What you will learn
- The 10-step procedure for buying property from start to finish
- What a preliminary contract under Art. 19 of the Obligations and Contracts Act must contain
- A full 12-point due diligence checklist
- All costs for a EUR 150,000 property purchase in EUR
- Notarial fees under the current schedule
- Local acquisition tax by city for 2026
- Hidden costs and traps that brokers do not mention
- Warranty periods for new construction
- Annual costs as a property owner
Step-by-step procedure for buying property
Step 1. Research and market analysis
Set your budget, including additional costs (6–11% of the price). In 2025, property prices in Bulgaria rose by 10–18%, with the average price in Sofia reaching approximately EUR 2,000/m². Research different neighbourhoods, infrastructure, transport links, and future urban development plans.
Prepare a list of criteria: floor area, floor level, orientation, parking, year of construction. These parameters will help you filter listings efficiently.
Step 2. Viewings and technical assessment
During viewings, pay attention to the structural condition, common areas of the building, and any visible defects. For buildings constructed before 2000, we recommend engaging a structural engineer to carry out a technical inspection. The cost of EUR 150–300 for an expert opinion can save you thousands of euros in future repairs.
Check the condition of the roof, plumbing and electrical installations, the presence of moisture, and the thermal insulation. Request access to the basement and attic if they are common property.
Step 3. Legal due diligence
This is the critical stage that must not be skipped. The detailed checklist is set out in a separate section below, but in summary: you verify ownership for the past 10 years, encumbrances, tax liabilities, zoning status, and building regulations.
Engaging a lawyer for due diligence is an investment, not an expense. Legal fees of EUR 750–1,500 are negligible compared to the risks of purchasing a property with encumbrances or disputed ownership.
Step 4. Price negotiation
Do not accept the listed price as final. In Bulgarian practice, there is room for negotiation in the range of 5–10% of the asking price, especially for properties that have been listed for a long time. Factor in necessary repairs and use them as a negotiating argument.
Bear in mind that transaction costs (tax, notarial fees, broker's commission) will increase the real price substantially. Agree in advance who bears each of these costs.
Step 5. Preliminary contract and deposit
The preliminary contract under Art. 19 of the Obligations and Contracts Act is the standard step before the final transaction. The customary deposit is 10% of the price. Details on the content and legal consequences of the preliminary contract appear in a separate section below.
The deposit is transferred by bank wire and serves as a guarantee of the seriousness of both parties' intentions. If the buyer withdraws — they lose the deposit. If the seller withdraws — they owe double the deposit amount (Art. 93, para. 2 of the Obligations and Contracts Act).
Step 6. Arrange financing
If you are using a mortgage, prepare the bank's required documents: employment contract or income evidence, tax returns, bank statements. The bank will carry out its own property valuation, which may differ from the agreed price.
Note the loan origination fee (typically 0.5–1% of the loan amount), property insurance (mandatory with a mortgage), and the notarial fee for registering the mortgage (separate from the transaction fee).
Step 7. Document preparation
The seller must provide: notarial deed of ownership, cadastral sketch or plan from the AGKK, tax assessment certificate, certificate of no encumbrances, certificate of marital status, certificate of no outstanding local tax liabilities.
The buyer prepares: identity document, proof of origin of funds (for amounts over EUR 15,000), power of attorney (if using a representative). The notary may request additional documents depending on the specifics of the transaction.
Step 8. Notarial deed for purchase and sale
The transaction is executed before a notary in the district where the property is located (Art. 18 of the Obligations and Contracts Act). The notary verifies the identity of the parties, the documents presented, and the seller's ownership right. The deed is read aloud, after which the parties sign it.
The notarial deed is a condition for the validity of the transaction — without it, there is no transfer of ownership. The notary collects the applicable fees and taxes and arranges registration in the Property Register.
Step 9. Payment of the price
Under the Cash Payment Restriction Act, amounts over EUR 5,113 (the equivalent of BGN 10,000 prior to euro adoption) must be paid by bank transfer. In practice, the entire purchase price is wired to the seller's bank account.
