Investments and Legal Uncertainty: What Is Happening with Construction Projects on the Varna Coast?

In recent years, the real estate market on Bulgaria’s Black Sea coast has attracted substantial foreign capital. Among the most active participants in this sector is the international KUB Corporation, managed by its founder O. Nevzorov. The company conducted a major advertising campaign for its luxury residential properties and complexes, including KUB Kabakum, and reported investments of millions of euros in the Bulgarian economy since 2022.

The current situation surrounding the large-scale project, however, raises serious questions for investors concerning the legal security of their capital. Special operations conducted by the Ministry of Interior and the State Agency for National Security, including searches of premises and the detention of three officials, have drawn public attention to the actual legal status of the properties under construction.

Institutional investigations and missing construction documents

The principal concerns for those who have invested in the projects arise from the pre-trial proceedings that have been opened. According to information from the Varna District Prosecutor’s Office, several key issues are under investigation:

• Lack of approved construction documents: the authorities are examining whether some buildings in coastal areas have the full set of building permits required under the Spatial Development Act.

• The issue of “certificates of tolerability”: certificates issued for certain properties are being challenged by the regulatory authorities. In practice, such certificates do not legalise a building; they merely limit the possibility of its immediate removal. This creates a long-term legal risk for purchasers.

• Environmental violations: there are reports of proceedings concerning unauthorised logging in forest areas near the construction sites, dating back to the end of 2024.

The investor’s position

In an official statement, the management of K. KUB emphasised that the company holds a valid licence and was awarded the highest First Category by the Bulgarian Construction Chamber in 2026. According to the company, infrastructure works in the areas are being carried out jointly with local utility providers, including the water and sewerage company, and do not constitute illegal construction.

Practical guide: If you have invested in a similar project, see how to protect your rights when construction is delayed or not completed.