For foreigners seeking property in Bulgaria, navigating ownership laws is crucial. While direct ownership of land by foreign individuals is restricted (particularly agricultural land, a constitutional prohibition), there are no limitations on owning buildings or real rights associated with them, such as usage or construction rights.
The primary obstacle – the inability of foreign individuals to own land – is readily overcome by establishing a Bulgarian-registered company. This company can then legally acquire full land ownership rights, including agricultural land. This approach is a common practice for foreigners purchasing houses with gardens or other land parcels.
Bulgaria’s real estate market remains competitively priced compared to Western and Central Europe, partly due to historical land ownership restrictions. The anticipation of a fully open land market following Bulgaria’s EU integration further influences investment decisions.
Foreign investments in Bulgaria benefit from strong legal protections:
* **National Treatment:** Foreign investors receive the same legal treatment as Bulgarian citizens.
* **Most Favored Nation Status:** Foreign investors receive treatment no less favorable than that granted to investors from any other country.
* **Priority of International Treaties:** International treaties supersede national law.
* **Legal Guarantees Against Adverse Changes:** Investments are protected by the laws in effect at the time of the investment, safeguarding against restrictive legislative changes.
* **Protection Against Expropriation:** Expropriation of foreign-owned property is only permitted on lawful grounds.
The Limited Liability Company (LLC) is the most popular business structure for foreign property acquisition, allowing the company to hold the land as an asset. Other business forms include General Partnerships, Limited Partnerships, Joint Stock Companies, Sole Proprietorships, Joint Ventures, Holdings, Cooperatives, and Branches/Representative Offices.