Two mechanisms are common: direct bank transfer upon signing the notarial deed, or use of an escrow (fiduciary) account. The latter is safer for the buyer, since the funds are released only after the deed is registered.
Step 10. Registration and post-purchase actions
The notary files the deed for registration with the Registry Agency on the day of the transaction. Registration is a condition for the acquisition to be enforceable against third parties (Art. 113 of the Ownership Act).
After registration:
- Declare the property at the municipality within two months (Art. 14, para. 1 of the Local Taxes and Fees Act)
- Transfer utility accounts for electricity, water, central heating, and gas
- Register with the condominium association
- Take out property insurance (recommended; mandatory with a mortgage)
Preliminary contract — what it must contain
The preliminary contract under Art. 19 of the Obligations and Contracts Act is an agreement by which the parties undertake to conclude a final purchase and sale contract. Although not legally mandatory, it is standard practice in Bulgaria and protects both parties' interests.
Mandatory content
The preliminary contract must contain all essential elements of the final contract:
- Property identification: exact address, cadastral identifier, floor area, boundaries, ancillary areas (basement, attic, parking space)
- Price and payment method: total price in EUR, deposit amount, schedule and method for paying the balance
- Deadline for the final contract: specific date or period
- Party details: names, personal identification numbers, addresses, representative details (if any)
- Seller's declarations: that they are the sole owner (or listing all co-owners), that the property is free of encumbrances, that there are no unpaid taxes or fees
Deposit and legal consequences
The standard deposit is 10% of the purchase price, though the parties may agree on a different percentage. The deposit serves a dual function — it confirms the conclusion of the contract and acts as security.
In case of non-performance:
- Buyer withdraws — forfeits the deposit
- Seller withdraws — must return double the deposit (Art. 93, para. 2 of the Obligations and Contracts Act)
Penalties and deadlines
Include penalty clauses for delayed performance — for example, 0.1% per day of the purchase price. Set a reasonable deadline for completing the transaction (typically 30–90 days) and provide for the possibility of extension in case of objective obstacles (bank loan delays, missing documents).
Court declaration of the preliminary contract as final
Art. 19, para. 3 of the Obligations and Contracts Act provides a powerful remedy for the buyer: if the seller refuses to conclude the final contract, the buyer may file a court action to have the preliminary contract declared final. The court judgment replaces the notarial deed. This makes the preliminary contract a substantially stronger instrument than an ordinary agreement.
Warning: “stop deposit”
The practice of paying a so-called “stop deposit” — a small sum (EUR 500–1,000) paid to a broker to “reserve” a property — carries risks. This payment is not regulated by law, and in a dispute it may be difficult to recover. We recommend not paying any sums outside the framework of a duly executed preliminary contract.
Due diligence — what to check before buying
Legal due diligence is the most important step for protecting your interests. Here is a checklist of 12 mandatory items:
1. Ownership and chain of title
Check the ownership history for the past 10 years through a search at the Registry Agency. Confirm that the seller is registered as the actual owner and that the chain of title is unbroken.
2. Encumbrances and mortgages
Request a certificate of encumbrances from the Registry Agency. Check for registered mortgages, seizures, claims, rental agreements, and other encumbrances. The existence of an encumbrance is not always an obstacle to the transaction, but it must be cleared before or at completion.
3. Cadastral check
Verify the data in the Cadastral Map (AGKK): identifier, area, boundaries, owner. Compare the cadastral data with the seller's notarial deed — discrepancies must be resolved before the transaction.
4. Tax assessment and tax liabilities
Request a tax assessment certificate from the municipality. Check whether the seller has any outstanding taxes or fees on the property. Note that the tax assessment may differ substantially from the market price — notarial fees and the acquisition tax are calculated on the higher of the two values.
5. Zoning and planning
Check the Detailed Development Plan for the area. Are there planned infrastructure changes, construction nearby, or planned expropriations? This check is carried out at the municipality's technical department.
