Tax assessment, fees, commissions – how to calculate the real cost of the transaction

The price stated in a property listing is not the final sum the buyer needs to plan for. Local tax, notary fees, registration fees, an intermediary’s commission, legal fees and bank financing costs may be added to it.

For a property that needs renovation or furnishing, the initial budget rises further. If these payments are not calculated in advance, the buyer may find they have insufficient own funds just before the notarial transaction.

Since the introduction of the euro on 1 January 2026, the official currency of Bulgaria has been the euro. The fixed rate used when converting values from leva was 1 euro to 1.95583 leva.

This does not change the basic principle of the calculation. The real acquisition cost is obtained by adding all mandatory and agreed costs to the agreed price.

1What the real cost of a property transaction includes

2What the Tax Assessment Is

The tax assessment is a value determined under the Local Taxes and Fees Act. It is issued by the municipality for the location of the real estate and is used for tax and administrative purposes.

The tax assessment certificate does not necessarily show the market price of the home. In many cases it is considerably lower than the sum actually agreed between seller and buyer.

The document contains information about:

• the address and characteristics of the property;
• the declared owners;
• the ideal shares of each owner;
• the determined tax assessment;
• the certificate’s validity period;
• other circumstances, depending on the specific document.

The tax assessment does not prove ownership. It must be compared with the notarial deed, the cadastral plan and the other documents.

3Which Value Is Used to Calculate the Fees

In a sale and purchase, the material interest is normally determined by the agreed price, but when the tax assessment is higher, it matters in determining the payments due.

In practice, the buyer should compare:

• the sale price in the notarial deed;
• the property’s tax assessment.

The higher applicable value is taken as the basis. It is on this value that the local tax, the notary fee and the registration fee are calculated, according to the rules for each payment.

Example:

• agreed price: €150,000;
• tax assessment: €90,000;
• material interest for the calculation: €150,000.

In the reverse case:

• agreed price: €100,000;
• tax assessment: €115,000;
• material interest: €115,000.

Artificially stating a lower sale price in the notarial deed is not a sensible way to save on fees. Besides creating legal and tax risks, in a future dispute the buyer may have difficulty proving payment of the amount above the officially recorded price.

4Local Tax on Acquiring the Property

A local tax is due on the acquisition of real estate for consideration. Its rate is set by the relevant municipal council within the limits provided in the Local Taxes and Fees Act.

For a property in the Municipality of Varna, the rate set by the municipal ordinance in force applies. In Varna the tax on acquisition for consideration has been raised from 2.6% to 3%, and it is paid once, at the transaction.

With a material interest of €150,000, the calculation is:

150,000 × 3% = €4,500

This is usually the largest additional mandatory cost of the purchase.

The rate should not be assumed to be the same in every locality. If the property is outside the Municipality of Varna, check the ordinance of the relevant municipality or ask the notary for an advance estimate.

Who Pays the Local Tax

In a standard sale and purchase, the costs are normally borne by the buyer, unless the parties have agreed otherwise. The split should be clarified during negotiations and written into the preliminary contract.

The phrase “all fees are at the buyer’s expense” should be looked at carefully. It may include not only the local tax and registration, but also other costs of preparing the transaction.

5How the Notary Fee Is Determined

The notary fee on a sale and purchase is not a single fixed percentage of the whole price. It is determined by a progressive table according to the material interest being certified.

As the value rises, the percentage charged on the next portion of the price falls. The Notaries and Notarial Activity Act provides that proportional fees are charged according to the material interest, and the exact amounts are set out in a special tariff.

The tariff contains different bands. For example, for a value between BGN 100,001 and BGN 500,000 the formula used is BGN 730.50 plus 0.2% of the amount above BGN 100,000. Above BGN 500,000 the formula is different and there is a set maximum for the basic fee.

Since the introduction of the euro, the amounts in the regulations in force are applied according to the official conversion rules. For a preliminary budget, it is safest to ask the specific notary for a written estimate, since the following may be added to the basic fee:

• value added tax;
• preparing or checking documents;
• copies of the notarial deed;
• bank transfers;
• additional searches;
• other actions in the specific transaction.

Don’t use an online calculator without checking whether it has been updated for 2026, whether it works in euro and whether it includes VAT.

6Fee for Registering the Notarial Deed

After signing, the notarial deed is registered in the Property Register. A state fee is due to the Registry Agency for this.

The fee is 0.1% of the price on which the deed was charged, but it cannot be below the set minimum.

With a material interest of €150,000:

150,000 × 0.1% = €150

This cost is smaller than the local tax, but it should be included in the preliminary estimate.

With mortgage financing, there is a separate registration of the contractual mortgage. It entails an additional state fee and notarial costs, which are not part of the ordinary registration of the sale and purchase.

7How the Agent’s Commission Is Determined

The agent’s commission is not a state or notary fee. It is an agreed remuneration for the brokerage service.

It may be:

• a percentage of the sale price;
• a fixed sum;
• a percentage with a set minimum;
• different for the buyer and the seller;
• inclusive or exclusive of VAT.

