Setting Up a Bulgarian Limited Company to Buy Property: What UK Buyers Need to Know
2026-06-29
If you are from outside the EU and you want to buy a house, villa or rural property with land in Bulgaria, you will usually need to set up a Bulgarian limited company first.

This can sound worrying at first, especially if you have never owned a company before. The good news is that, for most property buyers, this is a normal legal step and not something to be afraid of.

At Blackseavillas, we regularly work with overseas buyers who are buying in Bulgaria for the first time. Many people are surprised when they hear that they may need a company, but once the process is explained properly, it usually feels much more straightforward.

This article explains why the company is needed, what the process usually involves, and what you should expect.

Why do non EU buyers need a Bulgarian company?

Bulgarian law treats land differently from buildings.

In simple terms, non EU nationals cannot usually own Bulgarian land directly in their personal name. This is especially important when buying houses, village homes, villas, smallholdings or properties with gardens, because the property normally includes both the building and the land underneath it.

Since the UK left the European Union, British buyers are treated as non EU buyers for this purpose.

This does not mean British buyers cannot buy property in Bulgaria. It simply means that, where land is involved, the property is normally bought through a Bulgarian limited company.

The company becomes the legal owner of the property. You own the company.

Is this unusual?

No. This has been a common route for overseas buyers in Bulgaria for many years.

For many British buyers, the word “company” sounds bigger and more complicated than it really is. In this situation, the company is often just a legal vehicle that allows you to own the land correctly under Bulgarian rules.

It does not mean you are opening a shop, starting a business or trading in Bulgaria.

For most buyers, the company simply exists to hold the property.

What type of company is normally used?

The most common company types used are:

EOOD
This is a Bulgarian limited company with one owner.

OOD
This is a Bulgarian limited company with two or more owners.

If you are buying alone, an EOOD may be suitable. If you are buying as a couple, with family, or with another person, an OOD may be more suitable.

Your lawyer will advise you on the correct structure for your situation.

Who sets up the company?

At Blackseavillas, we recommend using a local lawyer in Varna who is experienced in setting up Bulgarian companies for overseas clients.

This matters because the company needs to be set up properly from the start. The lawyer will prepare the paperwork, explain what needs signing, arrange translations where needed, and deal with the Bulgarian company registration process.

We do not suggest trying to do this yourself unless you already understand Bulgarian company law, Bulgarian language paperwork and the local registration system.

What information will usually be needed?

Your lawyer will normally ask for basic information such as:

Your full name
Your passport details
Your address
The proposed company owner or owners
The person who will manage the company
A company name
Power of attorney documents, if the lawyer is acting for you remotely

The exact requirements can vary depending on your circumstances, so the lawyer will confirm what is needed.

In many cases, overseas buyers can complete much of the process remotely, but this depends on the documents required, how they need to be signed, and whether anything needs to be notarised, apostilled or translated.

What happens during the setup process?

The process is usually something like this:

1. Your lawyer confirms the best company structure

The lawyer will check whether you need an EOOD, OOD or another arrangement.

For example, a single buyer may only need a one owner company. A couple may prefer a company with both people listed as owners.

It is worth getting this right at the beginning, because changing the company later can involve extra paperwork and costs.

2. A company name is chosen

You will need a name for the company. This does not have to be anything fancy.

Some buyers choose a name linked to the property, their family name, or something simple. Your lawyer can check whether the name is suitable and available.

3. The documents are prepared

The lawyer prepares the company documents. These will usually include the company formation papers, declarations, management documents and any power of attorney needed if the lawyer is acting on your behalf.

Some documents may need to be signed in front of a notary or solicitor, depending on where you are and what the lawyer requires.

4. The company capital is paid

A Bulgarian limited company needs a small amount of starting capital. The legal minimum is very low, but your lawyer will explain exactly what needs to be paid and how this is handled.

This is part of the formal setup process and should not be confused with the money you are paying for the property.