6. Building documentation (for new construction)
Request the building permit, Act 14 (structural completion), Act 15 (commissioning), and Act 16 (occupancy permit). Without Act 16, the property cannot be lawfully occupied and cannot be transferred by notarial deed under the standard procedure.
7. Seller's marital status
If the property is matrimonial community property, both spouses must participate in the transaction. A sale without one spouse's consent may be challenged. Request a certificate of marital status.
8. Third-party rights
Check whether the property is encumbered with a right of use (usufruct), right of passage, or servitudes. These rights survive a sale and restrict the new owner's rights.
9. Condominium matters
Request the minutes of recent general assembly meetings. Check whether there are resolutions for major repairs, outstanding contributions to the renovation fund, or ongoing disputes.
10. Utility arrears
Request evidence of paid bills for electricity, water, central heating, gas, and common area maintenance. Unpaid obligations formally belong to the seller, but in practice they can complicate the transfer of utility accounts.
11. Environmental risks
For properties near industrial zones, petrol stations, or agricultural land, check for soil or groundwater contamination. For building plots, request geological and hydrogeological surveys.
12. Pending litigation
Check the Unified Electronic Justice Portal for any pending cases against the seller or against the property itself. A pending case may lead to a seizure or annulment of the transaction.
All costs for buying a property worth EUR 150,000
The table below summarises all costs for purchasing an apartment in Sofia worth EUR 150,000 in 2026.
| Cost item | Rate / basis | Amount (EUR) | Who pays |
|---|---|---|---|
| Local acquisition tax (Sofia, 3%) | 3% of price | 4,500 | Buyer |
| Notarial fee | Per schedule (see table) | ~510 | By agreement* |
| Registration fee | 0.1% of price | 150 | Buyer |
| Broker's commission | 2–5% of price | 3,000–7,500 | Buyer** |
| Legal fees | Fixed | 750–1,500 | Buyer |
| Certificates and cadastral sketch | Fixed | 50–100 | Seller |
| Bank transfer fee | Fixed | 10–30 | Buyer |
| Total (without broker) | ~5,940–6,790 | ||
| Total (with broker) | ~8,970–14,290 | ||
| Percentage of purchase price | ~6–11% |
* Traditionally the buyer pays the notarial fee, but this is negotiable.
** The commission may be charged to the seller as well — check in advance.
Important: If the tax assessment is higher than the agreed price, the acquisition tax and notarial fee are calculated on the tax assessment (Art. 46, para. 2 of the Local Taxes and Fees Act). If the agreed price is higher — on that price. The higher of the two values always applies.
Notarial fees
Notarial fees in Bulgaria are determined by the Schedule of Notarial Fees appended to the Notaries and Notarial Activities Act. The fee is calculated progressively on the certified material interest (the property price or the tax assessment — whichever is higher).
| Certified material interest (EUR) | Fee |
|---|---|
| Up to EUR 2,556 | EUR 15, but not less than EUR 30 |
| EUR 2,557 to EUR 5,113 | EUR 30 + 1.5% on the amount above EUR 2,556 |
| EUR 5,114 to EUR 51,130 | EUR 68 + 1.3% on the amount above EUR 5,113 |
| EUR 51,131 to EUR 255,646 | EUR 666 + 0.8% on the amount above EUR 51,130 |
| EUR 255,647 to EUR 511,292 | EUR 2,302 + 0.5% on the amount above EUR 255,646 |
| Above EUR 511,292 | EUR 3,580 + 0.2% on the amount above EUR 511,292, but no more than EUR 3,069 additional |
Example for a EUR 150,000 property:
The fee falls in the EUR 51,131–EUR 255,646 bracket. Calculation: EUR 666 + 0.8% x (EUR 150,000 – EUR 51,130) = approximately EUR 510 (notarial fees are not subject to VAT).
Note: If the notary drafts the deed (rather than the buyer's lawyer), an additional fee of 50–100% of the base notarial fee may apply. This is one of the “hidden” costs — it can double the notarial fee. The solution is straightforward: have your lawyer prepare the draft.
