REITs in Bulgaria (ADSITs)
How a Bulgarian REIT works
- Legal form: a joint-stock company under the Special Purpose Investment Companies and Securitisation Companies Act that invests money raised from securities in real estate, or in receivables; one company can do only one of the two.
- Licence: the company applies to the Financial Supervision Commission within six months of registration, and the Commission decides within one month of a complete application.
- Listing: after the licence it must raise its capital by at least 30% through a public offering, and its shares are admitted to trading on a regulated market.
- Investors: the company is closed-ended, so investors exit by selling shares on the exchange; there are no restrictions on who can invest.
Source: Financial Supervision Commission: Special Purpose Investment Companies and Securitisation Companies Act, SG 71/2026 (PDF, in Bulgarian); CMS: Expert guide to popular investment vehicles, Bulgaria1,4
Accounting, property maintenance and similar work can be contracted out to third parties, with the contract approved in advance by the Financial Supervision Commission. The company’s money and securities are kept at a depositary bank.1
The main legal rules
| Rule | Requirement |
|---|---|
| Capital | At least €250,000, paid in cash |
| Assets | At least 70% in real estate at each quarter end |
| Income | At least 70% of gross revenue from the property business |
| Where it can buy | Bulgaria; another EU state or a country that has joined the OECD Code of Liberalisation of Capital Movements, if the articles and prospectus allow it |
| Construction | Cannot build itself; works are contracted out |
| Borrowing | Bank loans to buy and complete property; bonds admitted to trading; short-term loans up to 20% of assets for interest payments |
| Valuation | An independent valuer before each purchase or sale, with the price within 5% of the valuation; all property valued each year end |
| Other holdings | Up to 10% of assets in other REITs; up to 30% in special-purpose subsidiaries that buy and manage property |
Source: Financial Supervision Commission: Special Purpose Investment Companies and Securitisation Companies Act, SG 71/2026 (PDF, in Bulgarian)1
The rules come from the act as amended in State Gazette No 71 of 2026, published by the Financial Supervision Commission.1
Tax for the REIT and its investors
- The REIT: licensed special purpose investment companies are exempt from corporate income tax.
- Payout: the law requires at least 90% of the profit for the year to be paid out as dividends, within 12 months of the year end.
- Dividends: dividends to individuals and to companies outside the EU and EEA carry 5% withholding tax unless a tax treaty lowers it; dividends to companies resident in the EU or EEA are generally exempt. Some treaties set a separate 15% rate for REIT dividends.
- Selling shares: gains on REIT shares sold on a regulated market are tax-free, and buying shares carries no property transfer tax, while buying a building directly costs 0.1% to 3%.
Source: Ministry of Finance: Corporate income tax; Bulgarian Fund for Receivables ADSIC: Management report, 30 June 2026; PwC Worldwide Tax Summaries: Bulgaria, withholding taxes; CMS: Expert guide to popular investment vehicles, Bulgaria2,3,5,4
Other taxes on investment income are on Dividend Tax and Capital Gains Tax.
The largest listed REITs
Source: Stock Analysis: List of stocks on the Bulgarian Stock Exchange6
Stock Analysis lists 23 REITs among the 281 stocks on the exchange, the largest worth over €100 million and the smallest under €1 million. Advance Terrafund, the largest, paid a dividend of €0.065 a share on 22 June 2026.6,7
Market values change daily and differ between data providers. Check the latest price on the Bulgarian Stock Exchange before you invest; the market is covered on Bulgarian Stock Exchange.6
Frequently Asked Questions
What is a REIT in Bulgaria?
A Bulgarian REIT is a special purpose investment company, known as an ADSIT. It is a joint-stock company licensed by the Financial Supervision Commission that invests in real estate, and its shares are traded on the Bulgarian Stock Exchange.
Do Bulgarian REITs pay corporate tax?
No. Licensed special purpose investment companies are exempt from corporate income tax, but they must pay out at least 90% of their profit for the year as dividends within 12 months of the year end.
How are REIT dividends taxed in Bulgaria?
Dividends to individuals and to companies outside the EU and EEA carry 5% withholding tax unless a tax treaty lowers it. Gains on REIT shares sold on a regulated market are tax-free.
What are the rules for a Bulgarian REIT?
A REIT needs at least 250,000 euro of capital, must keep at least 70% of its assets in real estate and earn at least 70% of its revenue from it, cannot build itself and may borrow only from banks or through listed bonds. Each purchase or sale needs an independent valuation.
What are the largest REITs in Bulgaria?
By market value the largest include Advance Terrafund, Bulgarian Real Estate Fund, Balkan and Sea Properties, Sopharma Properties and Fairplay Properties. Market values change daily, so check the latest price on the exchange.
Sources
- Financial Supervision Commission: Special Purpose Investment Companies and Securitisation Companies Act, SG 71/2026 (PDF, in Bulgarian)
- Ministry of Finance: Corporate income tax
- Bulgarian Fund for Receivables ADSIC: Management report, 30 June 2026 (PDF)
- CMS: Expert guide to popular investment vehicles, Bulgaria
- PwC Worldwide Tax Summaries: Bulgaria, withholding taxes
- Stock Analysis: List of stocks on the Bulgarian Stock Exchange
- AIF: Advance Terrafund paid a dividend of €0.065 per share in 2026 (20 September 2026)
Figures checked 15 October 2026. Prepared by InvestBulgaria for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