5. The company is registered

The company is registered in the Bulgarian Commercial Register.

Once the company is registered, it receives its own Bulgarian company number. This is sometimes called an EIK.

This number identifies the company officially.

6. The property can be bought in the company name

Once the company has been set up, the property purchase can usually continue in the company name.

The title deed will show the company as the owner of the property. You own the company, so you control the property through the company.

Does the company need to be set up before buying?

For properties that include land, the company normally needs to be ready before the final purchase is completed.

In many cases, the property search, viewing, offer and reservation can happen first, but the company must be correctly in place before the property is transferred into ownership.

Your lawyer will guide you on the timing.

Will I have to run a business in Bulgaria?

No, not in the usual sense.

If the company is only used to own your property, you are not expected to trade or operate a business.

However, the company still exists legally, so it must be looked after properly. This is where a local accountant is usually needed.

Will the company have ongoing responsibilities?

Yes, and this is important to understand.

Even if the company does not trade, there may still be annual paperwork or declarations to file. If the company rents out the property or receives income, there may be extra tax and accounting requirements.

Your lawyer or accountant should explain what is needed each year.

The main point is this: do not ignore the company once the property has been bought. Keep its paperwork up to date and make sure you understand the annual requirements.

Will setting up a company affect my use of the property?

For normal private use, it should not change how you enjoy the property.

You can still use the house as your holiday home, retirement home or future relocation property. You can still renovate it, furnish it and treat it as your own.

The company is mainly about legal ownership of the land.

Can I sell the property later?

Yes.

If you decide to sell in the future, there are usually two possible routes. The company may sell the property, or in some cases the company itself may be transferred to a buyer.

The best option depends on the property, the buyer, the company structure and the legal advice at the time of sale.

Again, this is something your lawyer would advise on when the time comes.

Is it expensive to set up?

There will be legal fees, registration costs, translation costs and possibly notary or apostille costs. The exact amount depends on your situation and whether you are setting the company up from Bulgaria or remotely.

We always recommend asking the lawyer for a clear breakdown before you begin.

It is better to know the costs at the start rather than guessing.

Is it safe?

Yes, provided it is done properly by a qualified local lawyer.

The important thing is not to cut corners. The company should be set up correctly, the property should be checked properly, and the purchase should go through the correct legal process.

This is why independent legal advice is so important.

At Blackseavillas, we can introduce clients to an experienced local lawyer in Varna, but the lawyer acts for you and gives you legal advice directly.

What should buyers be careful about?

The company setup itself is usually straightforward, but there are a few sensible things to remember.

Make sure you understand who owns the company
Make sure you understand who is listed as manager
Keep copies of all company documents
Use a proper lawyer, not just a translator or agent
Ask about annual accounting responsibilities
Do not leave the company unattended after purchase
Ask questions if you are unsure

There is no shame in asking basic questions. Most overseas buyers are unfamiliar with Bulgarian company paperwork, and a good lawyer will expect that.

The simple version

If you are a British or other non EU buyer purchasing a Bulgarian property with land, you will usually need a Bulgarian limited company.

This may sound complicated, but in practice it is a normal part of the buying process for many overseas clients.

The company owns the property. You own the company.

With the right lawyer and clear advice, the process is usually manageable and far less intimidating than it first sounds.

How Blackseavillas can help

Blackseavillas has been helping overseas buyers purchase property in Bulgaria since 2003.

We understand that the legal side can feel unfamiliar, especially if you are buying abroad for the first time. Our role is to help you understand the process, introduce you to trusted local professionals where needed, and make sure you feel informed at each stage.

If you are interested in buying a house, villa, village home or smallholding in Bulgaria and you are unsure whether you need a company, please contact us. We can explain the next steps and, where appropriate, introduce you to an experienced local lawyer in Varna.

Buying in Bulgaria does not need to feel overwhelming. With the right help, it can be a clear and manageable process.

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