A simple Bulgarian Property Glossary:
Key Terms, Myths & Facts
ACT 16
Become an instant property guru by casually mentioning “Act 16”.
Myth: A document determining the legality of a property
Fact: ACT 16 is not a document but a status, applicable to any property constructed post-2000. Older properties neither have nor require ACT 16
Myth: A document determining the legality of a property
Fact: ACT 16 is not a document but a status, applicable to any property constructed post-2000. Older properties neither have nor require ACT 16
TAX VALUATION
Newton’s differential calculus or Lucky Numbers - regional variations apply.
Myth: A property valuation, the official value of your property.
Fact: A tax value based on statutory formula. Used for determining annual taxes and transfer tax. Not the sale or market value. Valid 6-12 months from issue.
Myth: A property valuation, the official value of your property.
Fact: A tax value based on statutory formula. Used for determining annual taxes and transfer tax. Not the sale or market value. Valid 6-12 months from issue.
POWER OF ATTORNEY
A document mystified by American pop culture.
Myth: POA grants full control of your assets.
Fact: There is no undefined “general” POA. A POA can strictly define an exact duty the empowered may perform. An example: “Transfer property in Gabrovo for price of €XXXX”. An expiry term may also apply.
Myth: POA grants full control of your assets.
Fact: There is no undefined “general” POA. A POA can strictly define an exact duty the empowered may perform. An example: “Transfer property in Gabrovo for price of €XXXX”. An expiry term may also apply.
SKITSA
Everyone’s first Bulgarian word, before Pechka and Rakia.
Myth: A Skitsa is an ownership document and permanent land record
Fact: A Skitsa is an extract of land records / cadastral maps. Regional variations apply, with validity ranging 6 to 12 months from issue.
Myth: A Skitsa is an ownership document and permanent land record
Fact: A Skitsa is an extract of land records / cadastral maps. Regional variations apply, with validity ranging 6 to 12 months from issue.
NOTARY ACT
The deeds. Congratulations on your house purchase!
Myth: Deeds are handed over like keys
Fact: A new Notary Act is issued by a notary upon completing a transfer of ownership, incorporating the new owner’s details and property purchase price.
Myth: Deeds are handed over like keys
Fact: A new Notary Act is issued by a notary upon completing a transfer of ownership, incorporating the new owner’s details and property purchase price.
NOTARY
You beat the broker, collected all documents and now… the final boss.
Myth: A notary is a type of solicitor who represents themselves.
Fact: A notary is a state-appointed official. Only a notary can approve and conclude a transfer of ownership. Without a notary, there is no Notary Act (deeds).
Myth: A notary is a type of solicitor who represents themselves.
Fact: A notary is a state-appointed official. Only a notary can approve and conclude a transfer of ownership. Without a notary, there is no Notary Act (deeds).
LAWYER
Like agents and builders, lawyers come in many flavours.
Myth: A lawyer does all the work and assumes full accountability.
Fact: A lawyer advises or represents one party. They do not hold, nor replace, the legal authority of a notary. Ethical lawyers clarify roles and responsibilities transparently from the outset.
Myth: A lawyer does all the work and assumes full accountability.
Fact: A lawyer advises or represents one party. They do not hold, nor replace, the legal authority of a notary. Ethical lawyers clarify roles and responsibilities transparently from the outset.
ESTATE AGENT
The good, the bad and the Modern Cult Leader.
Myth: Estate Agents are Sellers you “buy” from.
Fact: An Estate Agent works on a commission basis, connecting or representing buyer and seller (different to Bulgariadirect).
Myth: Estate Agents are Sellers you “buy” from.
Fact: An Estate Agent works on a commission basis, connecting or representing buyer and seller (different to Bulgariadirect).
BROKER
90s Balkan quasi-agents, pioneers of the free market.
Myth: Same as Estate Agents.
Fact: A growingly obscure fringe practice merging towards modern Estate Agentism movements. Often the only go-to for purely offline buying experiences.
