The Bulgarian property market in 2025 continues to attract international investors and expats with its affordable prices, moderate rental yields, and growing tourism appeal. Residential property prices have surged in recent years (over 10% YoY growth in 2022–2023), yet Bulgaria remains one of Europe’s most budget-friendly real estate markets (average €1,381/m², well below Western Europe). At the same time, gross rental yields average around 4–5% annually, which is higher than in many EU countries, thanks to low property costs and solid rental demand. Importantly, Bulgaria’s flat 10% tax on rental income and capital gains makes the after-tax returns especially attractive for investors. In this modern, analytical overview, we’ll explore key regions and metrics of the Bulgarian real estate market (2025 and beyond), with a focus on Southern Black Sea holiday homes, as well as essential legal and tax considerations.

Market Overview: Trends and Key Investment Areas

Resilient Growth: Bulgaria’s housing market has shown resilience and growth through the 2020s. After a pandemic-era boom driven by domestic buyers seeking retreats, prices continued to climb by ~10% in 2023 (following +13.4% in 2022). Demand remains robust in both cities and resort areas. Sofia (the capital) saw average prices reach €1,837/m² in Q3 2024, while major Black Sea cities like Varna and Burgas led with annual gains of 15–20% in 2023. Seaside resorts are thriving, fueled by remote-work trends and real assets’ appeal amid inflation. Notably, the Sunny Beach–Nessebar area has become Bulgaria’s 4th largest property market by number of transactions, reflecting surging interest in holiday properties.

Affordable Prices: Despite growth, Bulgarian real estate remains very affordable compared to Western Europe. Sunny Beach apartments average around €1,000/m², and even upscale coastal towns like Sozopol see many modern units in the €1,200–€1,500/m² range. For context, a 100 m² apartment that cost ~€96,000 five years ago now sells for ~€138,000 – strong appreciation, yet a fraction of prices in Spain or Greece. This affordability, coupled with low purchase costs (typically 5–10% transaction fees/taxes) and low ownership taxes (annual property tax ~0.1–0.45% of value), significantly lowers the barrier to entry for foreign buyers.

Rental Yields: Gross rental yields in Bulgaria are moderate but stable, averaging 4.5–5.5% in cities and often 5%+ in seaside areas. For example, apartments in Varna yield about 5.8% on average, and Burgas city averages ~5.3%. Holiday rentals on the Black Sea can earn high weekly rates in peak summer, boosting annual yields to the 4–6% range in places like Sunny Beach or Sozopol (if managed for short-term lets). However, investors should note the seasonality of income – coastal properties see high occupancy in the summer months but much lower demand in the off-season. (We address strategies for this in the Holiday Homes section below.)

Summary of Key Locations & Metrics: The table below provides an overview (2025) of several notable Bulgarian property locations, including holiday spots, across investment and lifestyle metrics. (Note: Gross Rental Yield is annual. Tourist Season indicates peak months of high demand.)

Bulgarian Real Estate Summary (2025) – Key metrics for select locations. Gross yields are annual; the tourist season length indicates the peak tourism period with high rental demand. Prices are indicative averages.

Southern Black Sea Holiday Homes – Emerging Hotspots

In 2025, investor attention is increasingly turning to Bulgaria’s southern Black Sea coast, which offers a blend of affordable seaside holiday homes, beautiful nature, and authentic lifestyle appeal. Below, we highlight four distinct locales on the Southern Black Sea – Kavacite (Kavatsite), St. Thomas, Sozopol, and Varvara – each with unique investment potential, pricing, air quality, and lifestyle factors. (These complement the well-known Sunny Beach area, adding diversity to the holiday homes market.)

Kavacite (Sozopol Area) – Dunes, Beach & Family Appeal

Kavacite is a gorgeous Blue Flag beach zone about 3 km south of Sozopol’s Old Town. Known for its wide, fine-sand beach and natural sand dunes, Kavatsite has long been a favorite for family vacations and camping. Recent years have seen tasteful development of holiday complexes and villas near the beach, offering modern amenities steps from the sea. Property prices here are moderate – around €1,000–€1,300/m² for new apartments, with first-line units commanding a premium (e.g., €1,800+/m² for prime sea-view units).

