Real Estate
Property in a Growing Capital
New-build prices, what foreigners can buy, the costs of a purchase and the tax on rental income, with every figure linked to its source.
Sofia new-build market · Checked October 2026
Who can buy what
Foreign individuals and companies can own buildings and apartments in Bulgaria. Ownership of land depends on nationality:
| Property | EU and EEA citizens | Other nationalities |
|---|---|---|
| Apartments and buildings | Yes | Yes |
| Land, including the plot under a house | Yes | Not in their own name. A Bulgarian company is the usual route for urban plots. |
| Agricultural and forest land | Yes, under the conditions of the Accession Treaty | Restricted, including for companies with foreign shareholders |
The rules come from Article 22 of the Constitution and the Agricultural Land Ownership and Use Act. Ask a lawyer to confirm the position for your nationality and the specific plot before you sign anything.
How a purchase works
- Check the property. A lawyer confirms ownership, encumbrances and building permits in the Property Register and the municipality's records.
- Preliminary contract and deposit. Usual for new builds, where payments are often staged with construction.
- Notary deed. Title passes when the deed is signed before a Bulgarian notary, who checks that taxes and fees have been paid.
- Registration. The deed is entered in the Property Register at the Registry Agency.
Most new apartments are sold at the shell-and-plaster stage. Budget for finishing on top of the price: Colliers puts it at roughly €500 per m².
Costs of buying
- Transfer tax: 0.1% to 3% of the property's value. Each municipality sets its own rate.
- Registration fee: 0.1% for entering the deed in the Property Register.
- Notary fee: set on a regulated sliding scale according to the property's value.
- VAT: new buildings sold by a VAT-registered developer include 20% VAT. Asking prices are often quoted without it.
- Lawyer and agent: agreed with each adviser. Ask an agent who pays the commission before you view.
Owning and renting out
- Annual property tax: 0.01% to 0.45% of the property's tax value, set by the municipality, plus a municipal waste collection fee.
- Rental income for individuals: taxed at 10% after a flat 10% allowance for expenses, an effective 9% of gross rent. Non-residents pay the same 10% as a final tax.
- Selling: gains on the sale of property by individuals are generally taxed at 10%, subject to certain exemptions.
- Owning through a company: rental profit is taxed at the 10% corporate rate, then 5% on any dividend.
Investor tool
Rental Yield Calculator
Enter a price and rent to see gross and net yield for an individual landlord, after costs and the 10% rental tax with its 10% expense allowance.
Information only. Your real return depends on financing, vacancy, furnishing and your tax position.
Property and residency
Buying property does not by itself give a right to live in Bulgaria. For citizens of countries outside the EU, a long-stay Type D visa and a prolonged residence permit can be granted to people who have invested at least BGN 600,000 (about €306,775) in Bulgarian real estate, directly or through a company they control. See Residency for the other routes.
This guide is a general summary, not legal or tax advice. Figures were checked against the sources below in October 2026.
Sources
- BTA: 7,630 apartments under construction listed for sale in Sofia (Colliers)
- Vesti.bg: The real price of a new home in Sofia (in Bulgarian)
- Bulgarian Properties: Sofia housing market in Q1 2026 (BNB mortgage data)
- European Land Registry Association: Bulgaria, limitations to foreigners
- Deloitte: International Tax, Bulgaria Highlights 2026
- RSM Bulgaria: Real estate tax factsheet 2026 (PDF)
- Global Law Experts: Selling or renting property in Bulgaria in 2026, tax and cash flow
- EU Immigration Portal: Investors in Bulgaria
Step by step
How to buy property in Bulgaria
Buying property in Bulgaria involves checking the property, signing a preliminary contract where applicable, completing a notary deed and registering it.
-
Check the property
Have a lawyer confirm ownership, encumbrances and building permits in the Property Register and the municipality's records.
-
Sign a preliminary contract
A preliminary contract and deposit are usual for new builds, where payments are often staged with construction.
-
Sign the notary deed
Sign the deed before a Bulgarian notary. Title passes at signing, and the notary checks that taxes and fees have been paid.
-
Register the deed
Enter the deed in the Property Register at the Registry Agency.
Frequently Asked Questions
What is the average price of a new-build flat in Sofia, Bulgaria?
The average asking price for new-build flats in Sofia is €2,070 per m², excluding VAT. Most new apartments are sold at the shell-and-plaster stage, with finishing costing roughly €500 per m² on top.
Can foreigners buy land in Bulgaria?
EU and EEA citizens can own land in Bulgaria, while other foreign nationals cannot own it in their own name; a Bulgarian company is the usual route for urban plots. Agricultural and forest land is restricted, including for companies with foreign shareholders.
What taxes do individuals pay on rental income in Bulgaria?
Individuals pay 10% tax on rental income after a flat 10% expense allowance, making the effective tax 9% of gross rent. Non-residents pay the same 10% rate as a final tax.
What are the costs of buying property in Bulgaria?
Property buyers pay transfer tax of 0.1% to 3% of the property value, a 0.1% registration fee and a notary fee set on a regulated sliding scale. New buildings sold by a VAT-registered developer include 20% VAT, although asking prices are often quoted without it.
Does buying property in Bulgaria give you residency?
Buying property in Bulgaria does not by itself give you the right to live there. Citizens of countries outside the EU may qualify for a long-stay Type D visa and prolonged residence permit after investing at least BGN 600,000, about €306,775, in Bulgarian real estate, directly or through a company they control.
Next step
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