There are no obstacles for foreigners to get the title for buildings, as well as real rights (right of use, right of construction). Up to now there is only one restriction: it is not allowed by law for foreigners to become owners of the land under the buildings they have bought.
They are not allowed to buy agricultural land as well (this is a Constitutional prohibition). This is true for physical persons. All restrictions become irrelevant if foreigners set up or join a company incorporated under the Bulgarian legislation, which can acquire full land ownership rights including ownership rights on agricultural land. Therefore one of the most common methods for foreigners to buy property in Bulgaria (houses with courtyards, land etc) is to set up a company which then owns the land and the buildings.
It is considered that in Bulgaria a real free market for land will be established some time after Bulgaria becomes part of EU. This historical restriction is one of the reasons why property in Bulgaria is so interesting to investors in Bulgaria. There are several guarantees competitively priced compared to Western and Central Europe.
Legal treatment of foreign for foreign investment in Bulgaria:
The obstacle for foreigners not able to own land in Bulgaria (a law that is liable to change soon) can be overcome by incorporating a company in Bulgaria and owning the land as an asset. The most common form of organization is a Limited Liability Company. Other types are General Partnership, Limited Partnership, Joint Stock Company, Sole Proprietorship, Joint Venture, Holding, Cooperatives, Branches and Representative Office.
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This article has been submitted by Lily Smith from Servo-Properties.