Bansko: a growing pearl in the mountains of Bulgaria

In the heart of the majestic Pirin Mountains, we discovered Bulgaria's hidden treasure: Bansko. As we wandered the cobbled streets and admired the historic, wood-decorated houses, the potential of this quaint town as an investment destination began to become clear.

Bansko, famous for its ski resort and historical charm, proved to be an emerging market for real estate investment. The local property landscape includes a mix of traditional houses and modern flats, all adding to the area's appeal.

Bansko is Bulgaria's largest ski resort and the second largest in Eastern Europe after Rosa Khutor in Russia. But it is not just in winter that things are bustling here. For there is also a large golf resort just a few kilometres from Bansko: Pirin Golf.
The beautiful nature and mountain peaks towering above Bansko also provide plenty of hiking opportunities and a relaxing atmosphere.
And how about the thermal springs in the region? These thermal baths and mineral water springs each have their own composition and health benefits.
All year round, you can visit Bansko for cures, treatments and spa. Large pools, wonderful massages, soothing saunas and invigorating ice baths or facials: Bansko is Bulgaria's number one spa resort!

Also, in recent years Bansko has become a true digital nomad hub, where digital nomads from all over the world gather to work remotely.

All year round, Bansko is attractive to tourists and digital nomads, and every season is truly different. This makes it interesting for property investors.
But why invest in Bansko and not somewhere else, like Austria, for example?

Why invest in Bansko? 5 advantages

The real estate market is growing fast in Bansko. Many expats and digital nomads buy or rent a house or a flat here. Sometimes to live in it themselves, but often also as an investment to rent it out to tourists.

There are many opportunities in the real estate market, but the supply is growing, as is the number of tourists. Many new hotels, bungalows, houses and other facilities are being built to accommodate the growing flow of tourists. This brings opportunities, but also challenges, as what is the ratio of tourists to housing if prices continue to rise?

Bulgaria is expected to join the Euro-zone in 2026, after also joining the EU in 2007 and Schengen in 2025.
This means everything is going to get much more expensive and this could just transform Bulgaria from affordable holiday resort to as expensive as parts of Western Europe.

Yet Bansko still looks like an ideal investment project. The many hotel complexes are eager to sell flats, newly built bungalows are for sale while in demand, and flats in apartment complexes are selling like hot cakes. And this in a country where population numbers are rapidly declining.

These are the advantages of Bansko:

1. Popular tourist destination: Ski resort in winter, hiking and wellness spot in summer.
2. Low property prices: Compared to Western Europe, Bansko offers very affordable flats and houses.
3. High rental potential: Annual tourist flow ensures stable Airbnb/Booking income.
4. EU member state Bulgaria: Access to European regulations and market.
5. Growing international profile: Attractive to digital nomads and pensionados.

Example of a hotel complex

After talking to local real estate experts, I understood Bansko's attraction for investors.
Growing tourism, especially in the winter months, made it a hotspot for holiday homes.
Its vibrant cultural life, cosy restaurants and proximity to natural attractions created an attractive lifestyle scenario.

Many people invest in a charming flat in the centre of Bansko, which often turns out to be a hit. Not only as a rental property, but also to move in yourself!

Bansko is considered one of the pearls of Bulgaria. It is also one of the fastest growing regions in the country and the roads, facilities and infrastructure are generally very well organised.
Bansko offers huge investment potential, and that in a place with natural beauty, thermal springs and a ski and golf resort!

What are the possibilities in Bansko?

 In particular, there are many flats for sale in Bansko. You will find these in new apartment complexes (to live in yourself) and in hotels to rent out to holidaymakers.

Family houses are less easy to find, but they are certainly there if you search carefully and look in the area.

There are also many commercial properties, hotels, pieces of building land and old houses for sale.
These can be an interesting investment, but often require some work (read: a complete renovation).

With the possibilities and opportunities Bansko offers, it can be a very interesting option to invest in such projects.

Here are the options at a glance:

1. Flats. The most popular choice for investors are flats, often in resort complexes with spa, pool and reception. You can get in from as little as €30,000. These are ideal for holiday rentals via Airbnb or Booking.com and can be purchased fully furnished or hulled.
2. Commercial properties. Small shops, restaurants or studios close to the gondola or in the city centre offer opportunities for entrepreneurs or those who like to actively manage.
3. Building land or houses. Building plots are widely available outside the city centre. Opportunities for developers or collective investments.
4. Coworking or coliving. Bansko is known as a digital nomad hub. People from all over the world gather here to work remotely. There are opportunities here to provide these people with the right facilities, such as flex offices with good wifi or a coliving unit.
5. Wellness and spa. There is an emerging market for wellness experiences in the region. Investing in a small spa, yoga retreat or eco-lodge can be profitable.

There is currently a lot of investment in new construction in Bansko. These include new retail properties, flats and bungalows. These will soon go on sale and will quickly start increasing in value.

For whom is investing in Bansko attractive?

