Closing Costs for Property Transactions in Bulgaria

Purchasing a home is one of the most significant financial steps you will take. Once you find the right property and conclude initial negotiations, the moment arrives to formally complete the transaction before a notary. Buyers frequently focus entirely on the purchase price and find themselves surprised by the accompanying transaction costs due on completion day.

To plan your budget with confidence and avoid unnecessary stress, it is essential to understand the mandatory state, municipal, and notary charges in advance. As of 2026, all calculations and payments in Bulgaria are conducted in euros, with statutory amounts converted using the fixed official exchange rate of €1 = BGN 1.95583. All fees and taxes for the transaction are calculated based on the property price stated in the title deed (notary deed).

In this practical guide, we cover the core components of these costs, their legal framework, the calculation formulas, and three clear real-world examples.

The Four Main Categories of Closing Costs

When transferring real estate ownership before a notary, closing costs fall into four main categories:

1. Notary fee for executing the transaction (set by state tariff);
2. Local transfer tax for property acquisition (paid to the respective municipality);
3. Registration fee for entering the deed into the Property Register (paid to the Registry Agency);
4. Incidental administrative and banking costs.

Let us examine each category in detail.

1. Notary Fee Under Tariff Item 8 of the Notaries Act

Notary fees in Bulgaria are not determined independently by each notary; rather, they are strictly regulated by the Tariff of Notary Fees under the Notaries and Notarial Practice Act (NNPA). The fee for drafting and certifying a notary deed is determined according to Item 8 of the Tariff via a progressive scale. With the adoption of the euro, fee brackets were not altered, but simply converted at the official statutory rate.

The calculation base is the price stated in the title deed. The scale is as follows:

• Up to €51.13: fixed fee of €15.34;
• €51.13 to €511.29: €15.34 + 1.5% on the amount exceeding €51.13;
• €511.29 to €5,112.92: €22.24 + 1.3% on the amount exceeding €511.29;
• €5,112.92 to €25,564.59: €82.06 + 0.8% on the amount exceeding €5,112.92;
• €25,564.59 to €51,129.19: €245.68 + 0.5% on the amount exceeding €25,564.59;
• €51,129.19 to €255,645.94: €373.50 + 0.2% on the amount exceeding €51,129.19;
• Over €255,645.94: €782.53 + 0.1% on the amount exceeding €255,645.94, capped at a statutory maximum of €3,067.75 (equivalent to BGN 6,000) excluding VAT.

An important consideration regarding the notary fee is value-added tax. If the notary is registered under the Value Added Tax Act (VATA), 20% VAT is charged on top of the calculated fee. Because most practicing notaries are VAT-registered, you should account for this additional percentage in your budget.

Minor additional notary fees may also arise. These include drafting the deed by the notary (if not already supplied by an attorney), issuing certified copies of the deed for the parties, and verifying official declarations. While modest compared to the overall purchase sum, these amounts will be reflected on the notary office's final invoice.

2. Local Transfer Tax on Property Acquisition

The second—and usually largest—expense is the local tax on onerous acquisition of property. This is governed by the Local Taxes and Fees Act (LTFA, Articles 44–51).

Unlike the notary fee, which is uniform nationwide, the local tax rate is set independently by the Municipal Council of the municipality where the property is located. Under statutory law, each municipality may establish a rate between 0.1% and 3% of the transaction value.

By law, the local tax is payable by the buyer unless the parties explicitly agree otherwise in the preliminary contract. Local tax is exempt from VAT.

Tax rates by region:

• Sofia Municipality (Capital): 3%;
• Nessebar Municipality: 3%;
• Bansko Municipality: 2.5%;
• Burgas, Varna, and Plovdiv: In these major municipalities, the rate is set near the statutory ceiling—typically between 2.9% and 3%. The exact rate should always be verified in the current local tax ordinance of the respective municipality at the time of the transaction, and consulting an attorney ensures complete accuracy.

3. Registration Fee to the Registry Agency

Once the notary reads the deed and the parties sign it, the document must be registered in the Property Register at the Registry Agency (RA). This recording makes the transaction public record and protects the new owner's title against any subsequent third-party claims.

The state registration fee is levied according to the Tariff of State Fees Collected by the Registry Agency. It is fixed at 0.1% of the sale price stated in the deed.

The tariff specifies a statutory minimum threshold of approximately €5.11 (BGN 10), and this fee is not subject to VAT. The funds are transferred directly to the Registry Agency's account, with the notary handling the submission of the deed on completion day.

4. Other Incidental Administrative Expenses

In addition to the three main expenses, finalizing the purchase requires obtaining a set of official certificates. These documents carry small administrative fees that vary depending on processing speed:

• Tax Valuation Certificate (Danachna Otsenka): issued by the local municipal tax office where the property is located;
• Cadastral Map Extract / Sketch (Skitsa): issued by the Geodesy, Cartography and Cadastre Agency (GCCA), certifying the property's precise boundaries and cadastral identifier;
• Encumbrance Certificate (Udostoverenie za Tezhesti): issued by the Registry Agency, showing whether the property is subject to mortgages, statutory liens, or ongoing litigation. It is strongly advised to obtain this both before and immediately after completion;
• Bank Fees and Commissions: payments for the purchase price, local tax, notary fees, and state fees are executed via bank transfer. Each commercial bank applies its own tariff for intra-bank or inter-bank transfers.

