Bulgaria property news and articles

Regulated and Unregulated Land

There are two broad definitions of land in Bulgaria: unregulated land and regulated land. Unregulated land in Bulgaria is land that has strict control over its use and what can be built on it. In most cases unregulated land is used for agricultural purposes, and only buildings associated with this sector are permitted to be built. It is possible to change the status of unregulated land in Bulgaria, but the process is complex and takes up to 18 months to complete. An EU citizen or company is now permitted to own agricultural land in Bulgaria as long as they are agricultural producers and are carrying out agricultural activities.

Regulated land in Bulgaria is land on which extensive building rights are permitted subject to observance of the appropriate planning rules and procedures. This land is generally found within urban areas and on its fringes (villas zones in Bulgaria) and also within village boundaries.

Apartments in Bulgaria

In Bulgaria one person can own the land but another person might be given the rights to build on and use the land for an indefinite period. This is why you are often able to buy an apartment in Bulgaria without having to register a company, because you are only buying the actual apartment and the right for construction on the land for that apartment, but not the land itself.

When buying an apartment in Bulgaria you should bear in mind that you become not just the owner of the apartment you choose, but in addition the co-owner, with all the other people in the block, of the common parts of the building. These common parts include, for example, the foundations, external walls, internal walls dividing the different apartments, the stairs, water and sewage pipes, and so forth. When you buy an apartment in Bulgaria you are often quoted a price for the apartment plus the price in addition for the common parts.

Sometimes the developer sells the apartment with a share of the ownership of the land. In this instance it is necessary to register a Bulgarian company if you wish to take ownership of your share of the land.

As co-owners of a common area, each person in the block has an obligation to contribute towards the upkeep of these areas. The people in the block should form a committee that decides on what works are to be done. The idea makes sense but it is not effectively executed in all cases. In many instances you may find that other co-owners in the block are unwilling to contribute, even though in law they are obliged to, and you might be faced with either the works not being done or having to pay an unequal share towards doing the works.

Restitution of Land in Bulgaria

After the collapse of Communism the state started a process called restitution whereby the land that was taken from the original owners was returned to their ownership. It is with agricultural land that the vast majority of these claims has had effect. It is very important when buying land in Bulgaria that you check i with the relevant bodies of the Ministry of Agriculture and Forestry to ensure that there are no outstanding restitution issues.

The ‘Ideal Share’ of Land in Bulgaria

Occasionally in Bulgaria you hear the expression that someone owns an ‘ideal share’ of the land. This means that there is one legal plot jointly owned by more than one owner. A share (expressed either as a percentage or as an absolute figure) of the plot will be allocated to each owner of a property. The actual physical location of the ideal share of the land is never defined. It is possible for the group of owners to make informal arrangements among themselves to create their own private space from the share of the land they are allocated.

If you own an ideal share of the land in Bulgaria it can make it difficult to do any building works connected with the plot because you need the agreement of all the owners. This also applies to selling the Bulgarian property. You will need to offer the Bulgarian property to the other owners first before you can offer it to someone else.

Commercial Properties in Bulgaria

If you are buying a commercial property in Bulgaria such as a bar, hotel or office, you should ensure that the property has obtained all the correct planning approvals. Likewise, if you are buying a property in Bulgaria and want to convert it to another function, you will have to apply for a change-of-use permit.