Many sellers are unpleasantly surprised when they find out that the „net amount“ they will receive is less than the agreed sales price. In this detailed guide, we will look at all the mandatory taxes, notary fees and hidden administrative costs so that you can plan your budget down to the last euro.
The big question: Who pays the transaction costs?
According to Bulgarian law (Law on Obligations and Contracts), the costs of transferring the property are divided equally between the buyer and the seller, unless otherwise agreed. However, in commercial practice in the region, the custom has become established the buyer to bear the notary fees and local tax.
Important: This is subject to negotiation! Any offer for taxes when selling a property in Bansko must be explicitly specified in the Preliminary Agreement so that there are no disputes on the day of confession.
1. Income Tax (Profit Tax) – 10%
This is the most serious expense that directly affects the seller and is often the subject of confusion. This tax is not paid at the notary, but is declared in the annual tax return.
According to the Personal Income Tax Act (Personal Income Tax Act), you owe 10% tax on the difference between the acquisition price and the selling price (the profit), UNLESS you do not fall into one of the following exemption categories:
- The 3-year rule: If you are selling a property that was your primary residence and you have owned it for more than 3 years. (Note: This is rarely applicable for holiday properties in Bansko, as they are usually not registered as a primary residence.)
- The 5-year rule: You can sell up to two real estate properties (regardless of what kind) within one calendar year tax-free IF you have owned them for more than 5 years.
Practical example (Case 2026):
You bought a studio in “Gramadeto” in 2023 for 30,000 euros. You sell it in 2026 for 50,000 euros. Since 5 years have not passed, you owe 10% tax on the profit (20,000 euros).
Tax owed to the National Revenue Agency: 2,000 euros.
2. Local property acquisition tax
When we talk about taxes when selling a property in Bansko, we cannot miss the local tax. It is determined by the Bansko Municipal Council. In 2026, it is fixed at 3% of the sales price or the tax assessment (whichever is higher).
Although it is usually paid by the buyer, if you have agreed to split the costs (“split costs”), you should plan 1.5% of the transaction value as your expense.
3. Notary fees and registration
Notary fees are calculated at a rate based on the material interest. They are always subject to 20% VAT. Here is a breakdown of these costs:
| Type of expense | Estimated value (2026) | Who usually pays? |
|---|---|---|
| Notary fee | ~ 0.8% – 1.2% of the price (+ VAT) | Buyer / Shared |
| Registration fee (AB) | 0.1% of the price | Buyer / Shared |
| Preparation of a notarial deed | 100 – 200 euros (depending on the office) | Buyer |
4. Hidden administrative costs for the seller
While large fees are often borne by the buyer, preparing the documents is the sole financial responsibility of the seller. Without a complete set of documents, the notary will not acknowledge the transaction.
Required documents and prices:
- Property tax assessment: It is issued by the Municipality of Bansko. It costs about 10-20 euros (depending on the deadline - regular or express order).
Attention: To receive it, you must have paid all old property tax and garbage tax debts.
- Sketch from the Cadastre (AGKK): A mandatory document for every property. The price is between 20 and 50 euros. Its validity is unlimited until there are changes in the cadastral map.
- Certificate of Weights (CWT): It is issued by the Registry Agency. It costs around 25-30 euros and proves that the property is “clear” of mortgages and foreclosures.
- Marital status certificate: It is issued by the GRAO at the place of residence.
5. Specific situations: Mortgages and maintenance fees
When calculating your taxes when selling a property in Bansko, don't forget two often overlooked points:
Mortgage cancellation: If the property was purchased with a loan that you repay with the proceeds from the sale, you will owe a mortgage cancellation fee. This includes bank fees and a notary fee (around 150-300 euros).
Maintenance fee: To sell an apartment in a gated complex in Bansko, you must present an official note from the house manager or management company that you have no maintenance obligations. If you owe fees for past years, you will have to pay them before the deal.
6. How to calculate the real profit?
Let's summarize everything in a sample calculation for selling an apartment in Bansko at a price 60,000 euros (owned under 3 years):
| Selling price | 60,000 € |
| (-) Brokerage commission (3% excluding VAT) | – €1,800 |
| (-) Documents and certificates | – €100 |
| (-) Profit tax (for example on 20k profit) | – €2,000 |
| NET AMOUNT TO RECEIVE | 56,100 € |
Do you need a financial plan for the sale?
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Conclusion
Knowing everyone taxes when selling a property in Bansko is your strongest weapon. Always set aside a buffer of about 500-1000 euros for unforeseen administrative costs and repayment of old utility bills. If you are not sure whether you owe 10% profit tax, consult us or an accountant before signing the contract. Proper planning guarantees peace of mind and maximum return.
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