Taxes and charges in Bulgaria

Most Bulgarian property offered for sale is already connected to electricity and water supplies. Only if you are buying older property in Bulgaria´s rural areas are you likely to have to arrange for connection. Gas, however, is a relatively new option, and is currently available only to Bulgarian homes in urban centres - principally in Sofia and Varna.

Before buying a property it's well in advance to meet the extra costs of the acquisition of real estate. In practice, they are paid by the buyer, even though there is no law regulating it. The rate is set by each municipality according to the location of the real estate.

Costs are calculated on the agreed price, but not less than the tax value of the property.

Taxes and Charges in Bulgaria related to sale and purchase of real estate property

Upon sale and purchase of a real estate property and upon notary certifying the deal, the Parties owe fees, their amounts fixed in the Tariff of Notary Fees, Chapter “Proportional Fees”. It is formed as it follows:

1. Registration fee – 0,1% of the certified financial interest
2. Local fee - 2% of the agreed selling price or the tax valuation if it is higher than the selling price
3. Notary fee – in accordance with the Tariff of Notary Fees observing the Notary Act

Local taxes

In accordance with the Local Taxes and Fees Act, the tax subject to payment upon sale and purchase of a real estate property is 2% local tax. It is formed on the grounds of:

- The price of the apartment as stated in the Notary Deed, and
- The tax valuation of the apartment