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Real estate investment in Bulgaria

Bulgaria prohibits selling land to non-EU citizens. A land plot with a house can be bought for a legal entity if it’s a Bulgarian company.

The sale of flats in apartment buildings is not limited: you can freely buy, sell or rent them.

Statistics confirm the liquidity of investments: residential real estate prices grow by an average of 1.9% every quarter. Five years ago, an apartment of 100 m² cost an average of €96,000, and today it is sold for €138,000.

€1,381 Average price per 1 m²
of housing in Bulgaria
€300,000 Minimum investment amount
to get a residence permit
3—11% Buyers’ related expenses,
of the transaction amount

Cost of a 3-bedroom apartment in Bulgaria

€800,000

Penthouse in the centre of Sofia

€400,000

Apartment in the centre of Sofia
or Varna

€200,000

Apartment in Burgas

What do investors buy?

Properties in the capital Sofia and Varna and Burgas resort cities are in high demand.

Apartments

  • penthouses
  • apartments

Houses

  • houses and villas
  • townhouses

Bulgaria residence permit or citizenship by real estate investment

Bulgaria has a state residence permit program for property buyers. A residence permit is obtained by purchasing a property worth at least €300,000.

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Taxes and associated costs

Purchase
Ownership
Sale

Property buyers pay a transfer tax and special fees. Associated costs will range from 2.8% to 10.6% of the purchase agreement value. When buying an apartment for €300,000 in Sofia, the investor will spend €346,265, including associated costs.

2.8—10.6% Of the contract value are related costs for the purchase of housing in Bulgaria
Purchase expenses
Transfer tax

Depends on the region

0.1—3%
Notary fee 

Depends on the transaction amount 

0.1—1.5%
Registration fee
0.1%
Agency fee

The contract determines the share that the buyer pays

2.5—6%

Taxes

Real estate owners pay an annual property tax of 0.1% to 0.45% of the cadastral value. The rate depends on the region.

If the owner rents out the property, they pay a tax of 10% on the rental income.

€1,130 Approximate annual costs for maintenance of an apartment

Communal payments

Electricity, gas, water, heating, and garbage collection
€60—150 

per month

Internet, TV and telephone
€8—15 

per month

Real estate sellers pay a capital gains tax of 10% on the difference between the sale and purchase prices.

An agency fee of 5% to 6% is usually paid in half by the seller and the buyer. However, there are cases when the buyer pays the entire amount if prescribed in the sale and purchase agreement.

10% Capital gains tax on the sale of
real estate in Bulgaria
Expenses on the sale
Capital gains tax

Paid on the difference between the purchase and sale prices

10%
Agency fee

The agreement determines the share that the seller pays

0—3%

Of the transaction amount

Frequently asked questions

Can foreigners buy property in Bulgaria?

Only if they are citizens of the European Union. A plot of land with a house can be bought by a Bulgarian legal entity.

Is Bulgaria a good place to buy a property?

Yes. Real estate in Bulgaria is a liquid asset: the price of residential real estate increases by an average of 1,9% quarterly. Five years ago, a 100 m² apartment cost an average of €96,000, and today it can be sold for €138,000.

At the same time, a 1 m² of housing in Bulgaria costs lower than the European Union average.

Investors who buy real estate in Bulgaria can apply for a residence permit program. They need to purchase real estate for at least €300,000.

What's the average house price in Bulgaria?

Prices for apartments start from €15,000. The average cost of 1 m² of residential real estate is €1,381. Housing prices are rising annually: in the first quarter of 2022, the cost of Bulgarian properties increased by 11,5% year-on-year, according to Eurostat.

What are the pitfalls of buying property in Bulgaria?

The main obstacle is a limitation for foreigners: non-EU citizens can’t buy real estate in Bulgaria directly. One of the most popular ways to avoid this is to apply for a Bulgaria residence permit by real estate investment program, but property expenses in that case begin at €300,000.

How much is Bulgarian property tax?

There’s a 0,1—3% transfer tax which depends on the property location. Real estate owners pay an annual property tax of 0,1%—0,45% of the cadastral value. Landlords pay a 10% tax on rental income. Real estate sellers pay a capital gains tax of 10% on the difference between the sale and purchase prices.