• VAT at 20% - usually included in the quoted price, but this is something you should check before purchasing.

(In our Sofia complex, the VAT was split between the developer and the purchaser, our 10% share being added on to the third and final payment.
In our Pamporova complex, the VAT was costed into the initial price and therefore paid for at each payment stage.)

• Notary fee - approx. 4% - payable at completion (this is sometimes split between the developer and the purchaser)
• Transfer tax - 0.5%

  NB The above refers specifically to the puchase of Bulgarian apartments.
  Currently, all real estate (excluding apartments) i.e. any property with land attched, can only be purchased by setting up a company.
  This restriction is set to remain in place until at least 2014.

Annual Tax

• Annual council tax - 0.15% of property valuation
• Income tax - 10% payable on income from rentals after deduction of property-related expenses and any mortgage borrowing. This is normally collected out of the rent by the letting agent.

Sales Tax

• Income tax as opposed to Capital gains tax is paid at 15% on any increase in the value of the Bulgarian property payable on the sale, if within five years of purchase date. After five years, there is no income tax to pay.
  (This was the case until 13th January 2007)

  We have just heard that a new law was introduced on 13th January to the effect that one property can be sold per year without incurring Bulgarian income tax at all or two properties per year if held more than five years.

NB Income and capital gains tax are the taxes applicable in Bulgaria