Buying real estate in Bulgaria attracts both local residents and foreign investors thanks to relatively low taxes, a clear transaction procedure, and affordable property prices. However, before concluding a deal, it is important to understand in advance which taxes and mandatory payments the buyer will need to pay. Below, we take a detailed look at the main taxes involved in purchasing real estate in Bulgaria and the additional related expenses.

Property Transfer Tax (Local Tax)

The main tax when purchasing real estate in Bulgaria is the local property transfer tax (property acquisition tax). Its rate is set by the municipality where the property is located and usually ranges from 2% to 3% of the property value.

The tax is calculated based on the higher of the following two amounts:

• the price stated in the sale and purchase agreement;
• the tax valuation of the property determined by the municipality.

This tax is paid by the buyer before the notarization of the transaction; otherwise, the notary will not be able to register the transfer of ownership.

Notary Fee

The notary fee in Bulgaria is a mandatory payment and depends on the value of the property. It is calculated according to a progressive scale set by the state and on average amounts to about 0.1–1.5% of the property price.

The higher the property value, the higher the notary fee, although it has an upper limit. The fee usually includes:

• preparation of the notarial deed;
• verification of ownership rights;
• registration of the transaction.

Registration Fee at the Registry Agency

After signing the notarial deed, the transaction is subject to mandatory registration with the Registry Agency (Property Register). A state fee of 0.1% of the property value is charged for this service.

This payment ensures the official registration of the new owner in the register and protects their ownership rights.

Value Added Tax (VAT)

In most cases, VAT does not apply when purchasing resale (secondary market) property. However, when buying newly built property from a developer, two scenarios are possible:

• if the property was put into operation more than 5 years ago – VAT is not charged;
• if the property is new (up to 5 years) – VAT at 20% may apply and is usually already included in the price.

It is important to clarify this point in advance, as the conditions depend on the status of the property and the seller.

Additional Expenses

In addition to taxes, the buyer should also consider the related costs:

• legal services in 2026 – 450 euros (with the use of a lawyer’s client trust account);
• translator (if the buyer does not speak Bulgarian) – mandatory for foreigners;
• bank fees for transferring funds;
• property valuation, if required for a mortgage.

On average, all additional expenses and taxes amount to about 4–6% of the property value.

Taxes After the Purchase

After the transaction is completed, the property owner pays annually:

• property tax – about 0.1–0.45% of the tax valuation;
• waste collection fee, the amount of which depends on the municipality.

These taxes are considered among the lowest in the EU.

The taxation system for purchasing real estate in Bulgaria remains transparent and relatively advantageous. The main expenses are the local tax, notary fees, and registration fees. With proper preparation and legal support, the purchase is completed without hidden charges or unexpected costs, making Bulgaria an attractive country for real estate investment.