Property Taxes in Bulgaria 2026: A Complete Guide
I get asked about this almost every day. “Vikki, how much tax will I be paying?” — and often it turns out that the person is worried about something that does not exist, while knowing nothing about the actual payments.
This article covers every tax and charge relevant to a foreign property owner in Bulgaria: at purchase, during ownership, on rental income, and on sale. There is also a dedicated section on how to manage payments if you live outside Bulgaria.
One important 2026 update: as of January 1, Bulgaria has adopted the euro. All taxes, receipts, and administrative documents are now issued in euros only. The fixed conversion rate was 1.95583 lev to 1 euro. This simplifies things for everyone who does not hold funds in lev.
Tax on Purchase
When you sign the notarial deed and become an owner, three payments occur simultaneously: the municipal transfer tax, notary fees, and the registration charge.
Municipal Transfer Tax (Prakhvarlyane)
This is a local tax paid to the municipal budget. Each municipality sets its own rate within the band of 0.1% to 3%.
For buyers in my region: Nesebar Municipality — which includes Sveti Vlas, Sunny Beach, Ravda, and Obzor — applies a rate of 3% on the transaction amount. This is calculated on the price stated in the notarial deed, not the cadastral value.
By convention, the buyer pays. In law, the parties can agree otherwise — but in practice, it is always the buyer.
Notary Fee
Notary fees in Bulgaria follow a state-regulated progressive scale. The higher the property value, the lower the percentage. For a typical apartment priced at €50,000–€80,000, expect 0.4%–1.2% of the purchase price. VAT at 20% applies to the notary service fee.
A simple example: apartment for €60,000, notary fee approximately €360–540 + VAT.
Registration Fee — Agentsia po Vpisvaniyata
Fixed rate: 0.1% of the property value. This is the charge for entering the transaction into the state property register. Small but mandatory.
Total at Purchase
For a property in Nesebar Municipality, combined taxes and fees come to approximately 4–5% of the purchase price. This is before any agent’s commission. For a full breakdown including all costs, see The Real Cost of a Bulgarian Apartment.
Annual Property Tax
Once you are an owner, you pay property tax every year. The amounts are modest and the logic is straightforward.
The Base: Cadastral Value, Not Market Price
Tax is not calculated on the price you paid for the property — it is based on the cadastral (assessed) value, an administrative valuation set by the state. This is typically 2–4 times lower than market price.
An apartment worth €60,000 at the seaside? Its cadastral value may be €15,000–25,000. That is the figure the tax is applied to.
Rate in Nesebar Municipality
The municipality has set a rate in the range of 0.15%–0.25% of cadastral value. The exact rate depends on the type and designated use of the property.
Practical example: cadastral value €20,000, rate 0.2% — annual tax €40. This is not a misprint. It is a completely realistic figure for a typical Bulgarian coastal apartment. The range for most properties in this region is €30–150 per year.
Discounts
If you pay the full year’s tax in a single payment by March 31 — you receive a 5% discount. If you prefer to pay in instalments, four deadlines apply: end of March, end of June, end of September, end of November. Both options are available to non-residents.
Tax on Rental Income
If you rent out your apartment — whether long-term or through platforms such as Airbnb or Booking — you are required to pay tax on that income. Bulgarian law is clear: a foreign national receiving income from a Bulgarian source pays tax in Bulgaria.
Rate for Non-Residents
10% final withholding tax on gross rental income. This is a flat rate — no bands, no tax-free allowance (as exists for residents), no complex calculations. 10% of what tenants pay you.
This is one of the lowest rental income tax rates in Europe. For comparison: France — 30%, Germany — up to 47%, Spain — 24% for non-EU non-residents.
How the Tax Works in Practice
Two mechanisms apply:
If you manage the property yourself or through an individual: you as a non-resident must self-declare income and pay tax to NAP (the National Revenue Agency).
If you work through a management company — a legal entity: the company acts as a tax agent and is required to withhold and remit the 10% automatically with each payment to you. You receive the net amount.
This is a practical argument for professional management: no need to navigate a tax return yourself. For more on what property management covers, see the dedicated article on managing an apartment remotely.
Short-Term Rental (Airbnb, Booking)
For platforms such as Airbnb, the same 10% rate applies. There is a nuance: if income exceeds a certain threshold, an obligation to register as a sole trader or company may arise. This requires a separate conversation with a Bulgarian accountant — the threshold figure changes; verify the current figure at the time of registration.
Tax on Sale (Capital Gains)
If you sell your apartment, tax is due on the gain. There are important exemptions that work in favour of most private owners.
Rate
10% on the gain. Gain = sale price minus purchase price (adjusted for inflation) minus confirmed acquisition costs (up to 10% of the sale price can be deducted as acquisition expenses).
Exemptions — Key Information for Foreign Owners
The law provides exemptions under two conditions:
1. One residential property: if you owned it for more than 3 years — the gain on sale is exempt from tax.
2. Up to two additional properties: if you owned them for more than 5 years — also exempt.
These exemptions apply to individuals who are tax residents of an EU or EEA country. For citizens of Ukraine, Russia, or Belarus — who are not EU residents — the exemption does not apply automatically. Consulting a Bulgarian tax specialist before a sale is important.
Conclusion on Capital Gains Tax
The majority of buyers who purchase for personal use and hold for 3+ years effectively sell without capital gains tax. Investors holding multiple properties for 5+ years are also typically exempt. This makes Bulgarian property relatively comfortable from a tax perspective at exit.
Waste Collection Fee (Taksa Bitovi Otpadatsi)
This is a separate annual charge payable to the municipality — the fee for waste collection and public area maintenance. The calculation method changed in 2026.
