In Bulgaria the choice turns on VAT, on whether the building has its commissioning documents, and on who maintains a resort complex after the developer leaves.
Bulgaria sells two very different products under the word apartment: a new unit in a modern or resort complex, and an older flat in a building that may date from the communist era. The tax difference is modest; the legal and condition differences are not. The points below are summarised from agency, law-firm and listing sources as of 2026 and should be confirmed with a Bulgarian lawyer.
Tax: VAT is the main difference
New buildings sold by a VAT-registered developer are reported to carry 20% VAT in the price, and older buildings are generally VAT-exempt. One source describes the VAT-able period as within 60 months of commissioning, so ask the seller to state the VAT treatment in writing. A local transfer tax also applies, reported at roughly 1.3% to 3% depending on the municipality, with Sofia at 3%. Sources put total buyer costs at roughly 4% to 8% once notary, registration and agent fees are added; treat that as an estimate. Annual municipal property tax is reported at 0.1% to 0.45% of the assessed value, plus a waste fee.
Acts 14, 15 and 16
Bulgarian construction runs through sequential documents: Act 14 for the rough structure, Act 15 for acceptance by the technical parties, and Act 16 with the permit for use, which legally allows the building to be used. Reported practice is that a building without it cannot be legally used for its purpose and lenders will usually not finance it. For a new build, check that the whole chain exists. For an off-plan purchase, payments are commonly staged against these acts, and an escrow arrangement is preferable; we did not find a statutory requirement for one, so negotiate it.
Warranty
Ordinance No 2 of 31.07.2003 sets minimum warranty periods that, as summarised by a legal guide, run from 2 to 13 years depending on the type of work and start at commissioning. The parties may agree longer periods but not shorter. Once the period expires, defects in common parts become the owners' problem, so ask the developer which periods apply to which works.
Resort complexes: the cost after handover
Holiday complexes on the Black Sea and in ski towns often charge yearly maintenance by the square metre. Listings show about €12 per m² in several Sunny Beach complexes and about €12 to €14.40 per m² in Bansko complexes, sometimes including a spa or internet. A low purchase price can be offset by high fees, and a complex whose developer has left can decay quickly. Ask for the fee history, the management company and the reserve fund.
Resale: what to check
- Whether the building has Act 16 or equivalent. For older communist-era buildings, ask for written confirmation of legal status from DNSK, the national building control directorate.
- Whether the physical flat matches the cadastral plan; unauthorised additions carry a demolition risk.
- The energy performance certificate, which sources say is required for transactions.
- The condition of common parts and the owners' association finances.
How to decide
- Choose new if you want a modern layout, a warranty and easy financing, and you will verify Act 16, VAT and the maintenance regime.
- Choose resale if location, price per square metre or immediate availability matter more, and you will pay for a legal check and a survey.
- For rental income, check whether the unit can be registered for short lets before you buy; see our Bulgaria short-term rental rules guide.
FAQ
Do I pay VAT on a new apartment in Bulgaria? Reportedly 20% is included in the price when the developer is VAT-registered and the building is new; resale is generally exempt. Confirm it in the contract. What is Act 16? The final act and permit for use that legally allows the building to be used; ask to see it. How long is the developer's warranty? Ordinance No 2 sets minimum periods that run from 2 to 13 years depending on the work. Is my off-plan payment protected? Not automatically; negotiate staged payments tied to the acts and an escrow arrangement.
How we help
We help you compare specific new-build and resale options, check the documents with a Bulgarian lawyer and review complex fees before you commit. Informational only, not legal, tax or investment advice; rules and figures change, so confirm the current position for your property before relying on it.