Property Taxes and Ownership Costs in Bulgaria

	Year of purchase/construction.
	Basic building materials.
	Structural features of the object.
	The built area;
	The number of storeys.
	The cadastral identifier and tax valuation.

The 2017 rate quoted in the original article is not a current national rate. Each municipality sets its rate within the statutory range, applied to the relevant tax base.

For companies, the tax base can depend on the higher of the tax valuation and book value under the applicable rules. Obtain accounting advice for the current calculation.

Municipalities also charge a household-waste fee. Its calculation method and rate depend on the municipality and property use. The examples below are historical and should not be used for payment:

• Varna — check the current municipal notice;
• Sofia — check the current municipal notice;
• Burgas — check the current municipal notice.

The waste fee is commonly billed alongside property tax but remains a separate charge.

Nationality does not normally determine the rate, but owner type and property use can affect the calculation.

Payment Schedule

Municipal tax can generally be paid in instalments or as a single annual payment. Instalment dates and any early-payment discount must be checked for the current year.

Property Maintenance Fees

Many managed developments charge a common-area maintenance fee, which may cover cleaning, security, landscaping, reception and pool maintenance. The amount and calculation basis are contractual; do not rely on the old €5–€15 monthly example.

Maintenance fees are common in resort and gated developments. Before buying, review the management contract, annual budget, arrears, indexation and enforcement provisions.

Read also the article:

• The prices for municipal services in Bulgaria

Tax on Rental Income and Property Sales

Rent. Rental income is generally taxable, but the treatment depends on the owner's residence, the type of letting, allowable statutory expenses, VAT registration and whether accommodation services are supplied. A 9% VAT rate does not automatically apply to every landlord.

Registration, advance payments and annual filing depend on the letting activity and taxpayer. Confirm the current process with the National Revenue Agency and municipality.

Tourist tax, categorisation and guest-reporting duties may apply to short-term accommodation. Rates and procedures are set locally and change over time.

Read our article:

• “How to Rent Out Property in Bulgaria”

Sale. A taxable gain on sale is generally calculated under Bulgarian personal or corporate tax rules. The 10% personal rate may apply, but the tax base and available exemptions require a transaction-specific calculation.

For individuals, exemptions may apply under conditions such as:

• Selling one residential property held for more than three years;
• Selling up to two properties held for more than five years.

Important: VAT does not arise automatically merely because a company sells property above BGN 50,000. The result depends on VAT registration, the type and age of the property, land status and the transaction. Likewise, VAT on a new-build property from a developer, depends on the seller and contract; the price should state clearly whether VAT is included.

Find out more about how to sell property in Bulgaria.

For an overview of other Bulgarian taxes, see in a separate article.