Recent amendments to the Bulgarian Real Estate Act introduce several new requirements that affect both domestic and foreign investors. This publication provides an overview of the key changes and their practical implications.
Key Changes
- Enhanced due diligence requirements for property acquisitions exceeding BGN 1 million
- New digital registry system for property encumbrances
- Updated notarization procedures with electronic signature capabilities
- Revised anti-money laundering documentation requirements
Impact on Foreign Investors
Foreign investors should be particularly aware of the new beneficial ownership disclosure requirements, which align with EU’s 6th Anti-Money Laundering Directive. These require detailed documentation of the ultimate beneficial owners in all property transactions.
Practical Recommendations
We recommend that clients planning real estate transactions in Bulgaria begin their due diligence process earlier to accommodate the new requirements. Our Real Estate team is available to assist with navigating these changes.