The Real Cost of Buying Property in Bulgaria: Your Complete 2025 Guide

Planning to buy property in Bulgaria? The total cost will be 2.8% to 10.6% more than the property’s asking price. Bulgaria offers some of Europe’s most affordable property markets, but understanding these additional costs is crucial for proper budgeting and avoiding surprises at completion.

When buying an apartment for €300,000 in Sofia, the investor will spend €346,265, including associated costs – that’s an extra €46,265 you need to plan for beyond the purchase price.

Property Transfer Tax: Your Main Additional Cost

The biggest expense after your purchase price is Bulgaria’s property transfer tax. In 2024, its amount will be from 2% to 3% of the official appraised value of the object, which is often lower than the market value. However, rates can vary more widely across different municipalities.

Regional Variations in Transfer Tax

• The amount of the transfer tax could vary between 0.1% to 3% of the property’s purchase price or tax assessment, whichever is higher.
• In most Northern Black Sea municipalities, the rate is 2% – 3% of the purchase price (as stated in the Notary Deed)
• Popular coastal areas like Nessebar, Burgas, and mountain towns have different rates.

Good news: You only pay this tax once when registering the transaction, and it’s calculated on the official appraised value, which is often lower than the market price you’re paying.

VAT Rules for Bulgarian Property

Bulgaria’s VAT system is straightforward:

Residential Properties

• The sale of residential properties is exempt from value-added tax (VAT)
• No VAT applies to most home purchases

Commercial Properties

• Commercial property transactions are subject to 20 % VAT
• Applies to offices, shops, and investment properties

Complete Breakdown of Bulgarian Property Purchase Costs

1. Property Transfer Tax: 0.1% – 3%

Your largest additional expense is paid once to register ownership. The exact rate depends on your municipality and is calculated on the official assessed value.

2. Notary Fees: €1,500 Maximum

The maximum fee is 3,000 lev (€1,500). All Bulgarian property transactions must be completed through a notary public, and fees are fixed nationwide based on the property value.

3. Legal Fees: €500-€1,500

Expect to pay between EUR 500 and 1,500 for comprehensive legal services, depending on transaction complexity. While not legally required, hiring a Bulgarian property lawyer is strongly recommended for foreign buyers to navigate the process smoothly.

4. Property Registration: €150-€300

The cost is the registration of the notarial deed in the range of 300 – 600 BGN (approximately €150-€300). This covers registering your ownership with the Bulgarian Property Registry.

5. Estate Agent Fees: Around 3%

An agent’s commission is usually around 3 % of the purchase price, but sometimes agents take commission from both buyer and seller. You can save money by buying directly from the seller when possible.

Annual Property Ownership Costs

Once you own Bulgarian property, there are ongoing annual costs:

Annual Property Tax: 0.15% – 0.30%

Rate: From 0.15% to 0.30% of the cadastral value. Cadastral value usually ranges from 50% to 70% of the market price. This makes the annual property tax very affordable compared to other European countries.

Payment Schedule

Payment schedule: Quarterly — by the end of March, June, September, and December, though many municipalities offer discounts for paying annually by 30 June.

Selling Your Bulgarian Property: Capital Gains

If you decide to sell your Bulgarian property:

Capital Gains Tax

• The tax rate is 10% on the difference between the sale price and the purchase price of the property. This tax applies only if the property is sold within 3 years of purchase.
• No capital gains tax if you hold the property for more than 3 years
• Capital gains realised by nonresident individuals from the sale of Bulgarian property are taxed at 10%

Payment Rules and Restrictions

Cash Payment Limits

The cash payments for properties are limited to 10,000 BGN (around 5,000 Euros). This means that if the price of a property exceeds 10,000 BGN, the payment can be made only via a bank transfer.

Currency Requirements

Taxes are paid in Bulgarian leva (BGN), so you’ll need to factor in currency exchange when budgeting.

Smart Budgeting for Bulgarian Property

Here’s how the costs add up for different scenarios:

For a €100,000 coastal apartment:

• Transfer tax (2.5%): €2,500
• Notary fees: €800
• Legal fees: €800
• Registration: €200
• Total extra costs: €4,300 (4.3%)

For a €200,000 Sofia apartment:

• Transfer tax (2.5%): €5,000
• Notary fees: €1,200
• Legal fees: €1,000
• Registration: €250
• Total extra costs: €7,450 (3.7%)

For a €50,000 rural property:

• Transfer tax (3%): €1,500
• Notary fees: €500
• Legal fees: €600
• Registration: €150
• Total extra costs: €2,750 (5.5%)