Many homes in Bulgaria are lived in by someone who is neither the owner nor paying rent: an elderly parent in their son's flat, a student grandchild in their grandmother's apartment, a brother who moved in "temporarily" after a divorce. It usually runs on trust — until the home needs to be sold, let, or simply handed back.
Legally, an arrangement like this is most often a loan for use (заем за послужване) under Bulgaria's Obligations and Contracts Act (ЗЗД). Here is what that means for the owner and for the person living in the home.
Under Art. 243 ЗЗД the lender hands over a thing free of charge for temporary use, and the borrower undertakes to return it. The two key words are "free" and "temporary":
The law does not require written form — the contract can arise orally, simply by handing over the keys. That is also the most common source of disputes: years later, nobody remembers what was agreed.
| Loan for use | Lease | Right of use | |
|---|---|---|---|
| Is anything paid? | No | Yes | Can be free |
| Form | No requirement | No requirement (registration optional) | Notarial deed and registration |
| If you sell the property | Does not bind the buyer | Binds the buyer under Art. 237 ЗЗД | Survives the sale |
| Who pays building tax | The owner | The owner | The holder of the right |
| When it ends | On demand / term / purpose | Term or notice | At the latest on the holder's death |
That last point is the reason to make a short handover record with photos when someone moves in — even when it is your own child.
The rules are in Art. 249 ЗЗД:
The law sets no notice period. In practice it is sensible to ask for the home back in writing and allow realistic time to move out — that avoids any argument over whether, and when, you actually asked.
However tempting, do not change the locks or remove their belongings. Taking matters into your own hands is a criminal offence in Bulgaria (самоуправство, Art. 323 of the Criminal Code), and as a holder the borrower can go to court to have their occupation restored if they were removed by force or covertly (Art. 76 of the Property Act).
The proper route is:
For the period after you have asked for the home back, you may also be entitled to compensation for its use. The legal basis and amount depend on the facts — discuss them with a lawyer before going to court.
More on the owner's obligations to the municipality in our guide to property tax and the waste fee.
If your relative wants to register their current address (настоящ адрес) at the home, they need, besides the document for the use, the owner's written consent — a declaration on the official form, made in person at the municipality or with a notarised signature (Art. 92 of the Civil Registration Act).
Registration gives no right in the property. But if the person later moves out without changing their address, the owner can ask the municipality to check and delete the registration. Municipal and court practice on such requests is not entirely uniform, so it is easier to agree in writing, when you give consent, that the address will be changed on moving out.
A loan for use is not a real right and is not registered. The law protects a tenant when the property changes hands (Art. 237 ЗЗД), but there is no equivalent rule for a borrower. In practice the buyer can require the home to be vacated.
So if you plan to sell, tell your relative in good time and agree a move-out date before you sign a preliminary contract. Buyers and banks are wary of a property occupied by a third party with no clear date for leaving.
Where the aim is for a parent or other relative to be able to live in the home for the rest of their life, whether the property is later sold or inherited, a loan for use is a weak tool. That is what a right of use (право на ползване) is for:
The trade-off is that a property burdened with a right of use is harder to sell and sells for less. We explain how this works in practice in our guide to selling or gifting a property while keeping the right to live in it, and the tax side of transfers between relatives in our guide to gifting property to relatives.
You don't need a complex contract. One or two pages will do — ideally with notarised signatures, or at least a certified date:
If your relative pays something in return for the use, check whether you are in fact entering into a lease — the rights and obligations are then different, as set out in our guide to tenant rights and obligations.
Letting a relative live rent-free in your home is perfectly lawful and very common. The risk is not the arrangement itself but the fact that it stays verbal. A short written agreement on the term, the costs and the address prevents disputes — and where the goal is long-term security for your relative, a right of use is the better tool.
If you are thinking of selling a home a relative lives in, or want to choose between a loan, a lease and a right of use — call us or come into the office. We'll look at your specific situation.
This is general information, not legal advice. The texts of the Obligations and Contracts Act, the Property Act, the Local Taxes and Fees Act and the Civil Registration Act were verified as of November 2026.
