How the transaction works — 5 steps
The process of buying and selling real estate in Bulgaria goes through several clearly defined stages, each of which requires attention and legal preparation.
- Property search — setting a budget, location and property type, reviewing offers and on-site viewings
- Legal due diligence — verification of ownership, encumbrances, permits and zoning compliance
- Preliminary contract — fixing the terms, paying a deposit, setting a deadline for the final transaction
- Notarial deed — executing the transaction before a notary, paying the remaining balance
- Registration in the Property Register — recording the notarial deed with the Registry Agency for enforceability against third parties
Required documents
The following documents are required for the successful completion of a real estate purchase transaction:
- Title deed — the seller's document of ownership
- Cadastral sketch — current sketch of the property from the Geodesy, Cartography and Cadastre Agency (GCCA)
- Tax assessment — tax valuation certificate from the municipality
- Certificate of encumbrances — from the Registry Agency, confirming no mortgages, liens or other encumbrances
- Certificate of heirs — if the property was acquired by inheritance
- Current status of the seller — for legal entities, from the Commercial Register
- ID card or passport — valid identity document of the parties
- Power of attorney — notarially certified, if either party is represented by an attorney-in-fact
Timelines and costs
The entire purchase process typically takes between 2 and 4 weeks, depending on the complexity of the transaction and the availability of all documents.
Main transaction costs:
- Notary fee — determined by tariff based on the material interest (property price)
- Local transfer tax — from 0.1% to 3% of the higher of the sale price and the tax assessment, determined by the municipality
- Registration fee — 0.1% of the material interest, paid at the Registry Agency
Typically, costs are shared between the buyer and seller, but this is a matter of negotiation between the parties.
IMPORTANT: Always hire an independent lawyer — do not use the agent's or seller's lawyer. Independent legal advice is the only guarantee that your interests are protected at every stage of the transaction.
Frequently asked questions
Can a foreigner buy property in Bulgaria?
Yes, EU citizens can freely acquire real estate in Bulgaria, including land. Non-EU citizens can purchase buildings and limited property rights, but not land directly — to do so, they must establish a Bulgarian company. Bilateral agreements may also extend or restrict these rights.
What taxes are due on a property purchase?
The main taxes and fees include: local transfer tax (0.1–3%, set by the municipality), notary fee (per tariff), registration fee (0.1%). When selling a property held for less than 3 years (or 5 years for a sole residence), the seller owes capital gains tax under the Personal Income Tax Act (PITA).
Can the transaction be completed remotely?
Yes, the transaction can be completed through a notarially certified power of attorney. The power of attorney must contain an exact description of the property, the price and the terms of the transaction. If the power of attorney is issued abroad, it must be apostilled and translated into Bulgarian by a sworn translator.
Need assistance?
Our team of lawyers will guide you through the entire purchase process — from legal due diligence to registration of the notarial deed.