Before a viewing, or before signing a brokerage agreement, you should clarify:

• the exact percentage;
• the price on which it is calculated;
• whether VAT is added;
• when the obligation to pay arises;
• what services it includes;
• whether it is due if the deal is abandoned;
• whether there is a minimum commission;
• what happens if the property is bought through a connected person.

For example, with a price of €150,000 and a commission of 3%:

150,000 × 3% = €4,500

If 20% VAT is added to the fee:

4,500 + 900 = €5,400

The difference between “3%” and “3% including VAT” in this example is €900. The terms should therefore be stated explicitly.

8Lawyer Costs and Legal Checks

9Additional costs of a mortgage

Buying with bank financing involves more costs than a deal paid for with your own funds.

Depending on the bank and the loan, the following may arise:

• an application or processing fee;
• the bank's valuation of the property;
• a fee for opening or maintaining an account;
• a notary fee for the contractual mortgage;
• a fee for registering the mortgage;
• property insurance;
• life insurance, if such a condition is imposed;
• costs for certificates and bank documents;
• a bank transfer fee;
• additional legal services.

The mortgage cost depends on the size of the secured claim, not necessarily only on the sale price. That is why you should ask the bank for a document listing all costs, and ask the notary for a separate advance estimate for the purchase and for the mortgage.

Do not count your own contribution as a cost of the deal. It is part of the purchase price that you pay from your own funds. On top of it you need to add the fees that the bank does not usually finance.

10Bank transfers and special account

With a high sale price, bank fees can also matter. Check:

• the cost of an interbank transfer;
• the online banking limits;
• the execution time;
• the fee for an express transfer;
• whether a prior visit to a branch is needed;
• the fees for opening a special account;
• the costs of a letter of credit or escrow arrangement.

When the property is mortgaged, part of the price may be transferred directly to the seller's bank. The remaining amount is paid according to the agreed mechanism.

The method of payment must be clearly written into the preliminary contract and agreed with the notary and the banks before the date of the deal.

11Other costs that are often overlooked

Besides the main fees, the buyer must also allow for practical costs around the acquisition.

Documents and technical checks

Payments may be due for:

• a technical inspection;
• a structural opinion;
• measuring the area;
• architectural consultation;
• an additional cadastral plan;
• certificates and certified copies;
• translation of documents;
• a power of attorney.

After the notarial deal

Almost immediately, costs may arise for:

• changing locks and cylinders;
• transferring or opening utility accounts;
• insurance;
• renovation;
• furnishing;
• moving;
• the complex management fee;
• amounts due to the homeowners' association;
• a parking space or parking subscription.

For new construction, add the finishing costs if the home is handed over at plaster-and-screed stage.

12How to make an advance estimate

Use separate lines instead of adding a general approximate percentage to the price.

Sample purchase in Varna:

• sale price: €150,000;
• tax valuation: €90,000;
• calculation basis: €150,000;
• local tax at a rate of 3%: €4,500;
• registration fee of 0.1%: €150;
• notary fee: according to the tariff, VAT and the specific actions;
• agent commission of 3% plus VAT: €5,400;
• lawyer: according to the agreed scope;
• bank costs: according to the loan;
• reserve for documents and translations: individual.

The local tax, registration and the sample commission alone add up to:

4,500 + 150 + 5,400 = €10,050

On top of that come the notary fee, the legal check and any bank costs. This way a home with a listed price of €150,000 may require over €160,000 even before renovation and furnishing.

The example is indicative. The commission is not universal, the notary bill depends on the tariff in force and the specific actions, and bank costs vary.

13What the seller pays

The seller may also have costs, although these are not added to the buyer's budget unless the parties have agreed otherwise.

Possible costs are:

• agent commission;
• legal services;
• issuing documents;
• discharging a mortgage;
• repaying a bank loan;
• income tax if the sale is taxable;
• unpaid local taxes and fees;
• obligations to the homeowners' association.

In negotiations, it should be specified who pays each particular cost. Do not automatically assume that the seller will cover discharging the mortgage or issuing all the documents if this has not been agreed.

14The most common budget mistakes

Calculating only on the listed price

The listing shows the price of the property, not the cost of acquiring it.

Forgetting VAT on the commission

Check whether the agreed percentage includes the tax.

Confusing the notary fee with all notary expenses

The basic fee is only part of the final bill.

Underestimating mortgage costs

The purchase and the creation of the mortgage are separate notarial and registration actions.

No reserve

Do not use all your available capital on the price and fees. Keep a reserve for the first repairs and unforeseen documents.

Using an outdated online calculator

After changes in statutory rates or currency, the result may be wrong.

15Practical checklist before paying a deposit

16The real cost should be known before negotiations

The buyer should not wait until the day of the notarial completion to find out how much they will pay. The calculation should be done before the deposit, especially when available own funds are limited.

The largest additional costs are usually the local tax and the agent’s commission. The notary fee and registration are also mandatory, and with a loan a separate package of bank and mortgage costs is added.

An exact budget is not obtained by arbitrarily adding 5% or 10% to the advertised price. It is built line by line according to the specific property, the municipality, the contract with the intermediary and the method of financing.

When every sum has been checked in advance, the buyer can negotiate more confidently, choose a suitable price range and avoid a situation in which they have the funds for the home but not for completing the transaction.