Taxes and fees when buying a property in Bulgaria – what you need to know

• Local tax on property acquisition
• Fee for registering the transaction
• Notarial fees and preparation of the notarial deed
• Additional administrative expenses and documents
• Are there any reliefs when buying property in Bulgaria?
• What follows after the transaction is notarized?
• Plan carefully to invest wisely

Purchasing real estate – whether an apartment, house, or investment property – is one of the most significant decisions in a person's life. Besides choosing the right property and negotiating its price, it is important to be prepared for the accompanying expenses that arise during the transaction itself. These include various taxes, fees, as well as administrative services, without which the transfer of ownership cannot be completed.

In the following lines, we will introduce you in detail to the main mandatory payments and documents you need to consider when purchasing real estate in Bulgaria, as well as their approximate amounts.

Local tax on property acquisition

The first and most significant payment that every buyer must consider is the local tax for property acquisition. This tax is paid once on the day of the notarization of the transaction and is transferred to the respective municipality where the property is located.

The amount of the tax is determined annually by the municipal councils and usually varies between 0.1% and 3% of the sale price or the tax assessment of the property – whichever is higher.

To give you a real idea, here are the current rates in some of the main cities in the country:

• Sofia, Varna, Plovdiv, and Burgas – 3%;

• Stara Zagora – 2.5%;

• Ruse – 3% from January 1, 2025.

This means that when purchasing an apartment worth 150,000 BGN in Sofia, the local tax due will be 4,500 BGN.

Important: The tax is paid by the buyer on the day of the notarized transfer and is a prerequisite for the transaction to be registered in the property register.

Fee for registering the transaction

After paying the local tax, there is another mandatory expense – the fee for registering the notarial deed. It is owed to the Registry Agency and amounts to 0.1% of the property's value.

Unlike the local tax, this fee has a fixed rate nationwide and is calculated on the higher value between the sale price and the tax assessment.

Registration in the Property Register is an administrative procedure through which the transaction gains official status and becomes enforceable against third parties. Without this registration, the property cannot be considered legally acquired by the new owner.

Notarial fees and preparation of the notarial deed

The next stage of the transaction includes notarial fees – the costs related to the certification and preparation of documents by the notary.

Their amount is determined according to the Tariff for notarial fees under the Notaries and Notarial Activity Act and depends on the so-called "material interest" – i.e., the value of the property.

Here are some examples:

• for a property priced between 50,001 and 100,000 BGN – the fee is 480.50 BGN + 0.5% for the amount above 50,001 BGN;

• for a property priced between 100,001 and 500,000 BGN – the fee is 730.50 BGN + 0.2% for the amount above 100,001 BGN;

• for properties over 500,000 BGN – 1530.50 BGN + 0.1% for the amount above 500,000 BGN.

Additionally, a fee for preparing the notarial deed is paid, which is on average around 30–400 BGN.

For greater clarity, let's consider an example case:

When purchasing a property worth 97,500 BGN, the notarial fee amounts to about 874 BGN, to which the local tax (3%), the registration fee (0.1%), and the deed preparation fee (around 400 BGN) are added. The total cost for notarization amounts to approximately 4,296 BGN, which is about 4.5% of the property's value.

Additional administrative expenses and documents

Besides the main taxes and fees, when buying a property there are some additional administrative expenses that should not be overlooked. They are related to issuing the necessary documents certifying ownership and the characteristics of the property.

Among the most common are:

• Certificate of encumbrances – between 10 and 30 BGN;

• Tax assessment – 10 to 34 BGN;

• Cadastral scheme – 20 to 40 BGN;

• Certificate of marital status – around 10 BGN.

If the purchase is made with the help of a mortgage loan, you will also have expenses for property appraisal (150–300 BGN) and possible bank fees on the loan. If you use broker services, the commission is usually 2–3% of the sale price.

All these expenses, although smaller in value, should be included in your budget in advance to avoid unexpected financial surprises when finalizing the transaction.

Are there any reliefs when buying property in Bulgaria?

Young families in Bulgaria can benefit from tax reliefs when purchasing their first home. These measures are introduced to help young people acquire their own home and encourage their financial stability in the early stages of their joint life. The reliefs mainly apply when purchasing property through a mortgage loan, as part of the state's efforts to facilitate access to housing for young families.

At the same time, incentives are provided to promote sustainable construction and improve the energy efficiency of homes. Purchasing a property with high energy efficiency can bring owners various tax reliefs and financial incentives. The goal is to reduce long-term energy costs and encourage investment in environmentally responsible and sustainable buildings.

What follows after the transaction is notarized?

After the transaction is notarized and the property is transferred to your name, the notary automatically submits the data to the tax office, and the new owner must register with the electricity distribution company and water supply company.

From that moment on, you become obliged to pay the annual property tax and waste collection fee, according to the Local Taxes and Fees Act.

You should keep in mind that if these taxes are not paid within 5 years, the municipality may take legal action to collect the debt, which includes the risk of a public sale of the property.

Plan carefully to invest wisely

Purchasing real estate is an important investment that requires not only attention when choosing but also precise financial planning. The costs of the transaction, including local taxes, notarial fees, and administrative services, can amount to several percent of the property's price.

To avoid misunderstandings and unforeseen payments, we recommend always consulting professionals – a notary, broker, and if needed, a lawyer, who will assist you at every stage of the process.

Thanks to proper preparation and a clear understanding of your financial obligations, you will be able to complete your transaction calmly and confidently, without risking unexpected difficulties. This way, you will make a secure and sustainable investment in your future.