These incidental expenses represent a small portion of the overall budget, yet they should be factored in early to prevent delays in document preparation.

Practical Calculation Examples

To help you clearly visualize how these costs come together in practice, here are three realistic scenarios for purchasing residential property in different parts of Bulgaria.

Example A: Apartment in Sofia Priced at €80,000

You are buying an apartment in the capital at a deed price of €80,000. The local transfer tax in Sofia Municipality is 3%.

• Notary Fee:

The €80,000 amount falls within the bracket of €51,129.19 to €255,645.94. Formula: €373.50 + 0.2% on the excess over €51,129.19. Excess: €80,000 - €51,129.19 = €28,870.81. 0.2% on €28,870.81 = €57.74. Notary fee before VAT: €373.50 + €57.74 ≈ €431.24. Notary fee with 20% VAT: €431.24 × 1.20 ≈ €517.49.

• Local Tax (3%): €80,000 × 3% = €2,400.
• Registration Fee (0.1%): €80,000 × 0.1% = €80.
• Total Closing Costs: €517.49 + €2,400 + €80 ≈ €2,997.49 (plus minor banking and administrative fees).

Example B: Apartment in Bansko Priced at €45,000

You are purchasing a holiday apartment in the mountain resort of Bansko for €45,000. The local transfer tax in Bansko Municipality is 2.5%.

• Notary Fee:

The €45,000 amount falls within the bracket of €25,564.59 to €51,129.19. Formula: €245.68 + 0.5% on the excess over €25,564.59. Excess: €45,000 - €25,564.59 = €19,435.41. 0.5% on €19,435.41 = €97.18. Notary fee before VAT: €245.68 + €97.18 ≈ €342.86. Notary fee with 20% VAT: €342.86 × 1.20 ≈ €411.43.

• Local Tax (2.5%): €45,000 × 2.5% = €1,125.
• Registration Fee (0.1%): €45,000 × 0.1% = €45.
• Total Closing Costs: €411.43 + €1,125 + €45 ≈ €1,581.43 (plus incidental banking and administrative expenses).

Example C: Apartment in Nessebar Priced at €120,000

You are acquiring a seaside home in Nessebar Municipality for an agreed price of €120,000. The local tax in Nessebar is 3%.

• Notary Fee:

The price falls within the bracket of €51,129.19 to €255,645.94. Formula: €373.50 + 0.2% on the excess over €51,129.19. Excess: €120,000 - €51,129.19 = €68,870.81. 0.2% on €68,870.81 = €137.74. Notary fee before VAT: €373.50 + €137.74 ≈ €511.24. Notary fee with 20% VAT: €511.24 × 1.20 ≈ €613.49.

• Local Tax (3%): €120,000 × 3% = €3,600.
• Registration Fee (0.1%): €120,000 × 0.1% = €120.
• Total Closing Costs: €613.49 + €3,600 + €120 ≈ €4,333.49 (plus standard small document fees and bank transfer charges).

Step-by-Step: What to Expect on Completion Day

Understanding the exact sequence of events on completion day helps ensure a smooth, stress-free experience.

1. Appearance Before the Notary: The buyer and seller (or their authorized legal representatives) arrive at the scheduled time with valid identification documents. If either party is married, a marriage certificate or spousal consent declaration is frequently required.
2. Verification of Documentation: The notary conducts a thorough review of title deeds, cadastral sketches, declarations confirming the absence of outstanding public debts to the state, and identity verification.
3. Reading the Title Deed: The notary reads the draft deed aloud. Both parties confirm that the terms, agreed purchase price, bank accounts, and property descriptions precisely reflect their intentions.
4. Payment of Taxes and Fees: The local transfer tax, state registration fee, and notary fees are settled on the spot using a payment terminal or via bank transfer to the accounts designated by the notary.
5. Transfer of the Purchase Price: By law, property payments above statutory limits must be made by bank transfer. The buyer initiates the transfer to the seller's account (or via a designated escrow/deposit account), and proof of transfer is presented to the notary.
6. Signing and Registration: The parties sign the deed. On the same business day, the notary presents the deed to the Registry Office at the Registry Agency, where it is formally recorded in the Property Register.

Practical Tips for a Smooth Completion

When budgeting for your purchase, it is prudent to set aside approximately 3.5% to 4% of the agreed property price to cover notary fees, local transfer tax, and administrative expenses. This provides an adequate buffer for banking charges and minor incidental costs.

Every legal aspect of your contract, along with the title search and encumbrance checks, should be verified by a qualified attorney to safeguard your investment. The professional team at Maxon assists buyers throughout every stage of the transaction, ensuring peace of mind and clarity from your initial viewing to the day you receive your keys.