Buying Property in Bulgaria - Buying Guide for Varna and Sofia

How high are realtors' and brokers' fees in Bulgaria? What about other property purchase costs?

If you're planning on buying a property with amazing sea view towards the Bay in Varna, or you prefer the capital of Bulgaria Sofia for your business, you may find this information helpful.

  
TRANSACTION COSTS IN BULGARIA

Real Estate Agent's Fee is usually 3 % exc.VAT on the property's fair market value. Some Real Estate Agencies may offer you 3 % inc.VAT.

Property Transfer Tax - 2.6 % on the higher between the Property Tax Assessment (Municipality's Estimate of Value) and the Certified Material Interest (the price on the Notary Deed).

Registration Fee - 0.1 % of the Certified Material Interest.

Notary Fee -  collected on the Certified Material Interest according to the table below:
Up to BGN100 inclusive                BGN30
BGN101 - 1,000                            30 + 1.5 % on the amount over BGN100
BGN1,001 - 10,000                       43.50 + 1.3 % on the amount over BGN1,000
BGN10,001 - 50,000                     160.50 + 0.8 % on the amount over BGN10,000
BGN50,001 - 100,000                   480.50 + 0.5 % on the amount over BGN50,000
BGN100,001 - 500,000                 730.50 + 0.2 % on the amount over BGN100,000
Over BGN500,000                        1,530.50 + 0.1 % on the amount over BGN500,000 
                                                      but not exceeding BGN6,000

VAT - Where an Enterprise registered for VAT is selling, the VAT is 20 % on the net selling price plus all the taxes due (property transfer tax, registration fee, notary fee).

No VAT in case of purchase from Individual. 
Agricultural land is exempt from VAT.

LOCAL PROPERTY TAX FOR VARNA AND SOFIA

Property tax for Varna is charged at a rate of 2 per thousand,
property tax for Sofia is at a rate of 1.875 per thousand,
as follows:
Property of  Individuals – on the Tax Assessment, according to property type, location, size, construction and wear. Taxable value is determined by the local authorities.

Property of Enterprises – on the higher between the Accounting Book Value and the Tax Assessment (Municipality's Estimate of Value).

Payable with 5% discount before 30th of April every year.

Garbage tax rate for Varna is determined every year by the City Council:

For residential properties – 0.98 per thousand;

For non-residential properties – 3.7 per thousand.
Garbage tax rate for Sofia yearly determined by the City Council:
For residential properties - 1.6 per thousand;
For non-residential properties - 10 per thousand;

For non-residential properties through direct negotiations with Waste Management Companies - 3.6 per thousand.