Land aquisition in Bulgaria
The citizens of Great Britain can no longer buy land and Land aquisition in Bulgaria
As of January 1, 2021, following the United Kingdom’s departure from the European Union, British citizens and companies are classified as nationals of a third country concerning property ownership in Bulgaria.
This reclassification imposes specific restrictions on land acquisition, particularly affecting the purchase of land, including agricultural and forest land.
Restrictions on Land Ownership for UK Nationals
British nationals are prohibited from acquiring land in Bulgaria through transactions such as purchase, exchange, or donation.
The only exceptions are:
- Inheritance by Law: UK citizens can acquire land through legal inheritance.
- Pre-Brexit Ownership: Properties acquired before December 31, 2020, remain unaffected, and ownership rights are preserved under the Bulgarian Constitution.
These restrictions stem from Article 22 of the Bulgarian Constitution, which limits land ownership by foreign nationals unless permitted by an international treaty ratified by Bulgaria.
Alternative Pathways for Land Acquisition
Despite these limitations, there are legal avenues for British nationals to acquire land in Bulgaria:
- Company Formation: Establishing a Bulgarian-registered company allows foreign nationals to purchase land categorized as urban or regulated.
This method does not extend to agricultural land, which remains restricted.
The process involves registering a company with the Bulgarian Commercial Register
This can be completed with a minimum capital requirement and involves specific legal and administrative steps
- Residency Requirements: Foreign nationals who have resided in Bulgaria for more than five years may become eligible to purchase agricultural land
Recent Developments for EU Citizens
In March 2024, the European Court of Justice ruled against Bulgaria’s restrictions on EU citizens purchasing agricultural land, deeming them incompatible with EU law.
This decision effectively lifts previous residency requirements for EU nationals, allowing them to acquire agricultural land without the prior five-year residency condition.
Legal Considerations and Recommendations
Given the complexities of Bulgarian property law, it is advisable for prospective buyers to consult with legal professionals specializing in Bulgarian real estate.
This ensures compliance with current regulations and helps navigate the nuances of property acquisition, especially for foreign nationals.
For UK citizens, understanding the post-Brexit legal landscape is crucial for making informed decisions regarding property investments in Bulgaria.
