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Buying Costs of Bulgarian Property

Buying costs for property in Bulgaria can vary immensely depending on the sale price of the property you are intending to purchase and the commision rate set out by the estate.

 

In addition to the purchase price of the property itself you also need to allow for various other buying costs. Here is a guide to the costs and taxes involved when buying property in Bulgaria. Firstly, property prices may or may not be quoted inclusive of agency commission, so check that out beforehand to make sure you know in advance if the agency fee is included, if not, budget for this. There are a variety of fees and taxes payable when you buy property in Bulgaria which vary according to the price.

 

Since the start of 2012 it is no longer necessary to create a Bulgarian limited company and this can greatly reduce the buying costs to some extent.

Municipal Tax

This is a council tax which is 2% of the purchase price.

Property Tax

This covers the cost of registering the title deeds and is equal to 0.1% of the purchase price.

Notary Fees

All property sales/purchases must pass through a Notary in Bulgaria. They charge for preparing the preliminary contrct and final deeds plus for any checks made on the property. The fees are determined by the government and are on a sliding scale dependent upon the purchase price of the property. These are as follows: The Notary Fees are 0.1% - 1.5 payable by the buyer.
The maximum fee is 3,000 lv.

Agency commissions

Usually these are 3% of the price. However, they can be any amount at all, so it is worth checking.

Other Fees

Other fees you may also incur in addition to the ones mentioned in this article:
- lawyer's fees
- translator's fees
- surveyor's fee
- utility connection and registration fees

Value Added Tax

Watch out for VAT on new builds - this is currently 20% in Bulgaria. Developers sometimes quote prices inclusive of VAT, at other times without VAT. This is a considerable percentage of the price of the property and there would be nothing worse than discovering out all too late that you have to find another 20% !

After purchase

Apart from the fees, remember to allow for maintenance and running costs. Including building and contents insurance, standing charges for your utilities, maintenance of pools and common areas. Allow about 3% of the cost of the property.

Our legal partners can provide further information on the buying process and buying costs.