Buying Property in Bulgaria: Taxes, Costs, ROI, Property Maintenance, Residence Permit and Citizenship

Bulgaria remains an attractive destination for buying property due to its low prices, mild climate and the possibility of obtaining a residence permit.

However, buying property abroad requires careful consideration of taxes, costs and return on investment prospects. We have compiled for you the key aspects of buying and maintaining property in Bulgaria.

Purchasing real estate in Bulgaria is accompanied by a number of tax obligations:

• Transfer tax: Usually between 0.1% and 3% of the purchase price of the property, depending on the region
• Notary fees – 0.1%–1.5% of the property value.
• State registration – 0.1% of the property value.
• Realtor’s commission – usually 2.5%–3% of the transaction price.

Property Maintenance Costs

After purchasing a property, owners face regular expenses:

• Annual property tax – 0.15%–0.45% of the cadastral value.
• Utility bills – electricity, water, heating (on average 50–150 euros per month depending on the season and region).
• Maintenance fee (in the case of residential complexes) – 5–15 euros per m2 per year.
• Insurance – 100–300 euros per year.

The yield from renting out real estate depends on its location:

• Seaside resorts (Sunny Beach, Golden Sands) – 5%–7% per annum.
• Mountain resorts (Bansko, Pamporovo) – 4%–6% per annum.
• Sofia and other large cities – 5%–8% per annum.

Real estate prices in Bulgaria grow by an average of 3%–6% per annum, making investments profitable in the long term.

Profit tax on the sale of real estate

• When selling real estate in Bulgaria, owners are required to pay profit tax. The tax is 10% of the difference between the sale price and the purchase price of the property.
• This tax is levied only if the property is sold within 3 years of purchase. If the property has been owned for more than 3 years, the tax is not levied.

Property Maintenance Costs

• Utilities: Includes water, electricity, gas, heating and waste disposal. These costs can range from 60 to 150 euros per month depending on the size and type of property
• Internet and TV: Additional communication costs range from 8 to 15 euros per month
• The cost of possible repairs depends on the condition of the property and its location

Rental Tax

In Bulgaria, the rental income tax rate is 10%.

• The property owner is required to file an income tax return and pay the tax within the established deadlines.

Buying real estate does not guarantee automatic receipt of a residence permit, but is the basis for its registration. Basic conditions:

• Owning real estate of any value.
• Availability of financial means for living.
• Registration of health insurance.
• No criminal record.
• A residence permit is issued for a year and can be extended.

Citizenship of Bulgaria

Purchasing real estate in itself does not give the right to citizenship. However, it is possible to obtain permanent residence through investment (from 512,000 euros), and after 5 years - citizenship.

Buying real estate in Bulgaria is a profitable investment, especially for those who consider the country as a place for recreation, business or permanent residence. It is important to consider all taxes, expenses and legislative features before buying. A competent approach will allow you not only to avoid unexpected costs, but also to receive a stable income from investments.

Mercury Group specialists take on the entire process of purchasing real estate in Bulgaria, starting with the selection of the property and ending with the preparation of a package of necessary documents "turnkey", and also assist our investors by providing a full range of concierge services.