Real Estate Investment in Bulgaria

Why Bulgaria

Bulgaria is establishing itself as one of the most attractive destinations for real estate investment in South-East Europe. The main advantages include:

Dynamic market — constantly growing demand in major cities, especially Sofia, Plovdiv and Varna, with steady price growth
Low taxes — one of the lowest tax regimes in the EU, with a 10% flat corporate tax and low local taxes
EU membership — legal certainty, free movement of capital, access to EU funds and programmes
Fixed exchange rate — the Bulgarian lev is pegged to the euro (1 EUR = 1.95583 BGN), which eliminates currency risk for eurozone investors
Low mortgage rates — competitive interest rates on mortgage loans, available to foreign nationals as well
High rental yields — average rental yield of approximately 6% in Sofia, significantly higher than most Western European capitals

Tax regime

Bulgaria offers one of the most favourable tax regimes in the European Union for real estate investment:

Annual property tax

The tax is set by the municipality and ranges from 0.01% to 0.45% of the tax assessment of the property. By comparison, in most Western European countries this tax is significantly higher.

Transfer tax

The local acquisition tax ranges from 0.1% to 3% of the higher of the sale price and the tax assessment. The specific rate is set by the municipality where the property is located.

Agricultural land tax

Agricultural land is exempt from annual property tax, making it particularly attractive for investors.

Corporate tax

Corporate tax in Bulgaria is 10% — one of the lowest in the EU. This is particularly advantageous for investors operating through a Bulgarian company.

Residency through investment

Bulgaria offers a residency-through-investment programme that is particularly attractive to non-EU nationals.

Type D visa and residence permit

Foreign investors can obtain a long-term residence visa (Type D visa), followed by a continuous residence permit in Bulgaria.

Permanent residency

An investment of BGN 600,000 (approximately EUR 307,000) in a Bulgarian company or bonds grants the right to permanent residency in Bulgaria.

Fast-track citizenship

By doubling the investment (approximately EUR 512,000), the investor may apply for fast-track Bulgarian citizenship, which grants access to all rights of an EU citizen.

Who can invest

The rules for acquiring real estate in Bulgaria vary depending on the investor's nationality:

EU citizens

EU citizens may freely acquire any type of real estate in Bulgaria, including land, without any restrictions.

Non-EU citizens

Non-EU citizens may purchase buildings and limited property rights (right of construction, right of use), but cannot directly acquire land. To acquire land, it is necessary to establish a Bulgarian company, which may own land without restrictions.

Children and spouses of investors

Family members of the investor (spouse and minor children) may obtain residence permits as family members of a residence permit holder.

Frequently asked questions

What is the minimum investment amount for residency?

The minimum investment amount for obtaining permanent residency in Bulgaria is BGN 600,000 (approximately EUR 307,000). The investment may be in shares of a Bulgarian company, government securities or other approved instruments. For fast-track citizenship, the investment must be doubled to approximately BGN 1,000,000 (about EUR 512,000).

How long does it take to obtain citizenship?

Under the standard naturalisation procedure, 5 years of permanent residence in Bulgaria are required. Under the fast-track investment procedure, the term may be significantly reduced. The application review process takes an additional 12-18 months. The entire process from the initial investment to obtaining citizenship may take 2-3 years under the fast-track procedure.

Can I buy land as a foreigner?

EU citizens may freely buy land in Bulgaria. Non-EU citizens cannot directly acquire land, but can do so by establishing a Bulgarian company (single-member LLC or LLC). The company may own land without restrictions. Company formation is a quick and affordable procedure that our team can arrange for you.