Bansko is attractive to many types of investors. Especially for private investors with a limited budget, Bansko can be a good investment, as property prices in Bansko are relatively low compared to Western Europe.
Buying a flat, a cottage or a plot of land is not too complicated and is often financially attractive. This quickly multiplies in value and because of the large influx of tourists, chances are you will (more than) recoup this investment in the longer term.

Bansko in winter

Bansko combines winter sports, nature, and spa/wellness, so there are more than enough options in different price ranges for this. Bansko is also a great place for investors who want to go bigger than just a flat, especially if you want to holiday regularly in your own home and make a return on investment from renting it out.

Digital nomads or remote workers abound in Bansko, due to the low cost of living, good internet connections and active co-working community.
You can invest in coliving units or shared work/living space (for your own use or rental to others).

Entrepreneurs in tourism or hospitality have opportunities abound in Bansko. With increasing tourist flows in both summer and winter, it can be extremely interesting to invest in small hotels, B&Bs, restaurants or sports rentals (skis, bikes, etc.).

For professional real estate investors, properties in Bansko are interesting as a spread or addition to a pan-European real estate portfolio.

The wide range of different types of properties at affordable prices makes Bansko the ideal place with investment potential!

Investing in Bansko is less suitable for the following groups:

• Investors who demand immediate high liquidity
• People seeking stable, passive returns without management
• Very risk-averse investors (as returns are partly dependent on seasonal rentals)

How does buying property work?

As an EU citizen, you can become the full owner of a flat, house or other property in Bulgaria. You will get a notarised deed and be officially registered in the real estate register.
For land or a house with a garden, buying through a Bulgarian company is sometimes easier, but not compulsory for EU citizens.

You do not need Bulgarian nationality or a residence permit to buy or manage real estate. We first bought a house in Dobrinishte, only then did we apply for residence permits.

If you want to live in Bulgaria permanently, you will of course need these. You can read more about this on our emigrate page.

Buying property in Bulgaria is not much different from buying property in the UK. However, it is highly recommended to hire a lawyer (this does not have to cost much at all) who speaks Bulgarian and is knowledgeable about Bulgarian laws, rules and conditions for buying property.

The steps of the buying process

1. Orientation & budget

• Determine your goal: own use, rental, investment?
• Prices in Bansko are relatively low: flats from €20,000-€70,000 are common.
• Bear in mind additional costs (see below).

2. Search and estate agent

• Work with a reliable local estate agent, preferably English-speaking. We can help you with this.
• Websites like BulgarianProperties.com offer good offers and give you an idea of the possibilities and prices.
• Always ask for an up-to-date proof of ownership (‘Notary Deed’).

3. Legal due diligence

• Hire a lawyer specialising in real estate (this is highly recommended).
• The lawyer will check property rights, debts or mortgages on the property, correct registration and building permits (especially for apartment complexes).

4. Preliminary contract of sale (‘Preliminary Contract’)

• This contains the price, conditions, payment schedule and date of transfer.
• You usually pay a 10% deposit.

5. Payment and transfer

• The official transfer of ownership is done via a notary.
• You sign the Notary Act.
• The notary registers the transaction in the Property Register.

6. Registration and utilities

• Let your lawyer or estate agent help you with the registration with the municipality and contracts for water, electricity, internet, etc. because this is different from what you are used to.

The financial picture: an overview of purchase prices, costs and returns

As mentioned earlier, prices in Bansko are a lot lower than the UK. Whether you are talking about property prices, taxes or fuel prices, everything is a lot cheaper.
For instance, you can buy a studio flat in Bansko for as little as €30,000.
For flats with more rooms, prices are of course higher. There are also flats with 1 extra room, 2 rooms or 3 rooms.
For a 3-bedroom flat, you quickly go above a tonne.

As for commercial properties, such as hotels and shops, prices vary a lot. It depends a lot on the location, condition of the property and accessibility. Some hotels are several kilometres away from civilisation and are usually in very poor condition. This is not always attractive, although for smart investors it can be an interesting investment, especially in a tourist region like Bansko.
If you want to know the exact prices of these types of properties, I recommend contacting a local estate agent. Contact us and we will be happy to help you.

Pirin Street, Bansko's shopping street

The notary fees you have to pay when buying are about 1-1.5% of the purchase price.

There are also the following costs:

• Transfer tax: approx. 2-3%
• Lawyer: often €500-€1,000
• Estate agent: often 3-5% of the purchase price (sometimes shared with seller)
• Total additional costs: count on 5-7% on top of the purchase price.

If you are buying property in Bansko, ongoing costs come into play in addition to the purchase price. With flats, for example, these differ by type of flat and complex, but here is an overview of the most common costs:

1. Maintenance or service costs

• Especially applicable to flats in complexes with communal facilities (reception, swimming pool, lift, security, etc.).
• Amount varies between €5 and €15 per m² per year. For a 60 m² flat: €300-€900 per year
• Always ask what is included: snow removal, cleaning, security?

