🇧🇬 Bulgaria Real Estate 2025: Buying Guide, Laws & Top Locations
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8.7.2025

Why Bulgaria?
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Among the most affordable real estate markets in the EU
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EU member with improving infrastructure and growing tourism
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Rising interest in coastal, ski, and student housing
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Strong rental potential in key university and coastal towns
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Favourable tax regime: 10% flat income tax and no inheritance tax
Can Foreigners Buy Property in Bulgaria?
Yes — foreign individuals and companies may freely purchase apartments, houses, and commercial properties.
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EU citizens can buy land and buildings
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Non-EU citizens can buy apartments but must use a Bulgarian company for land acquisition
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Land ownership via purchase restricted for non-EU individuals
Residency & Permit Programs 2025
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Bulgaria offers a residence permit via property investment, starting at ~€300,000
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This grants temporary residency, renewable periodically
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Physical stay requirements are minimal; no direct path to citizenship
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Owning property supports visa purposes but doesn’t guarantee status
Legal Process of Buying Property
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Obtain a Bulgarian personal ID (PIC) and open a local bank account
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Hire a notary and/or lawyer for due diligence
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Sign a preliminary contract (advance payment 5–10%)
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Conduct legal and technical inspections (title, exclusions, permits)
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Finalize sale with notarized contract at their office
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Register ownership in the Bulgarian Land Register (Cadastre)
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Pay all applicable taxes and notary fees
Taxes & Fees
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Acquisition Tax: 2%–3.5% of purchase value, depending on municipality
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Notary & Legal Fees: 1%–2% of purchase price
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Agent Fees: Typically 2%–3%, often shared
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Annual Municipal Tax: ~0.1%–0.3% of property value
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Capital Gains Tax: Flat 10% on profit
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Rental Income Tax: 10% flat on net rental income
Mortgage Availability for Foreigners
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Bulgarian banks may lend to non-residents—common condition is local income or employment
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Loan-to-Value (LTV): Up to 70–80% depending on profile
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Interest Rates (2025): Around 4%–6%
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Higher risk may require 20–30% down payment and proof of stable income
Is Bulgaria Right for You?
✅ Ideal for:
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Investors seeking affordable entry with respectable rental yields
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Expats working in Bulgaria or remote professionals
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Holiday-home buyers or short-let investors in coastal and mountain towns
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Those interested in temporary residency through property purchase
❌ Less ideal for:
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Buyers expecting EU citizenship via investment
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Investors seeking fast-flip opportunities (market faster-growing but smaller)
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Buyers unfamiliar with EU-company legal structures for land purchases
Top Places to Buy in Bulgaria (2025)
Sofia (Central, Studentski grad, Lozenets)
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Capital city with strong rental demand and professional letting
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Yields: 4%–6%; good capital appreciation
Plovdiv
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Cultural and student hub; fast-rising international interest
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Yields: 5%–7%; moderate entry prices
Varna & Burgas (Black Sea Coast)
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Summer rental hotspots with strong short-let returns
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Yields: 5%–8% seasonally
Bansko & Borovets (Mountain Resorts)
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Popular with ski tourism; apartments and chalets see seasonal demand
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Yields: 6%–9% during peak season
Veliko Tarnovo & Gabrovo
- Historic towns with rising expat interest and university populations
Rental Yield & ROI Overview
Location | Gross Yield | Net Yield (after costs) |
---|---|---|
Sofia | 4–6% | 3–5% |
Plovdiv | 5–7% | 4–6% |
Varna/Burgas | 5–8% | 4–6% |
Bansko/Borovets | 6–9% | 4–7% |
Veliko Tarnovo | 5–6% | 4–5% |
Trends in 2025
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Coastal markets recovering post-pandemic with strong summer tourists
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Sofia and Plovdiv see growth due to IT sector and education
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Rise of property-for-residency investment schemes
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Expansion of vacation rental regulations near parks and mountain regions
Common Mistakes to Avoid
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Not setting up or using a company when required for land purchases
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Failing to budget proper renovation and translation costs
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Underestimating seasonal market fluctuations in rental demand
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Skipping technical inspections (common heating, insulation issues)
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Counting on automatic EU residency or citizenship through investment
Conclusion
Bulgaria offers an appealing investment opportunity with low prices, strong rental yields, and temporary residency options. Buyers should be mindful of legal structuring, seasonal demand cycles, and local regulations. With expert legal support and smart location targeting, Bulgaria can provide dependable returns and lifestyle benefits in 2025.
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