Foreigners who leave their properties in Bulgaria unoccupied risk losing them under current law
In recent years, we have been contacted primarily by nationals from the USA, Canada, Australia, and Israel who have lost ownership of their properties in Bulgaria due to one of the country’s most controversial laws. Property owners from other countries are also affected, including citizens of the UK, Russia, South Africa, and others. Notably, many of the victims come from countries with large Bulgarian ethnic communities. A significant number have restored their Bulgarian citizenship and own real estate in Bulgaria, often inherited from their Bulgarian ancestors.
Foreign owners who leave their real estate unoccupied for extended periods are at significant risk of losing it, often without realising the danger until it is too late. This issue affects not only foreign investors but also Bulgarians living abroad, for whom distance and lack of active control create similar vulnerabilities.
What does the Law stipulate
The Bulgarian Ownership Law provides that a property left unoccupied for more than ten years may be acquired by the occupant (without paying for it of course). In certain circumstances, this period can be even reduced to five years.
The right of ownership by prescription over real estate is acquired through continuous possession for a period of 10 years.
Art. 79 of the Bulgarian Ownership Law
If the possession is in good faith, the right of ownership is acquired through continuous possession for a period of 5 years.
For a detailed explanation of the legal framework, see: Acquisition of real estate by prescription – how and why owners lose their property.
In practice, ownership is frequently acquired long before the ten-year mark
In practice, even much shorter periods of non-occupation can sometimes be enough for a third party to claim ownership. To formalise the claim, the occupant must present witnesses before a Bulgarian notary public. These witnesses are required to testify that the property has been used by the claimant for more than ten years. In reality, it is often extremely difficult to verify whether the occupation truly lasted more than ten years. The notary public relies solely on the statements of the witnesses and may issue a new notarial deed confirming the claimant as the new owner. Some witnesses may be influenced to testify in a certain way. Many, simply cannot recall events from so long ago.
Why non-occupation is a serious risk
Properties that remain unoccupied or unmanaged for many years are particularly vulnerable. Lack of physical presence reduces the ability of the owner to monitor the property, identify unauthorised use, or respond to potential claims. In practice, unoccupied properties may appear abandoned, increasing the likelihood of disputes.
How third parties may assert claims
Individuals may begin to use or occupy the property openly over time. Without active opposition, these actions can strengthen the possessor’s position. Foreign owners and expatriates are especially vulnerable because they often visit infrequently and rely primarily on documents, which alone do not secure ownership. Active control and visible use are critical to maintaining legal protection.
There are generally two legal avenues through which ownership of real estate may be claimed:
- First, the claimant may appear before a Bulgarian notary public with witnesses and obtain a new notarial deed. Once such a deed is issued, ownership is formally transferred to the new owner;
- Second, ownership may be claimed through court proceedings. This most commonly occurs when the lawful owner attempts to evict the occupier, who then files a claim asserting ownership of the property.
Any attempt to remove the occupants without legal guidance may have serious consequences
In other words, even if you are still the registered owner of the property and the first scenario above has not occurred, long-term occupation by another person should not be taken lightly. Any attempt to regain control may prompt the occupier to initiate legal proceedings and assert ownership, potentially resulting in the loss of the property. In such cases, it is essential to proceed with extreme caution and engage a highly experienced legal firm to initiate comprehensive procedures aimed at protecting your rights
Risks specific to Bulgarians living abroad
Bulgarians living outside the country face similar exposure. Occasional visits, payment of taxes, or informal oversight through family or neighbors are insufficient to safeguard ownership. Prolonged absence may facilitate unauthorized occupation or claims, making recovery legally and practically difficult.
The role of time
Time is a decisive factor. The longer a property remains unoccupied (or rather occupied by a bad actor), the greater the risk of adverse claims. Owners may only become aware of potential problems once the situation has already developed into a legally complex dispute.
Key considerations for owners
Ownership in Bulgaria requires more than formal documentation. Active presence, regular inspection, and clear control of the property are essential. Foreign owners and expatriates should establish reliable local representation and respond promptly to any indications of unauthorised use. Failure to do so may result in irreversible loss of property rights.
If you require assistance or believe that your property in Bulgaria may have been, or may be, taken from you, please do not hesitate to contact us.