Overview:
Selling costs are minimal when selling property in Bulgaria.  If the seller goes through an estate agent, then fees will vary depending on the agent, but a typical price would be 3-5% of the overall sales price.  People choosing to sell the property themselves, on the internet for example, would clearly save themselves even more money.

Transfer taxes
Apart from corporate tax, no other direct taxes are levied on the transfer of real property. The transfer is, however, subject to notary and municipal fees. The notary fees are paid on the higher of the market price or the book value of the property at varying rates, with the maximum being BGN 3, 500. In addition, 2% of the market value of the property is paid to the municipality in which the real property is situated.

If the parties have agreed that the tax is to be paid by both, they are jointly and severally liable.  If the parties have agreed that the tax is to be paid by the transferor, the transferee is a surety.

The parties may agree that the transfer tax - as well as the notarial and registration fees due in case of a real estate transaction - shall be paid by half or entirely by the seller.  The VAT tax is to be paid to the responsible tax authority by the seller, although it is actually borne by the buyer.  If the seller is a company, it is required to pay a corporate tax in relation to the received purchase price.  If the seller is a natural person, he/she pays a personal income tax over the purchase price.

Capital Gains Tax
There is no Capital Gains Tax on the profit when your company sells the property but the standard rate of corporate tax (15% in 2005)