The legal regime of the real estates in Bulgaria regarding foreign persons

According to up-to-date Bulgarian legislation, the legal regime of the real estates in Bulgaria regarding foreign persons can be divided into two groups:

• regime for acquisition of buildings;
• regime for acquisition of land.

Since Bulgaria is going to be an EU member after few years, the two regimes are going to be equalized in the future, but in present there is a significant difference between them.

Regime for acquisition of land

Still, a principle settled in the Bulgarian constitution, is the prohibition for a foreign persons to purchase land in Bulgaria. A foreign person can only inherit land, but even in this case - the land must be transferred to a Bulgarian person within a legally determined term.

Nevertheless this principle, there are legal ways for a foreign person to purchase land and thus - to owe a whole real estate in Bulgaria / land with a building /.

The most popular way is to establish a company here in Bulgaria, which company shall purchase the land. The company is going to be a Bulgarian juridical person according to Bulgarian law and thus - the prohibition will not be in force, because the Bulgarian company, not a foreign person, shall be the owner of the real estate. The establishment of a company is an easy and quick process, the only thing that you will have to do is to choose the type of the company / Ltd, joint stock company/ and leave everything in our hands! Of course, we shall advice you about the best juridical form of your company, considering your future plan for your investments in Bulgaria.

The other ways for acquiring a land is to settle a joint venture with local company, to participate in privatisation or to make a portfolio investment.

All foreign persons should have in mind that there is a special treatment of foreign investors in Bulgaria, since the establishment of a company and the acquisition of real estate rights are legally defined as a foreign investment. There are many preferences for the so-called 'big investors', which we can present to your attention as far as you are interested in them.

The general economic climate nowadays in Bulgaria is stable with tendencies for becoming better in future and this is world-wide acknowledged fact. The process of the unification of the Bulgarian legislation with the EU one will soon be over. The human and economical rights of every person are strictly preserved and at the same time - the legal frame of the foreign investments is full of incentives. Regarding the regime of the real estate rights - the Bulgarian one is among the most liberal in our region.

So, when choosing Bulgaria for investing - you should be confident that you would not regret.

Regime for acquisition of buildings

There are no restrictions for the acquisition of a building within the territory of Bulgaria from a foreign person - natural person or company. The regime is the same as for the Bulgarian persons. In other words - regarding houses, villas, flats and etc., as well as regarding limited ownership rights /right to build, to use and etc./ - the regime for acquisition is free - every foreign person can directly purchase them