulgaria is a notary. Prices for transaction support are approximately 1% of the cost of the property. Many notary offices also offer document translation services.
The first time you need to come to the notary after the foreigner has chosen the object and agreed on the price. The second visit is with the homeowner, so that the specialist examines the documents in detail, finds out whether there is permission to sell, and tells him what needs to be prepared for the transaction. Often secondary real estate has several owners, and a signature or power of attorney must be obtained from each. This may take several weeks or even months.
The foreign buyer is required to provide declarations confirming citizenship and origin of income. The remaining documents are prepared by the seller. When everything is collected, you need to come to the notary again to sign the “notarial deed” (purchase and sale agreement). At this stage, the buyer transfers the entire amount to the seller or makes a bank transfer if the purchase price exceeds the legal limits on cash payments (5,000 EUR).
To open an account in a Bulgarian bank, at the branch you need to present your passport, tax identification number and residence permit, if you have one. Online banking is rarely available to foreign citizens. Opening an account takes up to 10 days.
The notary is responsible for the transaction to the buyer; he checks the documents and enters the necessary data into the register. The buyer usually pays for the notary’s services. After signing the papers, the contract remains with the lawyer to be certified by the Registration Agency – this is an executive body under the Ministry of Justice. In about a week, the “notarial deed” for the property will be ready.
Search through companies
Specialists help you find an object based on requests from their own database and offer legal support, additionally checking the documentation. Agencies in Bulgaria undergo state licensing. Without knowledge of the language, it is better to choose companies with a representative office in your country or with a full-time translator.
Search through a realtor
The services of a realtor are practically no different from those offered by agencies. Many developers have specialists in the CIS countries; it is not necessary to go to Bulgaria to find a suitable intermediary. Legislative bodies do not license the activities of realtors, so you need to carefully study the company’s history and reviews.
Where is the best place to buy housing in Bulgaria?
Different regions of the country are suitable for specific purposes. Therefore, the choice depends on the purpose of the property: for a resort holiday, permanent residence or rental.
To move to Bulgaria
It is better to choose real estate in large cities: Burgas, Nessebar or Varna. Here you can buy an apartment in a multi-storey building without a mandatory annual fee (support tax). These are cities with developed infrastructure located on the Black Sea coast.
For rent
Accommodation in resort complexes is in demand among tourists during the summer months: in Sunny Beach, Golden Sands or Sunny Day. Large cities are suitable for year-round rental: for example, Sofia, Plovdiv, Varna, Burgas. Not only tourists, but also local residents from the surrounding area come here to work or study, so housing will not be idle in the winter.
For pensioners
For a quiet, comfortable life, properties away from the coast are suitable. From most towns and villages in Bulgaria, the road to the Black Sea beaches takes 2–3 hours. If a healthy climate is also a priority, Sandanski, Velingrad and Pomorie will fit this request.
Advantages of purchasing housing in Bulgaria:
- favorable conditions for buyers from development companies – the cost of new buildings is approximately 30% lower than secondary real estate, and it is possible to arrange interest-free installments;
- availability of affordable housing costing 10,000–25,000 EUR in small towns;
- the opportunity to receive passive income from renting out housing or coming on vacation;
- the prospect of obtaining Bulgarian citizenship.
Minuses:
- houses together with land plots can only be purchased by legal entities;
- the cost of apartments in cities with developed infrastructure, such as Burgas, Sofia, Plovdiv, Varna and Stara Zagora is 45,000–100,000 EUR.
- regions with affordable real estate with prices up to 10,000 EUR are villages and towns with undeveloped infrastructure.