Local acquisition tax by city (2026)
The local acquisition tax is set by the municipal council within the limits prescribed by the Local Taxes and Fees Act (Art. 46, para. 1 — from 0.1% to 3%). The tax is payable upon registration of the notarial deed.
| Municipality | Rate (2026) | Tax on EUR 150,000 |
|---|---|---|
| Sofia | 3.00% | EUR 4,500 |
| Plovdiv | 3.00% | EUR 4,500 |
| Varna | 3.00% | EUR 4,500 |
| Burgas | 3.00% | EUR 4,500 |
| Stara Zagora | 2.50% | EUR 3,750 |
| Ruse | 2.20% | EUR 3,300 |
Most large municipalities apply the maximum rate of 3%. Some smaller municipalities offer lower rates, which can be a factor in location selection.
The tax is paid by the buyer unless the parties agree otherwise in the notarial deed. In practice, the buyer bears this cost in the vast majority of transactions.
Warranty periods for new construction
When purchasing a property in a new building, the developer bears responsibility for defects within warranty periods defined by Ordinance No 2 of 31 July 2003 on Commissioning of Construction Works and the Spatial Planning Act (Art. 160, Art. 163).
Minimum warranty periods
| Type of construction work | Warranty period |
|---|---|
| Building structure (load-bearing elements) | 10 years |
| Roofing and waterproofing | 5 years |
| Finishing works (plaster, flooring, joinery) | 5 years |
| Installations (plumbing, electrical, heating) | 5 years |
| External works (roads, parking, landscaping) | 5 years |
How to exercise the warranty
Warranty periods run from the date of commissioning (issuance of the Occupancy Permit — Act 16), not from the date of purchase. If you discover a defect:
- Notify the developer in writing (by registered post or email with delivery confirmation)
- Describe the defect in detail and attach photographs
- Set a reasonable deadline for repair (typically 30 days)
- If the developer fails to act — seek legal assistance to pursue a claim
Common problems in new builds
- Cracking of plaster and tiles due to building settlement
- Leaks from the roof or upper-floor balconies
- Thermal insulation issues — condensation and mould
- Low-quality windows — problems with seals and mechanisms
- Defects in common areas — faulty lifts, poor garage waterproofing
Document every defect with the date and photographs. Written communication with the investor and developer is essential — verbal agreements carry no evidentiary weight.
Annual costs as a property owner
After the purchase, you should plan for regular costs in your budget.
Real estate tax (Art. 10–28 of the Local Taxes and Fees Act)
The annual tax is set by the municipal council and ranges from 0.1 per mille to 4.5 per mille of the property's tax assessment value. For an apartment with a tax assessment of EUR 75,000 in Sofia, the annual tax is approximately EUR 110–340.
Waste collection fee
The waste collection fee is set by the municipality and may be proportional to the tax assessment or to the quantity of waste generated. In Sofia, this fee for an apartment is typically EUR 80–200 per year.
Condominium contributions
Monthly contributions for maintenance of common areas (renovation fund and current maintenance) range from EUR 15 to EUR 80 per month depending on the building, the presence of a lift, security, doorman, and reception. In higher-end gated complexes, the fee can reach EUR 150–200 per month.
Property insurance
Recommended (mandatory with a mortgage): EUR 80–200 per year for a standard apartment, depending on coverage — fire, flood, earthquake, theft, civil liability.
Utilities
Electricity, water, central heating or gas, internet — total EUR 80–200 per month depending on the floor area and season.
Frequently asked questions
Conclusion
Buying real estate is a complex process that requires careful preparation, thorough legal due diligence, and precise budget planning. With total costs of 6–11% of the purchase price, the decision to buy must be made on an informed basis and following a full review of the property's legal and technical status.
The key factors for a successful transaction are: competent legal due diligence, a well-drafted preliminary contract, and a secure payment mechanism. Do not underestimate any of these elements.
Need assistance?
The Innovires Legal team can assist you with a full legal review, preparation of the preliminary contract, and representation at the notarial transaction.