Legal Advice

Should you make the decision to purchase property in Bulgaria we will be available to guide you through each step of the purchasing process. However there are certain legal formalities that all prospective purchasers should be aware of.

Whilst Bulgaria has one of the most liberal foreign investment structures in Europe there are certain restrictions on foreign nationals buying property and, more specifically, land. Generally speaking, individuals can only acquire buildings (including right to build and other land related rights such as passage and usage) and not land. However a legal entity registered in Bulgaria such as a Company can purchase land also. Companies can be created and registered fairly easily within current Bulgarian legal frameworks.

For the past decade Bulgaria has been encouraging foreign investment into the country to bolster home grown growth. Whilst some restrictions still apply the process is relatively simple when compared with other non-EU countries. In addition to the direct purchasing of properties by individuals there are several ways in which land ownership can also be secured, these include:

•   Establishing a joint venture with local partners
•   Making a portfolio investment
•   Acquiring a Company through privatisation

We will be happy to discuss your personal requirements with you should you wish to take advantage of the opportunities Bulgaria currently offers.

Details of the precise legislation relating to foreign purchases of buildings and land in Bulgaria can be found in the Foreign Investment Act (1997) and the Bulgarian Constitution (1991).

At the moment Bulgarian property remains a fairly undiscovered and under-developed market. Real estate prices are much lower than in other parts of Europe and the liberal investment laws makes acquisition a relatively simple process. With the stable political and economic climate in the country and the accession to the EU in 2007 still a year away there are still many attractive and profitable investment opportunities. However, when accession is completed and the real estate market is opened to the general EU market regulations there will almost certainly be a surge in prices and a marked drop in availability as interest increases. There has never been a better time to buy property in Bulgaria, make sure you don’t miss the opportunity and contact us today.

If you have any questions regarding the Bulgaria real estate, please contact us.

Nikolay Valkov
e-mail: office@maxconsult.bg