2. Electricity

• Electricity is relatively cheap in Bulgaria.
• Average monthly consumption (for regular use): €30-€60 per month
• For seasonal rentals or holiday homes, usually much lower.

3. Water

• Low cost, often around €5-€15 per month with normal use

4. Internet and TV

• Very affordable: internet: €10-€20/month and TV (cable/satellite): similar amount

5. Municipal taxes

• Annual tax on property, depending on value and location.
• In Bansko often €50-€150/year, including waste collection.

6. Management fees (optional)

• If you have the property managed/rented by a local manager: 10-25% commission on rental income + fixed monthly fee (€20-€50)

Example: annual costs for a 60 m² flat

What does it yield?

In most cases, the occupancy rate of flats and bungalows is high. The chances of earning back your investment are quite high. It is often worth the investment, although of course you need to check and research this for yourself.
Bear in mind the seasonal nature of Bansko. Although it is visited all year round, winter is the real high season.
But in recent years, Bansko has also been increasingly emerging as a summer destination, which means that during this time the average occupancy rate gets higher and higher.

With short-term rentals, you can charge a higher nightly rate, but there is less off-season occupancy.
Average rental price per night for short-term rentals:

• Budget studio: €25-€50/night
• Luxury 1-2 bedroom flat: €50-€100/night

High-season occupancy is generally high in Bansko. With good marketing, location and management, 60-90% occupancy is achievable in high season.
In the rest of the year, this will be more around 10-40%.

The total annual revenue from short-term rentals could touch or even exceed €5,000 - €10,000 gross. Of course, this still includes the costs mentioned above.

Long-term rentals mean less work and stable returns, but lower rental income. Typical rents:

• Studio: €200 - €300/month
• 1 bedroom: €300 - €400/month

Annual income from long-term rentals: €2,400 - €4,800 gross, excluding costs.

What is the return on investment (ROI)?

Suppose:

• Flat purchase price: €40,000
• Total annual costs: €1,500
• Annual rental income: €7,000

Net yield: €5,500
Return on investment (ROI): 13.75% net per year

Investing in Bansko now has big advantages:

• Return: 5-10% annual ROI possible with good location and management.
• Increase in value: Long-term potential as Bansko becomes more international, but prices are already on the rise.
• Personal enjoyment: Own holiday home in prime location.

Traditional Bulgarian house

These are the pros and cons of investing in Bansko

Now that you know roughly what to expect if you invest in real estate in Bansko, we want to share with you the pros and cons so you can check for yourself whether it is for you.

These are the advantages of investing in Bansko:

1. Low property prices. Compared to other European ski resorts, prices in Bansko are still relatively low, offering a low barrier to entry for investors.
2. Year-round tourism. Besides winter sports, Bansko also attracts tourists in summer thanks to its nature, hiking trails, spa resorts and festivals.
3. High rental potential. Particularly during the ski season (December to April), holiday homes are in high demand, offering opportunities for short-term rentals through platforms such as Airbnb.
4. Low tax burden. Bulgaria has one of the lowest tax rates in Europe (fixed income tax of 10%), which is favourable for investors.
5. Improved infrastructure. There has been significant investment in roads, lifts, hotels and other facilities in recent years.
6. EU member state. As an EU country, Bulgaria offers legal certainty for European investors, making it more attractive than some non-EU alternatives.

And the drawbacks:

1. Seasonal revenue. Although there is tourism in summer, the biggest peak is still in winter. Occupancy can be low the rest of the year.
2. Oversupply of property. Years of intensive construction activity mean that many flats are available, putting pressure on rents and resale value.
3. Management and maintenance costs. Many buildings have common costs that can be relatively high, especially if there is vacancy in the complex.
4. Limited financing options. Foreigners often find it difficult to access mortgages through Bulgarian banks, so equity is often needed.
5. Fluctuations in popularity. Bansko is less well known than top resorts like Chamonix or St Anton. Popularity can therefore fluctuate, especially with changing travel trends.
6. Regulations and administration. Although Bulgaria is in the EU, bureaucracy is sometimes slow and complex. Local help is often needed for purchases and rentals.

Conclusion: investing in Bansko a good idea?

Investing in Bansko offers numerous advantages for both new and experienced investors. It combines an attractive property market with a growing tourism sector, resulting in the potential for stable income and property appreciation.
With its strategic location close to popular ski resorts and natural attractions, Bansko remains a favourite destination for holidaymakers, keeping demand for rental properties and accommodation high.

Whether you are looking for a holiday flat, passive income, or an investment for the future, Bansko is a unique opportunity in Europe!

Want more information about investing in Bansko? We would love to help you!

Together with our connections, we are happy to help you purchase lucrative real estate. Here is what we can do for you:

• Putting you in touch with specialised estate agents with knowledge of the local property market.
• Guide you through the purchase process.
• Translation of contracts and documents.