News from Bulgaria

The Governing Council of the Bulgarian National Bank (BNB) has approved the merger of Tokuda Bank AD into Bulgarian-American Credit Bank AD (BACB), BTA reports on 9 October 2026. BACB becomes the legal successor and Tokuda Bank ceases to exist without liquidation. In April 2024 BACB had agreed with the Japanese company Tokushukai Inc. to acquire 99.94% of the shares. The competition authority approved in July 2024; in early December 2025 the BNB, on instruction from the European Central Bank, consented to a qualifying holding of more than 50%.

Assessment: Anyone holding an account at Tokuda Bank should have the bank confirm the transfer date and the future account details before a payment for the notary appointment falls due. The report gives neither a cut-off date nor terms. I therefore do not schedule transfers for a completion in the transition period.

By order No. 8-Z-900 of 7 October 2026 the municipality of Sozopol permitted a draft amendment to the detailed development plan to be prepared for plot UPI III-505.95 (cadastral identifier 63015.505.489) in block 2 of the village of Atia. The designation is to change from “for guesthouse” to “for residential building”; the terms of reference under Article 125 of the Spatial Planning Act are approved. The order suspends application of the existing plan within its scope and lapses if no amendment draft is submitted within one year. It can be appealed within 14 days via the mayor to the Administrative Court of Burgas. The municipality published the notice on 8 October 2026.

In its Europe and Central Asia Economic Update of 6 October 2026, the World Bank forecasts economic growth in Bulgaria of 2.5% in 2026 and 2.6% in 2027. In June it had assumed 2.6% for 2026 and 2.9% for 2027, so the new figures are 0.1 and 0.3 points lower. For the region as a whole it expects 2.2% after 2.6% the year before. The report cites higher energy prices, uncertainty and weaker growth among trading partners. The Sofia Globe reported on 7 October 2026.

According to Eurostat data, house prices in Bulgaria rose 15.5% in the second quarter of 2026 compared with the same quarter a year earlier and 4.5% on the first quarter. Only Portugal, at 16.5%, records a higher annual increase, followed by Lithuania at 14.3%; in the first quarter the Bulgarian increase had stood at 14.8%. The EU average is 4.7% year on year, the euro area 4.0%. Rents in the EU rose 3.0% year on year. BTA reported the figures on 1 October 2026.

On 9 October 2026 the Çerkezköy–Kapıkule section of the high-speed line from Istanbul to the Bulgarian border was opened in Babaeski, Kırklareli Province. Journey times for passengers fall from 4.5 to 1.5 hours, annual capacity rises from 600,000 to 3 million passengers and, in freight, from 1.5 to 9.5 million tonnes. Kapıkule station grows from 23 to 42 tracks and its track length from 15,675 to 51,000 metres. Construction began in 2019 and is jointly financed by Türkiye and the EU; the report gives no timetable for the Bulgarian side of the link.

The National Statistical Institute (NSI) reports that construction output in August 2026 rose 4.2% year on year and 0.8% on July (seasonally adjusted, preliminary). Building construction stands 7.4% above last year but 0.4% below the previous month; civil engineering grows 4.2% year on year and 0.5% month on month, specialised construction activities 0.8% and 2.4%. In July, building construction had still been 9.5% above the previous year. The index base is 2021 = 100.

Assessment: Building construction keeps growing but is losing pace: 7.4% in August after 9.5% in July. For buyers of new-build property on the coast this means contractors remain busy, so the completion date and any price-escalation clauses belong in writing in the preliminary contract. I fix the Act 16 acceptance as the reference date.

On 9 October 2026 the Municipality of Sozopol published the draft of a detailed development plan (PUP-PRZ) that changes the designated use of plot 67800.7.163 and part of plot 67800.7.175 in the Budzhaka area and regulates the land; the intended designation is “for villa buildings”. Under Article 128(5) of the Spatial Development Act (ZUT), written objections, proposals and requests must be filed with the municipal administration within 14 days; the notice stays posted until 23 October 2026. The UTIPE directorate at 2 Han Krum Square, 2nd floor, room 29, provides access to the documents.

Since 9 October 2026 the Municipality of Burgas and a private investor have been clearing the “Dupka” site on “Troikata” square, which had stood behind fences since the unfinished BUM department store was demolished in 2003. After lengthy court proceedings the land was divided: about 11 decares, or 1.1 hectares, remain for public development, while the private owner may build on the southern part. The architecture competition drew over 140 entries from more than 30 countries; the winners are UNFORMED DESIGN, the Bulgarian practice “Toni Nachev” EOOD and Roncelli Studio of Denmark. Actual construction will not start before the Eurovision Song Contest in May 2027; the report gives no costs.

