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11 Jan
How foreigners can buy land and real estates in Bulgaria?
  • BY: Марина Мучакова
  • comment: 0
  • Posted in: Uncategorized

Споделяне

A client asked us the question which are the ways for foreigners to buy land estates and real estates in Bulgaria? We would like to reply in the following way. There are two variants: 1) The buyer is a citizen of the European Union and of EEC or 2) The buyer is a citizen of third country.
1) Whenever the buyer is a citizen of the European Union and EEC, he can acquire land after registering himself as an agricultural producer and is entitled to acquire freely fixed properties, whereas the restrictions imposed by dint of the Treaty of Accession of the Republic of Bulgaria to the EU were abolished long time ago.
2) Whenever the buyer is a citizen of third country, then he/she cannot acquire a land estate or real estates as a natural person, except if there is an explicitly signed bilateral international treaty between Bulgaria and the country, whose citizen is the buyer. If such foreign buyer still wants to purchase a land estate or real estates on the territory of the Republic of Bulgaria, there are two possibilities for it to happen.
The first option is to apply for Bulgarian citizenship. After acquiring such, he will be entitled to buy land estates and real estates in Bulgaria.
The second option for him is much easier. In the way detailed below, the foreign citizen does not acquire directly a land estate. Hereinafter are given the details:
Not only people (natural persons), but also legal persons (companies) can own land estates and real estates in Bulgaria. Every company, which is registered on the territory of Bulgaria, under the applicable Bulgarian corporate legislation, is considered to be a local (legal) person. However, local legal entities are entitled to own real estates and land estates.
One or more natural and / or other legal persons can have equity participation in a Bulgarian legal entity. In this regard, there are no restrictions in Bulgaria in terms of citizenship, nationality, origin and other similar circumstances.
Legal entities are two kinds: 1) commercial companies and 2) non-profit legal persons. Commercial companies always and obligatorily are engaged in their business activity with a view to making a corporate profit and such is the presumption. Non-profit legal persons are not engaged in commercial activity. If by chance they are engaged in such, it is usually for the attainment of their non-profit goals or for the provision of their own maintenance.
The common forms/types of commercial companies in Bulgaria are LTD/OOD (or a limited liability company), a single-member LLC/EOOD (a single-member limited liability company), JSC/AD (a joint-stock company) and a single-member JSC/EAD (a single-member joint-stock company).
There is a statutory minimal threshold of registered capital by means of which the company is set up to the amount of 2 Bulgarian levs for LTD/OOD and single-member LTD/EOOD. As far as JSC/AD and single-member JSC are concerned, the minimal capital necessary for the company formation is 50 000 Bulgarian levs.
In Bulgaria, the legal structures/the legal statuses/the legal forms for the setting-up of commercial companies are detailed in the relevant law and they are as follows:
1. A limited liability company
2. A single-member joint-stock company
3. А joint-stock company
4. A single member joint-stock company
5. A general partnership
6. A limited liability partnership
7. A partnership limited by shares/a limited joint-stock partnership
All the above-mentioned 7 types of companies have their own features at the moment of formation and in the course of operation. I have given detailed information about them in my previous article on our website:
In English language: http://vesta-bg.eu/starting-a-business-or-how-to-choose-the-appropriate-type-of-a-company/
In Bulgarian language: http://vesta-bg.eu/

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About Марина Мучакова

Marina Muchakova is a managing member of Vesta Consult's team. She studied in the legal school in University of Sofia city "St. Kliment Ohridski" and specializes tax law. As an additional qualifications she has graduated mediation of commercial disputes, representation before arbitration courts and relations between employers and personnel, intelectual and industrial property. Languages: English- proficiency ; Russian- basic ; German- basic

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