ON February 18, Parliament gave its approval for amendments to the constitution making land purchases by foreigners possible.
These new provisions will take effect after Bulgaria enters the EU on January 1, 2007. However, there is a seven-year grace period before foreigners will actually be allowed to own land in Bulgaria. This means that it will not be before 2014 that foreigners are able to purchase land in the country. 
Up till now foreigners have been able to find a backdoor when in comes to owning real estate. According to the Bulgarian constitution and current legislation, foreign individuals and companies can invest in real estate. But, foreigners as individuals can only buy buildings and not land. Only Bulgarian citizens and legal bodies, like companies, can own land. That's why the easiest way for foreigners to acquire land is to set up a company, which is not very complicated, but still a hassle.
The real estate issue has sparked a heated debate among foreigners, as well as Bulgarians. Television crews took to the streets on February 18 to interview ordinary Bulgarians about their views. The youth organisation of Bulgaria's nationalist party VMRO has protested heavily against the new amendments, by handing out pieces of Bulgaria-shaped cake. During chats on internet forums and discussion groups virtual pieces of cake are thrown at respectively Bulgarians and foreigners.
Some opinions:

Kiril, 34
"As soon as Bulgaria enters the EU the real estate prices will sky rocket. Or at least this is the speculation. That's why the demand for it is so big at the moment. Whoever buys an apartment now, will be able to sell it for double, if not triple the price in a couple of years' time. Most Bulgarians already can't afford to buy real estate anymore, what will happen to them in a couple of years from now?"

Mark, 37
"I don't see what all the fuss is about. No foreigner in his right mind would buy an apartment in one of the old, gray and gloomy communist blocks. I can't imagine that these prices have increased so much. So, Bulgarians will still be able to buy these kind of places. Foreigners who want to live in a nice place and who can afford to pay for such a place, why not? It's not bothering anyone is it?"

Nick, 27
"Personally I think the grace period is way too long. Secondly, as a foreigner, but non-EU citizen, I'm not too happy with the new amendments. On top of that, if I have to become a Bulgarian citizen or permanent resident in order to be able to buy property, I'll have to do the Bulgarian language test, which I'll most definitely fail at this point."  

Ani, 32
"Let's face it; the prices of real estate in Bulgaria are not realistic. Who can afford to buy a house for 40 000 euro with a salary of 300 euro a month?'

Alexandra, 31
"I'm afraid that ordinary Bulgarians will become the victim of speculation practices by people who are looking for a quick buck. This drives the prices for real estate up immensely. A lot of people already struggle to make ends meet, so what will happen in the future?"
 
Jeanne, 28
"I wonder why people get so upset. If prices are going up, then the Bulgarians selling properties will get rich." 

Mitko, 52
"I don't think it's wrong that foreigners are able to buy land in Bulgaria. But the situation with buying real estate is becoming more and more impossible for normal Bulgarians. And I am afraid it will only get worse." 

Phillip, 36
"All this is, is a simple matter of demand and supply. It may not be nice, but that's just how the real world works."

Kristina, 32
"I think that foreigners that live in Bulgaria should be allowed to buy property. I think that's only normal. But I think we should be careful with investors who are just riding the waves of the real estate hype."

Nina, 25
"Before getting into a hysterical state, we should make a difference between agricultural land and land for houses and apartments. I think it's nice when foreigners come and buy agricultural land, because very few Bulgarians are interested in farming. In that way our agriculture can develop. However, I hope that the current real estate frenzy will come to a halt, because it keeps inflating the prices. One day I would like to buy an apartment, and in the current situation is absolutely impossible."

Kate, 35
"I think the grace period is too long, but I understand why the Bulgarian Parliament decided on this. I think Bulgarians need to understand that foreigners are not here to take their land away. They simply see business opportunities and that's only good for Bulgaria's economy."
How do foreigners buy real estate at the moment?

You can buy houses and apartments as a foreign individual. If you want to buy land, you'll have to set up a company in Bulgaria that you own and control. Then the company is the owner of the property. Bulgaria enjoys quite liberal foreign investments laws, so setting up a company is not too complicated. All you need is a good lawyer. Legal fees aren't really worth mentioning, compared to the amount that your property costs. Then there are other ways, like setting up a joint venture with existing or new local companies, buying a company or making a portfolio investment. There is no limit to the company shares foreigners can own. In fact the Bulgarian government has been promoting foreign investment in Bulgaria a lot.

So what you need to do is:
1. Find out whether the property you are interested in comes with or without land. If there is land you need to have a company that owns the land.
2. Agree on the price.
3. Sign an initial contract in order to take the property off the market.
4. Have a lawyer check all the terms of agreement, licenses, etc.
5. Sign a notary act and the final legal contract