Acquisition of land in Bulgaria after Brexit

After  1 January  2021 citizens and companies from the UK (as persons from third countries, outside the EU) may acquire land, including agricultural land, forests and forest land in Bulgaria only by virtue of inheritance by law.

These persons can still acquire ownership of real estate such as an apartment / house.

British citizens and companies which acquired land in Bulgaria by 31 December 2020, enjoy the protection of the Constitution and do not lose their land.

The ban on the acquisition of land by persons from third countries outside EU could be circumvented in respect of land in urban areas by registering a company in Bulgaria which becomes the owner of the respective land.

Bank accounts of foreigners. The establishment of a company by a foreigner (citizen or company) in Bulgaria has become extremely difficult due to the anti- money laundering rules introduced by  Bulgarian banks in the last few years. From a practical point of view, it has become almost impossible to open an account of a foreigner / foreign company, or using  a power of attorney to open a bank account on behalf of the owner to deposit the company’s capital in a bank. The option used recently is by direct acquisition of company shares of already registered company. In this case, we recommend that you to make a thorough analysis of the company in which you will acquire shares and to consult with your lawyer, legal and accounting advisor to avoid possible obligations.

If you have any questions please contact liliya@ltlaw.bg

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