Real Estate Brokerage in Bulgaria — Rules, Commissions, and Liabilities (2026)

Legal Framework — Absence of a Dedicated Law

As of April 2026, Bulgaria has no dedicated law regulating real estate brokers. This means that any natural or legal person may freely engage in real estate brokerage without a licence, permit, or mandatory registration in a public register.

Draft Bills from 2024–2025

In recent years, two legislative attempts were made to regulate the sector:

• ITN Draft Bill (December 2024) — proposes a self-regulation model through industry associations. It envisages the creation of a National Register of Brokers at the Registry Agency and mandatory professional liability insurance.
• GERB Draft Bill (April 2025) — proposes administrative oversight by the Commission for Consumer Protection (CCP). It also envisages a mandatory National Register at the Registry Agency, minimum qualification requirements, and mandatory insurance.

The Commission for Protection of Competition (CPC) and the Institute for Market Economics (IME) have criticised both bills, citing risks of restricting competition and artificially inflating service prices. As of April 2026, neither bill has been adopted.

Applicable Laws

In the absence of a dedicated law, real estate brokerage is governed by the following legislation:

• Obligations and Contracts Act (OCA) — Art. 280–292 (mandate contract), general rules on contractual liability
• Commerce Act (CA) — Art. 49–51 (commercial intermediation)
• Consumer Protection Act (CPA) — obligations when dealing with consumers, requirement for general terms and conditions
• Anti-Money Laundering Act (AMLA) — identification and due diligence obligations
• Value Added Tax Act (VATA) — taxable supply at 20 % VAT
• GDPR / Personal Data Protection Act — processing of client personal data

Brokerage Agreement

The real estate brokerage agreement is a bilateral, consensual, and onerous contract. It is not regulated as a separate type of contract under the OCA but is classified as a mandate contract (Art. 280–292 OCA) or as commercial intermediation (Art. 49–51 CA) when performed by a trader.

Essential Clauses

• Parties — details of the broker (agency/individual) and the client (seller, buyer, landlord, or tenant)
• Description of services — specification of the type of brokerage (sale, lease, purchase)
• Commission — fixed amount or percentage of the transaction price
• Term — period of validity of the agreement
• Exclusivity — exclusive brokerage clause (only upon explicit agreement; the contract is non-exclusive by default)
• Termination — conditions for unilateral termination, notice period
• Anti-circumvention clause — penalty for direct conclusion of a deal with a person introduced by the broker without payment of the commission

Broker’s Obligations

• Providing accurate and complete information about the property — area, legal status, encumbrances, ownership regime
• Organising viewings and assisting in negotiations between the parties
• Maintaining confidentiality regarding the client’s personal data and financial information
• Assistance with documentation — preparation or coordination of preliminary and final contracts

Client’s Obligations

• Payment of the commission upon occurrence of the agreed condition (usually conclusion of the transaction)
• No direct contact with persons introduced by the broker without the broker’s knowledge and consent

When dealing with consumers (natural persons acting outside the scope of their professional activity), the broker is required to prepare and provide General Terms and Conditions in accordance with the Consumer Protection Act.

Commissions — Amounts and Market Practice

In Bulgaria, there is no statutory limit on the broker’s commission. The amount is freely negotiated between the parties. In practice, however, the market has established the following typical rates:

The commission is always subject to negotiation and may vary depending on the property value, the type of transaction, and the competitive environment in the respective area. For higher-value properties, it is common practice for the percentage to be lower.

If the broker is VAT-registered, VAT at 20 % is charged on top of the commission. This means that a 3 % commission effectively costs the client 3.6 % of the property price.

AML Obligations (Anti-Money Laundering Act)

Real estate brokers are obliged entities under Art. 4(18) of the Anti-Money Laundering Act (AMLA). This means that every broker — whether a natural or legal person — is required to apply measures for the prevention of money laundering and terrorist financing.