On 9 October 2026 a commission led by the regional administration inspected three construction sites in Burgas region: the III-992 Rosen–Veselie–Yasna Polyana (under construction since 2024), the III-9009 Novo Panicharevo–Yasna Polyana and the I-906 Dyulino–Gyulovtsa. On the III-9009 about 12 kilometres are being rebuilt, with new asphalt, drainage, three large bridges and 26 culverts; in September a section of about 6 kilometres was fully closed. Completion is planned for the end of 2026, subject to dry weather. The report names neither amounts nor contractors.

The children's hospital “Sveta Anastasia” in Burgas and Trakya University in Edirne signed a cooperation agreement on medicine, research and specialist training on 9 October 2026. It provides for the exchange of specialist doctors and lecturers, joint scientific work and further training in paediatrics, genetics and transplant medicine. A university team is due in Burgas as early as October 2026, and representatives are invited to the medical forum in Burgas in November. The report gives no details on funding or term.

Fiscal Council chair Simeon Djankov puts the yield of a temporary levy on bank windfall profits at more than €1 billion in his analysis “Benefits of Taxing Banking Windfall Profits in the European Union”, without raising VAT, income tax or social contributions. Profits above a pre-set historical profitability benchmark would be taxed, with a clearly fixed end date and no general increase in the corporate tax rate for banks. Twelve EU states have introduced such surcharges; the Czech Republic levies 60% on defined windfall profits for 2023 to 2025. The report names no tax rate, term or draft law for Bulgaria.

Assessment: This is an analysis by an advisory body, not a draft law; the report mentions no draft law. For buyers who need financing it is open whether banks would price such a levy into loan terms. Anyone planning a mortgage should therefore collect several offers and have the fixed-rate period and fees confirmed in writing.

According to Eurostat data for 2023, foreign-controlled companies in Bulgaria employ 411,020 people, or 18.7% of the business-sector workforce. The EU average is 15.5%, Slovakia reaches 28.0%, the Czech Republic 27.5% and Romania 26.9%; Germany stands at 12.1%. Across the EU these companies account for 28.6% of turnover and 24.0% of gross value added while making up 1.1% of all enterprises. Novinite reported the figures on 9 October 2026.

The Municipality of Pomorie announces that the Director of the Regional Inspectorate of Environment and Water in Burgas has issued Decision No. BS-120-PR/2026 on screening the need for an environmental impact assessment. The investment proposal is called "Black Sea Scientific, Educational and Nature Conservation Centre for the Marine Environment" and is located in Pomorie, plot UPI XXII, quarter 217, cadastral identifier 57491.508.249. The developer is the company "PROPARTIS PS" EOOD, and the decision can be viewed at https://riosv-burgas.bg/.

Mayor Ivan Alexiev is inviting residents of Petar Beron Street in Pomorie, along with all other interested parties, to discuss a project to upgrade the surrounding space. The plans cover asphalting, access ways to building entrances and garages, repair of existing pavements and kerbs plus new ones, parking areas between the blocks, redesigned green spaces, new lighting units and video surveillance, and recreation areas with suitable planting. The meeting takes place in front of the residential blocks on 09/10/2026, a Friday, at 5.30 pm.

On 8 October 2026 the Municipality of Sozopol published building permit No. 146 for a multi-family villa building with a building water connection. The site is regulated plot UPI III-6016, cadastral plot 67800.6.804, in the Budzhaka area. The permit rests on the final decision No. BS-36-PROS of 23 September 2021 of the Burgas environmental inspectorate RIOSV. The UTIPE directorate at 2 Han Krum Square, 2nd floor, room 24, offers inspection on Tuesdays and Thursdays from 9:00 to 12:30.

On 7 October 2026 the Municipality of Tsarevo published the environmental impact assessment report for the reconstruction and modernisation of the “Michurin” fishing port. The project covers unloading quays and covered berths for boats on plots 48619.504.83 and 48619.504.88; the developer is the municipality itself. The administration at 36 Han Asparuh Street accepts written, reasoned comments within 30 days of 6 October 2026.

