Do you own a property through a limited company in Bulgaria?

Please read below, as you might be affected by a
major law change and the check the possibility of losing your property.

History of the process

If you have bought a property in Bulgaria before 2010, most probably you have set up a limited company in Bulgaria as well. Having a limited company as a holding company for the property was a requirement back then. This is not the case any more. Any EU citizen (a wink to all Brexiteers) can own regulated property (e.g. regulated land, apartment, house etc.) directly on their personal name. Setting up a limited company has become an obsolete process and waste of money.

Company owners who failed to re-register their companies

As we have wrote here and here , all companies had to move to a centralised Companies Register. The government couldn’t  (more likely didn’t want) do it alone, so it set deadlines for companies owners to do it themselves. If anyone had failed to do it, they had to proceed with a compulsory liquidation. We have helped many people to liquidate their companies and to get rid of all unnecessary costs, they were bearing. So what is the procedure now?

What if I own a property and have failed to liquidate my company?

Luckily, you still can keep ownership of your property, at least if you can sort things out by year 2022. If you fail to do it, you can lose your property forever and you can’t challenge this in the future. You need to appoint  liquidation solicitors who would prepare all the paperwork and initiate the process in the Companies Register.

After the process is initiated, the company will be automatically de-registered, but the liquidatior will still have to transfer the title of the property to the company owner or to a third party (appointed by the owner) . This can also be a part of your estate planning process, so you could liaise during the process with your UK/Irish estate planning agent.

Owning agricultural land or forest land

If you own a agricultural land or a forest, your situation is a bit trickier. Bulgarian government passed a law, where they impose restrictions on who can own agricultural land. The basic rule is that only a resident of the country can own such land or if it is a company, the company has to be owned by a resident OR if not owned by a resident, it has to be at least 5 years old.

As you can see the above restriction doesn’t get along well with the compulsory company liquidation, as you most likely are not Bulgarian resident and don’t have another Bulgarian company, matching the criteria.

We have developed a way to solve this catch 22, so if you are in the above situation, we surely can help.  You can contact us on +359 52 63 24 20 or email us at milen@mhlegal.eu. If you leave a comment below, we’ll get back to you shorty after that.

Read more solicitor advice here:


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