Buyer's Guide (Part 2): Financial Plan and the Trap "“Maintenance fee“"“

Once you have chosen the area and property type (from Part 1), it is time for the dry math. One of the biggest misconceptions of new investors in Bansko is that the expense ends with the payment of the sales price.

In reality, the transaction in Bulgaria comes with additional government and notary fees, and owning a property in a gated complex can generate serious annual costs.

This article is your financial navigator so that there are no unpleasant surprises after signing the notarial deed.

Financial planning and home budget management

1. One-time acquisition costs

When planning your budget, always add between 4% and 6% above the announced sale price for the transfer of ownership. In the municipality of Bansko, the local tax is higher than the national average.

Here is a sample property calculator with price 50,000 euros:

Note: These costs are usually fully covered by the Buyer, unless otherwise agreed.

2. The “Maintenance Fee” Trap

This is the most discussed and controversial topic in Bansko. Maintenance fee is an annual amount you pay for the management of the common areas of the building.

Why does it vary so much?

• Low fee (3-5 euros/sq.m): In ordinary residential buildings without extras. Covers a cleaner, elevator, lighting in the entrance and minor repairs.
• Average fee (8-10 euros/sq.m): In complexes with security, reception and maintained green areas/snow.
• High fee (12-16+ euros/sq m): In luxury aparthotels with a working SPA center, swimming pools, lobby bar and shuttle to the lift.

Attention: What to check in the maintenance contract?

Before you buy, be sure to ask to see the support contract. Look for „red flags“:

1. Inflation clause: Does the management company have the right to raise the fee unilaterally every year?
2. What does it include? It often turns out that using the SPA center is an additional charge, despite the high fee.
3. Outstanding Fees: Are there any debts accrued by the old owner? In Bulgaria, these are sometimes sought by the new owner or lead to the suspension of access to common areas (electricity/elevator).

3. The Hidden Risk: Household vs. Industrial Electricity and Water

This is a Bansko specific feature that can cost you dearly. Some complexes built as hotels have never changed their status to residential buildings. This means that electricity and water bills are industrial (in the name of the construction company), not household (in your name).

• The risk: Industrial electricity can be significantly more expensive than household electricity, and you are dependent on whether the complex manager pays the bills correctly.
• Tip: Always ask: “Does the property have a separate household electricity account with Electrohold?”

4. Annual state taxes

The good news is that annual property taxes in Bulgaria are among the lowest in Europe. For a 60 sq m apartment in Bansko you can expect:

• Building tax + Garbage fee: About 50 – 100 euros annually (total). They are paid to the Municipality of Bansko in two installments or with a discount at the beginning of the year.

5. Return on Investment (ROI)

If you are buying for rental purposes, make a realistic calculation:

• Income: The winter season is strong (December-March) but short. Summer tourism is growing, but prices are lower.
• Cost: Subtract the maintenance fee, Booking/Airbnb commissions (15-20%), heating, laundry and cleaning costs.
• Reality: Currently, the realistic net yield in Bansko is between 4% and 7% annually, depending on management.

Next step: You already know how much it will cost you. Now let's see how the deal itself works step by step. ???? Read Part 3: Purchase Process – From Deposit to Notary