Obtain the tax clearance certificate
Agency: National Revenue Agency
According to Taxation and Insurance Procedure Code (Art. 87, paragraph 6) in effect as of 1 January 2006, the tax clearance certificate, showing that no taxes (taxes, social security contributors) are owed by the company, is obtained from the National Revenue Agency. The certificate can be obtained online on the website of the National Revenue Agency.
Time and cost: 7 days, no charge
Obtain the tax valuation of a property
Agency: Sofia Municipality – Local Taxes and Fees Department
The tax valuation is the basis for calculating the fees for notary deeds only when the purchase (sale) price is equal to the tax valuation price. If the purchase (sale) price is higher than the tax valuation, the higher purchase (sale) price serves as the basis for calculating the fees.
In addition, the tax valuation is the basis for calculating the tax at acquisition of property. According to Art.46 of the Local Taxes and Fees Act, the basis for determining the tax shall be the valuation of the property in BGN at the moment of transfer. The immovable property shall be valued according to the agreed price or the tax valuation if it is higher than the agreed price.
The fee for issuing a tax valuation certificate is determined in schedule 5 of the ordinance for the definition and administration of local fees and prices for services provided by the Sofia Municipality.
Time and cost: 1 day, BGN 34 (BGN 17 for 5-day procedure, BGN 25.50 for 3-day procedure and BGN 34 for 1-day procedure)
Obtain the non-encumbrance certificate from the Real Estate Register
Agency: Registry Agency of Bulgaria
The fee for the issuance of non-encumbrance certificates is determined in Art. 7 of the tariff for state fees by the Registry Agency.
Two separate certificates need to be issued: one for the building and a different one for the land. No joint certificate can be issued.
Time and cost: 3 days, BGN 60 (BGN 10 for regular service (7 working days), BGN 30 for fast service (3 working days). Two separate certificates need to be issued: one for the building and a different one for the land. Each certificate costs BGN 30.)
The sketch of the estate is drafted by the Geodesy, Cartography and Cadaster Agency
Agency: Geodesy, Cartography and Cadastre Agency
The draft of the estate is a graphic sketch of the estate with its borders, area in square meters, and a unique identifier of the area where the estate is located. This draft is issued by the Geodesy, Cartography and Cadastre Agency for areas where cadastral maps have been prepared and approved.
For areas where the cadastral maps have not been prepared and approved yet, the sketch is issued by the municipalities for urban areas, and by the municipal agricultural services for agricultural lands.
Time and cost: 3 days, BGN 28 (BGN 40 for a fast 3-days procedure and BGN 20 for a regular 7-days procedure. If obtained online, a 30% discount applies.)
Obtain the certificates of good standing for seller and buyer
Agency: Registry Agency of Bulgaria
Certificates are issued by the Registry Agency of Bulgaria. As of January 1st, 2008, all companies in Bulgaria are registered into the new centralized Business Register. The companies must have been registered by December 31st, 2011 into the Business Register. Companies that are not registered in the Business Register have been liquidated since January 1st, 2012.
Certificates are issued in order to make sure that the company is registered and active. Certificates for good standing are issued online since 2009.
Time and cost: Less than one day (online), BGN 8 (Hard copy document: BGN 5 for first page, BGN 2 for every following page. Electronic document: BGN 2.50 for first page, BGN 1.50 for every following page (Art. 16g of the Tariff for state fees collected by the Registry Agency))
The notary executes the transfer deed
Agency: Notary Public operating within the Sofia Regional Court
The notary executes the transfer deed and collects the money for payment of the state fee (transfer tax) and the registration fee. Usually the notary pays the state and registration fees. This is done for the clients’ convenience. The parties can pay the fees at the account of the tax authority where the estate is situated and bring the receipts to the notary. Local tax for acquisition of real estate varies between 0.1% to 3% of either the (i) the purchase price or (ii) the tax evaluation of the real estate (whichever one is higher). The local tax is subject to determination by each municipality on yearly basis.
