Sale of Inheritance in Bulgaria — Procedure, Taxes and Risks (2026)

What Is a Sale of Inheritance

The sale of inheritance is a specific sui generis contract regulated by Art. 212 of the Obligations and Contracts Act (OCA). Unlike an ordinary sale, the subject of this contract is not a specific property, item or receivable, but the entire inherited estate — the aggregate of rights and obligations that the heir has acquired from the deceased.

The key feature is that the seller (the heir) guarantees only their status as an heir — i.e. that they are indeed an heir of the specified deceased and that they have not disposed of individual elements of the inheritance. However, the seller does not guarantee either the composition or the value of the inherited estate.

The buyer, in turn, assumes all obligations (debts) that form part of the inherited estate. This is a substantial risk, as the debts may exceed the value of the assets. Under Art. 213 OCA, the seller is obliged to return to the buyer everything they have received from the inheritance — including collected receivables and fruits from the inherited property.

This type of transaction is suitable in cases where the heir wishes to quickly dispose of an inherited estate of unknown composition, or where the buyer is familiar with the inherited property and wishes to acquire it in its entirety.

Sale of Inheritance vs. Sale of an Individual Inherited Property

In practice, the two legal constructs are often confused, but there are fundamental differences between them. The following table systematises the key distinctions:

It is important to note that the formal requirements for a sale of inheritance are considerably lighter — notarial certification of signatures is sufficient, even when the inheritance includes immovable property. This is because the subject of the transaction is not a specific property, but the inherited estate as a universality.

Step-by-Step Procedure

The sale of an inheritance requires compliance with a specific sequence of steps for the transaction to be valid and enforceable against third parties:

1. Acceptance of the inheritance (express or implied)

   Before being able to sell their inheritance, the heir must have accepted it — expressly through a declaration to the district court or impliedly through actions that unequivocally demonstrate an intention to accept. It is not possible to sell an inheritance that has not been accepted — such a contract would be null and void. It should be noted that the very act of entering into a contract for the sale of inheritance may be considered an implied acceptance of the inheritance.

2. Preparation of the contract

   The contract must contain: full identification of the parties (seller and buyer), description of the inheritance by reference to the deceased and the heir’s share (rather than by listing individual assets), agreed price and payment method. It is advisable to include clauses regarding the handover of documents and information about the inherited property.

3. Notarial certification of signatures

   The contract for the sale of inheritance requires written form with notarial certification of signatures (Art. 212(2) OCA). Importantly, a full notarial deed is not required — only certification of the signatures before a notary is sufficient. The absence of notarial certification renders the contract null and void.

4. Declaration for immovable property

   If the inheritance includes immovable property, the parties submit a declaration under Art. 264 of the Tax and Social Insurance Procedure Code to the competent municipality. This declaration is necessary for the purposes of the acquisition tax.

5. Registration in the Property Register

   Where the inheritance includes immovable property, the contract is subject to registration in the Property Register under Art. 212(3) OCA. Registration is not a condition for the validity of the transaction between the parties, but is necessary for enforceability against third parties. Without registration, the buyer risks another acquirer registering their deed first.

Required Documents

The following documents are required for executing a valid contract for the sale of inheritance and its subsequent registration:

• Certificate of heirs — issued by the municipality at the last permanent address of the deceased. The certificate proves the seller’s status as heir and determines their share of the inheritance.
• Death certificate of the deceased — certifies the fact of death and constitutes the basis for the opening of the inheritance.
• Contract for sale of inheritance with notarial certification of signatures — the main document that materialises the parties’ declarations of intent.
• Declaration under Art. 264 of the Tax and Social Insurance Procedure Code — required where the inherited estate includes immovable property. Certifies that the seller has no outstanding public obligations.
• Tax assessment — required for registration of the contract in the Property Register when the inheritance includes immovable property. Issued by the municipality at the location of the property.
• Identity documents of the parties to the transaction.
• Will (if the inheritance is by testament) — the will must have been duly announced.

Tax Treatment

The tax regime for the sale of inheritance is one of the most favourable aspects of this transaction. The key fact is as follows:

Income tax — 0% (exempt)

Pursuant to Art. 13(1)(26) of the Personal Income Tax Act (PITA), income from the sale or exchange of property acquired by inheritance is fully tax-exempt. This provision is unconditional — no holding period is required and there is no limitation on the number of properties or the value of the inherited estate.

This is a significant advantage compared to the sale of property acquired by purchase, where the income may be taxable if the property has been held for less than a specified period.

Local acquisition tax

Upon acquisition of immovable property (including through the sale of an inheritance containing such property), a local acquisition tax of 2–3% of the property value is payable, as determined by the relevant municipality. The tax is payable by the buyer, unless the parties have agreed otherwise.

Inheritance tax

The inheritance tax is 0% for direct heirs (children, parents) and spouses. For other heirs, the rates range from 0.4% to 6.6% depending on the degree of kinship and the value of the inheritance. However, this tax is due upon the inheritance itself, not upon the subsequent sale of the inheritance.

Notarial fees

Since the sale of inheritance requires only notarial certification of signatures (not a full notarial deed), the notarial fees are considerably lower. The fee for certification of a signature is fixed and does not depend on the value of the inheritance.

Registration fee

Upon registration of the contract in the Property Register (when the inheritance includes immovable property), a fee of 0.1% of the material interest (the property value or tax assessment) is payable.

Right of First Refusal by Co-owners (Art. 33 Ownership Act)

Art. 33 of the Ownership Act provides that a co-owner may sell their share to a third party only after offering it to the other co-owners under the same conditions. If the co-owner fails to comply with this obligation, the interested co-owner may file a claim for compulsory purchase within a two-month period from the sale.

In the case of a sale of inheritance, however, the question arises whether Art. 33 of the Ownership Act applies. The prevailing view in legal doctrine and case law is that:

• Art. 33 of the Ownership Act applies to the sale of an ideal (undivided) share of a specific immovable property in co-ownership.
• Art. 33 of the Ownership Act does not apply to the sale of an inheritance as a whole under Art. 212 OCA, since the subject of the transaction is not an ideal share of a specific property, but an aggregate of rights and obligations.

Nevertheless, we recommend that heirs notify the remaining co-owners of their intention to sell in order to avoid potential disputes and litigation. Where another heir has made a renunciation of inheritance, their share accrues to the remaining heirs.

Risks for the Parties

The sale of inheritance involves specific risks that both parties should carefully assess before entering into the transaction:

Risks for the buyer

• Hidden debts — the most serious risk. The buyer assumes all obligations from the inherited estate, including those unknown at the time of the transaction. The debts may exceed the value of the assets.
• Incomplete information about the assets — since the seller does not guarantee the composition of the inheritance, the buyer may discover that the assets are fewer or of lower value than expected.
• Prior dispositions by the seller — if the seller has disposed of individual elements of the inheritance before the sale, the buyer may not receive those assets. The seller owes compensation, but recovery may be difficult.

Risks for the seller

• Undiscovered assets — after the sale, assets of high value (bank accounts, securities, properties) may be discovered that become the property of the buyer, while the seller can no longer claim them.
• Challenge to inheritance rights — if third parties challenge the seller’s inheritance rights (e.g. through a new will or establishment of parentage), the buyer may claim compensation.

Common risks

• Lack of registration — if the contract is not registered when immovable property is involved, the buyer risks a third party acquiring the property and registering their deed earlier, thereby gaining priority.
• Nullity of the contract — failure to observe the required form (notarial certification) or sale of an unaccepted inheritance renders the contract null and void, producing no legal effects.

Frequently Asked Questions