Myth: Same as Estate Agents.
Fact: A growingly obscure fringe practice merging towards modern Estate Agentism movements. Often the only go-to for purely offline buying experiences.
VILLAGE MAYOR
A village elder, most active ahead of elections.
Myth: A Mayor’s main duty in office is showing properties for sale.
Fact: Mayors are elected politicians, almost always members of major parties. They may, though are not obliged to help.
Myth: A Mayor’s main duty in office is showing properties for sale.
Fact: Mayors are elected politicians, almost always members of major parties. They may, though are not obliged to help.
D VISA
An expensive, complicated, oftentimes unnecessary process.
Myth: A visa anyone with the right connections can buy.
Fact: Information on requirements and qualification categories is freely attainable from official sources.
Myth: A visa anyone with the right connections can buy.
Fact: Information on requirements and qualification categories is freely attainable from official sources.
RESIDENCE PERMIT
A badge of honour and commitment, flash it with pride.
Myth: A residence permit is proof of identity, a travel document.
Fact: A residence permit permits residence. Nothing more.
Myth: A residence permit is proof of identity, a travel document.
Fact: A residence permit permits residence. Nothing more.
BANK ACCOUNT
A humbling exercise in patience, incompatible with western entitlement.
Myth: Every property owner must have a local bank account.
Fact: Due to increasing regulations and decreasing incentives, Bulgarian banks are cautious with foreign applicants. Revolut is your friend.
Myth: Every property owner must have a local bank account.
Fact: Due to increasing regulations and decreasing incentives, Bulgarian banks are cautious with foreign applicants. Revolut is your friend.
COMPANY
The Non-EU national’s passport to home ownership.
Myth: Companies must operate and hire local staff.
Fact: Forming a company is a formality for Non-EU buyers, granting the right to purchase building land and forest land in Bulgaria. Companies need not trade and may be formed solely to hold property.
Myth: Companies must operate and hire local staff.
Fact: Forming a company is a formality for Non-EU buyers, granting the right to purchase building land and forest land in Bulgaria. Companies need not trade and may be formed solely to hold property.
ACCOUNTANCY
A universal administrative reality
Myth: A non-trading company need never file returns.
Fact: When a company carries out activity (i.e purchasing property), annual filings apply. Once dormant, a zero return removes future filing declarations (subject to ongoing debate, and individual interpretations of regular amendments)
Myth: A non-trading company need never file returns.
Fact: When a company carries out activity (i.e purchasing property), annual filings apply. Once dormant, a zero return removes future filing declarations (subject to ongoing debate, and individual interpretations of regular amendments)
PROPERTY (COUNCIL) TAX
Unfortunately so, budget for under €100 per year.
Myth: Vacant homes are exempt.
Fact: Council tax supports your village. Qualify for a 5% discount by paying early each year.
Myth: Vacant homes are exempt.
Fact: Council tax supports your village. Qualify for a 5% discount by paying early each year.
ADDRESS & POSTCODE
A foreign concept.
Myth: No country functions without proper street names and postcodes.
Fact: Entire generations (and post offices) survived without using or knowing their postcodes. Many streets bare no name. You know you’ve fully settled in Bulgaria when you figure out the postal system.
Myth: No country functions without proper street names and postcodes.
Fact: Entire generations (and post offices) survived without using or knowing their postcodes. Many streets bare no name. You know you’ve fully settled in Bulgaria when you figure out the postal system.
SEPTIC TANK
A banal fixation, popular among distance buyers.
Myth: A septic tank is a sealed sewage system only Brits and Germans can install
Fact: “septic tank” often means soakaway or cesspit. Whilst most would not meet “Western standards”, Bulgarians continue meeting daily hygiene needs.
Myth: A septic tank is a sealed sewage system only Brits and Germans can install
Fact: “septic tank” often means soakaway or cesspit. Whilst most would not meet “Western standards”, Bulgarians continue meeting daily hygiene needs.
