Bulgaria Rental Laws: Pro-landlord, Neutral or Pro-tenant?

Bulgaria's landlord and tenant laws are judged by the Global Property Guide to be Pro-Tenant between landlord and tenant. In practice, the eviction process is slow and enforcement is weak, which makes the system more tenant-friendly—especially when disputes arise. This risk has led many landlords to screen tenants carefully and prefer short-term or corporate leases.

Rents: Can landlord and tenant freely agree rents in Bulgaria?

In Bulgaria, landlords and tenants are generally free to agree on the rent amount without any legal restrictions. There are no rent control laws or government-imposed limits for either residential or commercial properties in the open market. This means that rent is entirely negotiable and based on what both parties are willing to accept.

Under the Law on Obligations and Contracts (LOA), the rental market is largely free, and rent levels—including increases—are decided by what's agreed in the lease. It is common to include an annual rent review clause, often linked to inflation or a consumer price index like the National Statistical Institute or Eurostat. If the lease does include a rent review clause, landlords typically raise rent once a year, based on the inflation index. However, without such a clause, the landlord cannot unilaterally increase rent during the lease term.

Deposits

In Bulgaria, the law does not set a maximum limit on the amount of a security deposit a landlord can require. This means that landlords and tenants are free to negotiate any amount they mutually agree upon. That said, in typical practice most landlords request a deposit equivalent to one month's rent, and occasionally two months' rent in more furnished or high-end rentals.

What rights do landlords and tenants have in Bulgaria, especially as to duration of contract and eviction?

Landlords and tenants in Bulgaria have the freedom to agree on the length of the lease, whether it's for a fixed term (e.g., one year) or an open-ended arrangement. There are no legal restrictions on how short or long a lease can be. Fixed-term leases automatically expire at the end of the agreed period, unless both parties agree to renew. Open-ended leases, on the other hand, require a termination notice, the terms of which should be included in the lease. If the lease doesn’t specify a notice period, the default under Bulgarian law is usually one month. 

A landlord in Bulgaria cannot evict a tenant arbitrarily or without due process. Eviction is only possible through the civil court system, and only for legally valid reasons, which may include:

• Non-payment of rent

• Breach of lease terms (e.g., subletting without permission)

• Property damage or illegal activities

• Refusal to vacate after the lease has expired

Legislation

The relationship between landlords and tenants is governed primarily by the Law on Obligations and Contracts (LOC).

How effective is the Bulgarian legal system?

The Bulgarian legal system provides a clear legal framework for eviction, but in practice, the effectiveness of enforcement can be slow and inconsistent. While landlords do have legal avenues to evict tenants, the court process is often time-consuming, and enforcement through bailiffs may face delays—especially in contested or complex cases.

Brief history: Recent changes in Bulgarian landlord and tenant law

The history of landlord-tenant laws in Bulgaria reflects the country’s major political and economic shifts—from monarchy to communism to a market-based democracy.