May 2026 – The decade‑long ban in Bulgaria on the municipal disposal of residual agricultural land remaining after the restitution to former owners - so-called land under Article 19 of the Agricultural Land Ownership and Use Act (“Residual Agricultural Land”) has now officially expired. Introduced in 2015, the restriction came to an end on 23 December 2025, enabling the municipalities to dispose of such land in accordance with the general statutory regime and creating new opportunities for energy and infrastructure developments.
1. Background: Historical context and legal regime
Residual Agricultural Land originally belonged to private owners and was later nationalised or subject to severe restrictions on ownership rights. Restitution legislation in the 1990s allowed former owners or their heirs to reclaim such land, while unclaimed plots were placed under municipal management as part of a residual land fund. Subsequent reforms provided that, after a statutory period, this land passed into municipal ownership by operation of law.
2. Evolution of the regulatory regime and introduction of the moratorium
The legal framework governing the management of Residual Agricultural Land has undergone a number of changes since its introduction in 1991. A key turning point occurred in 2010, when the restrictions limiting municipalities’ ability to deal with such land were lifted and municipalities increasingly carried out transfers of such properties. This has reduced the size of the residual agricultural land fund and created a potential risk for the successful completion of the restitution process. In response, a moratorium on disposing of such land was introduced under different laws and ultimately expired on 23 December 2025[1].
3. Moratorium exceptions
During its duration the moratorium was not absolute. It allowed transfers of such land on an exceptional basis, for example for the development of technical infrastructure and other projects of public importance. In particular, an exception introduced in 2020 permitted the use of Residual Agricultural Land for energy projects, subject to additional statutory conditions. In practice, this required investors to first assess whether a given project fell within the scope of the permitted exceptions, with final approval resting with the competent municipal authorities.
4. Expiry of the moratorium and practical implications
With the expiry of the moratorium on 23 December 2025, the special restrictions on transfers involving Residual Agricultural Land ceased to apply automatically. Municipalities are now once again able to dispose of such land under the general statutory regime. From a practical perspective, this change removes the additional constraints that applied over the past decade and restores a more flexible regime for the transfer of such lands.
5. Conclusion: Impact on investors
The expiration of the moratorium is particularly relevant for investors, as it opens up new opportunities for the development of energy and infrastructure projects involving land that was previously subject to significant limitations. As a result, investors are now able to acquire in rem rights over such land and advance their projects without the constraints of the former special regime.