Merger and acquisition

Sometimes the quickest and most efficient way for companies to develop, transform and grow is merger or acquisition.

The changing regulatory environments and economic conditions can make acquisitions challenging or even risky especially when entering markets like Bulgaria.

The successful execution of a Mergers & Acquisition transaction requires lawyers who understand their clients` businesses and markets and they can be the key to such transactions. Our team can support buyers or sellers and address the risks and challenges faced in the M&A transactions.

Our team provides legal support on the M&A aspects such as:

  1. formulation of strategies for acquisitions
  2. private transactions
  3. due diligence investigations
  4. establishment of data rooms
  5. acquisitions of minority interests
  6. divestiture strategies, including consolidations
  7. arranging financing
  8. regulatory approval process

With respect to mergers, we assist our clients in the whole process of the M&A transactions by setting out the steps that need to be taken and the relevant timetable, preparing the merger agreement and the following corporate documentation.

With respect to acquisitions, we organize and carry out legal due diligences, draft and negotiate share purchase and ancillary agreements and undertake all formalities required for the implementation of each acquisition.

Our M&A practice provides advice to clients on the tax consequences and tax effective methods for cross-border and domestic consolidations and restructurings. Our tax background and expertise is a unique asset of our firm, highly valued by our clients who require comprehensive and efficient corporate and tax advice. 



25 Vitosha blvd. fl. 2, Sofia, Bulgaria




Working with clients on their most critical challenges often results in new industry perspectives and insights.

Why Bulgaria

Bulgaria real estate market is pointed as highly dynamic. With an average of 41% growth in sales and 18% rental growth, the luxury property market is dynamically marking the first half of 2017, according to latest statistics. Up to November 2017, the increase in the prices of the properties in the capital – Sofia from the beginning of the year is approximately 14%. Another 10% is expected in 2018.
European Union citizens can now purchase properties in Bulgaria, including land. The 5-year moratorium on land purchases, set as a condition in the Accession Treaty between Republic of Bulgaria and The European Union, was lifted on January 1, 2014. EU citizens and legal person are allowed to buy houses with gardens and regulated plots of land in Bulgaria on their own names. What about non-eu citizens? Foreign individuals from other that EU or EEA countries nationalities, cannot own land (this is a Constitutional prohibition). However, the Foreign Investment Law removed the restrictions on the acquisition of land by locally-registered companies with foreign participation. By setting up or joining a company incorporated under the Bulgarian legislation foreign persons can acquire full land ownership rights including ownership rights on agricultural land. Learn more here.
Bulgaria’s economy expanded by 2.9% in 2017, an improvement from annual growth rates in 2016 and 2015, mainly due to higher net exports and public investment, according to the International Monetary Fund (IMF). The economy is expected to expand by another 3% in 2018, according to the IMF. Bulgaria is in top 3 countries in EU when it comes to economy increase.
Interest rates in Bulgaria continue to decline. The average mortgage interest rate for BGN-denominate loans fell to a record low of 4.3% in 2017, from 6.34% in November 2014, according to the Bulgarian National Bank.
Sofia has moderate to good gross rental yields – i.e., the rental return on a property if fully rented out, before all expenses. Yields in the center were around 6.76% in 2017, up from about 4.7% to 5.7% in the same period last year, based on recent Global Property Guide research. Yields in the suburbs are also moderately good, ranging between 5% and 6.5% over the same period.
Bulgaria has one of the lowest tax burdens in the whole EU and this applies also when it comes to real estate. Real estate annual tax – 0.01%- 0.45% Transfer tax – 0.1%- 3.0% The rate is set by each municipality according to the location of the real estate. The taxable base can be the market price, specifically determined tax value or the gross book value. Keep in mind that there is no tax for agricultural land and forests.