Seasonal Use: The tourist season lasts roughly 4 months (June through September), with July–August as peak. During summer, Kavatsite is bustling with beachgoers, and holiday rentals can achieve near-full occupancy. Off-season, the area is quiet (many complexes close), though Sozopol town nearby maintains some year-round life. Air Quality & Environment: Kavatsite boasts excellent air quality, thanks to sea breezes and lack of industry – the beach is adjacent to a protected nature area, ensuring clean air and water. This coastal strip benefits from a mild climate (summer highs ~26°C, sea water ~24–25°C) and extended autumn warmth, making it pleasant beyond peak months.

Investment Potential: Kavatsite offers a compelling mix of lifestyle and rental appeal. In summer, short-term rental rates are high (given its popularity), translating to estimated yields ~4–5% annually. Some new developments even offer rental management with guaranteed yields (around 4–5%), easing the process for foreign owners. Long-term capital appreciation is also promising – Sozopol municipality is growing in stature, and beach-proximate properties are limited by nature reserves (implying good scarcity value). Lifestyle: For expats or second-home seekers, Kavatsite provides a relaxed, family-friendly lifestyle. One can enjoy the beautiful beach, water sports, and the proximity to Sozopol’s restaurants and cultural events while residing in a quieter enclave outside the town’s bustle. Access is convenient: a short 5-minute drive to Sozopol, and about 45 km (40 min) to Burgas Airport via a paved coastal road.

St. Thomas Resort & Arkutino – Secluded Luxury by Nature

St. Thomas is a holiday village resort situated near Arkutino, 12 km south of Sozopol. Nestled between the Arkutino Nature Reserve (part of the Ropotamo Reserve) and the Black Sea, St. Thomas offers a rare combination of pristine natural surroundings and upscale amenities. The resort comprises a hotel and private apartments/villas (often sold to individual owners) with shared facilities like pools, a spa, and a private beach cove. Pricing: Properties here are mid-to-high for Bulgaria – expect roughly €1,100–€1,500/m² for apartments (e.g., a furnished 1-bedroom ~€80,000–€100,000, or more). The unique location and quality of construction justify the premium.

Seasonal Use: St. Thomas is highly seasonal. The resort is most active in summer (approx. 3 months) when the hotel operations are in full swing; many apartment owners visit in July–August. Off-season, the area is very quiet (with limited services open), essentially a tranquil retreat for those seeking solitude or a weekend getaway.

Air Quality: Outstanding – the complex is surrounded by unspoiled nature (dunes, forests of the reserve) and open sea, ensuring fresh, clean air year-round. This locale is often touted for its healthy microclimate (beneficial for respiratory health) due to the mix of sea air and nearby wetlands.

Investment & Access: St. Thomas is somewhat of a niche investment. Rental potential exists mainly through the on-site hotel management – owners can rent out their units to summer tourists, typically yielding around 4% annually in rental income (with profit-sharing arrangements). The upside is the exclusivity and long-term value: there are few places on the Bulgarian coast with such protected surroundings, so property here may see strong appreciation as luxury eco-resorts gain popularity. However, liquidity might be lower (resale could take longer, given the niche market). Lifestyle: This resort appeals to buyers looking for a secluded, high-comfort holiday home – think of it as a private island vibe on the mainland. Life here means quiet beach days, panoramic sea views, and short drives to Sozopol (15 min) or Primorsko (10 min) for dining out. Access is via the main coastal road (Route E87); the drive from Burgas Airport (~50 km) takes about an hour. Roads are in good condition, but having a car is essential (there is no town within walking distance).

