Mortgage in Bansko with Income from Abroad: Complete Guide for 2026.

Despite the widespread belief that obtaining a loan from a Bulgarian bank with a foreign employment contract is a complicated and doomed process, the reality in 2026 offers excellent opportunities. In this guide, we will look in detail at the steps for successful financing.

1. Financing and co-payment opportunities

When your income is generated outside of Bulgaria, banking institutions apply specific risk assessment models. The main difference compared to local borrowers is in the financing percentage.

• Maximum loan amount: Typically, banks lend between 60% and 70% from the market valuation of the property for clients with income from abroad.
• Required deductible: The buyer must have at least 30-40% personal funds to cover the price difference.
• Repayment period: You can defer the loan for a period of up to 25-30 years, provided that your age at the end of the period does not exceed 65-70 years.

2. Interest rates and currency specifics in 2026.

Currently, mortgage interest rates in Bansko with income from abroad remain competitive, ranging on average between 2.3% and 3.5% depending on credit history and country of residence.

Currency risk: If your salary is in pounds ($GBP$), Swiss francs ($CHF$) or dollars ($USD$), banks apply a so-called "haircut". Typically, your net income is reduced by 10-20% when calculating the credit limit to minimize the risk of currency fluctuations over the decades of the loan.

3. Income Proof Requirements

To get the “green light” from a credit council, you must prove the stability and predictability of your finances:

Employment stability

A permanent employment contract and a minimum of 12 months of experience with the current employer are required. For business owners abroad, tax returns for the last two financial years are required.

Debt/income ratio

The monthly payment on all your credit obligations (including those abroad) must not exceed 50% of your net monthly income. For riskier profiles, banks may limit this ratio to 35-40%.

4. Required documents (Checklist)

The documentation must be officially translated by a licensed translator and, depending on the country, legalized with an Apostille:

• Copy of employment contract and additional agreements.
• Income statement or P60/W2/Tax Return forms.
• Recent bank statements 6 to 12 months, showing salary receipts.
• Credit history report from the local registry (e.g. Experian for the UK or Schufa for Germany).

5. Why is Act 16 mandatory?

In Bansko, the market is saturated with different types of properties. You should know that banks in Bulgaria are extremely conservative towards holiday properties without Permission to use (Act 16). Financing of projects under construction (Act 14 or 15) for clients with income from abroad it is almost impossible.

Also, pay attention to the status. Mortgages are easiest to obtain for properties with the status of „apartment.“ If the property is listed as a „hotel room“ or is part of a complex with high maintenance fees, the bank may reduce the financing rate or increase the interest rate.