Since 01.01.2014 a significant restriction on direct acquisition of agricultural land, forests and forestry land by investors from EU countries has been dropped.

Under the Treaty of Accession of Bulgaria to the European Union, Bulgaria has preserved until 31 December 2013 the restriction for acquisition of agricultural land, forests and forestry land.

Another restriction had already dropped in 2012, namely the restriction for acquisition of ownership over land for second homes by nationals of EU member states or states parties to the EEA Agreement, not residing in Bulgaria, and by legal entities established in accordance with the laws of those countries.

In general, third country foreigners or foreign legal entities are able to acquire ownership of buildings and limited real rights on real estate in Bulgaria. In addition, foreign citizens and foreign legal entities may acquire ownership of land, including agricultural and forest land if such opportunity is provided in an international treaty ratified and promulgated in compliance with the law.

Foreigners may also inherit real estate. They are required to transfer the title of the land to a Bulgarian citizen/legal entity within three years unless otherwise specified in the relevant international treaty.

However, investment in real property and development projects is usually made through acquiring indirect ownership over the land. This can be achieved through establishing a company under Bulgarian law (100% foreign participation in the capital of the newly-incorporated company is allowed) or by share-acquisition of an existing Bulgarian company which acquires or owns the land.