Sozopol – Historic Charm with Modern Amenities

Sozopol itself is a jewel of the southern coast – a charming ancient town (one of the oldest on the Black Sea) that doubles as a lively beach resort in summer. It offers the best of both worlds: rich history and culture (cobblestone old town with medieval and Revival-era houses) plus beautiful beaches and holiday complexes in the newer areas. Property Market: Sozopol’s real estate ranges from old-town houses to modern apartments on the cliffs and in resort-style complexes around the town. Prices are moderate-to-upper by Bulgarian standards – new apartments average €1,200–€1,500/m², with sea-view properties in the Budjaka or Harmanite areas sometimes higher. Still, attractive deals can be found, e.g., furnished seaside apartments ~€70k–€100k.

Tourist Season: Sozopol enjoys a slightly longer season (up to 5 months). Summer is peak (June–Aug brings throngs of Bulgarian and international tourists), but events like the Apollonia Arts Festival in early September keep visitors coming into fall. The town has a permanent population, so unlike purpose-built resorts, Sozopol has life year-round – many restaurants, shops, and services stay open, albeit with shorter hours in winter. Air Quality: Very good – being a smaller town by the sea, Sozopol has minimal pollution. Any measured pollution during tourist season remains within resort standards. Gentle sea breezes and the absence of heavy industry nearby ensure that even in peak season, the air remains fresh (though the town center can feel crowded).

Why Invest: Sozopol is popular among both local buyers and foreigners for holiday homes. Rental demand is strong in summer; a well-located apartment can fetch high nightly rates in July–August (especially from families and cultural tourists), yielding around 4–5% gross yearly. Moreover, Sozopol’s real estate tends to hold value well; the town’s historic character and building restrictions in the old quarter limit supply in the most desired locations. Investors thus see potential for steady appreciation over time. Lifestyle Perks: For expats, Sozopol offers an engaging lifestyle – you have beaches, history, and community. Strolling the ancient fortress walls at sunset, dining on fresh seafood by the marina, and enjoying open-air concerts in summer are part of the charm. Infrastructure is good (new roads link to Burgas, and the city of Burgas is only ~35 minutes away for major shopping or hospitals). In summary, Sozopol provides a balanced mix of culture, leisure, and convenience that few other Bulgarian resorts can match.

Varvara – Bohemian Village at the Foot of Strandzha

Varvara is a small coastal village located between Tsarevo and Ahtopol, often described as the “bohemian hideaway” of the Black Sea. Far from the big resorts, Varvara attracts those seeking tranquility, pristine nature, and an artsy vibe. The coastline here is rocky with a small cove for swimming, famous among divers for its underwater caves, rather than long sandy beaches, which gives Varvara a uniquely serene atmosphere. Real Estate: The market in Varvara is quite limited in inventory. It consists mostly of traditional houses and a few low-rise vacation villas; large apartment complexes are absent (thanks to strict construction limits in the area). Prices are relatively low: one can find village houses or plots at bargain levels (e.g., €30–€50k for older cottages, when available). On a per-m² basis, estimates range €600–€800/m² for habitable properties, although renovation is often needed.

Seasonal Rhythm: Varvara’s tourist season is short, roughly July and August are the only busy months, with a trickle of visitors in June and September if weather permits. In summer, the village sees a mild influx of artists, divers, and tourists drawn to its famous annual folklore celebrations and the laid-back beach bar that’s somewhat legendary among Bulgarian creatives. Outside of summer, Varvara is very quiet, with under 300 residents living a traditional lifestyle (fishing, small farming). Air Quality: Absolutely excellent. Varvara sits at the edge of the Strandzha Mountain natural park, meaning it’s surrounded by forests and sea – there is no industry or congestion. The air is fresh, and nights are dark and star-filled – a stark contrast to the bigger resorts.

