{"id":37582,"date":"2026-01-11T02:29:57","date_gmt":"2026-01-11T00:29:57","guid":{"rendered":"https:\/\/vbansko.com\/?p=37582"},"modified":"2026-02-11T20:45:39","modified_gmt":"2026-02-11T18:45:39","slug":"dds-when-purchasing-a-property","status":"publish","type":"post","link":"https:\/\/vbansko.com\/en\/dds-when-purchasing-a-property\/","title":{"rendered":"VAT on the purchase of property: When is it due and when is it not? (Handbook 2026)"},"content":{"rendered":"<article style=\"max-width: 850px;margin: 0 auto;font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif;line-height: 1.6;color: #333\">\n<p class=\"lead\" style=\"font-size: 1.1rem;margin-bottom: 25px\">\n        Planning an investment in a vacation home or permanent home in 2026? One of the most common &quot;hidden&quot; costs that continues to surprise buyers&#039; budgets is... <strong style=\"color: #d32f2f\">VAT on property purchase<\/strong>. The difference in the final price can be significant \u2013 as much as 20%, which at current market levels in resorts such as <strong><a class=\"wpil_keyword_link\" href=\"https:\/\/vbansko.com\/en\/for-bansko\/\" title=\"Bansko\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"4435\">Bansko<\/a><\/strong> is a significant amount. In this updated guide, we will take a detailed look at when this tax applies and when you are exempt from it.\n    <\/p>\n<div style=\"background-color: #e3f2fd;border-left: 5px solid #2196f3;padding: 20px;margin-bottom: 30px;border-radius: 4px\">\n<h3 style=\"margin-top: 0;color: #0d47a1\">Important for 2026:<\/h3>\n<p style=\"margin-bottom: 0\">The VAT rate in Bulgaria remains <strong>20%<\/strong>. This tax does not depend on whether the property is in Sofia, Plovdiv or Bansko, but the rules for its calculation are strict and depend entirely on the status of the building and the seller.<\/p>\n<\/p><\/div>\n<h2 style=\"color: #2c3e50;border-bottom: 2px solid #ecf0f1;padding-bottom: 10px\">1. When is VAT charged when purchasing a property? (New construction)<\/h2>\n<p>This is the most common case, especially for investors looking for apartments in newly built complexes in the Gramadeto area or around the base station of the lift in Bansko. You should expect additional 20% on top of the price if they are not included, when the following conditions are met:<\/p>\n<ul style=\"list-style-type: none;padding: 0\">\n<li style=\"background: #f9f9f9;padding: 10px 15px;margin-bottom: 10px;border-left: 4px solid #4caf50\">\u2714 <strong>The seller is VAT registered:<\/strong> Typically, these are construction contractors, investors, or real estate companies.<\/li>\n<li style=\"background: #f9f9f9;padding: 10px 15px;margin-bottom: 10px;border-left: 4px solid #4caf50\">\u2714 <strong>The building is &quot;new&quot;:<\/strong> According to the law, a &quot;new&quot; building is considered to be a building at the rough construction stage (Act 14) or with a Permit for Use (<a class=\"wpil_keyword_link\" href=\"https:\/\/vbansko.com\/en\/act-16-in-bansko-bitov-tok-airbnb-investment\/https%3a\/\/vbansko.com\/act-16-in-bansko-bitov-tok-airbnb-investment\/\" title=\"Act 16\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"2026\">Act 16<\/a>), issued before <strong>less than 5 years<\/strong>.<\/li>\n<\/ul>\n<p><strong>Be careful with ads!<\/strong> Often, prices for new construction are announced on property portals. <em>\u201e&quot;without VAT&quot;\u201c<\/em>, to make them appear lower. Always ask your broker if this is the final price.<\/p>\n<h2 style=\"color: #2c3e50;border-bottom: 2px solid #ecf0f1;padding-bottom: 10px;margin-top: 40px\">2. When is VAT NOT paid? (Secondary market)<\/h2>\n<p>Bansko is known for its active secondary market, where apartments are often resold by previous owners. In most of these cases <strong>VAT on property purchase<\/strong> is not due. This is called an \u201eexempt delivery.\u201c.<\/p>\n<p>You will not be charged tax if:<\/p>\n<ul>\n<li><strong>The seller is an individual:<\/strong> Even if the property is relatively new, if you are buying it from a private individual (for example, an Englishman selling his vacation property), the transaction is not subject to VAT.<\/li>\n<li><strong>The property is an &quot;old building&quot;:<\/strong> If more than <strong>5 years<\/strong> Since the issuance of Act 16, the sale has been exempt from VAT, even if the seller is a company.<\/li>\n<\/ul>\n<h2 style=\"color: #2c3e50;border-bottom: 2px solid #ecf0f1;padding-bottom: 10px;margin-top: 40px\">3. The Hidden Trader Risk: The Frequent Sales Rule<\/h2>\n<p>This is an extremely important point for those who buy investment properties in resorts. If an individual makes systematic sales, the NRA may classify him as a trader.