What you need to know about taxes when buying real estate in Bulgaria in 2025

What you need to know about taxes when buying real estate in Bulgaria in 2025

Buying real estate in Bulgaria is not only a profitable investment, but also an obligation to the state. Before signing the contract, it is important to understand what taxes and fees await you, how they are calculated, who and when they are paid. In this article we will tell you about the taxes when buying, owning and selling real estate in Bulgaria, relevant for 2025.

1. Property acquisition tax (local tax)

What it is:
A one-time tax that is paid upon transfer of ownership. The amount of the tax is set by each municipality independently and varies within 2-3.5% of the cadastral or contractual value of the object (whichever is higher).

Who pays:
Buyer.

When to pay:
Simultaneously with the registration of the transaction with the municipality.

2. Property tax (annual)

What it is:
An annual tax on real estate ownership that is paid by all owners, residents and non-residents alike.

Size:
Generally from 0.1% to 0.45% of the tax valuation of the property. The amount depends on the locality and type of property.

When to pay:
Once a year, usually by the end of March. You can pay for the whole year or in installments.

3. Garbage disposal fee (MSW tax)

What it is:
. A communal charge that is levied separately from the property tax. Its amount depends on the size of the property and municipal rates.

Size:
. From a few tens to a couple hundred euros a year.

Who cares:
Even if the home is not used, tax is assessed if the property is registered in your name.

4. Tax on the sale of real estate

What it is:
. Gains realized from the sale of real estate may be subject to income tax - 10% on the difference between the purchase and sale price.

There is an exemption from tax if:

• You have owned the property for more than 3 years (for one property).

• Or owned two properties for more than 5 years - in which case both transactions are exempt.

5. Additional costs when buying

Besides taxes, the buyer should consider:

• Notary fees - from 0.1% to 1.5% of the value of the object.

• Interpreter services if you do not speak Bulgarian.

• Registration in the cadastre - a mandatory procedure after the transaction.

General associated costs when buying real estate in Bulgaria are about 5-6% of the price of the object.

What is important for foreign buyers to know

• Foreigners from EU countries can freely buy real estate, including land.

• Citizens of non-EU countries (including Russia and Ukraine) can purchase only buildings and apartments, but not land for an individual. To buy land you need to register a legal entity in Bulgaria.

• All taxes can be paid online or through an authorized representative.

Tips:

• Consider annual costs when calculating rental yields.

• Work with an agency to help calculate all turnkey costs.

Conclusion

Taxes when buying real estate in Bulgaria are an important part of the deal that cannot be ignored. Correct calculation and timely payment will save you from unnecessary expenses and legal complications. Before buying, be sure to consult with professionals to understand in advance all the financial burden.

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If you want to get full tax advice and choose a property with transparent conditions - contact Just Balkan Property. We will help you every step of the way: from property selection to legal processing.