On 7 October 2026 a tranche of €3.918 million was approved for the Regional Centre for Transfusion Haematology in Burgas; the funds flow through the health budget. The money buys medical equipment and inventory, while the building on the grounds of the UMBAL Burgas university hospital in the Zornitsa residential district is already finished. The funds are a new tranche and not the same as the earlier roughly €2.56 million from the 2024 budget.

The Municipality of Nessebar is systematically replacing old wood and coal heating systems with modern heat pumps, high-efficiency air conditioners, and pellet boilers. Already 15 heat pumps have been installed, more than 60 contracts for air conditioning and over 30 for pellet heating systems have been signed. The free program runs through 2029 and will cover a total of 1,320 households.

The Municipality of Pomorie has issued two decisions permitting the preparation of modified development plans. The first decision concerns a property in Aheloy (UPI IV 5218, block 41), the second concerns three properties in Pomorie (UPI V 6017, VI 6018, VII 6019, block 272). The decisions can be challenged within 14 days at the Administrative Court of Burgas.

Assessment: This announcement is significant for coastal property investors as it signals official approval for planning changes on valuable real estate. Prospective buyers or those seeking development rights should monitor these changes and keep options open for administrative appeals.

The Municipality of Pomorie has published building permit No. 156 of 25 August 2026 for the external power supply of a residential building on plot 57491.501.725 in the town of Pomorie. A low-voltage cable of type NAY2Y-J 4×185 mm² will run from the distribution board on the facade of the neighbouring building on plot 57491.501.724 to a new board on the facade of the new building. The project and permit can be inspected in the UTOOS department, 2nd floor, room 26, on Thursdays from 9:30 to 12:00 and from 13:30 to 16:00, and may be appealed before the competent administrative court within 14 days of notification.

With order No. RD-16-1973 of 6 October 2026, the Municipality of Pomorie has permitted the drafting of an amendment to the detailed development plan for plot UPI VI 904 in block 73 of the town of Pomorie. The amendment covers a building plan and a working development plan for the cadastral parcel 57491.502.218. Interested parties may appeal the order before the Administrative Court of Burgas within 14 days of notification.

According to Lyudmila Petkova of the Finance Ministry's leadership, the ministry is preparing a new line on property taxation: assessed tax values, barely changed for about two decades, will rise in stages from 2027 to 2029 and are to double within three years. In addition, a one-off 33% tax on excess profits of banks and other large sectors is planned for the 2027 tax year. Under discussion, with no decision yet, is a separate tax on uninhabited dwellings; the aim is to push owners to let or sell, while the legal definition of "uninhabited" remains open.

According to Eurostat data published on 6 October 2026, the volume of retail trade in Bulgaria in August was 5.9% above the same month a year earlier, against 1.2% in the EU as a whole and 0.8% in the euro area. Only Sweden at 7.7% and Cyprus at 7.5% reported higher growth, with Estonia next at 6.0%; declines were recorded in Malta (minus 2.4%), Spain (minus 0.6), Italy (minus 0.5) and Germany (minus 0.4). For Bulgaria the series for the year reads January 4.2, February 7.3, March 12.4, April 7.4, May 7.9, June 7.1 and July 5.6%.

Assessment: Private consumption is carrying the Bulgarian economy, and that supports the rental market for retail space in Burgas and the coastal towns. For investors in commercial property the series since January is a solid signal, even if the pace has slowed since March. Anyone letting residential property sees in tenants' purchasing power the basis for stable rents.

According to the Association of Bulgarian Fuel Traders, Producers, Importers and Transporters, diesel cost around 1.83 euros per litre on 6 October 2026 and petrol 1.61 euros; petrol fell by another cent within two weeks. The association's Dimitar Hadzhidimitrov attributes the calmer market to the normalisation of supply routes: nearly 80% of the earlier cargo volumes through the Strait of Hormuz are moving again. For LPG the reduced excise duty is having an effect, but higher production costs in winter push upwards; a possible release of European oil reserves of around 100 million barrels could lower prices further, while from 2027 new EU rules could add 13 to 14 cents to fuel prices.

By order No. 8-Z-880 of 5 October 2026 the Mayor of Sozopol approved the partial amendment of the detailed development plan, regulation and building parts, for regulated plot UPI III-61, cadastral plot 61042.501.160, in block 24 of the village of Ravadinovo; the municipality published the notice on 6 October under Article 129(2) of the Spatial Planning Act. The drawing and the order are attached to the notice as two PDF files containing the amended boundaries and building parameters. Ravadinovo lies five kilometres inland from Sozopol and has been on buyers' radar since the summer thanks to new villa building plots.

