Studios are set to be converted into residential premises: what this means for foreigners

“Ателие” and its key features

At present the cheapest type of housing in Bulgaria is the ателие, i.e. the studio. A studio differs from an ordinary flat (apartment) in that, to obtain this status, the premises must meet only a minimum of requirements. An apartment, for instance, must have its own separate entrance, a bathroom, a kitchen or kitchenette, a storage room, a certain ceiling height and window area, and so on. To be classified as an “ателие”, the premises only need a bathroom; compliance with the other requirements is not mandatory. Such studios are deemed to be intended not for living in, but for creative work.

In practice, studios are usually perfectly suitable for living in and differ from ordinary flats in almost no way. For a number of reasons, it may be more profitable and simpler for construction companies to obtain non-residential status for such premises. This happens, for example, when certain standards on ceiling height are not met or — the most common case — when there are not enough parking spaces in front of the building. In such situations it is more profitable for the developer to sell the premises as a non-residential “ателие” at a reduced price. It is precisely that price that usually tempts foreigners looking to buy property in Bulgaria cheaply.

The low price is due not only to the modest size of the housing. Such studios have other drawbacks as well. For foreign nationals, the most important of them is that it is impossible to register an address in a studio, which is required to obtain EU long-term resident status and a permanent residence permit. In addition, owners of such property cannot make use of the tax relief on it, but can relatively easily lose the studio by decision of a bailiff.

Under the law, living in such a studio is not allowed, but in practice it is very difficult to prove that a person actually lives in such premises rather than doing creative work around the clock. For this reason the authorities have so far turned a blind eye to those who have bought non-residential premises to live in, especially since in recent years there have been plenty of affordable studios on the market.

What will change?

If the amendments are adopted, studios will be given the status of residential apartments. This means that it will be possible to register an address in them, use them as a main place of residence and apply tax relief.

It can be assumed that the adoption of the amendments will lead to a rise in prices for studios, which are currently sold more cheaply than ordinary flats. Those who prudently invested in such property will have an opportunity to profit, and foreign nationals will not face problems with paperwork at the migration service.

Obtaining a long-term residence permit in Bulgaria on the basis of a property purchase

Long-term residence permit in Bulgaria

Company registration in Bulgaria