Investment Perspective: Buying in Varvara is more of a lifestyle choice than a high-yield investment. Rental yields are modest (perhaps 2–3% if you rent your property a few weeks in summer) because tourist demand, while loyal, is limited in volume. However, the value proposition lies in the village’s authenticity and the potential for future appreciation as boutique tourism grows. The Bulgarian government has been promoting sustainable tourism in the Strandzha region, and Varvara’s unspoiled character could become a selling point (leading to careful development of family hotels or guest houses). Already, demand slightly outstrips supply for its quirky villas. That said, investors should be prepared for a longer hold and lower liquidity; finding the right buyer who “falls in love” with Varvara can take time. Lifestyle: For an expat or retiree who cherishes peace, Varvara is idyllic. One can mingle with local artists and fishermen at the single taverna, enjoy hikes in the Strandzha forests, and swim or snorkel in crystal-clear coves. It’s a place “where time stops” – but note, you’ll need a car for errands (Tsarevo town, with supermarkets and medical facilities, is 9 km north).

Access: The village is reachable via the main coastal road (about 80 km south of Burgas Airport). The road is decent and passes through scenic landscapes. Public transport is scarce, so Varvara remains somewhat off the beaten path, which is exactly its charm.

Legal and Tax Considerations for Foreign Buyers

Investing in Bulgarian real estate is relatively straightforward, but foreign buyers (EU vs non-EU) face a few different regulations, and it’s crucial to understand the costs and compliance aspects. Below, we delve into the expanded legal and tax considerations in 2025: purchase costs, ownership rules, company setup needs, and how Bulgaria’s process compares with other countries like Spain and Greece.

Purchase Costs in Bulgaria: Notary, Taxes, and Fees

Buying property in Bulgaria involves several one-time costs which are modest by international standards. Typically, a buyer should budget around 5–10% of the property price for all purchase-related expenses. Here’s the breakdown:

• Local Transfer Tax (Stamp Duty): ~2–3% of the property price (rate varies by municipality, often ~2.5%). This is a tax paid to the local government upon transfer of ownership.
• Notary Fees: 0.1%–1.5% of the property price, on a sliding scale. In practice, notary fees are capped (the maximum fee is around BGN 6,000 ≈ €3,000), and many standard transactions incur a few hundred euros. The notary will also charge small extras for registration and document checks (often €150–€300 total).
• Registration Fee: A tiny fee (~0.1% of the price or a fixed amount) to register the deed with the Registry Agency.
• Legal Fees: While not mandatory by law, it’s wise to hire a lawyer or use the agency’s legal services. This might cost ~€500 to €1,000 or about 1% of the price for full due diligence and contract prep. Some agencies bundle this service.
• Agency Commission: If you’re using an estate agent, the standard buyer commission is 3% of the price (minimum €800). Note that new developments often quote prices “no commission” (the developer pays it). Resale properties usually involve a 3% buyer’s fee, though it can sometimes be negotiated.
• Company setup (if needed): (€400–€600 one-time) – this applies only to non-EU buyers purchasing land (more on that below). Setting up a Bulgarian LLC to hold the property also entails annual accounting fees (€300/year for a dormant company).

In total, transaction costs in Bulgaria are moderate. For example, on a €100,000 apartment, all taxes and fees might sum to ~€5,000. By comparison, this is half or a third of the purchase costs in Spain (where 10–15% is common). Low buying costs are a big part of Bulgaria’s appeal.

Ongoing costs and taxes: After purchase, owners pay annual property tax of only 0.1%–0.45% of the property’s cadastral value (often a very low assessed value – actual tax bills for apartments can be as little as €50–€150 per year). There’s also a garbage fee (often included in the property tax bill), which is nominal. If you rent out the property, rental income is taxed at 10% flat (for individuals), and you can deduct 10% for expenses by default (resulting effective tax ~9% of gross rent). Non-EU landlords also pay 10% on gross rent. Bulgaria notably does not discriminate by residency on rental taxes. On selling the property, capital gains tax is 10% on the profit, though if you owned the home for over 3 years and it’s your only property, the sale may be exempt (common for Bulgarian tax residents).

