Buying or selling a new-build property before 2027?
In 10 minutes we will tell you whether your deal falls under the new VAT rules. Free of charge.
Message us on WhatsAppCall us: +359 876 111 535From 2027, buying a new-build home in Bulgaria quietly "without VAT" will no longer be possible. The Ministry of Finance proposes that every seller of new buildings and building plots must register for VAT before the very first sale. For the market this means the end of the "sell the day before registering" scheme – and a possible 20% price rise on some listings.
What the Ministry of Finance proposes
The amendments to the VAT Act come in one package with a 30% increase in the tax valuations of property – this will affect both the annual property tax and the property transfer tax. The idea is simple: anyone selling a new building or part of it, together with the land, must register for VAT in advance – regardless of turnover.
The deadline is no later than 7 days before the deed is signed at the notary. The property price is taxed at the standard 20% rate. The same requirement applies to owners of regulated plots (UPI) who sell them or grant a right to build.
Today, registration is mandatory only once annual turnover exceeds the threshold, with 7 days to apply. That gap was used: the property was sold a day or two before registration, and no VAT was charged. The threshold is set to rise from 51,130 to 75,000 euros, but for homes in large cities it remains below a typical deal price. For how VAT works in general, see our article "Value Added Tax".
The ministry explains the measure as a fight against VAT evasion and expects around 120 million euros of extra revenue per year.
Who is affected
| Who sells | What changes |
|---|---|
| Large developers | Almost nothing – they have long been VAT-registered |
| Single-project companies | The "one-day sale" scheme no longer works |
| Private individuals reselling new homes | VAT registration before the sale, the property costs 20% more |
| Owners of building plots | Registration before selling or granting a right to build |
| Owners selling their own home as a one-off | Nothing – the exemption remains |
A home counts as "new" if the building is at the shell (rough construction) stage or if less than 60 months have passed since the occupancy permit (Act 16). On the risks of these stages, read: buying off-plan, construction delays in Bulgaria and developer warranties after Act 16.
Check yourself in one minute
If you answer "yes" to at least one question, the new rules may apply to you:
- Did you buy a property off-plan and plan to sell it?
- Has less than 5 years passed since your building received Act 16?
- Do you own a plot (UPI) and are thinking of selling it or signing with a developer?
- Are you buying a new-build, and the contract does not say whether VAT is included in the price?
What this means for you: the VOTCHINA view
In Varna and the coastal resorts, many people buy off-plan and resell before the building is completed or shortly after. This segment will feel the new rules first. The changes are still a draft law and may be amended – but it pays to prepare now.
If you are buying
- Ask whether VAT is included in the price and put it in the preliminary contract.
- Check whether the seller is VAT-registered – otherwise the price may rise at the last moment.
- Budget deals planned for 2027 with possible VAT and notary costs.
We check the seller and the property before you pay a deposit – following our legal audit protocol.
Check the seller: WhatsAppIf you are selling
- Check the date of Act 16 – whether your property counts as "new".
- If you were planning to sell anyway, it is better to complete the sale before the amendments take effect.
- A one-off sale of your own home still does not require VAT registration.
We prepare a market analysis and valuation and bring the property to a deal in 7–10 days. If registration is needed after all, our accounting support will help.
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VOTCHINA brokers check the seller's status and the tax consequences before any document is signed.
Message us on WhatsAppCall us: +359 876 111 535Email usSource: Sega, 28 September 2026. This article is for information only; the draft law may change.
Planning to buy off-plan?
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