The most practical approach is to calculate everything in advance. That shows the real amount needed to close the transaction, rather than only the apartment's headline price. Below is a practical overview of the main costs, how they are formed, and which of them are one-off expenses.

What costs are usually paid on top of the property price

In a standard apartment purchase, the buyer should plan for at least three mandatory costs: local property acquisition tax, a notary fee, and a registration fee in the Property Register. If the purchase is financed with a mortgage, there are usually several additional items - property valuation, loan fees, notarial costs for the mortgage, a separate mortgage registration fee, and property insurance.

In addition, with new-build property, the VAT treatment under the Bulgarian VAT Act must also be considered. In practice, this does not necessarily mean that the buyer pays an extra 20% on top of the already agreed amount. What matters most is whether the quoted price is stated as VAT-inclusive or VAT-exclusive, and how this is written in the preliminary agreement and the price offer.

Local acquisition tax - the first major expense

The tax on a remunerative acquisition is due when ownership of the property is transferred and is calculated on the higher of the sale price and the tax valuation. In practice, for most apartment transactions in major cities, the sale price is the tax base because it is usually the higher amount.

In Sofia and Burgas, the rate is 3%. This is a material cost and one of the expenses buyers most often underestimate at the planning stage. For a property priced at BGN 200,000, the local acquisition tax alone is BGN 6,000, while for a property priced at BGN 100,000, it is BGN 3,000.

This cost is usually borne by the buyer unless the parties agree otherwise. In real-life residential transactions, it is almost always the buyer who needs to include it in the budget.

VAT on new-build property - when it is included and when it needs careful review

When buying a new-build property, the key question is not simply whether VAT applies, but how the price has been structured. When the seller is a VAT-registered entity and the supply is taxable, VAT forms part of the transaction price. That is why, before signing, the buyer should explicitly check whether the quoted price is final and VAT-inclusive or stated without VAT.

For tax purposes, a building is treated as new if it is still at shell stage, or if 60 months have not yet passed since the date of the occupancy permit or the commissioning certificate. This is one of the reasons why offers for new-build properties must be read carefully, especially when comparing different projects or comparing an investor sale with a secondary-market property.

For older properties, or where the transaction falls outside the scope of a taxable supply under the VAT Act, the regime is different. That is exactly why buyers should not rely only on general conversations with an agent, but on a clearly stated price and a proper document review.

Notary fee - what buyers need to know

The notary fee depends on the material interest in the transaction. Put simply, it is based on the value on which the transfer is notarised. With a higher price, the amount increases, but not in a linear way. In addition to the main notary fee, there may also be extra costs for copies, certifications, and related notarial actions.

As a rough guide, for a property worth BGN 200,000, the main proportional notary fee is about BGN 915, and for a property worth BGN 100,000, it is about BGN 815. These figures are useful for advance budgeting, although the final amount at the notary may differ slightly depending on the specific deed and related services.

Registration fee in the Property Register

The registration fee is a separate and mandatory cost. It is 0.1% of the value on which the deed is charged, but not less than BGN 10. For a transaction worth BGN 200,000, that means BGN 200, and for a transaction worth BGN 100,000 - BGN 100.

This fee is paid for the registration of the notarial deed. Registration is what makes the transfer enforceable against third parties, so it is not a mere formality, but a key part of the transaction itself.

What is added when the purchase is financed with a mortgage

A purchase with a mortgage almost always requires a separate budget on top of the transfer costs themselves. The usual items are property valuation, a loan fee, notarial costs for the mortgage, a mortgage registration fee, and property insurance.

The valuation is usually a few hundred leva, depending on the city, the type of property, and the bank. The loan fee is determined by the tariff of the relevant bank and is often negotiable. In some campaigns it is reduced, while in others it is waived, but that should never be taken for granted.

When a mortgage is created, there is also a second notarial cost because the mortgage itself is executed before a notary. There is also a separate fee for its registration - again 0.1% of the loan amount. If the loan is BGN 160,000, the mortgage registration fee is BGN 160. If it is BGN 80,000 - BGN 80.

Property insurance should also be factored in. Its amount varies by bank and insurer, but it is better viewed as an annual cost rather than just a one-off payment at closing.

Illustrative examples for Sofia and Burgas

The table below does not replace an individual calculation. It simply shows what the real picture looks like in two typical transactions. The figures are indicative and intended for budgeting purposes.

Note: the examples are indicative. The actual amounts may differ depending on the exact property price, the tax valuation, the bank's tariff, the specific notarial deed, and additional related expenses.

What happens after the transaction is signed

After the transfer, the process is not over. For properties acquired during the year, a declaration under Article 14 of the Local Taxes and Fees Act must be filed within two months from the acquisition date. This is an obligation of the owner and should not be overlooked because it affects the proper administration of the property for local tax purposes.

In practical terms, after the notarial deed, three further steps usually follow: filing the declaration with the municipality, transferring the utility accounts for electricity and water, and arranging handover of the property when the purchase concerns a new-build unit. These are not the largest costs, but they are part of the real process.

Buying directly from the investor - where real savings may arise

When a property is bought directly from the investor, the buyer's brokerage commission usually falls away. At higher price levels, this is a meaningful cost item. For a property worth BGN 200,000, even a 2% commission means another BGN 4,000 on top of the other expenses.

In addition, with a direct purchase it is usually much easier to clarify how the price has been formed, what the payment schedule looks like, and whether instalments can be tied to the stage of construction. This does not remove the need for legal and financial due diligence, but it often makes the structure of the transaction more transparent.

The mistakes buyers make most often

The most common mistake is to calculate only the amount in the listing and leave no budget for the related costs. The second is to assume that every advertised price for a new-build property is final and includes all taxes. The third is to leave notarial and bank costs until the last moment, when there is no longer enough time for a calm review.

Many buyers also underestimate the difference between a purchase with their own funds and a purchase financed with a mortgage. The loan makes the purchase possible, but it also changes the overall level of costs. That is why it makes sense to calculate the budget in two versions - without a loan and with a loan.

Frequently asked questions

How high are the costs on top of the apartment price?

In a purchase without a mortgage, they are usually several percent above the property price because they include local acquisition tax, the notary fee, and registration. With a mortgage, the amount increases because of the valuation, bank fees, mortgage costs, and insurance.

What is the local acquisition tax when buying an apartment in Sofia and Burgas?

In Sofia and Burgas, the tax rate on a remunerative acquisition is 3% of the higher value between the sale price and the tax valuation.

Is VAT paid separately when buying a new-build apartment?

Not always. What matters is whether the agreed price is VAT-inclusive or VAT-exclusive. In a taxable supply by a VAT-registered seller, VAT forms part of the transaction price.

How much is the registration fee?

The registration fee is 0.1% of the value on which the deed is charged, but not less than BGN 10. In a mortgage-financed purchase, there is also a separate mortgage registration fee.

Does the property have to be declared after the purchase?

Yes. For properties acquired during the year, a declaration under Article 14 of the Local Taxes and Fees Act must be filed within two months from the acquisition date.

Final note

Buying an apartment often looks like a single price in a listing, but the real total is made up of several separate payments. When they are calculated in time, the process is much calmer and the risk of unpleasant surprises falls significantly.

The most sensible approach is to have a full budget before even signing the preliminary agreement: property price, local tax, notary fees, registration, bank costs, and a reserve for smaller related payments. That way, the purchase decision is based on the real price rather than the apparent one.