Ownership Regulations: EU vs Non-EU Buyers

Bulgaria places no restrictions on foreign buyers purchasing buildings or apartments – this is explicitly allowed by law. However, historically, there was a restriction on foreigners owning land. As of 2025, the rule is:

• EU/EEA Citizens and Companies: Free to buy land in Bulgaria (including plots, houses with yards, etc.) without restrictions, as per Bulgaria’s EU accession treaty. (Some formalities from the past moratorium expired in 2014, fully opening land markets to EU citizens.)
• Non-EU Citizens: Cannot directly own land in Bulgaria. This means if a non-EU individual wants to buy a house that comes with a land plot, or a standalone land parcel, they must use a Bulgarian-registered company to hold the land title. In practice, many non-EU buyers establish a Bulgarian limited company (which can be 100% foreign-owned) to purchase a house with a yard. Forming such a company is straightforward and low-cost, but it does add an administrative step (annual company filings, even if the company’s only asset is the home). Notably, apartments (condominium units) are not considered to own the land, so non-EU buyers can purchase apartments freely in their own name. The restriction only hits when the property includes land ownership (e.g., a villa, or an apartment that explicitly comes with a land share – most don’t, aside from a proportional share in common areas, which is allowed).
• Workaround via Residency: Non-EU investors who obtain Bulgarian residency (e.g., through investment) are treated as local persons and can own land directly. Bulgaria even has a residence-for-investment program; a €300,000 property purchase qualifies for a residency permit. However, this is optional – plenty of non-resident foreigners simply use companies or focus on apartments.

To summarize, EU buyers have no limitations; non-EU buyers just need the extra step of a company for land. This is a key difference from Spain or Greece, where no such company setup is required (for the most part). It’s also worth noting Bulgaria’s constitution explicitly protects against foreign ownership of agricultural land – even EU citizens face some restrictions on farmland, though this is niche (for example, an EU citizen has to have been resident 5+ years to buy farmland, or set up a local business to do so). But for typical residential and resort real estate, the above rules cover the main points.

Buying Process and Legal Complexity

The legal process of buying property in Bulgaria is relatively transparent and simple. Transactions are handled by a Notary Public who ensures the deal is lawful, the title is clear, and taxes are paid. Contracts can be in dual language, and buyers not fluent in Bulgarian must have a translator present when signing. Compared to many countries, Bulgaria’s closing process is quick (often a single day to sign the notary deed once due diligence is done).

Complexity: For EU buyers, it’s straightforward – no special permits needed. For non-EU buyers using a company, there’s a bit more complexity: you’ll need to form the company (taking ~1-2 weeks, which can be done remotely via power of attorney) and keep that company compliant annually. This adds some legal/accounting upkeep. Beyond that, foreign buyers sometimes face bureaucratic nuances like obtaining a Bulgarian tax number (called a BULSTAT, now unified with an individual’s ID number) – but the notary usually helps obtain this if needed. Overall, Bulgaria scores as less complex than many Western European markets: there are fewer bureaucratic hurdles and no requirement for government permission to buy (contrast this with, e.g., some Swiss cantons or Danish coastal zones, which require approval).

It is recommended to hire a local lawyer to perform checks on the property (ensure no liens, the seller has a proper title, and all permits are in order). The lawyer or agent will also draft preliminary contracts. Legal contracts are fairly standard. Note that a deposit (usually 10%) is often paid when signing a preliminary agreement, which is common practice.

Costs of maintenance and compliance: If you own via a company, you’ll need an accountant to file annual nil tax returns (since a property-holding company with no activity still must report). This is a minor cost and part of ongoing compliance. If renting out, you should declare rental income either via your Bulgarian company or personally, paying the flat 10% tax. Bulgaria’s tax filing process is not too onerous, and many foreign investors engage a local accountant or property manager to handle it (especially for short-term rental compliance, discussed next).