Time and cost: 1 day, BGN 22,083.85
- Property Transfer Tax
Property transfer tax (for all kinds of property transfers except for donations) for the region of Sofia Municipality, determined with an Ordinance (Art. 35, para. 2 of the Ordinance for determining the amounts of the local fees) of the Sofia City Council, is 2.5 % of the sale price (or tax evaluation if higher).
- State fee for registration of the Notary Deed in the Property Register – Office Sofia.
According to Art. 2, para. 1 of the Tariff for the fees collected by the Registry Agency, the fee for registration of notary deeds (as well as other documents that may serve as property ownership titles) is 0.1 % over the sale price, but not less than BGN 10.
- Notary fees for execution of the property transfer and certification of the notary deed.
According to Art. 8 of the Tariff for the notary fees, the notary fee is calculated on the basis of the sale price/tax evaluation of higher (the so called “material interest”) in the following manner. For property transfers with material interest:
- Up to BGN 100 – the notary fee is BGN 30
- From BGN 101 – to BGN 1,000 – the notary fee is BGN 30 + 1,5 % of excess over BGN 100
- From BGN 1001 – to BGN 10,000 – the notary fee is BGN 43,50 + 1,3 % of excess over BGN 1,000
- From BGN 10 001 – to BGN 50,000 – the notary fee is BGN 160,50 + 0,8 % of excess over BGN 10,000
- From BGN 50 001 – to BGN 100,000 – the notary fee is BGN 480,50 + 0,5 % of excess over BGN 50,000
- From BGN 100 001 – to BGN 500,000 – the notary fee is BGN 730,50 + 0,2 % of excess over BGN 100,000
- Over BGN 500,000 – the notary fee is BGN 1530,50 + 0,1 % of excess over BGN 500,000 but no more than BGN 6,000.)
Registration of notarized deed at the Registry
Agency: Registry Agency of Bulgaria
The notary will register the notarized deed at the registration office with the respective district court. This can be done by the parties, but it is common that the notary will do it (and it is included in the above fees). The notary will pay registration and state fees collected previously. Registration should take 1 day, but it can take up to 3 days during busy periods
According to Art. 25, para. 5 of the Notary Public and Notarial Activity Law of 2009, the notary has to submit the notarized deed in the same day it is signed. In practice, this generally happens in Sophia. The notarized deed will be registered by the Notary Public with the respective office of the Registry Agency.
If a notary public does not perform their obligation for entry of a notary deed or other notary certified act with the real estate register, the interested persons are entitled to claim the suffered damages. Furthermore, the interested persons may address the Notary Chamber regarding the violations of the notary’s obligations. This may entail disciplinary proceedings against the respective notary public.
This amendment also ensures that the notaries public have access to the National Database “Population” and to the National Automatic Information Fund for personal identity documents. It also introduced an obligation for the notaries public to make special checks in the database and the fund when performing notary certifications connected to rights over real estates.
Time and cost: 10 days, Already paid in Procedure 6
Registration of the new owner by the Local Taxes and Fees Department of the competent Municipality
Agency: Local Taxes and Fees Department at the respective Municipality
For newly acquired property, the new owner submits a declaration to the municipal authorities, where the property is located. The owner must attach a copy of his/her ownership title (notary deed, etc.) to the declaration before filing it. The purpose of the declaration is to indicate the new owner of the real estate before the municipal authorities for the calculation of the local tax for owning of a real estate and the waste tax that are due according to Art. 10 and Art. 62 of the Local Taxes and Fees Act (LFTA).
Under Art. 14 of the LFTA, it was mandatory for new owners to submit the declaration to the municipal authorities within two months from the date of acquisition of the property. However, the LFTA was amended on December 29th, 2018, which became effective on January 1st 2019. Under Art. 51 (1) and (2) of the LFTA, the Registry Office, where the transfer deed is registered, must notify the municipal authorities of the new ownership. In addition, the notary public, who executed the transfer deed, shall have an obligation to notify the municipal authorities of the new ownership in 7 days after the execution of the notary deed. New owners no longer have the obligation to notify the municipality of this change of ownership. However, in practice, it is common for new owners to submit a declaration to the municipal authorities.
Time and cost: 1 day, no charge
