Prices up, sales down: the Bulgarian market, the property transfer tax and what to check before the notary

Prices in Bulgaria are rising faster than almost anywhere else in the EU. At the same time, far fewer purchase deeds are being registered in the Bansko/Razlog area. This issue sets out the figures with their source and date, explains what the municipality charges in tax on a purchase, and lists five points that should be settled before the notary appointment.

Market picture: three figures a buyer rarely knows

Anyone buying in Bulgaria today is buying in a market where sellers expect higher prices but fewer buyers sign. Three figures show it.

1. Prices: existing homes are rising faster than new builds

Bulgaria's house price index for Q2 2026 stood 15.5% above the previous year. Existing dwellings rose by 17.6%, new dwellings by 12.3%. The figures are provisional. According to a report by the BTA news agency of 1 October 2026, citing Eurostat, this is the second-highest increase in the EU after Portugal.

Source: Eurostat, dataset prc_hpi_q, as of 1 October 2026.

2. Sales: far fewer purchases in the Bansko/Razlog area

The Razlog land registry office, which also covers Bansko, registered 1,794 purchase deeds from January to September 2026, against 2,139 in the same period a year earlier. That is 16.1% fewer. In Q3 alone the number fell from 846 to 589, a drop of 30.4%. Across Bulgaria it fell by 18.8% over the same period.

The count covers registrations of all property types including land, not only apartment sales. We calculated the percentages from the official figures.

Source: Агенция по вписванията (Registry Agency), quarterly property register statistics, column „Продажби“ (sales), as of 1 October 2026.

3. Building: more projects, but smaller ones

In Blagoevgrad district, permits were issued for 129 residential buildings in Q2 2026, 8.4% more than a year earlier. The number of dwellings in those permits, however, fell to 364, down 7.6%. Construction starts show the same picture: 125 buildings (up 35.9%) but 343 dwellings (down 13.2%). Across Bulgaria, the number of dwellings in permits rose by 14.0%.

So more small houses and complexes are being built and fewer large blocks. For buyers this means that new-build supply in the region is not growing as much as the number of permits suggests.

Source: НСИ (National Statistical Institute), Blagoevgrad regional office, building permits and construction starts, Q2 2026, published 25 August 2026.

On currency: Since 1 January 2026 the euro has been Bulgaria's currency, at the fixed rate of 1.95583 leva. Purchase prices, tax values and notary fees are stated in euro (Regulation (EU) 2025/1409).

Law and tax: the transfer tax on a property purchase

Anyone buying property in Bulgaria pays a transfer tax to the municipality. Each municipality sets the rate itself, and the tax base does not always start from the purchase price.

• Who pays: the buyer. In an exchange, whoever receives the more valuable asset pays. In force (Local Taxes and Fees Act, ЗМДТ, Art. 45(1)).
• Tax base: the agreed price, but at least the tax assessment value (данъчна оценка) of the property. Stated in euro since 2026. In force (ЗМДТ Art. 46(1) and (2) item 1).
• Range: the municipal council sets the rate between 0.1% and 3%. In force (ЗМДТ Art. 47(2)).
• When due: on transfer, in practice before the notary appointment, payable to the municipality where the property is located. In force (ЗМДТ Art. 49(1) and (2)).
• Bansko: 3.0%, the statutory maximum. In force since 1 January 2025, current version since 1 January 2026 (Bansko municipal ordinance on local taxes, Art. 36(2), current version Decision No. 648 of 29.12.2025).
• Razlog: the rate was 2.2% until 2025. An increase for 2026 was proposed and adopted by the administration. We were unable to see the council decision. Status unclear.
• From 2027: the Ministry of Finance intends to raise the base values used for tax assessment. That raises the floor of the tax base, and with it the transfer tax wherever the tax assessment value is above the purchase price. The exact steps are contradictory in the documents. Draft, public consultation No. 12735-K, 23.09. to 23.10.2026.

What this means before the notary: it pays to have two things in writing: the current tax assessment value of the property and the rate of the municipality where it is located. In Razlog, ask the municipality for the rate directly before you sign.

What should be checked before the notary, besides the money

Before a purchase, the law firm checks ownership, encumbrances and the contract. It does not check the condition of the building. These five points therefore belong before the preliminary contract, at the latest before the notary appointment:

1. Structure: Are there visible cracks or signs of settlement? What condition are the roof, façade and balconies in, as far as they are accessible?
2. Damp and mould: Is there visible damp or mould, condensation marks or any sign of earlier water damage?
3. Building services: Inspect heating, hot water and ventilation visually. Does any installation have obvious defects?
4. Documents: Do the papers provided show Act 16 and the occupancy permit? If not, what stage has construction reached? The legal assessment belongs with the law firm.
5. Common parts: Look at the staircase, basement, roof and plant rooms where they affect the value or the running costs of the apartment.

Why before: before the notary appointment, a finding can still be negotiated. After it, it can only be repaired.

On request we inspect the property on site and record its visible condition on the day of the visit in a written report with photographs. It is not an expert survey. Arrange an orientation call to discuss it. Price on request.

Orientation, not legal or tax advice. All information without guarantee, as of 22 October 2026.