Rental Regulations and Landlord Obligations

Short-term rentals (Airbnb-style): Bulgaria allows individuals to rent out properties on platforms like Airbnb, but hosts must follow some regulations. Unlike cities such as Barcelona or Athens, there are no license caps or severe restrictions in Bulgarian resorts at the national level. However, registration is required: owners must register their property with the local municipality as a tourist accommodation and report guest stays to the national tourism system (ESTI). A small annual patent tax is due if you rent short-term – roughly BGN 25 to 250 (€13–€130) per room per year, depending on the location. Hosts also must collect and remit a tourist tax per overnight (e.g. ~0.5 BGN per guest per night in many towns) to the municipality. In practice, many hire property managers who handle these formalities. The key point is that short-term rentals are legal and common, just subject to registration and taxes, rather than bans. Bulgaria is, in fact, trying to encourage more tourist accommodations, so its stance is host-friendly compared to the tightening regulations in other EU countries.

Long-term rentals: If you rent out long-term (typically 12-month leases to locals or expats), Bulgarian law is reasonably balanced between landlord and tenant. Tenancies can be freely contracted. There’s no nationwide rent control; market forces prevail. Landlords should register the lease with the local tax office (mostly to ensure rental income gets taxed properly). Eviction for non-payment requires a court order but is generally effective within a few months (the judicial process is improving). Overall, being a landlord in Bulgaria is considered investor-friendly, with low taxes and straightforward rules.

Comparative Note: Many investors are curious how Bulgaria compares to other Mediterranean destinations. Below, we provide a side-by-side comparison table of Bulgaria vs. Spain vs. Greece on key real estate investment factors. This highlights that Bulgaria often has fewer restrictions and lower costs in many categories.

Bulgaria vs. Spain vs. Greece: Property Investment Comparison

To put Bulgaria’s framework in context, here is a comparison across purchase restrictions, transaction costs, legal complexity, and rental regulations for Bulgaria, Spain, and Greece (three popular markets for resort property investors):

Sources: Bulgarian ownership/tax laws, Spanish purchase costs, and proposed foreign-buyer tax, Greek taxes, and Golden Visa rules, among others.

As the table shows, Bulgaria stands out for its low taxes, low transaction costs, and relatively easy regulations. Spain and Greece offer larger markets but have increasingly complex rules to curb speculation and over-tourism. For an international investor or expat seeking a cost-effective, hassle-free property purchase with solid rental prospects, Bulgaria is hard to beat. That said, each country has its unique advantages: Spain boasts liquid markets and high capital appreciation in prime areas, while Greece offers a coveted lifestyle and the Golden Visa opportunity (though at a higher entry cost and now with stricter rental caveats).

The Bulgarian real estate market of 2025 presents a compelling opportunity for international investors and expats. With its affordable prices, favorable tax regime, and growing tourism infrastructure, Bulgaria allows buyers to acquire everything from a seaside holiday apartment to a city rental unit at a fraction of the cost in Western Europe, yet with comparable rental yields. The focus on Southern Black Sea holiday homes – places like Kavatsite, St. Thomas, Sozopol, and Varvara – underscores the diversity available: whether one seeks the family-friendly beaches and culture of Sozopol, or a secluded nature getaway at St. Thomas, or even a bohemian retreat in Varvara, Bulgaria’s coast caters to various lifestyles and investment strategies.

Investors should remain mindful of the seasonality in resort areas and plan accordingly (either by diversifying with city properties or preparing to optimize peak-season rental management). Legally, the country is welcoming to foreign buyers, with only minor extra steps for non-EU nationals. Ongoing efforts to align with EU norms mean that ownership is secure and processes are improving in transparency.

Bulgaria in 2025 and beyond offers a blend of high lifestyle value (sunny climate, beautiful nature, cultural richness) and sound investment fundamentals (economic growth, EU stability, rising tourism). It is an ideal market for those looking to invest in European real estate with a smaller budget but without compromising on returns or enjoyment. With prudent research, local professional guidance, and an eye on the evolving trends (such as infrastructure projects or new regulations), investors and expats can find excellent opportunities on the Bulgarian property market – from the cobbled lanes of historic Sozopol to the sandy dunes of Kavatsite and beyond. Bulgaria’s real estate story is one of an emerging market maturing into a stable and rewarding destination for global property buyers.