Key Obligations

• Client identification — collection and verification of identity data for natural persons (ID card/passport) and incorporation documents for legal entities
• Beneficial owner identification — determination of the natural person who is the ultimate owner or exercises control over the client legal entity
• Due diligence — standard for every transaction; enhanced when dealing with leases of ≥ EUR 10,000 per month or in the presence of elevated risk
• PEP screening — determination of whether the client is a Politically Exposed Person and application of enhanced measures in such cases
• Suspicious transaction reporting — if money laundering is suspected, the broker must immediately notify the Risk Analysis Directorate (RAD) at SANS (State Agency for National Security)
• Internal AML rules — every broker is required to adopt and apply internal rules for the control and prevention of money laundering
• Document retention — minimum 5 years after the end of the business relationship
• Designated AML officer — appointment of a specific natural person responsible for implementation of the measures

Non-compliance with AML obligations can result in serious administrative sanctions — fines of up to BGN 50,000 for natural persons and up to BGN 200,000 for legal entities.

Broker Liability

In the absence of a dedicated law, the liability of real estate brokers is subject to the general regime of contractual liability under the Obligations and Contracts Act.

Contractual Liability

The broker is liable for non-performance of obligations under the brokerage agreement — including provision of inaccurate property information, failure to assist with documentation, or breach of confidentiality. In cases of culpable non-performance, the client may claim compensation for damages suffered and lost profits.

Liability for Inaccurate Information

The broker is required to provide accurate and verified information about listed properties. If the client suffers damages due to false information (e.g., regarding the area, encumbrances, or legal status), the broker owes compensation.

Hidden Defects

The broker is not liable for hidden defects in the property — this liability lies with the seller under Art. 193–197 of the OCA. The limitation period for claims relating to hidden defects is 1 year from the handover of the property.

Tortious and Criminal Liability

In cases of deliberate concealment of information (e.g., concealing encumbrances, court disputes, or structural problems), the broker may also bear tortious liability under Art. 45 of the OCA. In particularly severe cases — involving deliberate deception with the aim of obtaining a material benefit — criminal liability for fraud under Art. 209 of the Penal Code is also possible.

Registration and Licensing

As of April 2026, Bulgaria has no mandatory registration or licensing for real estate brokers. The activity may be freely performed by any person registered as a trader.

Voluntary Registers and Organisations

Despite the lack of mandatory registration, several industry organisations maintain voluntary registers:

• National Association “Real Estate” (NSNI) — nsni.bg — the largest industry association, offering training and certification through a Vocational Training Centre licensed by NAVET
• National Association of Real Estate Brokers (NSBI) — nsbi.bg
• Public Register — publicregister.bg — a voluntary online register of brokers

Membership in these organisations is not mandatory but can enhance client trust and provide access to training and professional standards.

Patent Tax

Real estate brokers who are natural persons (sole traders or freelancers) are subject to patent tax under the Local Taxes and Fees Act. The amount depends on the municipality where the activity is performed:

• Sofia: approximately EUR 1,790 per year
• Smaller cities: approximately EUR 767 per year

GDPR Obligations

Real estate brokers process a significant volume of client personal data — names, personal identification numbers (EGN), addresses, phone numbers, financial information, and copies of identity documents. This makes them data controllers within the meaning of GDPR and the national Personal Data Protection Act.

Key Obligations

• Privacy policy — preparation and provision of clear and understandable information to clients regarding the processing of their personal data
• Legal basis — determination of an appropriate legal basis for processing (most commonly performance of a contract or legitimate interest)
• Data subject information — notification of clients regarding their rights under GDPR (access, rectification, erasure, portability)
• Record of processing activities — maintenance of an internal register under Art. 30 of GDPR
• Breach reporting — notification of the Commission for Personal Data Protection (CPDP) within 72 hours in the event of a data security breach

For more information on GDPR compliance and data controller obligations, see our detailed guide.

Tax Treatment of Commissions

The brokerage commission constitutes a taxable supply of services within the meaning of the Value Added Tax Act (VATA).

VAT

• Standard rate: 20 %, charged on the commission
• Mandatory VAT registration upon reaching a turnover of EUR 84,898 (BGN 166,000) in the preceding 12 months
• When VAT-registered, the broker must issue an invoice with VAT charged for each commission

Corporate Tax and Personal Income Tax

• Legal entities (EOOD, OOD): corporate tax of 10 % on profit
• Sole traders and natural persons: personal income tax (PIT) — 10 %

For the Client

The commission paid to the broker is a recognised expense for tax purposes if the property is used for business activity. When purchasing a property for personal use, the commission is not recognised as a tax-deductible expense.

Frequently Asked Questions