The local acquisition tax is the single largest one-off cost when buying property in Bulgaria — typically 60-70% of all closing costs (tax, notary fee, registration fee). Understanding it in advance avoids surprises on closing day.
The tax is governed by Articles 44-51 of the Local Taxes and Fees Act (LTFA). The exact rate for each municipality is set annually by the local municipal council within the statutory range.
The tax applies to real estate, limited property rights over it, and motor vehicles acquired for consideration — i.e. through sale, exchange, or other transactions involving reciprocal performance.
The taxpayer is the acquirer (the buyer). The parties can agree otherwise in the preliminary contract, but by default the obligation falls on the buyer.
The tax is calculated on the property's value at the time of transfer:
| City | 2026 rate |
|---|---|
| Varna | 3% |
| Sofia | 3% |
| Plovdiv | 3% |
| Burgas | 3% |
| Stara Zagora | 3% |
| Ruse | 3% |
| Pernik | 3% |
| Pleven | 2.85% |
The statutory range is 0.1-3%, but most major cities apply the maximum rate. Always check the exact figure in the municipality's own ordinance — we're happy to do this for you.
Exempt acquisitions include: the state and municipalities; publicly funded educational, cultural and scientific organisations; social and integrated health-social care services; the Bulgarian Red Cross; nationally represented organisations of people with disabilities; funds supporting disaster victims and heritage preservation; medical facilities under Art. 5(1) of the Medical Facilities Act; legally registered religious denominations — for places of worship and the land beneath them.
The tax is paid at the point of transfer — on the day the deal is notarised, before signing the notarial deed. It's paid to the municipality where the property is located (for vehicles — at the taxpayer's permanent address). It's administered by the municipal administration under the Tax and Social Insurance Procedure Code.
Under Art. 4(2) LTFA, tax not paid on time is collected together with interest under the Interest on Taxes, Fees and Similar State Receivables Act.
