What it costs to buy — and to own — in Sofia
The asking price is about 95% of what you pay. Here is the other 5%, item by item, with the annual bills that follow.
One-off costs at purchase
| Item | Rate | On a €200,000 flat | Who pays |
|---|---|---|---|
| Municipal transfer tax (Sofia) | 2.5% | €5,000 | Buyer (by custom) |
| Notary fee | Statutory scale, ~0.5–1% | ≈€1,150 | Usually split or buyer |
| Registry entry | 0.1% | €200 | Buyer |
| Agency commission | 2–3% + 20% VAT | €4,800–7,200 | Often both sides |
| Independent lawyer | Fixed fee | €400–900 | Buyer |
| Sworn translation / power of attorney | Fixed fee | €150–300 | Buyer |
| Bank transfer & FX | 0.2–1% | €400–2,000 | Buyer |
The transfer tax is charged on the higher of the agreed price and the municipal tax valuation. Sofia's rate is 2.5%; other municipalities range from 0.1% to 3%.
The notary scale
Notary fees are set by regulation, not negotiated. They are regressive: the percentage falls as the price rises. As a rule of thumb, expect about €700 on a €100,000 flat, €1,150 on €200,000 and €1,900 on €400,000, plus 20% VAT.
Mortgage costs, if you borrow
- Arrangement fee: 0–1.5% of the loan, often waived in competitive years
- Valuation: €120–250
- Mortgage registration: 0.1% of the secured amount
- Property insurance: €80–200 a year, compulsory while the loan runs
- Life insurance: often required, €150–400 a year depending on age
Annual costs of ownership
| Cost | Typical annual amount | Notes |
|---|---|---|
| Property tax | €60–190 | Charged on the tax valuation, not market value |
| Waste collection fee | €70–260 | Sofia reformed the basis in recent years; check the current notice |
| Building fund & cleaning | €90–400 | Higher in new blocks with lifts, gardens and security |
| District heating (TEC) | €400–900 | Insulated blocks sit at the bottom of that range |
| Electricity | €300–700 | Higher where heating is electric |
| Water | €120–220 | |
| Home insurance | €60–150 | Optional unless mortgaged |
Tax when you let it
Rental income is taxed at a flat 10%, applied after a statutory 10% deduction for expenses — an effective 9% of gross rent. Declare it in the annual return by 30 April. If you let to a company, the tenant withholds the tax. Short-term letting (Airbnb-style) requires a municipal categorisation, and income is taxed differently once you exceed the registration threshold for VAT.
Tax when you sell
Capital gains on property are taxed at 10%, but there are two important exemptions: one residential property sold more than three years after acquisition is exempt, and up to two properties sold more than five years after acquisition are exempt. This is why under-declaring the purchase price is such a bad idea — it inflates the gain if an exemption does not apply.
Frequently asked questions
How much is property transfer tax in Sofia?
Sofia charges 2.5% of the higher of the agreed price and the municipal tax valuation. It is paid at the notary on the day of the deed and is customarily borne by the buyer.
Do buyers pay estate agency commission in Bulgaria?
Frequently, yes. Sofia agencies commonly charge both sides 2–3% plus 20% VAT. It is negotiable, and on new-build developments the developer usually pays instead.
What is the annual property tax on a Sofia apartment?
Property tax and the waste fee together typically come to €130–450 a year for a city flat, because both are calculated on the municipal tax valuation, which is well below market value.
Is rental income from a Bulgarian apartment taxed?
Yes, at 10% after a flat 10% expense deduction — an effective 9% of gross rent. Non-residents pay Bulgarian tax on Bulgarian rental income and may also have to declare it at home.
Do I pay capital gains tax when I sell?
Gains are taxed at 10%, but a single residential property sold more than three years after purchase is exempt, as are up to two properties sold after five years.
Written by the Apartment in Sofia editorial team and reviewed against the market sample of 16 September 2026. General information, not legal or tax advice — take advice on your own circumstances.
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