On 6 October 2026 the Municipality of Pomorie published the draft amendment of Ordinance No. 11 on local fees; comments may be submitted for 30 days under Article 26(3) and (4) of the Normative Acts Act, in person at counter 1 of the administrative service centre at 5 Solna Street or to mayor@pomorie.bg. From 2027 the tax value may no longer serve as the basis of the waste fee under Article 67(8) of the Local Taxes and Fees Act; Pomorie opts for the number and volume of bins and the collection frequency for collection, fixed-volume bags in the Svoboda district, and for street cleaning the floor area with coefficients of 1.0 for residential and 2.0 for non-residential space. Under the municipality's model calculation the average fee for a residential property in the town of Pomorie rises from 54.02 euros in 2026 to 116.90 euros, in Aheloy from 41.02 to 79.32 euros, while commercial properties in Pomorie fall from 370.93 to 251.78 euros; total revenue grows from 2,749,976.96 to 3,532,400 euros. Declarations on the number of bins and exemption applications for 2027 must be filed by 31 January 2027; multi-family buildings are assessed at 80 litres per unit from the 1,100-litre container, single-family houses at one 240-litre bin.

On 6 October 2026 the board of directors of Bulgaria's Shelly Group backed the voluntary tender offer by SE 2026 A SAS, an indirect subsidiary of Schneider Electric, at 70 euros per share; the offer was registered with the Financial Supervision Commission on 28 September and, according to the board, fully reflects the investment agreement of 24 September worth 1.2 billion euros in total. Investment bank Freitag & Co. confirmed the price as fair, around 26.9% above the six-month weighted average of 55.16 euros. Founder Dimitar Dimitrov (28.84%) and Svetlin Todorov with Salisto Holdings (22.73%) have committed to tender their shares; the offer is conditional on reaching at least 95% of the shares, after which the stock is to be delisted, with closing expected by the first quarter of 2027.

Assessment: For investors holding Shelly shares the situation is simple: the board recommends acceptance, the premium is confirmed, and after delisting there will be no liquid market. For the country the deal signals that Bulgarian technology companies command prices at Western European levels; I see this as a tailwind for demand for quality housing from skilled professionals, including in Burgas.

According to the Registry Agency, 1,857 property sales were recorded in Nessebar and Sunny Beach in the third quarter of 2026, down from 2,951 a year earlier, a fall of 37.1%. Sales in Burgas dropped 14.3% to 2,047 (2,389 a year ago), Tsarevo lost 25.1% and Pomorie only 3.5%; Varna fell 26.3% (2,853 after 3,859). Nationwide, 45,312 sales were registered, 22.1% fewer than the 58,184 of the third quarter of 2025 and the lowest quarterly figure since at least 2005. Mountain resorts fell even harder: Razlog and Bansko minus 30.4%, Smolyan and Pamporovo minus 30.7%.

The Municipality of Sozopol has published building permit No. 143 of 5 October 2026 for villa buildings No. 89 and No. 90 with a shared underground car park; the site is regulated plot UPI XX-35010, cadastral plot 67800.35.137, in the Sveta Marina area within the Sozopol land register. The legal basis is Article 149(1) in conjunction with Article 149(6) of the Spatial Planning Act, accompanied by decision No. BS-100-PR/2024 of the Burgas environmental inspectorate RIOSV on the environmental assessment. Permit and project are available for inspection at the municipality's UTKSK directorate, 2 Han Krum Square, 2nd floor, room 24, on Tuesdays and Thursdays from 9:00 to 12:30.

On 2 October 2026 the Municipality of Sozopol announced two public auctions with sealed bids for plots in the Rosenets district: plot No. 458 of 343 square metres at a starting price of 8,070 euros and plot No. 309 of 493 square metres at 11,600 euros, in both cases 23.53 euros per square metre based on a licensed valuer's appraisal. The bidding step is 5% of the starting price (403.50 and 580 euros respectively), the deposit 10%. Documents can be purchased until 12:00 on 19 October and bids submitted until 17:15 the same day; the auctions take place on 20 October at 14:00 (No. 309) and 14:15 (No. 458), based on municipal council decisions Nos. 878 and 879 of 30 July 2026 and Article 59(7) of the municipal property ordinance.