EUROZONE
Greece, Spain and why the France are these countries comparable.
Myth: Property prices will explode overnight.
Fact: No precedent exists. Holding Europe’s longest currency board (peg) first to the Deutsche Mark, followed by Euro, Bulgaria is a unique entry.
Myth: Property prices will explode overnight.
Fact: No precedent exists. Holding Europe’s longest currency board (peg) first to the Deutsche Mark, followed by Euro, Bulgaria is a unique entry.
MAESTORI / BUILDERS
Building work, dentistry or counselling, your village builder does them all.
Myth: “Maestori” translates to Master Craftsmen
Fact: Brit or Bulgarian, skilled maestori are in demand and increasingly selective. Cheap, readily available labour often costs more in the end.
Myth: “Maestori” translates to Master Craftsmen
Fact: Brit or Bulgarian, skilled maestori are in demand and increasingly selective. Cheap, readily available labour often costs more in the end.
BREXIT
Blame Bulgaria.
Myth: pre-Brexit laws governing Non-EU nationals do not apply to British citizens.
Fact: Following the referendum, Bulgaria’s prime minister announced all British residents are welcome to apply for citizenship. Bulgaria offers one of Europe’s most straightforward citizenship programmes, subject to language proficiency.
Myth: pre-Brexit laws governing Non-EU nationals do not apply to British citizens.
Fact: Following the referendum, Bulgaria’s prime minister announced all British residents are welcome to apply for citizenship. Bulgaria offers one of Europe’s most straightforward citizenship programmes, subject to language proficiency.
EXPAT
An umbrella term for foreign residents.
Myth: Shared nationality means shared interest and friendship.
Fact: It does not. Shared nationality rarely equates to long term loyalty. Don’t rush to jump into business or jump into anywhere else, with the first fellow countryman. Remember, Bulgarians also know a little about Bulgaria.
Myth: Shared nationality means shared interest and friendship.
Fact: It does not. Shared nationality rarely equates to long term loyalty. Don’t rush to jump into business or jump into anywhere else, with the first fellow countryman. Remember, Bulgarians also know a little about Bulgaria.
ROMA
Another umbrella term describing several ethnic subgroups.
Myth: Roma are nomadic, similar to UK and Irish travelling community.
Fact: With origins tracing back to Northwest India, Roma settled in Bulgaria during the 14th century. Despite international origin, Roma do not identify as expat.
Myth: Roma are nomadic, similar to UK and Irish travelling community.
Fact: With origins tracing back to Northwest India, Roma settled in Bulgaria during the 14th century. Despite international origin, Roma do not identify as expat.
ABANDONED HOUSES
An ambiguous, often inaccurate term.
Myth: Abandoned means unowned.
Fact: Despite her excitement, Janet was not the first to eye the
abandoned house in VT old town. Most truly abandoned houses lack documentation, end of.
Myth: Abandoned means unowned.
Fact: Despite her excitement, Janet was not the first to eye the
abandoned house in VT old town. Most truly abandoned houses lack documentation, end of.
£7K HOUSES
Formerly known as £3K houses during the pre-boom period.
Myth: Any fixer-upper, anywhere in Bulgaria costs £7,000.
Fact: They still exist in pockets of certain regions, a fun rite of passage for some and a hard lesson for others.
Myth: Any fixer-upper, anywhere in Bulgaria costs £7,000.
Fact: They still exist in pockets of certain regions, a fun rite of passage for some and a hard lesson for others.
FARMLAND
Buy land, they’re not making it anymore.
Myth: Worthless due to lack of building rights.
Fact: The strongest performing property sector over the past two decades, recording average growth of over 1,000% per 1,000 m².
Tax-free.
Myth: Worthless due to lack of building rights.
Fact: The strongest performing property sector over the past two decades, recording average growth of over 1,000% per 1,000 m².