<\/p>\n<div style=\"background-color: #fff3e0;border: 1px solid #ffe0b2;padding: 20px;border-radius: 4px\">\n<h4 style=\"margin-top: 0;color: #ef6c00\">\u26a0 The NRA&#039;s red light<\/h4>\n<p>If the seller realizes <strong>3 or more deals<\/strong> within a calendar year, the tax authorities will almost certainly inspect his activities. If they register him for VAT, the transaction price may be subject to taxation.<\/p>\n<\/p><\/div>\n<p><strong>Exceptions:<\/strong> VAT is not due if you sell inherited property or the home you lived in (personal property), regardless of the number of sales.<\/p>\n<h2 style=\"color: #2c3e50;border-bottom: 2px solid #ecf0f1;padding-bottom: 10px;margin-top: 40px\">4. Foreigners and VAT: Does it apply to properties in Bansko?<\/h2>\n<p>The Bansko market continues to be saturated with deals with foreign nationals. Many buyers are wondering if nationality changes the rules.<\/p>\n<p>The short answer is: <strong>VAT follows the property, not the passport.<\/strong><\/p>\n<table style=\"width: 100%;border-collapse: collapse;margin-top: 20px;margin-bottom: 20px\">\n<thead>\n<tr style=\"background-color: #2c3e50;color: white\">\n<th style=\"padding: 12px;border: 1px solid #ddd\">Scenario<\/th>\n<th style=\"padding: 12px;border: 1px solid #ddd\">Is VAT due?<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 12px;border: 1px solid #ddd\">You are buying an old apartment from an Englishman (individual)<\/td>\n<td style=\"padding: 12px;border: 1px solid #ddd\"><strong>NO<\/strong> (Free shipping)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px;border: 1px solid #ddd\">You are selling NEW construction to a foreigner<\/td>\n<td style=\"padding: 12px;border: 1px solid #ddd\"><strong>YES<\/strong> (Foreigners cannot reclaim VAT at the border)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 12px;border: 1px solid #ddd\">A non-EU citizen buys land\/yard<\/td>\n<td style=\"padding: 12px;border: 1px solid #ddd\">Prohibited for individuals (Company registration required -&gt; possible VAT effects)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 style=\"color: #2c3e50;border-bottom: 2px solid #ecf0f1;padding-bottom: 10px;margin-top: 40px\">5. How is VAT calculated on a transaction?<\/h2>\n<p>VAT is charged on <strong>the agreed selling price<\/strong>. It is important to know that notary fees and local acquisition tax (which in Bansko Municipality is a certain percentage) are calculated on the price. <strong>without<\/strong> VAT or on the tax assessment, if it is higher.<\/p>\n<p><strong>Example calculation:<\/strong><\/p>\n<ul>\n<li>Property price (excluding VAT): 100,000 euros<\/li>\n<li>VAT (20%): 20,000 euros<\/li>\n<li><strong>Final price to the seller: 120,000 euros<\/strong><\/li>\n<\/ul>\n<h3 style=\"color: #2c3e50;margin-top: 30px\">Land, garages and parking spaces<\/h3>\n<p>When purchasing a regulated plot (RLE) from a company, VAT is mandatory. Agricultural land, however, is exempt. Garages and parking spaces follow the logic of housing - if they are new (under 5 years old) and are sold by a company under VAT, the tax is 20%.<\/p>\n<hr style=\"border: 0;height: 1px;background: #ddd;margin: 40px 0\">\n<p style=\"font-style: italic;background: #f1f1f1;padding: 15px;border-radius: 5px\">\n        <strong>Expert tip:<\/strong> Before signing a preliminary contract for a property in Bansko or the region, always demand that the price clause be clear \u2013 \u201ePrice including VAT\u201c or \u201ePrice excluding VAT.\u201c If you have doubts about the seller\u2019s status, consulting an accountant can save you thousands of euros.\n    <\/p>\n<\/article>","protected":false},"excerpt":{"rendered":"<p>\u041f\u043b\u0430\u043d\u0438\u0440\u0430\u0442\u0435 \u0438\u043d\u0432\u0435\u0441\u0442\u0438\u0446\u0438\u044f \u0432\u044a\u0432 \u0432\u0430\u043a\u0430\u043d\u0446\u0438\u043e\u043d\u043d\u043e \u0436\u0438\u043b\u0438\u0449\u0435 \u0438\u043b\u0438 \u043f\u043e\u0441\u0442\u043e\u044f\u043d\u0435\u043d \u0434\u043e\u043c \u043f\u0440\u0435\u0437 2026 \u0433\u043e\u0434\u0438\u043d\u0430? \u0415\u0434\u0438\u043d \u043e\u0442 \u043d\u0430\u0439-\u0447\u0435\u0441\u0442\u0438\u0442\u0435 \u201e\u0441\u043a\u0440\u0438\u0442\u0438\u201c \u0440\u0430\u0437\u0445\u043e\u0434\u0438, \u043a\u043e\u0438\u0442\u043e \u043f\u0440\u043e\u0434\u044a\u043b\u0436\u0430\u0432\u0430\u0442 \u0434\u0430 \u0438\u0437\u043d\u0435\u043d\u0430\u0434\u0432\u0430\u0442 \u043d\u0435\u043f\u0440\u0438\u044f\u0442\u043d\u043e \u0431\u044e\u0434\u0436\u0435\u0442\u0430 \u043d\u0430 \u043a\u0443\u043f\u0443\u0432\u0430\u0447\u0438\u0442\u0435, \u0435 \u0414\u0414\u0421 \u043f\u0440\u0438 \u043f\u043e\u043a\u0443\u043f\u043a\u0430 \u043d\u0430 \u0438\u043c\u043e\u0442. 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