In brief
Buying property in Bulgaria usually takes one to two months: preparation and due diligence, a written preliminary agreement with a deposit of about 10%, collecting the documents, signing a deed of sale before a notary in the property's area, and registration in the Property Register on the same day. Ownership passes upon signing the deed. The buyer's main costs are a municipal acquisition tax of 0.1% to 3% (3% in the large cities), a graduated notary fee with a cap, and a registration fee of 0.1%.
Key takeaways
- 1The entire transaction can be carried out from Israel by means of a specific notarial power of attorney, with an apostille and translation into Bulgarian.
- 2The preliminary agreement is binding: if a party refuses to sign, you can ask the court to declare it a final contract.
- 3Ownership passes when the notarial deed is signed, and the notary sends it for registration on the same day.
- 4In Sofia, Plovdiv, Varna and Burgas the municipal acquisition tax is 3% of the higher of the price and the tax valuation (as of 2026).
- 5After the purchase: BULSTAT registration for a foreigner within seven days, and a declaration to the municipality for property tax purposes.
How long does buying property in Bulgaria take?
In a regular second-hand transaction, about 30 to 60 days from signing the preliminary agreement to registration. Most of the time is taken by the due diligence, preparing the power of attorney in Israel and collecting certificates from the municipality and the Property Register. When the purchase is made through a Bulgarian company, the time to set up the company must be added, and in a new-build purchase the timetable is determined by the construction stages.
Our general legal guide to Bulgaria explains the framework. Here we focus on the practical side: what happens at each stage, which documents are required, where the money is at every moment and what the actual costs are.
The preliminary agreement is binding: if a party refuses to sign, you can ask the court to declare it a final contract.
Step 1: Preparation from Israel - power of attorney, translation and identification number
Most Israeli investors do not fly to Bulgaria to sign, and this is entirely possible. The condition is a carefully prepared power of attorney:
- Specific and not general. The power of attorney must specify the property (address and cadastral identifier), the price and the permitted actions: signing the preliminary agreement and the deed of sale, filing declarations and paying taxes. A general power of attorney is often rejected.
- Notarial certification and apostille. Israel and Bulgaria are parties to the Hague Convention, so an Israeli notary certifies the signature and an apostille is added in Israel. Alternative: signing before the Bulgarian consul.
- Translation into Bulgarian by a translator or translation office certified in Bulgaria.
- Identification number. A foreigner who acquires property is required to register in the BULSTAT register, and in practice it is worth arranging the identification number in advance with the local lawyer so as not to delay the signing.
An error in the description of the property in the power of attorney, or a power of attorney that does not cover all the actions, is one of the common reasons for postponing the signing date. It is worth drafting the power of attorney only after the Bulgarian lawyer has checked the property's data in the register.
Step 2: Reservation and a good-faith deposit - what can go wrong?
Agents sometimes offer a "reservation agreement" and a payment of a few thousand euros in order to "take the property off the market". Such a payment is usually transferred to the brokerage office and not to an escrow account, and its refund is not guaranteed if the deal falls through. If you pay anyway, make sure in writing to whom the money is transferred, on what terms it will be returned, and that it will be credited against the price.
Step 3: The preliminary agreement - is it binding?
Yes, and to a large degree. The preliminary agreement must be in writing and include all the material terms of the final contract: a description of the property, the price, the manner of payment, conditions precedent and the signing date. Under Article 19(3) of the Obligations and Contracts Act, if one of the parties refuses to sign the final deed, the other party may ask the court to declare the preliminary agreement a final contract.
A deposit of about 10% of the price is customary. As a rule, if the buyer is in breach, the seller keeps the deposit, and if the seller is in breach, he must return double. Hence the importance of explicit conditions precedent: if the due diligence reveals a problem after signing, the deposit is not automatically returned, unless the agreement expressly provided so.
- A condition precedent for satisfactory due diligence results and the absence of liens on the signing date.
- The seller's undertaking to provide all the certificates, including a certificate of no maintenance-fee debts.
- A target date for signing, and a clear sanction for delay.
- A secure payment mechanism for the balance of the price (see step 5).
- A list of movables included in the price, and the condition of the property at handover.
Step 4: Which documents does the notary need?
The deed is signed before a notary in whose area of operation the property is located. Before signing, the following documents must be assembled, some of which are the seller's responsibility:
| Document | Issued by | Note |
|---|---|---|
| The seller's title deed | Property Register | Basis for checking the chain of title |
| Tax valuation certificate (данъчна оценка) | The municipality in the property's area | Limited validity: until 30 June or until the end of the year, depending on the date of issue |
| Certificate of encumbrances | Property Register (Registry Agency) | Should be obtained as close as possible to signing |
| Up-to-date cadastral sketch | Geodesy, Cartography and Cadastre Agency | Verification of area, boundaries and identifier |
| The seller's declaration of no public debts | The seller, under Article 264 of the Tax and Social Insurance Procedure Code | Checked by the notary |
| Declaration of marital status and spouse's consent | The seller | A property acquired during marriage is usually joint property |
| Declaration of the source of funds | The buyer | A requirement under anti-money-laundering law |
| Certified and translated power of attorney | The buyer, if not present | Including apostille |
Step 5: How do you pay safely?
By bank transfer, not in cash. Bulgarian law restricts cash payments above a low threshold, and in real estate transactions the money goes through the banks. The important question is when the money is released to the seller. Two accepted ways:
- An escrow account with the notary. Article 25a of the Notaries Act regulates an escrow account in which the price is deposited under a written agreement between the parties and the notary. The funds are protected against the notary's personal creditors and are released according to the terms set, for example after registration.
- A bank escrow - an alternative that banks offer in large transactions, with similar release terms.
