Bulgarian Dreams > Bulgaria Property: Buyers Guide > Tax Evaluations

The Bulgarian property system uses Notaries and a Notary Act in order to transfer the ownership of buildings and/or land.

Upon completion of the property and prior to signing the Notary Act, the local municipal council conducts a tax evaluation of each property. This valuation represents the minimum value that must be reflected on the Notary Act. It is this value that appears on the Notary Act in property transactions in Bulgaria.

Tax evaluation rates vary by municipality across Bulgaria but in general range from 25-50% of the full market value.

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. These costs can include extra notary fees, municipal taxes and VAT. In particular for new build properties, a higher Notary Act price can increase the purchase price by up to 14% alone.

When purchasing through Bulgarian Dreams however, any price up to the full purchase price can be reflected on the notary deed at no extra cost except for the higher notary taxes (which are derived from the notary price and paid directly to the municipality).