Property Taxes in Bulgaria
When you buy
| Cost | Rate | Notes |
|---|---|---|
| Transfer tax | 0.1% to 3% | Paid by the buyer; the rate is set by the municipality |
| VAT | 20%, if not exempt | On sales by companies and other VAT-registered sellers; some land sales are exempt |
Source: RSM Bulgaria: Real estate tax factsheet 2026; PwC Worldwide Tax Summaries: Bulgaria, corporate, other taxes1,2
Transfer tax also applies to vehicles. Contributions of property to a company’s capital are exempt.2
While you own
- Property tax: 0.01% to 0.45% a year, set by the municipality. Homes are taxed on their tax value; company property on the higher of book value and tax value.
- Waste collection fee: set each year by the municipal council, usually as a share of the property’s value or by the number of bins.
- Tax notices are issued by the municipality, in euro since 2026.
Source: PwC Worldwide Tax Summaries: Bulgaria, corporate, other taxes; Deloitte: International Tax, Bulgaria Highlights 2026; PwC Worldwide Tax Summaries: Bulgaria, individual, significant developments2,3,4
Rent and sale
| Rent received by an individual | 10% after a 10% allowance for costs, with quarterly advance payments |
|---|---|
| Rent received by a company | Part of profit, taxed at 10% |
| VAT on rent | Residential rent to individuals exempt; commercial rent 20% if the landlord is registered |
| Sale by an individual | 10% of the gain less 10%; one home a year after 3 years, and up to two other properties after 5 years, tax-free |
Source: RSM Bulgaria: Real estate tax factsheet 2026; PwC Worldwide Tax Summaries: Bulgaria, individual income determination; PwC Worldwide Tax Summaries: Bulgaria, corporate, other taxes1,5,2
Frequently Asked Questions
What is the transfer tax when buying property in Bulgaria?
The buyer pays a transfer tax of 0.1% to 3% of the purchase price, with the rate set by the municipality. Notary and registration fees also apply.
What annual property taxes do owners pay in Bulgaria?
Owners pay annual property tax of 0.01% to 0.45% of the tax value, at a rate set by the municipality, plus a waste collection fee. Municipalities issue tax notices in euro since 2026.
How is rental income taxed in Bulgaria?
An individual pays 10% tax on rental income after a 10% allowance for costs, with quarterly advance payments. Rental income received by a company is part of its profit and is taxed at 10%.
How are gains from selling property taxed in Bulgaria?
An individual pays 10% tax on the gain after a 10% allowance. A home may be sold tax-free once a year after 3 years, and up to two other properties may be sold tax-free after 5 years.
Sources
- RSM Bulgaria: Real estate tax factsheet 2026 (PDF)
- PwC Worldwide Tax Summaries: Bulgaria, corporate, other taxes
- Deloitte: International Tax, Bulgaria Highlights 2026 (PDF)
- PwC Worldwide Tax Summaries: Bulgaria, individual, significant developments
- PwC Worldwide Tax Summaries: Bulgaria, individual income determination
Figures checked 13 October 2026. Prepared by InvestBulgaria for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
