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
of housing in Bulgaria
€300,000
Minimum investment amount
to get a residence permit
to get a residence permit
3—11%
Buyers’ related expenses,
of the transaction amount
of the transaction amount
How the residential property price index is growing in Bulgaria
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
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—150per month |
Internet, TV and telephone |
€8—15per 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
real estate in Bulgaria
Expenses on the sale
Capital gains taxPaid on the difference between the purchase and sale prices |
10% |
Agency feeThe 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.
