In a groundbreaking development, European Union citizens can now freely purchase agricultural land in Bulgaria, as Luxembourg's court annuls the last remaining restriction 17 years after Bulgaria joined the EU. Lex.bg reports that despite anticipated removal of barriers in 2014, changes to the Law on the Ownership and Use of Agricultural Lands (LOUAL) introduced a new hurdle, limiting land ownership to those residing in Bulgaria for over five years.
The contentious Art. 3c of LOUAL, enacted in 2014, stipulated that ownership rights to agricultural land were exclusive to individuals or entities residing or established in Bulgaria for more than five years, with exceptions for inheritance by law. However, the Court of Justice of the EU recently ruled that this provision contradicted Article 63 of the Treaty on the Functioning of the EU (TFEU).
According to the CJEU, such a condition on land acquisition is not permissible under Article 63 of TFEU. The decision stemmed from a case brought before the District Court in Burgas involving an Austrian citizen contesting the ownership of three fields in the Burgas region against the son of his Bulgarian friend.
The court's ruling not only nullifies Article 3c of LOUAL but also opens discussions on alternative measures Bulgaria could implement to regulate agricultural land acquisition, preventing speculative practices and ensuring land use aligns with its intended purpose. The European Commission suggests options such as higher taxes on rapid resale transactions, imposing minimum terms for agricultural land lease contracts, or introducing preferential redemption rights for tenants.
This decision marks a significant milestone in aligning Bulgaria's land ownership regulations with EU principles, fostering free movement of capital and encouraging responsible land use practices.