What Changed in 2026
Until 2026, this charge was calculated as a percentage of cadastral value (0.14%–0.45% depending on municipality). From January 2026, legislation abolished this system. Municipalities may now calculate the charge based on the number of users of the property or on a “polluter pays” principle reflecting actual consumption.
In practice: some municipalities have already switched to the new system, others have retained a transitional approach. Nesebar Municipality is implementing the changes in stages — check the current calculation with the municipal office or your property manager.
Approximate Amount
A realistic range for a private apartment in this region: €30–80 per year. The exact figure depends on location and property size. This is a minor running cost but should be factored into the overall budget.
For a full breakdown of all annual ownership costs, see the maintenance fee article.
How to Pay Taxes from Abroad
This is probably the most practical question — and the one where people most often get confused.
Notifications from the Municipality
After title registration, you as the owner are entered into the municipal database. Each year, Nesebar Municipality calculates the property tax and waste collection charge. You can receive the notification by post or through an online account.
Since 2026, all tax documents and payments are in euros only.
Payment Methods
1. Online via the NAP portal (portal.nra.bg)
The National Revenue Agency provides an electronic account. Access requires a personal identification number (EGN or LNCh — the personal number of a foreigner). LNCh is assigned to foreign nationals on first registration. Payment is possible by card or bank transfer.
2. Via the municipal website
Nesebar Municipality has its own online payment module for local taxes. Payment requires the service reference number from your tax notice.
3. International bank transfer
If you are paying from a foreign bank — an international bank transfer to the IBAN of the municipality or NAP. Always include your LNCh, the type of tax, and the period in the payment reference. Without these details, the payment can be delayed.
4. Tax representative (danachen predstavitel)
A Bulgarian individual or company who manages your tax obligations under a power of attorney: receives notices, pays taxes, files returns. This is convenient for those who do not want to track deadlines themselves. Management companies often include this as part of a service package.
Key Deadlines
| Payment | Deadline |
|---|---|
| Annual tax (full year, 5% discount) | By March 31 |
| Annual tax — 1st instalment | By March 31 |
| Annual tax — 2nd instalment | By June 30 |
| Annual tax — 3rd instalment | By September 30 |
| Annual tax — 4th instalment | By November 30 |
| Rental income declaration (non-resident) | April 30 of the following year |
Late payment incurs penalties. In Bulgaria, the late payment rate is charged per day of delay. A small tax plus forgetfulness adds up to an unpleasant notice. I always recommend either setting automatic payment reminders or appointing a manager to track this.
FAQ
I am a Ukrainian (or citizen of another non-EU country) — can I own property in Bulgaria?
Yes. Individuals from any country can purchase apartments and residential units in Bulgaria without restrictions. Land is a separate matter with some nuances for citizens of non-EU countries, but for residential apartments in complexes — no restrictions.
Do I need to pay tax on Bulgarian rental income in my home country?
It depends on the tax treaty between Bulgaria and your country. Bulgaria has double taxation avoidance agreements with many countries, including Ukraine, Russia, Germany, and Poland. As a rule, tax paid in Bulgaria is credited. Verify with a tax adviser in your country.
Is VAT charged when buying a secondary market apartment?
No. VAT (DDV in Bulgarian) only applies when purchasing directly from a developer that is a VAT-registered legal entity. Buying a secondary market apartment from an individual — no VAT. Buying new-build from a developer — 20%, typically already included in the listed price.
What is LNCh and how do you obtain it?
LNCh (Lichen Nomer na Chuzhdenetsa) is the personal number assigned to foreign nationals in Bulgarian records. It is required for registering a transaction, opening a Bulgarian bank account, and paying taxes. It is obtained from the regional police directorate (MVR) on presentation of a passport and documents relating to the property (or other grounds for presence). The procedure is straightforward — I assist clients through this step.
If the apartment is not rented out and not used — is there still tax to pay?
Yes: the annual property tax and waste collection charge. Neither is waived for zero use. Combined total: €30–200 per year depending on the property. Bulgaria does not have a “vacant property” tax as some EU countries do.
Can the apartment be held through a company to reduce taxes?
Yes. Purchasing through a Bulgarian EOOD (private limited company) creates different tax treatment: company income is taxed at the 10% corporate rate, and costs are deductible. But it creates additional obligations: bookkeeping, reporting, company maintenance costs. Worthwhile to consider with multiple properties and a steady rental income stream. For a single apartment, typically not justified.
Does the seller pay any taxes at closing?
The municipal transfer tax is conventionally paid by the buyer. The seller pays tax on any gain (if applicable and no exemption applies). Notary costs are split by agreement between the parties — in practice typically either shared or fully borne by the buyer.
Can I handle all the taxes myself or do I need an accountant?
Annual ownership taxes — self-manageable if you have online access and an understanding of deadlines. Rental income tax, tax returns, capital gains at sale — here I recommend a Bulgarian accountant or tax adviser. Their fees: €100–300 per year. The cost of an error is higher.
Key Takeaway
Bulgaria is one of the most tax-efficient EU countries for property owners:
- At purchase: ~4–5% of the price (tax + notary + registration)
- Annual property tax: €30–150/year (based on cadastral value)
- Rental income: 10% — final withholding tax
- On sale: 10% of gain; exemption after 3–5 years of ownership
- Waste collection fee: €30–80/year
If you are considering a purchase and want to understand the complete cost picture for a specific property — contact me. I work in the Sveti Vlas — Sunny Beach — Nesebar region, know the local specifics, and can explain everything without legal jargon.
Contact Vikki Dronova → egoist-estate.com/contact
Information current as of May 2026. Tax rates are set annually by municipalities and are subject to change. For financial decision-making, consultation with a licensed Bulgarian tax specialist is recommended.
