Bulgaria ranks as the least affordable country in the European Union for purchasing a €1 million property, with an average-income buyer needing the equivalent of 7.8 average salaries to cover the mortgage burden. The figure is the highest in the EU, while in Luxembourg the same type of property would require only 1.6 average salaries.
The data highlights the sharp gap between luxury property prices and income levels in Bulgaria. A €1 million home could mean a modest apartment in central Paris or a high-end villa near Sofia, but in either case buyers need earnings far above the national average to finance such a purchase.
The calculations are based on a standard mortgage model: a 20% down payment, a fixed annual interest rate of 3.5% and a 30-year repayment period. The model assumes that no more than 33% of a buyer’s gross income is spent on mortgage payments.
Under these conditions, the buyer would need to provide €200,000 upfront and take an €800,000 mortgage. The calculation does not include property taxes, insurance, transaction costs or other expenses, while actual lending conditions differ depending on the country and borrower.
The monthly mortgage payment would be around €3,592, or about €43,108 annually. Since this represents one-third of gross income, a buyer would need to earn approximately €130,631 per year, or €10,886 per month.
