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Bulgaria is a great destination for those who are looking to buy a residential property, whether you wish to staylonger in the country or simply wish to make an investment.
While many countries offer foreign nationals the chance to become residents through purchasing property – such asPortugal, Malta, Greece, and Spain – Bulgaria only does so if certain conditions are met.
Can Foreigners Buy Property in Bulgaria?
Bulgarian law allows foreigners to own property in the country, but, however, there are some restrictions. Aforeigner can buy a property in their own name, provided that the property doesn't come with the land it isbuilt on. In most cases, apartments in Bulgaria are sold without land. To avoid disappointment and potentiallegal problems at a later stage make sure that the property sold to you does not include land. Important notice: Exceptions to this rule are applicable to EU/EEA nationals. They are entitled to buy propertieswith gardens and regulated plots of land in their own names.
As a foreigner, do I need a visa to buy property in Bulgaria?
Though you do not require a visa to buy a house or apartment in Bulgaria, there are several considerations tomake, and factors to be aware of to make the most of your purchase. If the purchase is for investment and rentalincome everything is fine, but if you want to make it a home and settle in for a long time you will need toapply for a visa type D.
As a foreigner, How Do I Buy Property in Bulgaria Without a Visa?
Technically the purchase of a real estate property can take place before the visa D application has been filed.It is possible for a foreigner to arrive in Bulgaria and buy a property with visa type C (tourist visa) if suchis required and afterwards to return back to their country and apply for visa D (that is only if the buyer isplanning to apply for a residence permit). In Bulgaria it is legally impossible to get an extended residencypermit if visa D has not been granted before that.
If you are buying a property in Bulgaria for the purposes of living in it, you must make sure that you areeligible to reside in the country.
Can property investment lead to residency in Bulgaria?
The Bulgarian law states that every foreign national who purchases real estate in Bulgaria for the amount of notless than BGN 600,000 is eligible to obtain an extended residence permit.
Nonresidents may have ownership of an apartment or a house based in Bulgaria, but if the property value is underBGN 600,000 this does not give them any rights to claim residency. In fact, their immigration status remains thesame. Buying a property under BGN 600,000 in Bulgaria does not permit nonresidents to live in Bulgaria. Thismeans they will not receive any form of immigration permission – such as a residence permit.
It is important to note that there is no cap on the number of investments that can be made. Every foreigner couldbuy one or more properties. The main thing to keep in mind here is the total amount of the investment to be notless than BGN 600,000.
The Essential Requirements for Extended Residence Permit:
The procedure for obtaining an extended residencepermit through investment in real estate is regulated bythe Law on Foreigners in the Republic of Bulgaria and the regulations for its implementation. The requirementsare as follows:
- The foreigner must hold a valid visa type D.
- The foreigner must have invested a minimum amount of BGN 600,000 to acquire the right of ownership of realestate/or several real estates/ in Bulgaria. It is important to note that the possibility of obtaining aresidence permit is not applicable to properties already acquired in the past. The acquisition can becarried out both in the form of a purchase, and through other types of transactions that result in a paidtransfer of rights (for example, exchange).
- In the case of used borrowed funds for the acquisition of the property, the funds should not exceed ¼/onequarter of the purchase price.
- In the event that the foreigner does not purchase property directly as an individual, but through a Bulgarianregistered company in whose ownership he participates - he should have invested an amount of no less than BGN600,000 in the capital of the company and own at least 50% of it.
- As of the date of submission of the application for an extended residence permit, the foreigner must havetransferred the full amount of funds due to the seller's account, which must be opened in a Bulgarian creditinstitution. The sale cannot be made under a suspensive condition regarding the payment of the purchase price.
Necessary Documents for Obtaining Extended Residence Permit Through Real Estate Purchase
In addition to the documents related to the investment made through the purchase of real estate, the foreigneralso presents the standard package of documents necessary for issuing a residence permit:
- Title deed for ownership of the Bulgarian real estate - in the name of a foreigner or a company (if boughtthrough Bulgarian registered entity).
- The applicant should present a certification document from a licensed Bulgarian credit institution for thereceipt of an amount of not less than BGN 600,000 for the acquisition of ownership. If part of the source offunds is a mortgage loan, then a certifying document from a financial institution for the outstanding partof the loan, no more than 25%, should also be presented.
After The Application For Extended Residence Permit
Initially, with a positive opinion, the authorities of the Bulgarian Ministry of the Interior will issue theforeigner an extended residence permit. This type of card is issued for a maximum period of up to 1 year andmust be renewed every subsequent year.
After 5 years, if the residence has continued without interruptions beyond the permitted period, the foreignercan apply for a permanent residence permit.This type of document, unlike the previous one, does notrequire annual renewal, except when the validity period of the document itself expires. The foreigner iseligible to apply for Bulgarian citizenship after 5 consecutive years of permanent residency.
