The Bulgarian model of land ownership: the white plot phenomenon

Angel Sarov, Diana Kopeva

Abstract: More than three decades after the democratic changes in Bulgaria, the reforms in land use and land ownership continue. In these transitional stages of the development and reform of the institutional environment, globalization, and destructive competition, land ownership continues to provoke debate among politicians, practitioners, analysts, researchers, and society. The purpose of this paper is to underline on the Bulgarian model of land use and land ownership, the phenomenon of „white plot“ in Bulgaria. The phenomenon of „white plot“ has no formal definition. This concept has become necessary over the years in practice and the possibility of turning agricultural land into a „white plot“ is regulated in the Law on the ownership and use of agricultural land. The price of a white plot is not determined on the basis of a market price but is normatively determined by the municipal administration. Based on a regression analysis, the relationship between the change in the average prices of „white plot“ and the average land rental prices have been checked. The conclusion is that the average price of „white plot“ follows the change in the average rent, but with a delay that harms the owners. The phenomenon of „white plot“, a consequence of the „formal rules“ is a government policy.

Keywords: Bulgaria; land ownership; property rights; white plot

Date published: 2023-04-26