Buying real estate abroad involves not only choosing a property and solving financial issues but also taking into account taxes and fees that can significantly affect the overall value of the investment. In 2024, Bulgaria's real estate taxation system will remain stable, but some changes may interest buyers. Professional consultations, assistance in paperwork, coordination of details, and fulfillment of organized moments are the primary specifics of BulgariaDom's work. Our specialists can solve controversial issues and formalize real estate purchases without pitfalls.
Taxes when buying real estate in Bulgaria
When buying real estate in Bulgaria, the central tax is the property transfer tax. In 2024, its amount will be from 2% to 3% of the official appraised value of the object, which is often lower than the market value. It is paid only once when registering the transaction and is mandatory for all buyers. But there are several other taxes:
- VAT (value-added tax) is the leading tax when buying a new building. The standard rate is 20%. As a rule, VAT is already included in the price of the sold property.
- Real Estate Transfer Tax. This tax is charged once the purchase is made and the transaction is registered. The rate is usually between 2% and 3% of the property's assessed value, which the local tax office determines.
- Property Tax. This annual tax is paid to the local municipal administration and is calculated based on the valuation of the property. Rates may vary depending on location and type of property but generally range from 0.01% to 0.15%.
Compliance with all legal regulations forms favorable conditions for buying a home in Bulgaria.
Fees when buying real estate in Bulgaria
Various fees are added to the taxes, including notary fees and state fees for registering the transaction. Notary fees are about 1.5% of the property price. In addition, buyers must pay a cadastre entry fee of at most 100 euros.
Several other types of fees can be identified, including the following:
- Once the notarial deed is signed, the next step is registering ownership with the local cadastre and registration office. This post-purchase procedure is an integral part of the property acquisition journey that potential buyers should know. If you are buying a secondary dwelling or an older property, it is advisable to conduct a technical inspection to check the object's condition.
- For foreign buyers, document translation from Bulgarian may be required. The cost of translation depends on the volume and complexity of the documents, but it is a crucial step in fully understanding the purchase terms.
Each type of collection requires careful attention to avoid omissions.
Changes in the legislation on taxes and fees in 2024
In 2024, the Bulgarian government made minor adjustments to the tax policy to simplify the purchase process for foreign investors. One of the significant changes was the reduction of the minimum tax base for calculating property transfer tax, which makes initial investments more affordable.
Simplifications in the procedure for registration of ownership rights were formalized, reducing the number of required documents and accelerating the registration process in the cadastre.
Recommendations from BulgariaDom agency when buying a property
BulgariaDom specializes in buying, selling, and renting real estate in Bulgaria. Taking into account our many years of experience, we have compiled a list of valuable recommendations:
- Be sure to make sure that all documents are ready and compliant to start the transaction successfully.
- Thorough due diligence on the property is essential to ensure it is legally clean and free of debt.
- You should budget for additional taxes and fees to avoid unexpected expenses during the buying process.
But if you want to avoid such a hassle, our managers are ready to help with the documentation and solve all related issues. We guarantee attentiveness, consistency, and precise compliance with legal regulations.