Concept
Bulgaria is the most popular and legally trickiest market of the eleven in our series — compare permit-driven Austria: the coast has a large community of Russian-speaking owners, yet only a handful know the ownership rules. Over the past two years, the country has changed more than in the previous twenty. As of January 1, 2025, Bulgaria is fully in Schengen; as of January 1, 2026, it joins the eurozone with a fixed conversion rate of 1.95583 leva per euro. Prices throughout 2025 grew at double-digit rates in anticipation of the euro.
The key legal feature of the market is simple, but people constantly stumble over it. Apartments and buildings can be purchased directly by a foreigner of any nationality, without restrictions. However, land—including the plot under a house and the yard—cannot be personally purchased by a citizen of a country outside the EU and EEA: this is a constitutional prohibition, and short of a ratified international treaty its only exception is inheritance by law (Constitution, art. 22; Ownership Act, art. 29). The standard and completely legal solution is a Bulgarian limited liability company with a single member, EOOD: a company with one hundred percent foreign ownership can buy building plots and other non-agricultural land, including the plot under a house; agricultural land stays closed to companies whose partners are nationals or entities from outside the EU and EEA (Agricultural Land Act, art. 3(7)).
How the Transaction Works
Neither residency nor a visa is required for purchase. The scheme is straightforward: preliminary contract with a deposit of about ten percent, then a notarial deed at a notary in the location of the property and registration in the property registry on the same day. Taxes and fees are calculated on the higher of two values—the price and the municipal tax assessment. Cash is strictly limited: anything above the equivalent of ten thousand leva (about €5,113 since the euro changeover) must be transferred by bank, and the notary verifies this (Notaries Act, art. 25(9)–(10)).
There's a detail that almost all foreign buyers forget: an owner without a Bulgarian personal number is obliged to register in the BULSTAT registry within seven days after the transaction. Annual taxes are assessed under this number; there's a fine for late registration.
Total transaction costs are modest, usually four to seven percent: local transfer tax from 0.1 to 3% (Sofia and major cities maintain the maximum), notary according to a tariff schedule with a ceiling of about three thousand euros, registration 0.1%, agency two and a half to three percent. New construction from developers is sold with twenty percent VAT included in the price; when buying at the construction stage, the main checkpoint is Act 16, the protocol establishing that the building is fit for use, and the permit for use issued on its basis (Ordinance No 3 of 2003, art. 7(3)(16); Spatial Development Act, art. 177).
What Purchase Provides: Residence Permit
Bulgaria is a rare exception in Europe in 2026: an investment of at least 600,000 leva (€306,775 at the fixed rate) in Bulgarian real estate grants the right to renewable stay, an annual residence permit with yearly renewal — a de facto golden visa in a segment where most EU countries have closed theirs. The conditions are formal and verifiable: money for the property must pass through a Bulgarian bank, mortgage—no more than a quarter of the value; both personal ownership and a company in which the applicant holds more than half of the capital qualify (Foreigners Act, art. 24(1)(19)). After five years of continuous residence permit, one can apply for permanent residence. Cheaper real estate also works for status—as address confirmation for other grounds, such as pension or trade representation.
Schengen membership has changed the arithmetic of travel in both directions. Bulgarian days now count toward the general limit of ninety out of one hundred eighty, and visas have become Schengen—for an owner without a residence permit, getting to their own apartment has become more difficult than before 31 March 2024, when the Schengen visa and short-stay rules began to apply in Bulgaria (Council Decision (EU) 2024/3212). This is another argument for obtaining a residence permit for those who actually use the property.
Ownership, Rental, Exit
Maintenance is minimal. Annual property tax ranges from hundredths to 0.45% of the tax assessment, plus a garbage collection fee—for a typical resort apartment, everything together comes to hundreds of euros per year. Rental income of a non-resident bears a flat ten percent final tax, withheld by the tenant when it is a business and otherwise paid by the owner (Personal Income Taxes Act, arts. 37, 46 and 65). There is no wealth tax.
Upon sale, a non-resident pays ten percent on the gain. The benefit "one residential property owned for more than three years—tax-free" extends to non-residents only if they are tax-resident in the EU or EEA—a Russian resident is not entitled to it (Personal Income Taxes Act, arts. 13(1)(1) and 37(7)). For land properties, there's an alternative exit: sell not the real estate, but the EOOD shares.
The flip side of EOOD: registration costs €500–1,000 with symbolic capital, but the company is live—annual reporting is mandatory even without activity and costs €300–700 per year for an accountant. For a Russian tax resident, also check CFC status and the participation or control tests that trigger notification and reporting. Bulgarian law does not recognize trusts. (Sources: FNS: CFC).
Inheritance
Inheritance tax for spouse and direct line is zero; siblings and their children pay a municipal 0.4–0.8%, other heirs 3.3–6.6%, on the share exceeding 250,000 leva (€127,823) (Local Taxes and Fees Act, arts. 31 and 36). There is a mandatory share—zapazena chast—for children, spouse, and parents, and, as everywhere in the EU, a foreigner can choose their national law by will under Regulation 650/2012. A useful feature: through inheritance by law, a citizen of a country outside the EU and EEA can receive even land—that very constitutional exception to the land prohibition; inherited agricultural land must be sold to an eligible buyer within three years (Agricultural Land Act, art. 3b).
Russian Passport
After 2022, the main problem with a Bulgarian portfolio is operational. Transfers from Russian banks don't go through, Bulgarian banks are reluctant to open accounts for Russian residents—both the €100,000 limit under Article 5b and their own de-risking play a role—paying annual taxes from Russia is inconvenient, and visits to one's own apartment require a Schengen visa. Hence the noticeable wave of sales by Russian owners in 2022–2025—and a mirror opportunity for buyers with an established payment route: the selection of properties on the secondary market is wide, and bargaining is appropriate. How to build a route—in the hub.
Bulgaria-2026 is no longer "cheap exotica," but a Schengen euro-jurisdiction with minimal taxes (ten percent on almost everything) and one of the lowest property-for-residence thresholds in the hub: 600,000 leva, and permanent residence after five years.
Q/A
Residence through a property purchase
Does buying any apartment in Bulgaria create a right of residence?
No. Ordinary ownership of real estate does not by itself create immigration status. The specific Article 24 route requires an investment of at least BGN 600,000 in Bulgarian property and a separate residence application; payment and the other statutory conditions must also be evidenced.
Can the qualifying purchase be financed with a mortgage?
Yes, but for the Article 24 route the outstanding loan at the time of application must not exceed 25% of the acquisition value of the property. The bank, source of the buyer’s own funds, payment evidence and title are examined separately, so a conventional highly leveraged mortgage may not qualify.
Can a Bulgarian company hold the property for this route?
Yes. The statute permits the route where the applicant owns more than 50% of a Bulgarian company and that company has acquired property worth at least BGN 600,000 with fully paid capital. The corporate wrapper does not remove the investment, payment and immigration checks.
Permanent status and tax residence
Does permanent status arise automatically after five years?
No. Five years of owning the property or renewing permits does not automatically convert into permanent residence. Long-term or permanent status requires a separate application and proof of the applicable legal basis, continuity of lawful residence and compliance with the permitted periods of absence.
Does buying property make the owner Bulgarian tax-resident?
Not automatically. Tax residence is determined under separate tests, including time spent in Bulgaria, a permanent home, the centre of vital interests and any applicable treaty. Property ownership may be one relevant fact, but neither title nor a residence permit replaces the tax-residence analysis.