Buy a House in Bulgaria (2024)

Is it possible to purchase a Bulgarian property through an investment program?

Investing in real estate as a means of obtaining residency in Bulgaria enters the attention of numerous foreign citizens. After the abolishment of the citizenship by investment scheme, investment-related residency possibilities are still in place, however, real estate acquisition is no longer among them.

If you choose to invest in one of the current Golden Visa’s investment options, you can immigrate to Bulgaria and purchase a home. However, you should note that a rather larger financial commitment to the economy is normally required for this program. So, you will have to invest a substantial amount of money in order to be eligible for residency under this program.

If you want to buy a property, our Bulgarian lawyers recommend choosing the classic way, unless you are an investor moving to this country for business purposes, cases in which you can combine the two procedures.

Is it possible to secure a mortgage in Bulgaria as a foreigner?

In Bulgaria, real estate mortgages are also available to foreigners, however, the conditions and qualifications for approval differ according on the lender and the terms of the loan.

In order for a foreigner to be eligible for a property loan, there are a number of specific conditions and requirements that must be met. These include having a valid residence permit or having Bulgarian citizenship, providing the required documentation, such as proof of identity and income, and meeting the lending institutions' requirements.

Furthermore, mortgage rates in Bulgaria for a 20-year term are quite attractive, ranging from 1% to 5%. Banks will normally lend up to 85% of the property's evaluated worth, though this will frequently depend on your income level and level of risk.

If you are interested in this option, you can rely on our law firm in Bulgaria for a verification of the terms and conditions offered by the bank.

Steps to buy a house in Bulgaria

When you decide to buy a house in Bulgaria, there are several aspects to consider and a few steps to complete. For example, foreigners are not required to apply for residency before acquiring the desired property. However, they can decide to move and live here until the become eligible for permanent immigration to Bulgaria.

1. completing a property verification is not mandatory, however, it is a good idea before making such an investment;
2. reserving the chosen property by making an advance payment;
3. signing the pre-sale contract is a usual step in the purchase procedure;
4. drafting the Notary Deed, also known as the Title Deed, a document confirming the property's ownership;
5. having the Title Deed certified by a public notary who will also register it with the Bulgarian Land Register.

It is also worth noting that the preliminary contract is signed within 30 days of receiving the deposit. It usually contains a description of the property, the cost, the terms of payment.

You can get in touch with our Bulgarian lawyers for support in drafting the documents related to buying a house or apartment in this country.

Documents to consider when buying a Bulgarian property

Just like any other acquisition, when you want to buy a house in Bulgaria you need to draft various documents. Among them are:

• the sale agreement which must be drafted in accordance with several laws;
• the Certificate of Tax Evaluation;
• the Title Deed which is issued by the Land Register upon the registration of the new owner.

Then, depending on other specifics of the property and the buyer, other documents may also be required. For example, a Certificate of the Marital Status of the buyer if the real estate is bought with one’s spouse. When buying land in Bulgaria, a sketch of the land plot is also required. The Certificate of Encumbrances issued by the Land Register must also be on the list of documents when you decide to buy a property in Bulgaria.

Special attention must be paid by companies acquiring real estate in Bulgaria, as these need to register with the National Statistical Institute.

Taxes and fees to consider when buying real estate in Bulgaria

There are several costs associated with purchasing a house in Bulgaria, and they expressed as a proportion of the selling price, as follows:

• 1% to 4% in property transfer taxes;
• 1% to 2.5% in notary fees;
• 0.5% in registration fees;
• 2.5% to 5% in real estate agent fees, provided that intermediary services were used.

It is also worth noting that the value added tax for real estate transactions in Bulgaria is levied at 20%.

It is usually expected to spend around 3% to 8.5 % of the selling price on purchasing costs, however, the highest percentage involves using the services of a real estate agent. Our lawyers are at your disposal if you want to use this opportunity as a way of immigration to Bulgaria.

A notary deed needs to be drawn up and the Bulgarian notary must certify and register the deed. OurBulgarian law officecan provide additional information about the annualtaxes in Bulgaria.