When budgeting for an apartment purchase, it is tempting to focus solely on the property price. In practice, the deal comes with several additional costs that need their own line in the budget.
This article lists the main categories of taxes and fees when buying a new property in Bulgaria. We deliberately avoid quoting specific rates or amounts — these are set by current legislation and by the municipality, and should be checked at the time of your transaction.
Local transfer tax
Transferring ownership of a property triggers a local transfer tax, administered by the municipality where the property is located. The rate is set by municipal ordinance and varies from one municipality to another.
This tax is paid once, at the time the deal is concluded, and is usually the basis for calculating the notary fee. Check the current rate with the municipality before finalising your budget.
Notary fees
Concluding the deal before a notary is a mandatory step in transferring ownership. The notary fee is set by a tariff tied to the value of the transaction — that is, the price or the tax valuation of the property.
On top of this come fees for issuing a plot sketch, certificates and other supporting documents needed to complete the notary act.
Property registry fee
After the notary deed is signed, it must be registered with the Registry Agency so that the transfer of ownership is publicly recorded and enforceable against third parties. A separate state fee applies to this service.
Registration is usually handled by the notary as part of the overall process, but it is worth asking for a breakdown of every amount due in advance.
VAT on new construction purchases
For transactions involving newly built property, the question of value-added tax is specific and depends on the seller's status — whether they are VAT-registered and on the nature of the transaction. The rules in this area are detailed and change over time.
If you are buying directly from a developer, ask them to explain explicitly how the price is structured with respect to VAT, and consult a tax specialist if anything is unclear.
Annual property tax and waste collection fee
Once you become an owner, you owe an annual property tax, set by the municipality based on the property's tax valuation. Alongside it, a waste collection fee is charged.
Both obligations vary significantly between municipalities and are updated each year, so it is good practice to check the current rates at the start of every year.
How to budget sensibly
Good practice is to set aside a reserve above the property price precisely for these accompanying costs, rather than calculating them at the last minute. The exact rates and fees should be checked with a notary, at the municipality, or with a consultant — this article is educational and is not tax or legal advice.
