May foreigners and foreign legal entities acquire land and real estates on the territory of the Republic of Bulgaria?
I. Acquisition of a right of ownership and limited real rights over land and real estates by citizens and legal persons of the Member States of the European Union and of the states - parties to the European Economic Area Agreement
Citizens and legal persons of the Member States of the European Union or of the states - parties to the European Economic Area Agreement, may acquire a right of ownership over land by complying with the requirements provided by law, according to the conditions of the Treaty of Accession of the Republic of Bulgaria to the European Union.
Under the Treaty of Accession of the Republic of Bulgaria to the European Union the Republic of Bulgaria could keep in force the existing legislative restrictions on the acquisition of ownership of land for second home (for a period of five years with effect from 01.01.2007) and on acquisition of ownership of agricultural land, forests and forestry land (for a period of seven years with effect from 01.01.2007) by citizens and legal persons of the Member States of the European Union or of the states - parties to the European Economic Area Agreement.
Citizens of the Member States of the European Union - individually occupied farmers, who wish to settle and reside permanently in the Republic of Bulgaria and who are registered in that capacity pursuant to the procedure of the BULSTAT Register Act, may acquire a right of ownership over agricultural and forestry lands for agricultural use from the date of the entry into force of the Treaty of Accession of the Republic of Bulgaria to the European Union (since 01.01.2007).
Foreign citizens and foreign legal persons of the Member States of the European Union or of the states - parties to the European Economic Area Agreement may acquire a right of ownership over buildings and limited real rights over immovable property in the country, unless otherwise provided by law.
II. Acquisition of a right of ownership and limited real rights over land and real estates by foreign citizens and foreign legal persons of third states
Foreign citizens and foreign legal persons of third states may acquire a right of ownership over land under the conditions of an international treaty which has been ratified, promulgated and has entered into force for the Republic of Bulgaria, and the foreign citizens - also by inheritance by law.
Foreign citizens and foreign legal persons of third states may acquire a right of ownership over buildings and limited real rights over immovable property in the country, unless otherwise provided by law.
III. Acquisition of a right of ownership over agricultural lands by foreigners via inheritance by law
Foreigners who acquire a right of ownership over agricultural lands by inheritance by law but who do not fulfil the conditions provided for in the Treaty of Accession of the Republic of Bulgaria to the European Union, or when something else is not provided for in an international treaty, which has been ratified, promulgated and has entered into force for the Republic of Bulgaria, are obliged, within a three year term following the revealing of the inheritance, to transfer the ownership to persons who are entitled to acquire such estates. For the same persons, to whom a right of ownership over agricultural lands has been restored, the three year term for the transfer of the ownership runs from the moment of its restoration.
IV. Acquisition of a right of ownership over agricultural lands by natural and legal persons via residence/establishment in the Republic of Bulgaria
A right of ownership over agricultural lands may be acquired by natural or legal persons who have resided or established in the Republic of Bulgaria for more than 5 years. This rule does not apply to the acquisition of a right of ownership over agricultural lands by inheritance by law. Legal persons, registered under the Bulgarian legislation before less than 5 years may acquire a right of ownership over agricultural lands, where the partners of the company, the members of the association or the founders of the joint-stock company meet the foregoing requirement.
V. Persons that may not acquire and possess a right of ownership over agricultural lands
A right of ownership over agricultural lands may not be acquired and possessed by: commercial companies in which the partners or shareholders are directly or indirectly companies, registered in jurisdictions with preferential tax regime; commercial companies in which the partners or shareholders are foreigners or foreign legal persons who do not fulfil the above conditions for acquisition of a right of ownership over agricultural lands and sole commercial companies established by such natural or legal persons; joint-stock companies which have issued bearer shares.
VI. Acquisition of a right of ownership over land and real estates by foreign citizens and foreign legal persons via Bulgarian legal entity
Foreign citizens and foreign legal persons may acquire a right of ownership over land and real estates in Bulgaria and through: buying shares of the capital of existing Bulgarian legal persons which already own or will acquire such right of ownership; registration of new legal entities in Bulgaria which will acquire such right of ownership.
VII. Transfer of a real estate
The contracts for transfer of ownership or establishment of other real rights (a right of use, a right of construction, an easement) over immovable property must be in the form of a notary deed issued by а notary in the region where the immovable property is located. The notary deed has to be entered in the Property Register in order to be able the acquirer of the property to protect his right of ownership from third parties’ claims.
The notary deed of sale of immovable property must contain a purchase price of the property. Under the Law on Limitation of Cash Payments the payments on the territory of the Republic of Bulgaria have to be made only via bank transfers or deposits to payment accounts where: their value is equal to or in excess of 10 000 levs; their value is below 10 000 levs where they are part of a monetary consideration under a contract the value of which is equal to or in excess of 10 000 levs; in the cases of payments in foreign currencies where their equivalent in Bulgarian levs is equal to or in excess of 10 000 levs (about 5 000 euros).
It is sufficient only simple written form for disposition of real estates - private state or municipal property. Special rules regulate the acquisition of immovable property: as a kind contribution; in the enforcement proceedings; in the bankruptcy proceedings; in the liquidation proceedings and others.
