Bulgaria: Regime for acquisition of a real estate by foreign citizens and foreign legal entities. Restrictions and their overcoming.

2 min.

According to the effective Bulgarian legislation, foreigners and foreign legal entities can freely acquire built real estate, indivisible shares and rights to build them (buildings, residential, office, commercial and other sites) in Bulgaria, which by law are not explicitly excluded from civil turnover (such as cultural property and other state monopolies).
Restrictions exist on the acquisition by such persons a right of ownership of a land under Article 22 of the Constitution of Republic of Bulgaria, Article 29 and Article 29a of the Ownership Act and Annex VI, Section 3 of the Treaty of Accession of Bulgaria and Romania to the EU.

One limitation concerns the acquisition of ownership over a land for secondary residences by foreigners who are not lawful permanent resident in Bulgaria. Real problem arises when a foreigner wishes to purchase the Building (apartment, office, shop, etc.), as usually each of them is transferred with an indivisible share of the land on which they are built. In practice the Building cannot be transferred separately, without its adjoining indivisible shares of the land. But on the other hand, such a transaction (notary deed) for acquisition by a foreign person is invalid (i.e. it has not acquired ownership of the land). The restriction will be abolished on 31.12.2011.

The other restrictive regime is related to the acquisition of agricultural land, forests and forest land in Bulgaria by foreigners, which does not cover self-employed farmers who are nationals of another Member State and wishing to establish themselves and legally reside in Bulgaria. This restriction should be removed seven years after the accession of Bulgaria to the EU, i.e. on 31.12.2013.

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