At present, foreign nationals and foreign companies may not buy land in Bulgaria, although they are free to buy other real estate (buildings) or limited property rights in respect of land (e.g. right to construct, right to use). In view of the forthcoming accession into the European Union, Bulgaria had to amend its Constitution allowing foreign nationals and entities to acquire land on the basis of the provisions of the accession agreement between the Republic of Bulgaria and the EU (signed in the end of April 2005).
According to the amended article 22 of the Bulgarian Constitution foreigners and foreign legal entities may own land in Bulgaria under conditions of the accession treaty with the European Union or other international treaty, which has been ratified, promulgated and entered in force in Bulgaria. Foreigners may own land also in case of legal succession. The said amendment shall enter into force as of the entry into force of the accession treaty and shall not be applied in respect of the existent international treaties.
The land ownership restriction will cease to apply in respect of European Union nationals and companies, most probably, after 2014 as the accession treaty signed in April 2005 (not promulgated yet) provides for a seven-year transitional period during which restrictions will remain on the acquisition of land by non-Bulgarian nationals or companies.
At present, this restriction is easy to overcome through the establishment of a Bulgarian subsidiary company (which may be 100% owned by foreigners). Such Bulgarian subsidiary is regarded as a Bulgarian legal entity and may acquire ownership rights over lands without limitation.