A comprehensive analysis of Bulgaria’s coastal real estate market in 2025 — including price trends, rental income potential, taxation, legal requirements, and the pros and cons of investing in resort property as a foreign buyer.
When it comes to overseas property investment, Bulgaria consistently ranks as one of the top choices for international buyers. With its picturesque Black Sea coast, diverse resort options, low cost of living, and EU membership, this gem is attracting attention from both lifestyle buyers and savvy investors. But is buying property in Bulgarian resort areas really a smart move?
Why Are Foreigners Buying Property in Bulgaria?
Bulgaria has become synonymous with affordable seaside apartments, scenic landscapes, and a favorable investment climate. Cities like Varna, Burgas, and Sunny Beach attract thousands of international property hunters annually. But what makes these resort towns in Bulgaria so popular?
Let’s dive into the main reasons:
Affordable real estate prices: Compared to Spain, Italy, or Greece, property prices in Bulgaria are significantly lower. For example, a one-bedroom apartment in Varna’s Briz district costs around €134,000, while generating a rental yield of up to 4.48% per annum.
Developed tourism infrastructure: Bulgaria has invested heavily in roads, airports, and resort facilities. The coastal towns offer a high standard of amenities, making them attractive for both short-term tourists and long-term tenants.
Mild climate: Summers are hot (averaging ~32°C), and winters are mild (~5°C), ideal for year-round tourism and seasonal rentals.
EU membership and Schengen integration: Since 2024, Bulgaria has officially joined the Schengen Area, removing internal border controls for air and sea travel, and from 2025 — also land borders. This enhances mobility and legal certainty for investors from other EU countries.
Favorable tax regime: Rental income, capital gains, and corporate income are taxed at a flat 10%, among the lowest in Europe.
The Most Popular Bulgarian Resort Zones for Investment
If you're considering buying property in Bulgaria, knowing where to invest is key. The following resort cities stand out:
1. Varna – The Black Sea Capital
Rental yields: Up to 5.35% (Briz district, two-bedroom units)
Highlights: International airport, five universities, developed public transport, proximity to beaches and cultural landmarks
Varna offers one of the best combinations of urban comfort and seaside charm, making it a top destination for holiday homes in Bulgaria.
2. Sunny Beach
Known for its nightlife and long, sandy beaches, Sunny Beach is a favorite among tourists from the UK, Germany, and Scandinavia. Properties here are more affordable, and rental demand peaks in summer. However, off-season infrastructure may be limited.
3. Burgas
A quieter alternative to Sunny Beach, Burgas has a more residential feel. It’s perfect for families and retirees seeking a peaceful retreat with year-round amenities.
4. Golden Sands
Located near Varna, Golden Sands is famous for its resorts and wellness tourism. Properties here are in demand for short-term holiday rentals, especially during spa and beach seasons.
Rental Income & Taxation in Bulgaria: What You Need to Know
For investors focused on buy-to-let apartments in Bulgaria, understanding the tax environment is crucial.
Rental Income Tax for Non-Residents: A flat 10% withholding tax on gross income, usually deducted at the source.
Capital Gains Tax: 10% on the net gain. However, properties held over three years (or up to two properties held over five years) are exempt.
Example: If you rent out a two-bedroom apartment in Varna’s Briz area for €900/month, you pay €90 in monthly tax. With yields around 5.35%, the investment property in Bulgaria can offer consistent passive income.
Transaction Costs: Budget Beyond the Price Tag
When purchasing real estate in Bulgaria, factor in these additional costs:
<table> <tbody> <tr class="blue-row" > <td><strong>Description</strong></td> <td><strong>Cost Range</strong></td> <td><strong>Who Pays</strong></td> </tr> <tr> <td>Property Transfer Tax</td> <td>0.1%-3%</td> <td>Buyer</td> </tr> <tr> <td>Legal Fees</td> <td>0.5%-1%</td> <td>Buyer</td> </tr> <tr> <td>Real Estate Agent Fee</td> <td>2.5%-3%</td> <td>Buyer/Seller</td> </tr> <tr> <td>Notary Fee</td> <td>0.1%-1.5%</td> <td>Buyer</td> </tr> </tbody> </table>These transaction fees remain relatively low compared to Western Europe, enhancing the affordability of Bulgarian housing.
Pros of Investing in Resort Property in Bulgaria
Strong ROI: High rental yields, especially in touristic zones like Varna and Sunny Beach.
Low entry cost: Investment properties starting from under €100,000.
Year-round appeal: Summer beach tourism, winter ski resorts (Bansko, Pamporovo), and spa towns.
Pensioner-friendly visa options: Retirees can apply for residence through property ownership.
Full Schengen access: As a Schengen member since 2024–2025, Bulgaria now allows easier travel across Europe for both EU residents and long-term visitors.
Cons and Challenges to Be Aware Of
Limited ownership rights on land: Foreigners can’t own land directly, only via Bulgarian-registered companies.
Seasonal tourism dependence: Many resorts become ghost towns in the off-season, impacting rental income.
Heating issues: Older buildings may lack central heating, leading to higher winter costs.
Differences in living area calculation: Advertised square meters may include walls and communal areas.
Visa restrictions for third-country citizens: While EU and Schengen mobility is simplified, non-EU citizens may still face stay limits without residence status.
Tip: Always consult a local lawyer before signing, especially when buying off-plan properties in Bulgaria.
Final Thoughts: Is Bulgarian Resort Real Estate Worth It?
For buyers looking for low-risk, high-potential real estate investments in Europe, Bulgaria’s resort zones offer excellent opportunities. As always, careful due diligence, location research, and professional support are crucial to making a successful investment.
🔗 Visit our "Countries – Bulgaria" section to explore deeper insights, legal tips, and full breakdowns of the Bulgarian real estate market. Discover everything you need to make a confident move into Bulgarian resort real estate.
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