Ownership of Real Estate

According to the Bulgarian Constitution foreign nationals and foreign legal entities may not directly acquire ownership rights on land. If foreigners inherit land in the country, they are obliged to transfer the ownership of the land to local natural or legal persons within three years after the inheritance becomes effective.



The above restrictions, however, do not concern Bulgarian companies with foreign participation, irrespective of the percentage of the foreign participation in the company. Thus foreign persons can acquire full land ownership rights, including ownership rights on agricultural land by setting up or joining a company incorporated under the Bulgarian legislation. These circumstances must be entered into the Commercial register of the relevant district court.



The amendments in the Constitution, adopted by the Parliament in February 2005, aiming to revise the basic law in the context of the country’s accession into the European Union, liberalize the restrictive regime for acquisition of land by foreigners. According to the amendments foreign individuals and legal entities will be permitted to acquire and own land in three hypotheses:

(i) the citizens of the EU Member States - in compliance with the terms and conditions of the Accession Treaty which inter alia will provide for a 7-year suspension period;

(ii) by virtue of a ratified international treaty and

(iii) in case of ex lege inheritance. Citizens of the EU States will be exempted from the 7-year suspension period and will be entitled to acquire land immediately as of the country’s accession in January 2007 provided that they fall into any of the following two categories: if they reside continuously in Bulgaria or if they are self-employed persons having permanent residence in Bulgaria and carry out agricultural activity in the country.



Taxes and fees for acquisition of property



At the request of investors that have received certificates for first class investment, the InvestBulgaria Agency proposes to the competent authorities to:



1. grant title to real estate – private state or municipal property;



2. effect sale of real estate - private state or municipal property;



3. establish onerously or gratuitously limited property rights to real estate - private state or municipal property.



The regime of granting a title to real estate - private state or private municipal property - is according the State Property Act, the Ownership Act respectively.