The Bulgarian property system uses Notaries and a Notary Act in order to transfer the ownership of buildings and/or land.
Prior to signing the Notary Act, the local municipal council conducts a tax evaluation of each property "tax estimation price", and this valuation represents the minimum value that must be
reflected on the Notary Act. The "tax estimation price" is for the purposes of real estate taxation and is much lower than the actual selling (purchase) price and in general the tax evaluation rate ranges from 25-50% of the full market value.
Most of the Bulgarian property owners (vendors) wish that the "tax estimation price" is written in the title deed, and not the selling (asking) price which the buyers are paying, so due to this
practice there might be discrepancies between the price you are paying and the price written in the title deed.
When an individual comes to sell a property in Bulgaria, the same system works with a tax evaluation prior to the Notary Act.
In general, if a purchaser wishes to reflect a value higher than the tax evaluation on the Notary Act, extra costs incurred as a result of this action are paid by the purchaser. With particular reference to "off plan purchases", extra costs will be include extra notary fees, municipality taxes and VAT and can increase the purchase price by up to 14%.
* It is important to note that the tax evaluation is set by the local municipality and Knight International accepts no liability for the content of the tax evaluation.
This buyer’s guide is compiled to the best of our knowledge and in good faith. E&OE