General
Full ownership of real property is recognized under Bulgarian law. Ownership can be private or public. Further, ownership rights benefit from constitutional protection.1 Private ownership is generally inalienable. However, private properties can be subject to alienation for state and municipal needs. Such alienation must have legal grounds and the state or municipality must demonstrate that the needs could not be satisfied otherwise. In the case of alienation fair compensation must be offered to the owner of the real property.
Acquisition
Real property in private ownership is acquired through an acquisition agreement in form of a notary deed. The deed is signed between the parties before a notary public. State or municipal real property is acquired by virtue of a written contract. The respective title documents (being a notary deed or written contract) are subject to registration with the recordation office at the recordation agency.
Limitations on acquisitions
Before the accession of Bulgaria to the EU ownership of land could only be acquired by Bulgarian citizens and companies duly registered in Bulgaria. Bulgarian companies 100% owned by foreign entities or individuals were entitled to acquire land as Bulgarian entities. Foreigners and foreign entities had limited real property rights (right of construction, right of use) and could obtain ownership over buildings. In fulfillment of Bulgaria’s obligations under the EU Accession Agreement and the Protocol for the transitional measures, respective amendments were made to the Bulgarian Constitution.2 Since 1st January 2007, foreigners and foreign entities are entitled to acquire ownership rights over land insevral cases.