Revealed: Bulgarian Companies Used to Buy Greek Border Property by Turkish Nationals

Bulgarian corporate vehicles in the spotlight after Greek government admits a problem

The story landed in parliament on 30 January 2026 and it should matter to anyone tracking the Bulgaria property market or cross‑border real estate investment in the Balkans. Deputy Defence Minister Athanasios Davakis told MPs that Turkish nationals have been buying Greek land and buildings in border areas by using companies registered in Bulgaria and other jurisdictions. The disclosure forced an immediate pledge to change a Greek law that dates back to 1990.

This is more than an Athens legislative story; it is a live warning for buyers, agents and advisers who use Bulgarian corporate vehicles to hold or route property deals in neighbouring countries. Our analysis explains what was revealed in parliament, why Greece is moving to tighten the rules, how that could affect Bulgarian company registrations and the real estate market, and what investors should do now.

What Parliament heard: the facts and legal response

MP Paraschos Papadakis of the Greek Solution party raised the issue directly, saying companies with Turkish shareholders but registered in Bulgaria were being used to buy:

• land and fields
• shops and houses
• apartment buildings

Deputy Minister Athanasios Davakis confirmed the purchases and said the existing legal framework, which has been effective since 1990, will be revised. His statement to parliament emphasised that the review and the drafting of new rules have already begun and that any changes will be made “in full accordance with EU law,” with the aim of producing strict, legally resilient and practically enforceable regulations.

This admission clarifies two things: first, cross‑border corporate structures are being used to acquire property in sensitive border zones; second, the Greek government believes the 1990 rules are out of step with modern corporate forms and require an update.

Why Bulgaria property and Bulgarian companies matter here

Bulgaria’s appeal as a company registration destination is not new. For years it has attracted foreign incorporations because of straightforward corporate procedures and comparatively low ongoing costs for small and medium corporate vehicles. Those same features make Bulgarian companies useful as holding vehicles for assets outside Bulgaria — including property in neighbouring Greece.

From the perspective of a buyer or adviser, a Bulgarian corporate vehicle can offer:

• a local legal personality to hold title
• an apparent jurisdictional connection within the EU
• perceived anonymity if beneficial‑ownership checks are weak or not enforced

But the Greek parliamentary disclosure shows the other side: using a Bulgarian company to acquire property abroad can expose the owner to sudden legal and reputational risk if home or host states move to close perceived loopholes.

How Greece is likely to change the rules — and what that means for investors

Deputy Minister Davakis said the government wants rules that are both “strict” and “legally resilient.” That signals several possible directions:

• tougher proof of genuine economic presence for companies registered outside Greece when they buy land inside Greek territory
• stricter checks on beneficial ownership to identify the real, natural persons behind corporate buyers
• targeted limits on purchases in border zones or strategic areas where foreign ownership raises security concerns
• enhanced cooperation with EU member states, including Bulgaria, for cross‑border identification and enforcement

Any amendment will have to respect EU law, as Davakis underlined. That creates constraints but also clear tools: EU anti‑money laundering standards require beneficial ownership registers and KYC (know‑your‑client) controls, and member states have used national measures to block acquisitions of strategically sensitive property.

For investors and intermediaries using Bulgarian corporate vehicles to hold Greek property, the immediate takeaway is that the regulatory environment may harden quickly. The Greek government is starting an institutional process, which means changes could be phased in but will be intended to withstand legal challenge.

Practical implications for the Bulgaria property market and real estate investment

This row has three immediate effects on the Bulgaria property market and its role in cross‑border deals.

1. Demand for Bulgarian company incorporations by foreign buyers may fall. If Greek buyers can no longer rely on Bulgarian registration to bypass Greek restrictions, those corporate services lose some value.

2. Increased scrutiny on Bulgarian corporate transparency. Greece’s moves may prompt closer cooperation with Bulgarian authorities and more rigorous checks on beneficial ownership. That raises compliance costs for firms offering mass company registrations.

3. Reputational risk for Bulgarian corporate service providers. Firms that facilitate opaque structures may see client flows drop and face tougher oversight from both Bulgarian regulators and counterparties elsewhere in the EU.

For property investors, this changes the risk calculus. Using a foreign company to buy property in another EU state was attractive because it could simplify administration and create perceived anonymity. Those advantages are under threat: governments are moving to close those routes in sensitive cases.

Due diligence checklist: what buyers should do now

We recommend the following steps for any investor, adviser or agent involved in cross‑border property transactions where a Bulgarian company is a participant.

• Verify beneficial ownership. Obtain certified documentation that names and identifies the natural persons who control the company. Ask for recent corporate filings and confirm shareholders and directors.
• Check economic substance. Be ready to show real operational activities in the company’s home jurisdiction — offices, staff, bank accounts, contracts — to counter arguments that the vehicle is a mere shell.
• Engage dual‑jurisdiction counsel. Use lawyers who can advise on both Bulgarian corporate law and the law of the property’s location, especially any national restrictions on foreign ownership.
• Monitor legislative updates in Greece and the EU. Deputy Minister Davakis confirmed a formal legal process has started; track parliamentary drafts and public consultations.
• Consider alternative structures. Direct ownership, domestic companies, or licensed real estate funds may be safer where national rules are tightening.
• Expect longer closing timelines. Anticipate additional checks at title transfer and possible judicial or administrative challenges in border zones.

These are practical actions you can control; the aim is to reduce transactional and compliance risk if a buyer is using a Bulgarian vehicle to hold property in another EU state.

The wider EU context and why Brussels matters

Davakis was explicit that any reform must be compatible with EU law. That matters in three ways.

• EU rules on beneficial ownership and anti‑money laundering set minimum standards that all member states must respect.