Foreign Buyer's Guide to Sofia Property 2026

EU and EEA citizens have the same property rights as Bulgarian nationals and can purchase any residential property outright, with no restrictions on apartments or houses.

Non-EU citizens can also buy apartments in Sofia without restriction. The limitation on foreign nationals applies specifically to agricultural and forest land — it does not apply to urban apartments, where land rights are held collectively by all building owners under Bulgarian condominium law.

Companies registered in the EU or EEA face no restrictions. Non-EU companies may need to establish a Bulgarian legal entity, though in practice most foreign individual buyers purchase under their own name regardless of nationality.

Apartments are the most straightforward purchase for foreign buyers. Title is well-defined, the co-owned land share is established by law, and the resale market is liquid relative to other property types.

Avoid listings described as “house with yard” unless you have confirmed the land title separately — freehold land ownership for non-EU nationals requires additional steps. Parking spaces listed on the portals require separate due diligence: verify whether the space is a quota from common areas or a standalone title.

For new builds, Act 16 (the occupancy certificate) is mandatory before legal habitation and mortgage eligibility — confirm its status before signing any preliminary agreement. Resale apartments in completed buildings carry cleaner title chains and no Act 16 uncertainty.

Sofia's five main listing portals — imot.bg, address.bg, imoti.info, yavlena.com, and homes.bg — carry overlapping inventory. The same apartment routinely appears across multiple portals, sometimes at different asking prices. Confirming the lowest listed price before entering negotiations is straightforward if you check all portals.

Agent fees are typically 2–3%, charged to the buyer. Dual representation — where one agent acts for both buyer and seller — is common and not prohibited under Bulgarian law. An independent solicitor or dedicated buyer's agent provides a cleaner mandate if you want someone solely accountable to you.

1. 1
   Preliminary agreement — Legally binding contract, typically with a 10% deposit. Sets price, timeline, and conditions. Non-Bulgarian citizens require a certified passport translation for notarial proceedings.
2. 2
   Legal review — Verify title history (minimum 10 years), encumbrances, AGKK cadastral records, and Act 16 status. An encumbrance certificate from the Property Register confirms no mortgages, liens, or court orders.
3. 3
   Notary deed — Both parties — or authorised representatives holding a notarised power of attorney — appear before a notary who confirms clean title and collects the transfer tax.
4. 4
   Cadastral registration — The notary submits the deed to AGKK (the national cadastral agency). Registration takes 1–5 working days and produces the updated ownership record.
5. 5
   Municipality notification — Register the ownership change with the local municipality within 6 months. Annual property tax is assessed from that record.

The full process from preliminary agreement to registered deed typically takes 30–90 days.

Budget 3–5% above the purchase price for transaction costs:

Capital gains tax: 10% flat rate on profit from sale. Exempt after 3 years of registered primary residence. Non-resident sellers pay at source; double-taxation treaties with most EU countries apply.

Long-term rental income is taxed at a flat 10% on net income after a statutory 10% cost deduction — effective rate approximately 9% of gross rent. Rental income must be declared to NRA (National Revenue Agency) by 30 April each year. EU citizens with tax residency outside Bulgaria can offset payments against their home country under the applicable tax treaty.

Short-term rental (platforms such as Airbnb) is permitted in most Sofia buildings subject to building manager approval. Income is declared as business activity and subject to the same 10% flat tax structure; additionally, a local tourism tax applies (set by the municipality).

Property management companies charge 8–15% of collected rent and handle tenant sourcing, maintenance coordination, and utility payments — useful for non-resident owners. Gross yields in Sofia range from 2.5% to 5.5% depending on district and property type; net yields after management fees, vacancy, and maintenance typically run 1.5–2 percentage points below gross.