A direct transfer to the seller on the day of signing is also accepted, but only when the due diligence is clean and the certificate of encumbrances is current as of that day. If there is an existing mortgage, you must coordinate with the seller's bank the payoff and the deletion of the mortgage as part of the transaction.
Step 6: Signing and registration - when is the property really yours?
At the moment of signing the notarial deed. In Bulgaria ownership passes with the deed itself, and registration in the Property Register determines priority against third parties. The notary submits the deed for registration on the same day, so the gap between them is small. Before signing, the notary identifies the parties, checks legal capacity and verifies that the seller is the registered owner, but does not check the ownership history. That is the role of due diligence.
Step 7: What do you do after the purchase?
- BULSTAT registration - a foreigner who acquires property is required to register within seven days of the purchase.
- A declaration to the municipality for property tax and refuse fee purposes, usually within two months.
- Transfer of accounts for electricity, water, heating and internet into the buyer's name.
- Updating the condominium manager or the management company, and settling the management fees.
- Building and contents insurance.
- Keeping the transaction documents, and especially proof of the purchase cost: Bulgarian and Israeli tax on a future sale is calculated according to a documented cost.
How much does the transaction cost? Breakdown of the buyer's costs
The costs derive from the higher of the transaction price and the tax valuation set by the municipality. As of 2026:
| Component | Rate or amount | Note |
|---|---|---|
| Municipal acquisition tax | 0.1% to 3% | Each municipality sets it. In Sofia, Plovdiv, Varna and Burgas 3% |
| Notary fee | A graduated tariff, with a cap of about 3,068 euros | Plus 20% VAT |
| Registration fee in the Property Register | 0.1% | Uniform throughout the country |
| Lawyer's fee | According to the scope of work | A lawyer who represents only the buyer is recommended |
| Translations, certificates and apostille | Usually hundreds of euros | Depends on the number of documents |
| Brokerage commission | According to agreement | Check in advance who pays |
| VAT | 20% on new construction | When buying from a developer it is usually included in the price; verify in the contract |
An example for illustration only: a second-hand apartment in Sofia at a price of 150,000 euros, where the tax valuation is lower than the price. Municipal acquisition tax at 3%: 4,500 euros. Registration fee at 0.1%: 150 euros. Notary fee according to the graduated tariff: about 570 euros, and about 690 euros including VAT. A total of about 5,340 euros, before the lawyer, translations and brokerage. The exact amounts should be obtained from the notary before signing.
The Israeli aspect: transferring the funds and documentation
Since 1 January 2026 Bulgaria has been in the eurozone, so the transfer from Israel is made directly in euros. The Israeli bank will ask for documents explaining the transfer: the preliminary agreement, the escrow details and the notary's details. It is worth preparing them in advance so that the transfer is not delayed on the day the money needs to arrive. In parallel, the property is a foreign asset of an Israeli resident: rental income from it is reported in Israel, and on a future sale capital gains tax will apply in Israel net of a credit for the Bulgarian tax. Orderly documentation of the cost already on the day of purchase saves tax and disputes in the future.
What to do before signing, and how we accompany you
Before signing any document, even a simple "reservation agreement", it is worth checking the property in the register and defining the transaction structure. We accompany the process end to end from Israel: drafting the power of attorney and coordinating it with the Bulgarian notary, managing the due diligence with local lawyers, negotiating the preliminary agreement, defining a secure payment mechanism, and accompanying you through registration and BULSTAT registration, so that you know at every stage where the money is and what is still missing.
The contents of this article are general information and do not constitute legal advice, tax advice or an investment recommendation, and should not be relied upon for a specific case. The law, tax rates and tariffs in Bulgaria and in Israel change from time to time, and personal circumstances may change the outcome. Before any decision or signature, obtain advice tailored to your case.
Frequently asked questions
Can you buy an apartment in Bulgaria without flying there?
Yes. The transaction is carried out by means of a specific notarial power of attorney signed in Israel, certified with an apostille and translated into Bulgarian. The attorney, usually a local lawyer, signs on your behalf the preliminary agreement and the notarial deed.
How much deposit is paid under a preliminary agreement in Bulgaria?
A deposit of about 10% of the price is customary. If the buyer is in breach, the seller usually keeps the deposit, and if the seller is in breach, he returns double. To secure a refund if the due diligence reveals a problem, an explicit condition precedent must be set in the agreement.
When does ownership of a property in Bulgaria pass?
Upon signing the notarial deed. The notary submits the deed for registration in the Property Register on the same day, and registration determines the priority of the right against third parties and creditors.
How much do the purchase costs in Bulgaria amount to?
The main component is a municipal acquisition tax of 0.1% to 3%, and 3% in the large cities. To it are added a graduated notary fee with a cap of about 3,068 euros plus VAT, a registration fee of 0.1%, the lawyer's fee, translations and sometimes a brokerage commission.
What is BULSTAT registration and why is it required?
BULSTAT is an identification register managed by the Registry Agency. A foreigner who acquires property in Bulgaria is required to register in it within seven days of the purchase, for identification before the tax authorities.
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- CMS Expert Guide to Commercial Real Estate - Bulgaria (preliminary contract, notary deed, transfer tax)
- CMS - Real estate transaction costs and taxes in Bulgaria
- Legal500 - The notary public as escrow agent in real estate transactions (Notary Act Art. 25a)
- Invest Sofia (Sofia Municipality) - Taxes
- Innovires - Notarial fees and costs for property transactions in Bulgaria (2026, EUR)
- VLO Law Firm - Bulgaria real estate guide (2026)
- Trud i Pravo - Issuing a tax assessment certificate (DOPK Art. 264)
The information in this guide is general in nature and does not constitute legal or tax advice on any specific transaction. Every transaction is assessed on its own facts.