Tax-free.
FOREST
The armchair investor’s choice.
Myth: Like farmland.
Fact: Tax-free. Passive appreciation without maintenance. Forest land has outperformed conventional real estate over the past twenty years.
Myth: Like farmland.
Fact: Tax-free. Passive appreciation without maintenance. Forest land has outperformed conventional real estate over the past twenty years.
GORNA AIRPORT
We regret to inform passengers there has been a delay…
Myth: Gorna Airport will reopen any day now.
Fact: Holding IATA code GOZ the airport is operational. Improved railways, roads and environmental concerns make the case for recommencing scheduled flights uncertain.
Myth: Gorna Airport will reopen any day now.
Fact: Holding IATA code GOZ the airport is operational. Improved railways, roads and environmental concerns make the case for recommencing scheduled flights uncertain.
HEMUS MOTORWAY
A motorway measured in decades, not kilometres.
Myth: The motorway will pass through your living room.
Fact: Bulgaria’s first motorway, under snail- pace construction since 1974. The Sofia-Varna motorway remains in progress, with sections already improving travel times and property values.
Myth: The motorway will pass through your living room.
Fact: Bulgaria’s first motorway, under snail- pace construction since 1974. The Sofia-Varna motorway remains in progress, with sections already improving travel times and property values.
SUNNY BEACH
A summer masterclass in refined etiquette.
Myth: Bulgaria has two regions: Sunny Beach and Greater Sunny Beach.
Fact: Among the 18-30 crowd, the police station and hospital rank among the more frequently visited tourist attractions. Bulgaria in general has little in common with Sunny Beach.
Myth: Bulgaria has two regions: Sunny Beach and Greater Sunny Beach.
Fact: Among the 18-30 crowd, the police station and hospital rank among the more frequently visited tourist attractions. Bulgaria in general has little in common with Sunny Beach.
NORTH vs SOUTH
A common oversimplification
Myth: South good. North bad - no roads, poor weather.
Fact: South experiences five minutes shorter winters. Parts of the North now benefit from newer infrastructure and comparable property values. Opportunity varies by village, not by compass point.
Myth: South good. North bad - no roads, poor weather.
Fact: South experiences five minutes shorter winters. Parts of the North now benefit from newer infrastructure and comparable property values. Opportunity varies by village, not by compass point.
More questions
Do I need to set up a company to buy property in Bulgaria?
Non-EU and UK buyers purchase building land and forest land through a Bulgarian company (EOOD). The company is a formality — it need not trade and can be formed solely to hold property. EU and EEA citizens can buy directly as individuals.
Can UK citizens still buy property in Bulgaria after Brexit?
Yes. UK buyers acquire land via a Bulgarian company, and Bulgaria has welcomed British residents to apply for citizenship through one of Europe’s more straightforward routes, subject to language proficiency.
What is a Skitsa in Bulgarian property?
A Skitsa is an extract of land records and cadastral maps — not an ownership document. Validity typically ranges from 6 to 12 months, with regional variations.
What is Act 16 in Bulgaria?
Act 16 is not a document but a status that applies to any property built after 2000. Older properties neither have nor require Act 16.
What is a Notary Act in Bulgaria?
The Notary Act is the title deed. A notary issues a new Notary Act on completing a transfer of ownership, recording the new owner’s details and the purchase price.
How much is property tax in Bulgaria?
Annual property (council) tax is typically under €100 per year and supports the local village. Vacant homes are not exempt, and paying early each year can qualify for a discount.
Do I need a Bulgarian bank account to own property?
No. Owning property in Bulgaria does not require a local bank account. Bulgarian banks are increasingly cautious with foreign applicants, so alternatives such as Revolut are widely used.
Can you really buy a house in Bulgaria for £7,000?
Low-cost fixer-uppers around £7,000 still exist in pockets of certain regions, though they require realistic expectations about condition and renovation.
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