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What is the property tax in Bulgaria?

  1. Real Estate in Bulgaria
  2. / What is the property tax in Bulgaria?

Bulgaria has been a member of NATO since 2004 and the EU since 2007. It is planned that the country will switch to the euro in 2025. Tourism is one of the leading areas of the Bulgarian economy. The hospitable Black Sea resorts of Sunny Beach, St.Vlas, Golden Sands, Burgas and, Varna and Primorsko are well known. But ski tourism is also developed. You can also visit ancient caves, ancient churches or try the healing mud. Taking into account the rich cultural traditions of the country and its centuries-old history, it is not surprising that many foreigners decide to buy property here for living, recreation, or renting out.


Not the last role here is played by the fact that Bulgaria is a tax haven. Property prices and taxes are among the lowest in Europe. Moreover, the procedure for drawing up contracts is quite transparent and fast. Foreigners are concerned about the question: "Is there a free property tax in Bulgaria?". So below we will discuss the main taxes and fees on real estate in this hospitable European country, which has recently become increasingly popular among tourists.


Types of property taxes in Bulgaria

Many potential buyers of an apartment or a house are interested in: is there a property tax in Bulgaria. Yes, it is, but it is quite accessible. Let's talk more about the different types of property taxes in Bulgaria.

Property purchase tax

When buying a house or apartment, you need to pay a certain amount to the notary's office and municipal tax. The notary usually needs to pay a little less than 2% of the market value of the property. To the municipal cash desk - another 3%. The money goes to the development of the region. In total, you will have to pay not so much when buying - about 5-6% of the value of the property. This amount includes attorney's fees, further registration of the property, and re-registration of water and electricity meters in your name. 


Many buyers are interested in how to pay property tax in Bulgaria. When buying a hotel room, apartment, or house, it is paid after the parties have signed a notarized contract of sale. The object is registered with the tax office and within two months the tax amount is assessed to the new owner.

Annual tax

Perhaps the most important tax to pay attention to. If you are interested in how to calculate property tax in Bulgaria, then it is quite simple. For both individuals and legal entities (companies), the rate is fixed and amounts to 0.15% of the assessed value of the real estate, which is set by the state body. As a rule, it is 40-60% less than the market value of the object.

In rural areas, the tax on a house will be about 40, and on an apartment in the center of a big city - about 130 per year, which is quite affordable for the average citizen.

Municipal tax

Every year local authorities decide the amount of municipal tax. The payment is 0.2-1% of the assessed value of the property. The tax is 0.2-1% of the assessed value of the property. For example, last year the municipal tax was as follows:

Sofia - 0.32%;

Burgas - 0.25%;

Varna - 0.15%.

We talked about how property tax is formed in Bulgaria, as well as about the main types of fees. 



Summing up the results, it is obvious that Bulgaria is called a "tax haven" for a reason. Therefore, the question "How much is the property tax in Bulgaria" should not stop potential home buyers, because taxes here are among the lowest in Europe. This is a well-thought-out policy of the state to attract more foreign investment into the economy. This article and other materials on the site will help you understand all the intricacies of buying and selling real estate in Bulgaria. If you have any questions, leave a request and our experienced managers will contact you promptly.


Types of real estate
CEPI - European Association of Real Estate Professions